Kamis, 25 Oktober 2012

INDONESIA CONTRIBUTION IN WORLD’S ECONOMY


 First I will explain about whait is contribution. Contribution is what we can give to another. In this case, we talk about what Indonesia can/has given to the world’s economy. Indonesia is the largest economy in Southeast Asia and is one of the emerging market economies of the world. Indonesia is one oof the G-20’s member.
As we know, we had an economic crisis because of Soeharto. The value of Rupiah to dollar is decreasing.  all of the investors in Indonesia exit the market because they gain no profit. In that time,The effects of the financial and economic crisis were severe. By November 1997, rapid currency depreciation had seen public debt reach US$60 bn, imposing severe strains on the government's budget. In 1998, real GDP contracted by 13.7%. The economy reached its low point in mid-1999 and real GDP growth for the year was 0.3%. Inflation reached 77% in 1998 but slowed to 2% in 1999.
The rupiah, which had been in the Rp 2,600/USD1 range at the start of August 1997 fell to 11,000/USD1 by January 1998, with spot rates around 15,000 for brief periods during the first half of 1998. It returned to 8,000/USD1 range at the end of 1998 and has generally traded in the Rp 8,000–10,000/USD1 range ever since, with fluctuations that are relatively predictable and gradual. After  that moment until now, we had a difficulties to make our value of Rupiah increase. 

We had a good relaionship with United States of America which is one of the most powerful country in the world especially in economics. US exports to Indonesia about $5.00 billion. The main exports were construction equipment, machinery, aviation parts, chemicals, and agricultural products. U.S. imports from Indonesia in 1999 totaled $9.5 billion and consisted primarily of clothing, machinery and transportation equipment, petroleum, natural rubber, and footwear. Economic assistance to Indonesia is coordinated through the Consultative Group on Indonesia (CGI), formed in 1989. It includes 19 donor countries and 13 international organizations that meet annually to coordinate donor assistance.

Beside that, we have a big contribution in SouthEast Asia. We export our labor, natural resources, put some investment,etc. We are one of the main producer of oil and gas which are very important in human life. We export our oil and gas to many countries. Beside that we have many good natural resources.
In May 1998, Indonesia was in turmoil. During the previous 10 months, the currency had plunged 80 percent in value and food prices had soared 200 percent.

Rioters were marauding through Jakarta, torching businesses owned by wealthier ethnic Chinese, who were fleeing for their lives. Safely ensconced in Hong Kong, where he was on vacation, an Indonesian-Chinese retailer named Djoko Susanto could have sat tight. Instead, he flew home to defend his four supermarkets from the mob.

As he transited Singapore, where planes were arriving from Indonesia full and returning empty, the airline’s crew stared at him in disbelief. “There were five people on my flight,” Susanto recalls. “And I was the only Chinese.” While he couldn’t save his stores — all four were looted to the last light bulb — Susanto was on hand to seize an opportunity that would make him a billionaire, Bloomberg Markets reports in its June issue.

More than 1,100 people died in the 1998 riots, and the economy contracted 13 percent that year. Doomsayers predicted that the world’s fourth-most-populous nation would fragment. Indonesia would survive and that its vast mineral and agricultural resources would enrich many of its 238 million citizens, creating a dynamic consumption-driven economy.

In the last quarter of 2011, Indonesia’s GDP growth, while lagging China’s 8.9 percent, exceeded India’s 6.1 percent, Russia’s 4.8 percent and Brazil’s 1.4 percent, according to data compiled by Bloomberg. In this economic environment, Susanto has thrived.

In 2009, he sold 10 percent of the shares in his company, PT Sumber Alfaria Trijaya, on the Indonesia Stock Exchange, raising 135 billion rupiah ($15 million). As of May 1, the stock had climbed more than 13-fold compared with a threefold increase in the Jakarta Composite Index.

From the beginning of 2009 to May 1, the Jakarta Composite was the world’s fifth-best-performing benchmark index out of 96 tracked by Bloomberg, returning 232 percent compared with a 70 percent rise in the MSCI BRIC Index. Indonesia is the world’s No. 1 exporter of power-station coal, tin and the palm oil that greases one-third of the world’s frying pans and woks. It’s also home to the largest gold mine and the single biggest recoverable copper reserve and is the world’s second-biggest exporter of liquefied natural gas.

Foreign direct investment — the biggest source being neighboring Singapore — jumped 20 percent last year to a record $19.3 billion. In the space of five weeks in December and January, both Fitch Ratings and Moody’s Investors Service raised Indonesia’s debt to investment grade. By contrast, Standard & Poor’s in January downgraded nine European nations, five months after stripping the U.S. of its AAA status.

Under President Suharto’s reign from 1967, businesses in favor with the government exploited an economy reliant on crude oil exports. IMF crisis-management measures began to change that, forcing the breakup of some monopolies. From 1998 to 2004, three more presidents came and went before the election of Susilo Bambang Yudhoyono.

When Yudhoyono, 62, a retired general who underwent some military training in the US, came to power, he sprinkled his administration with Western-educated technocrats such as Boediono, who ran the central bank before becoming vice president. Yudhoyono pledged to attract more investment by cutting interest rates, fighting endemic corruption, raising living standards and fixing crumbling roads and power stations.

In December, the parliament passed legislation making it easier for the government to acquire land for infrastructure construction, and Yudhoyono’s government says it wants to spend $18 billion this year on such projects. Jakarta has a population of 10 million and no subway.

Whether or not Indonesia can fix its infrastructure, Djoko Susanto’s company stands to benefit. Ever the entrepreneur, Susanto has turned congestion on the streets into an advertising opportunity

RESOURCES:
en.wikipedia.org/wiki/Indonesia_economy
JAKARTA GLOBE NEWSPAPER MAY 3 2012

Writer :
Name : Irwanto Prasetio
Npm : 120110120178
Twitter : https://twitter.com/irwantoprasetio

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9 komentar:

Anonim mengatakan...

It's good to have young generation who still notice the role of their country in the world!

Anonim mengatakan...

GOOD ESSAY!Interesting topic:D

Anonim mengatakan...

You're really right about this. I like your article, good job :D

Anonim mengatakan...

a good thinking and a nice essay. Good Job!

Anonim mengatakan...

And the effect of Indonesia's crisis still happens until now.

Anonim mengatakan...

Nice essay!

Anonim mengatakan...

nice! this essay open my mind.

Anonim mengatakan...

This essay is very nice and helpful , as the discussion is easy to understand , GOOD JOB !!!

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