Overview

Out of a population of 234 million, more than 32 million Indonesians currently live below the poverty line and approximately half of all households remain clustered around the national poverty line set at 200,262 rupiahs per month ($22).

Employment growth has been slower than population growth. Public services remain inadequate by middle income standards. Indonesia is also doing poorly in a number of health and infrastructure related indicators, and as a result, may fail to reach some Millennium Development Goals (MDG) targets.

Data from 2009 shows that Indonesia still suffers 307 deaths for every 100,000 live births, while the MDG aims to reduce this to 105 deaths by 2015. Maternal mortality remains high, and may be an MDG target that will not be met. Also, despite recent progress, access to improved sanitation facilities currently stands at 68 percent of the population, which remains significantly short of the MDG target of 86 percent.
 

There was a slight drop in Indonesia’s ranking in the “2011 Doing Business” report from 126th in 2011 to 129th in 2012. Significant challenges remain, however, with Indonesian businesses identifying labor, infrastructure and general regulatory reforms as critical to increased investment.

Despite these conditions, Indonesia continues to post significant economic growth. As of April 2012, the country's economy is expected to grow by 6.1 percent in 2012 and increase to 6.4 percent in 2013. The country’s gross national income per capita has steadily risen from $2,200 in the year 2000 to $3,720 in 2009.

In terms of macroeconomic stability, Indonesia has managed to fulfill many of its fiscal targets, including a significant drop in Debt-to-GDP ratio from 61 percent in 2003 to 27.5 percent in 2009. Meanwhile, the budget deficit is projected to be as little as 0.4 percent of GDP in 2011.

Indonesia has formulated a long-term development plan which spans from 2005 to 2025. It is segmented into 5-year medium-term plans, each with different development priorities. The current medium-term development plan covering 2009-2014 is the second phase and focuses on:
-promoting quality of human resources
-development of science and technology
-strengthening economic competitiveness.

Source: World Bank