A slow recovery not without risks

B1

LOW RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Last updated in February 2022.

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GDP USD1058.42bn (World ranking 16, World Bank 2020)
Population 273.52mn (World ranking 4, World Bank 2020)
Form of state Republic
Head of government Joko WIDODO (President)
Next elections February 2024, General elections (legislative, presidential, local)
  • Abundant natural resources (coal, petroleum, and copper ore along with agriculture)
  • Resilient banking system owing to relatively high capital adequacy ratio and low level of NPLs
  • Favorable demographics: large and young population as well as growing middle class
  • Solid public finances and sound fiscal policies
  • Weak legal system
  • Inefficient tax administration and strong informal economy
  • Growth dependent on raw commodity exports, especially to the slowing Chinese economy
  • Serious infrastructure gap compared to regional peers
  • Increasing inequality poses a threat to social cohesion and inclusive economic growth
  • Low levels of educational spending

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
China 18.6%
1
24.9% China
United States 11.0%
2
12.2% Singapore
Japan 9.1%
3
9.1% Japan
India 7.3%
4
5.5% Thailand
Singapore 6.8%
5
5.4% United States of America

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Fixed vegetable oils and fats, crude, refined or fractionated 12.1%
1
9.7% Petroleum, petroleum products and related materials
Coal, coke and briquettes 10.5%
2
6.8% Electrical machinery, apparatus and appliances, n.e.s.
Articles of apparel & clothing accessories 5.0%
3
6.2% Other industrial machinery and parts
Road vehicles 4.6%
4
5.8% Iron and steel
Metalliferous ores and metal scrap 4.3%
5
4.5% Road vehicles
The Allianz Trade Collection Complexity Score provides a simple assessment of how easy it is to collect debt around the world. The 2022 edition covers 49 countries that represent nearly 90% of global GDP and 85% of global trade.
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