Economic

Economic

Indonesia has a market-based economy where the government plays an important role. The government has more than 164 state-owned company set the price and some basic goods, including fuel, rice, and electricity. After the Asian financial crisis that began in mid-1997, the government maintain the share of assets, many of the private sector takeovers through bank loans and assets do not run the company through the process penstrukturan debt.


For more than 30 years of President Soeharto's New Order, economic growth per capita GDP of $ 70 to more than $ 1,000 in 1996. Through monetary and financial policies of strict inflation on hold for about 5% -10%, stable rupiah and can diterka, implement the system and the government budget balanced. Many of the development budget is financed through foreign aid.

In the mid-1980s the government began to remove barriers to economic activities. This step is aimed primarily at the external and financial sector and is designed to increase employment and growth in the field of non-oil exports. Real GDP grows annual average of close to 7% from 1987-1997, and a lot of analysis recognizes India as a market economy and major industries are growing.

Level of economic growth from 1987-1997 covering high some structural weaknesses in the Indonesian economy. Legal system is very weak, and there is no effective way to run the contracts, collecting debts, or the top of the bankruptcy. Bank activity is very simple, with a borrowing-based "collateral" and the extension of rules violations, including the borrowing limit. Non-tariff barriers, by renting state-owned companies, domestic subsidies, barriers to domestic trade, and create obstacles to export the whole economic disruption.

Southeast Asia financial crisis is over Indonesia at the end of 1997 and quickly turned into a political and economic crisis. Indonesia's first response to this problem is the increasing level of domestic interest rates to control inflation and increase in the rupiah weakening, and strengthen policy fiskalnya. In October 1997, Indonesia and the International Monetary Fund (IMF) reached agreement on economic reform program which focused on macro-economic penstabilan and deletion of some economic policies that are harmful, such as the National Program Permobilan and monopoly, which involved members of President Soeharto's family. Rupiah still not stable within a fairly long time, until eventually forced President Suharto resigned in May 1998. In August 1998, Indonesia and the IMF agreed to fund the loan program under President BJ Habibie. President Gus Dur who was chosen as president in October 1999 and then extend the program.



Asia financial crisis since the end of the 1990s, which has at least over the fall of Suharto regime in May 1998, public finance has experienced great transformation. Financial crisis is causing economic contraction and a very large decline in a parallel public expenditure. Not surprisingly debt and subsidies increased dramatically, while development expenditure reduced sharply.

Today, a decade later, has come out of the crisis and are in a situation where once again the state has financial resources sufficient to meet the needs of development. These changes occur because of macroeconomic policies be careful, and the most important budget deficit which is very low. Also how to spend government funds have experienced the transformation through "major changes" decentralization of 2001, which caused more than a third of the overall government budget to switch to the local government in 2006. This is another equally important, in the year 2005, international oil prices continue to increase the domestic oil subsidies Indonesia can not be controlled, threatening macroeconomic stability that has been struggling to achieve. Although there are political risks that increases in oil prices will encourage a high level of inflation was increasing, the government took the brave decision to cut oil subsidies.

The decision to give U.S. $ 10 billion for additional spending for development programs. Meanwhile, in the year 2006 an additional U.S. $ 5 billion is already available thanks to a combination of the increased income that is driven by stable economic growth and a decrease in overall debt payment, the rest of the economic crisis. This means that in 2006 the government has U.S. $ 15 billion extra to spend on development programs. The country has not experienced 'fiscal space' that big since experienced an increase in income when the oil hikes in mid-1970s. However, the main difference is the large increase in income from oil 1970s purely financial success is only the unexpected. Conversely, when fiscal space is achieved as a direct result of government policy decisions are the heart and right heart.

However, while Indonesia has obtained remarkable progress in providing financial resources to meet the needs of development, this situation and are prepared to continue in a few years, the subsidy remains a major burden on the government budget. Although there is a reduction in subsidies in 2005, the total subsidy is about U.S. $ 10 billion of government expenditure in 2006 or 15 percent of the total budget.

