Indonesia  

Indonesia has an average reliance on raw material exports with concentration levels around 10%, and the value of its exports as a capacity to import is around the global median. The domestic savings rate is high at 29% of its GDP as is the proportion of household expenditure, indicating both strong domestic demand and high savings by the private and public sectors. Despite a healthy domestic market, foreign direct investment and physical capital per worker are both extremely low, ranking the country in the lowest quintile worldwide on both variables. An unemployment rate of 9% is comparatively high relative to regional standards while an inflation rate of 6% threatens to undermine price stability and depreciates savings. A high default rate of approximately 9% and an interest margin of five percentage points indicate a weak banking sector.

There are 12 formal procedures required to start up a business in Indonesia, a high number globally. Despite this, there were nearly 19,000 new businesses registered in 2007, ranking the country in the top 40 worldwide. Value added in the service industry is only 40% of GDP, ranking Indonesia amongst the bottom 15 countries. Internet infrastructure, as measured by bandwidth, is near the global average, but the number of secure internet servers is comparatively low at six per 10 million capita. As a proportion of overall exports, Indonesia’s high-tech and ICT exports both rank inside the top 30, at 13% and 7%, respectively. The majority of the Indonesian public does not have access to personal computers with only two per 100 people. R&D expenditure is also very low at 0.3% of GDP and Indonesia ranks just above the global average in terms of royalty receipts.

Indonesians enjoy a high level of freedom to participate in political processes, and enjoy civil liberties and personal autonomy. Indonesia ranks in the top half, worldwide, with respect to its level of democracy, and there are many constraints on the power of the executive, meaning leaders are less able to implement arbitrary policies. However, despite fully regulated executive elections, the level of competition in the executive branch could be increased. There is more open competition in the legislative branch of government, but the judiciary is not independent of other branches, placing its power largely in the hands of the executive. The last fundamental change in Indonesia’s political system was less than 10 years ago.

With a comparatively high 96% of primary age children enrolled in Indonesian schools, and one teacher for every 20 pupils at primary level, Indonesia performs better than the global median on these variables. However, in terms of secondary enrolment rates, Indonesia ranks in the bottom quartile, worldwide, with a rate of 64%, and with only 17% of the population enrolled in tertiary education, the country ranks 75th, internationally. Further, the average Indonesian worker enjoys moderate levels of secondary education but low levels of tertiary education. There are 98 girls for every 100 boys in Indonesian schools, suggesting mild gender inequality. At less than $500 per student, government spending is comparatively low, placing Indonesia 73rd on this variable.

In Indonesia, there is only one health professional and six hospital beds per 10,000 people, ranking Indonesia in the bottom 20, internationally. A relatively low 6% of Indonesians are undernourished but a health adjusted life expectancy of 58 years is well below the global average. Only 52% of all Indonesians have access to improved sanitation facilities, ranking Indonesia 81st on this variable. This statistic is in line with the two-thirds who claim to be satisfied with their quality of water.* Indonesia also fares well with regard to other subjective measurements of wellbeing: 83% are happy with their personal health, less than a fifth report health problems or physical pain, and over four-fifths are well rested.* Indonesia ranks within the top 20 countries on all three variables.

Indonesia faces serious security challenges related to refugees, internally displaced persons, and communities with a history of discrimination. In addition, Indonesia faces insecurity related to human flight, ranking the country 81st on this variable. These issues are further aggravated by government-endorsed incarceration and torture of political opponents. Indonesia also suffered some casualties due to civil war in 2008. Homicide rates are relatively high at 89 deaths per one million people. Despite these statistics, 90% of people feel safe walking in their area at night, the third highest score for this variable.* Only 7% of respondents reported having property stolen in 2008, and only 2% reported they had been assaulted.* Indonesia ranks in the top 10 worldwide on both of those variables.

In Indonesia, the law is applied unequally with little respect for property rights and the police. The regulation of economic and commercial activity within Indonesia is below the international average, and the governmental process is less efficient than in other countries in the region. A high 84% of Indonesians have confidence in their country’s military.* Political participation is very free and fair in Indonesia, and over half of all citizens have confidence in the honesty of the country’s elections, while 49% approve of the legal system, ranking Indonesia 36th and 53rd, respectively.* Despite this confidence, more than nine in 10 Indonesians believe there is corruption in local government and businesses, placing the country in the bottom 15 countries on both variables.*

Indonesia has low levels of freedom with respect to movement, religion, and speech, with a comparatively low 64% of the population reporting satisfaction with their freedom of choice in their daily lives.* Indonesians reported low levels of tolerance towards immigrants and minorities, with less than half considering their country a good place for ethnic minorities, and only just over one-quarter feeling that Indonesia is a welcoming place for immigrants.*

Nearly half of all Indonesians trust their fellow citizens, and consider friends as important in their daily lives, ranking this nation amongst the top 15 worldwide. Indonesians are engaged in social networks, especially in religious communities. Two-thirds are members of a religious institution and Indonesia is the fourth most religious country worldwide, proving the importance of religious networks. Indonesians also enjoy other group memberships, with 37% belonging to environmental organisations, 30% involved in arts organisations, and 24% of citizens members of a sports association. Two-thirds of Indonesians are married, placing the country among the top 10 in this variable, but less than three-quarters feel they can rely on their family and friends;* a very low proportion, globally. A comparatively high 54% donated money to charitable organisations in the last month, but 23% volunteered, and 27% of Indonesians claimed they had helped a stranger in 2008.

* Data taken from the Gallup World Poll

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