PwC Puts Indonesia on Its Fastest-Growing Economies List
Assurance, tax and consulting services company PricewaterhouseCoopers (PwC) mentioned Indonesia among the 21 nations that have the fastest-growing economies and will be among the world's biggest economies by 2030. On this list Indonesia is ranked fifth with an expected gross domestic product (GDP) of USD $5.42 trillion in 2030.
The report of PwC put China in pole position in 2030 with a USD $38.01 trillion economy, followed by the United States (USD $23.47 trillion), India (USD $19.61 trillion), and Japan (USD $5.61 trillion). Indonesia comes next, on fifth position.
In 2016 Indonesia's GDP was worth USD $933 billion, representing 1.50 percent of the world economy. The ranking of Indonesia in the PwC report shows the London-headquartered company believes there is great growth potential in Southeast Asia's largest economy.
However, it will not be an easy road. Indonesia needs to improve (hard and soft) infrastructure in order to create a more attractive investment climate through enhanced connectivity and solid competitiveness. Moreover, better infrastructure will also solve some of the social issues (for example access to healthcare facilities will improve accordingly).
Another important problem that needs to be solved by the Indonesian government concerns the quality and health of human resources. The nation has a big population (and is characterized by rising per capita GDP, hence poverty is declining). However, this big population needs to be educated to master the skills that are required by industries and companies.
The next problem that needs to be solved is employment. The government should focus on encouraging labor-intensive industries that can absorb plenty of local workers. Examples of key sectors that can absorb plenty of labor include agriculture, tourism, services, and infrastructure.
Gross Domestic Product Indonesia:
| 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
| Nominal GDP (in billion USD) |
432.2 | 510.2 | 539.6 | 755.0 | 893.0 | 918.0 | 915.0 | 891.0 | 861.0 | 933.0 |
| GDP (annual % change) |
6.3 | 6.0 | 4.6 | 6.2 | 6.2 | 6.0 | 5.6 | 5.0 | 4.9 | 5.0 |
| GDP per Capita (in USD) |
1,861 | 2,168 | 2,263 | 3,167 | 3,688 | 3,741 | 3,528 | 3,442 | 3,329 | 3,603 |
The base year for computing the economic growth rate shifted from 2000 to 2010 in 2014, previous years have been recalculated
Source: World Bank