Thanks to the government decision Habibie (May 1998 - August 2001) to decentralize authority to the local government in 2001, the bulk of the increased government spending channeled through local governments. The result provincial and district governments in Indonesia now spends 37 percent of the total public funds, which reflects the level of fiscal decentralization is even higher than the OECD average.

With the level of decentralization in Indonesia at this time and the fiscal space that is now available, the government of Indonesia has a unique opportunity to improve public services that terabaikan. If managed carefully, it allows the areas left behind in the eastern part of Indonesia to pursue other areas in Indonesia are more advanced in terms of social indicators. This also allows the people of Indonesia to focus in the next generation to make changes, such as improving the quality of public services and the provision of infrastructure such as targeted. Therefore, the allocation of public funds and proper management of the care of the funds are allocated at the time they have become a major issue for public spending in Indonesia kedepannya.

For example, while the education budget has reached 17.2 percent of total public spending, to get the highest allocation than other sectors, and take approximately 3.9 percent of GDP in 2006, compared with only 2.0 percent of GDP in 2001 - the total public health expenditure is still under 1.0 percent of GDP. Meanwhile, public infrastructure investment is still not fully recover from the lowest post-crisis level and is still on the 3.4 percent of GDP. One other area which is the focus at this time is the level of expenditure for the administration of the extraordinary high. Achieve as much as 15 percent in 2006, shows a scattering of significant resources on the public.

Indonesian Geography

Geography

Indonesia has 17,504 islands large and small, around 6,000 of them are uninhabited, which spread around the equator, which provides tropical weather. Indonesia is located on the position coordinates 6 ° N - 11 ° 08'LS and from 95 ° 'BB - 141 ° 45'BT and located between two continents, namely Asia continent and Australia / Oceania.

Indonesian territory along the 3,977-mile range of the Indian Ocean and Pacific Ocean. Area land is 1,922,570 km ² and the broad waters 3,257,483 km ². The island population is the most populous island, where half the population living Indonesia. Indonesian consists of 5 major islands, namely: Java with a 132,107 km ², Sumatra with a 473,606 km ², Kalimantan with a 539,460 km ², South with a 189,216 km ², and Papua, with a 421,981 km ². Delivery of Indonesia over the direction of the wind, namely:

* North: Country Malaysia, Singapore, the Philippines, and South China Sea
* South: Country Australia, Timor Leste, and the Indian Ocean
* West: Indian Ocean
* East: the State of Papua New Guinea, Timor Leste, and Pacific Ocean

Location also is located in tektonik plates, which means that Indonesia is exposed to the earthquake-prone and could cause a tsunami. Indonesia also has many volcanoes, one of the mountain is very famous Krakatau, located in the Sunda strait between Sumatra and Java.

Province of Indonesia

Provinces in Indonesia and its capital

Sumatra

* Nanggroe Aceh Darussalam - Banda Aceh
* North Sumatra - Medan
* West Sumatra - Padang
* Riau - Pekanbaru
* Riau - Tanjung Pinang
* Jambi - Jambi
* South Sumatra - Palembang
* Bangka Belitung Islands - Pangkal Pinang
* Bengkulu - Bengkulu
* Lampung - Bandar Lampung

Java

* Capital Region Special Jakarta - Jakarta
* Banten - Serang
* West Java - Bandung
* Central Java - Semarang
* Special Region of Yogyakarta - Yogyakarta
* East Java - Surabaya

Small Sunda Islands

* Bali - Denpasar
* Nusa Tenggara Barat - Mataram
* East Nusa Tenggara - Kupang



Kalimantan

* Kalimantan Barat - Pontianak
* Central Kalimantan - Palangkaraya
* South Kalimantan - Banjarmasin
* East Kalimantan - Samarinda

Sulawesi

* North Sulawesi - Manado
* Gorontalo - Gorontalo
* Central Sulawesi - Palu
* South West - Mamuju
* South Sulawesi - Makassar
* South East Sulawesi - Kendari

Maluku

* Maluku - Ambon
* North Maluku - Ternate

Papua

* West Papua - Manokwari
* Papua - Jayapura

Administrative division

Administrative division of Indonesia

Indonesia currently consists of 33 provinces, five of them special areas. Each province has legislatur agencies and the governor. Province divided into districts and the city, which is divided into sub-districts and villages and again to the village.

