INDONESIA, the largest archipelago in the world to form a single state, consists of five main islands and some 30 smaller archipelagoes, totaling about 18,110 islands and islets of which about 6,000 are inhabited.
The name "INDONESIA" is composed of the two Greek words: "Indos" meaning India and "Nesos" meaning islands. The Indonesian archipelago forms a crossroad between two oceans, the Pacific and Indian oceans and a bridge between two continents, Asia and Australia. Because of its strategic position, therefore, Indonesia’s cultural, social, political and economic patterns have always been conditioned by its geographical position.
Since the Asian Economic Crises, Indonesia has experienced major transition in political and economic sectors. Today, with an improved business environment and a stable political structure, Indonesia is witnessing a tremendous growth in both trade and industry output, and foreign investment. Strong commitment in easing bureaucratic procedures will enable the trend to continue forward.
In macro economy, Indonesia has enjoyed a high growth in recent years. Acceleration of economic growth is notable during the 2004 and 2008 period, and private consumption continues to play a key role in the economy. The Government has given special focus on such key areas as investment, macro economic stability, trade, energy, and agriculture which in turn allow Indonesia to enjoy its most rapid growth since the Crises.
In 2007 Indonesia was listed as the 20th largest economy with a nominal GDP of USD 432.8 billion (World Bank). In 2005-2008 Indonesia posted an average GDP growth of 6.0%. In 2009, amid the global crisis, the national economic growth in 2009 was estimated at above four percent, or the third rank among the G-20 member countries. The growth will continue to stabilise in 2010, predicted at 5.5% - 6.0%.
Such a promising picture has allowed Indonesia to be invited in 2008 - along with China, India, South Africa, and Brazil - to join the club of Enhanced Engagement Countries of OECD. As an initial step, Indonesia has become a full member of OECD Development Center.