Indonesia's Most Populous Island Java Continues to Dominate the Economy
The economy of Indonesia continues to be dominated by the island of Java, Indonesia's most populous island with around 130 million people or 60 percent of Indonesia's total population. In the second quarter of 2013, Java contributed 58.15 percent to the nation's total economic growth. Far behind Java are Sumatra (23.90 percent) and Kalimantan (8.73 percent). Within Java, the Greater Jakarta area accounts for 16.50 percent of the country's total economic growth, followed by East Java (15.21 percent) and West Java (14.05 percent).
A remarkable characteristic of Indonesia is that the western part of the country has a significantly larger contribution share towards the nation's GDP growth. Java (especially the greater Jakarta area) and Sumatra together contribute more than eighty percent to Indonesia's total GDP. Primary reason for this situation is that western Indonesia is located close to Singapore and Malaysia. Together these three parts have historically functioned as the center of economic activity in Southeast Asia. The eastern part of Indonesia, however, is positioned in a more-or-less economic vacuum.
Regional Contribution to GDP Growth
|Island|| Second Quarter 2013
Contribution to GDP (%)
|Bali & Nusa Tenggara||2.50|
|Moluccas & Papua||1.91|
Source: Statistics Indonesia (BPS)