Nanggroe Aceh Darussalam, Jakarta, IN Yogyakarta, Papua and West Papua have the privilege legislatur a greater level of autonomy and higher than the central government than other provinces. For example, the government of Nanggroe Aceh Darussalam have the right to establish their own legal system; in 2003, the first set of Aceh Sharia law. Obtain the status of Yogyakarta Special Region as recognition of the important role of Yogyakarta in Indonesia's support for Indonesia's Revolution. Papua Province, previously called Irian Jaya, get a special autonomy status in 2001. Jakarta is a special regional capitals. Portuguese Timor in the region combined to become a province of Indonesia and East Timor in 1979-1999, then separate them into the State through a referendum in East Timor.

Politics and government

Politics and government of Indonesia

Indonesia's presidential run government of the Republic multipartai democratic. As well as in countries other democracy, political system in Indonesia is based on the power Trias Scams legislative, executive and judicial. Legislative power is held by an institution called Permusyawatan People's Consultative Assembly (MPR), which consists of two entities, namely the House of Representatives whose members consist of representatives of Party Politics and the DPD members represent the provinces in Indonesia. Each region was represented by 4 people elected directly by the people in their respective regions.

People's Consultative Assembly (MPR) is the highest state institutions. However, after the amendment to the MPR-4 is not the highest institution again. MPR membership Amandeman changed after the 1945 Constitution in the period 1999-2004. All members of parliament are members of the House of Representatives, plus the members of DPD (Regional Representative Council). DPR and DPD members elected through the general election and was in a period of five years. Since 2004, the MPR is a bikameral parliament, after the creation of DPD as a second room. Previously, members of parliament are all members of the House of Representatives plus the messenger group. MPR currently by Hidayat Nur Wahid. Members of the MPR consists of 550 members of the House and 128 DPD members. House of Representatives at this time by Agung Laksono, while the DPD at this time by Ginandjar Kartasasmita.

Executive institutions centered on the president, vice president and the cabinet. Cabinet in Indonesia is that the presidential Cabinet minister responsible to the president and does not represent the political parties in the parliament. Nevertheless, current President Susilo Bambang Yudhoyono, namely the diusung by Democratic Party leaders also appointed a number of Party Politics to sit in kabinetnya. The aim is to maintain the stability of government given the strong position of legislative institutions in Indonesia. However, post-post important strategic and generally filled by Minister without portfolio and party (coming from someone who considered experts in the field).

Judicial institutions since the reform and amendment of the 1945 Constitution is run by the Supreme Court, the Judicial Commission, and the Constitutional Court, including the administration of judges. Nevertheless, the existence of the Minister of Law and Human Rights still be maintained. Chairman of the Supreme Court is currently Dr Manan and me get a lot of criticism from various parties in connection with the weakness in the Supreme Court uphold law and justice in Indonesia. However, Chief Election MA in 2006, and me still get a majority vote of the judges of Supreme.

Indonesia's History

Relic fossil-fossil Homo erectus, which by anthropologist also called "Java man", cause

alleged that the Indonesian archipelago has been populated at the start of two million to 500,000 years ago. [10] Austronesian people, who form the majority of the population at this time, migrate to Southeast Asia from Taiwan. They arrived around 2000 BC, and cause the Melanesian nation that has been there first, there are areas to regions in the far eastern island. where the ideal conditions for agriculture, and the mastery of the way, planting rice at least since the century -8 BC, [12], many villages, towns, and small kingdoms grow better in evolving with the first century BC. In addition, Indonesia, which is located in the sea trade routes of international and inter-island, cruise lines have become between India and China for several centuries. History of Thailand next to a lot of influence from these trade activities.

Under the influence of Hindu and Buddhist religions, some of the kingdom established in the islands of Java and Sumatra since the 7th century to century-14. Sriwijaya appear in the centuries-7 as a mighty maritime empire with the power to control the trade in the Strait of Malacca and surrounding areas. Between century-8, and 10, dynasty-dynasty Syailendra Sanjaya successfully develop and kingdoms in Java-based agricultural , With historical relics such as Borobudur and Prambanan temple. At the end of the century to 13, Majapahit standing in the eastern part of Java island. Under the leadership mahapatih Gajah Mada, widespread power to almost cover the areas of Indonesia now, and often called the "Golden Age" in Indonesian history.

