Economy of Indonesia

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Indonesia is a country in south-east Asia. It has the world’s highest population of Muslims and is the world’s 4th most populous country. Its capital is Jakarta. Having its world rank at 18th by economy, 15th largest in purchasing parity respectively, thus becoming a slowly progressive country.

In this essay, I will be talking about how the changes in demographic characteristics of Indonesia over the past 10 years can affect its economy in terms of unemployment, GDP (Gross Domestic Product), and poverty. Unemployment is an economic condition marked by the fact that individuals seeking jobs but remained unhired. A country's GDP is the total market value of all final goods and services produced in a country. Poverty is when the income of people is below the GNP (Gross National Product) per capita of a country with scarcity of means and subsistence.

Population growth is the change in population over a period of time. It happens due to a number of factors such as standard of living, cultural factors, and government policies. When the standard of living become better such as the improvement of social conditions ( shelter, sanitation, clean water , health care and etc) death rate and birth rate reduce as more people become inclined to have fewer children. As standard of living increases, there will be more immigrants thus an increase in population. Government policies which encourage people to have lesser or more children also has a significant effect on birth rate too.

The population growth of Indonesia has been reducing at a steady rate since 2000 up till 2010. As its population growth rate decreases, its labour force is also decreasing and as a result, there will be more job opportunities for people. As job oppor...

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...would also mean a rise in poverty, and a rise in poverty would reduce the growth of GDP. To avoid this, the government should lower taxes to attract multi national companies to Indonesia thus reducing unemployment. By doing the actions mentioned, Indonesia can greatly improve its economy.

Works Cited

"Bolivia - Population Growth Rate - Historical Data Graphs per Year." Index Mundi - Country Facts. Web. 07 Aug. 2011. .

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"Infant Mortality Statistics in North Carolina." N.C. Healthy Start Foundation -- Educating. Providing. Leading. Web. 07 Aug. 2011. .

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"Society1talk | Society Needs To Talk!" Society Needs To Talk! | Blog for the Society. Web. 07 Aug. 2011. .

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