Arrival traders Arabic and Persian through Gujarat, India, and bring Islam. In addition, Chinese sailors, led by Mr. Cheng Ho (Zheng He) are Islamic, also never stop in this region in the early 15th century.

When people come to Europe early 16th-century, they found several small kingdoms that can easily dominate their fun for the spice trade. Portuguese first landed in the Sudanese kingdom of the two ports, namely Banten and Sunda Kelapa, but can be outcast and moving to the east and controls the Moluccas. In the 17th century, the Dutch appear as a terkuat among many European countries, overcome Portugal and the United Kingdom (except for their colony, Portuguese Timor). In the Christian religion that is the entrance to Indonesia as one of imperialism long mission, known as 3G, namely Gold, Glory and Gospel. Dutch control of Indonesia as a colony until World War II, initially through the VOC, and then directly by the Dutch government since the early 19th century.

Under the system Cultuurstelsel System (Planting) in the 19th century, large plantations and the planting of force implemented in Java, ultimately benefits the Netherlands who can not produce VOC. During the colonial government that is more free after 1870, the system is removed. After 1901 the Netherlands introduced the ethical policy, which include the limited political reform and greater investment in India-the Netherlands.

At the time of World War II, when the Dutch Patrol by Germany, Japan controlled Indonesia. After getting in Indonesia 1942, the Japanese view that the combative U.S. trading partners are cooperative and willing to mobilize soldiers when necessary. Sukarno, Mohammad Hatta, KH. Mas Mansur, and Ki Hajar Dewantara award given by the Emperor of Japan in the year 1943.

In March 1945 Japan formed a committee for independence from Indonesia after the Pacific war ended in 1945, under pressure from the youth organization, group leaders proclaim the independence of Indonesia's Soekarno on 17 August 1945. In an effort to return control of Indonesia, the Netherlands send their troops.

Bloody efforts to muffle the independence movement then known as the 'police action' (Politionele Actie). Netherlands finally receive the rights to freedom of Indonesia on 27 December 1949, after receiving strong pressure from international circles, particularly the United States. Sukarno became the first president of Indonesia with Mohammad Hatta as vice president.

In the 1950s and 1960s, Sukarno government began to follow the non-aligned movement in the beginning and then with the socialist block, for example, the People's Republic of China and Yugoslavia. 1960s witness the occurrence of military confrontation against neighboring countries, Malaysia ( "confrontation"), and the dissatisfaction of the economic difficulties increase. In the 1965 incident erupts G30S, which cause the death of 6 general and a number of other officers middle. Appears that the strength of the new call himself a New Order immediately accused the Communist Party of Indonesia as the brain behind the incident and the intended overthrow the legitimate government and changing the national ideology based on the socialist-communist credo. It also alleged to be the reason for replacing the old government under President Sukarno.

General Soeharto became president in 1967 with reasons to secure the country from the threat of communism. Meanwhile today Sukarno physical condition itself increasingly weakened. After Soeharto in power, hundreds of thousands of Indonesian citizens suspected of communist parties involved were killed, while many more U.S. citizens who are abroad, do not dare to return to the motherland, and eventually revoked nationality. 32 years old, called the power of Soeharto's New Order, while the government Soekarno called Old Order.

Soeharto apply neoliberal economic and successfully bring foreign investment to a large entry to Indonesia and generate greater economic growth, although uneven, in Indonesia. At the beginning of the New Order regime of Indonesia ekomomi policies formulated by a group of economists, economists the economic department graduates the University of California, Berkeley, called the "Berkeley Mafia." However, Soeharto add rich they and their families through the practice of corruption, collusion and nepotism is widespread and he eventually forced down from office after action large-scale demonstrations and the country's economic conditions to worsen in 1998.

From 1998 to 2001, Indonesia had three presidents: Bacharuddin Jusuf (BJ) Habibie, Abdurrahman Wahid and Megawati Sukarnoputri. In the 2004 election one day the world's largest was held and won by Susilo Bambang Yudhoyono.

Indonesia is currently experiencing economic problems, political and religious dissension nuances in the country, and some areas are trying to gain independence, Aceh and Papua. East Timor finally officially secede in 2002 after 24 years with a united Indonesia and 3 years under UN administration of East Timor into the country.

In December 2004 and March 2005, the Aceh and Nias by two major earthquakes that kill hundreds of thousands of the total inhabitants. (See the Indian Ocean earthquake and the 2004 Sumatra earthquake March 2005.) Genesis is followed by the earthquake in Yogyakarta and tsunami that beach Pangandaran and surrounding areas, flooding and mud in Sidoarjo in 2006 that no be.

Indonesia's Etimology

Etymology

History of the name of Indonesia word "Indonesia" comes from the Latin word in the Indus, which means "India" and the word in Greek nesos which means "island". So, said the Indonesian archipelago means that the Indian territory, or island, which is located in India , Which shows that the name was established long before India became independent countries. In 1850, George Earl, a ethnologue A British, originally proposed the term Indunesia and Malayunesia to the population "Islands of India or the Malay Archipelago." Students from Earl, James Richardson Logan, using the word as a synonym of the Islands of India. However, academic writing in the Dutch East Indies Dutch media did not use the word Indonesia, but the term Malay Archipelago (Maleische Archipel); Dutch East Indies (Nederlandsch Oost A), or India (A); East (de Oost), and even Insulinde (a term introduced this year by the 1860 novel Max Havelaar (1859), written by Multatuli, the criticism against Dutch colonialism).

Since the year 1900, the name became more common in academic circles outside the Netherlands, Indonesia and nationalist groups to use for political expression. Adolf Bastian from the University of Berlin popularize the name of this book through Indonésien oder die Inseln des Malayischen Archipels, 1884-1894. Indonesian students first mengunakannya is Suwardi Suryaningrat (Ki Hajar Dewantara), when he established the news agency in the Netherlands named Indonesisch-Press Bureau in the year 1913.

Indonesia

The Republic of Indonesia (pronounced /ˌɪndoʊˈniːziə/ or /ˌɪndəˈniːʒə/) (Indonesian: Republik Indonesia), is a country in Southeast Asia. Comprising 17,508 islands, it is the world's largest archipelagic state. With an estimated population of around 237 million people,[3] it is the world's fourth most populous country and the most populous Muslim-majority nation; however, no reference is made to Islam in the Indonesian constitution. Indonesia is a republic, with an elected legislature and president. The nation's capital city is Jakarta. The country shares land borders with Papua New Guinea, East Timor and Malaysia. Other neighboring countries include Singapore, the Philippines, Australia, and the Indian territory of the Andaman and Nicobar Islands.

The Indonesian archipelago has been an important trade region since at least the seventh century, when the Srivijaya Kingdom traded with China and India. Local rulers gradually adopted Indian cultural, religious and political models from the early centuries CE, and Hindu and Buddhist kingdoms flourished. Indonesian history has been influenced by foreign powers drawn to its natural resources. Muslim traders brought Islam, and European powers fought one another to monopolize trade in the Spice Islands of Maluku during the Age of Discovery. Following three and a half centuries of Dutch colonialism, Indonesia secured its independence after World War II. Indonesia's history has since been turbulent, with challenges posed by natural disasters, corruption, separatism, a democratization process, and periods of rapid economic change.

Across its many islands, Indonesia consists of distinct ethnic, linguistic, and religious groups. The Javanese are the largest and most politically dominant ethnic group. As a unitary state and a nation, Indonesia has developed a shared identity defined by a national language, ethnic diversity, religious pluralism within a majority Muslim population, and a history of colonialism and rebellion against it. Indonesia's national motto, "Bhinneka tunggal ika" ("Unity in Diversity" literally, "many, yet one"), articulates the diversity that shapes the country. However, sectarian tensions and separatism have led to violent confrontations that have undermined political and economic stability. Despite its large population and densely populated regions, Indonesia has vast areas of wilderness that support the world's second highest level of biodiversity. The country is richly endowed with natural resources, yet poverty is a defining feature of contemporary Indonesia.