Perspectives of Indonesia to Become Economic Powerhouse in Asia by Essay

Perspectives of Indonesia to Become Economic Powerhouse in Asia by 2030 - Essay Example This essay offers comprehensive analysis of the current state of Indonesian economy and assess its perspectives in becoming Asian economic powerhouse by 2030. Indonesia is an independent republic in Southeast Asia. Indonesia has about 17,000 islands and a population of more than 238 million people, which forms a good foundation for its economy Notably, Indonesia has the largest economy in Southeast Asia and the 16th largest economy in the world. It is also a member of the G-20 major economies and is one of the industrialized and emerging economies in the world Economy refers to the state of a country with respect to natural resources, production, and consumption of goods and services and the supply of money. In Indonesia, the economy or financial value is different and never balances. Today, it is one of the emerging powerhouses in Asia with a large population that offers labor and market as well as a wealth of natural resources. Indeed, its population enhances labor productivity improvements, which boost its economy. Domestic consumption and productivity growth in Indonesia offers a good combination for economic growth. This makes Indonesia stand out in the world as many nations lack this fundamental combination. In fact, after China, Indonesian economy is the fastest growing economy among the G-20 members. However, there are numerous economic challenges hurting the Indonesian economy. There is a recommendation for the government continue to address these challenges with a view of attaining its economic goals. Table of Contents Table of Contents 3 Introduction 4 Methodology 7 Discussion 8 Conclusion 14 References 15 Introduction Indonesia is an independent republic in Southeast Asia. Indeed, Indonesia has about 17,000 islands and a population of more than 238 million people, which forms a good foundation for its economy (Ananta et al, 2011). It is an internationally recognized nation where it ranks fourth in the most populous nations in the world and the second richest country in the world. Notably, Indonesia has the largest economy in Southeast Asia (Belford, 2010) and the 16th largest economy in the world (Oberman et al, 2012). It is also a member of the G-20 major economies in the world and is one of the industrialized and emerging economies in the world (Oberman et al, 2012). The capital city of Indonesia is Jakarta, which is an industrious city. Most assuredly, Indonesia is a very rich country with a wide range of resources, a productive community, and large population. Indeed, Indon esia has many natural resources in earth oil, spice, and agriculture (Ananta et al, 2011). In this context, economy refers to the state of a country with respect to natural resources, production, and consumption of goods and services and the supply of money. In Indonesia, the economy or financial value is different and never balances. Today, Indonesia is one of the emerging powerhouses in Asia with a large population that offers labor and market as well as a wealth of natural resources (Wie & Thee, 2012). Indeed, its population enhances labor productivity improvements, which boost its economy. Notably, the domestic consumption and productivity growth in Indonesia offers a good combination for economic growth. This makes Indonesia stand out in the world as many nations lack this fundamental combination. In addition, Indonesia’s manufacturing industry, chemical industries, automotive, agricultural, and electronic industry enjoy a robust growth thus boosting the overall economic growth of the Southeast Asia nation (Ananta et al, 2011). In fact, after China, Indonesian economy is the fastest growing economy among the G-20 members with an economic growth rate of 6.3 percent in 2012 (Oberman et al, 2012). The country equally boasts of Gross Domestic Product of about $1 trillion at 6.2 % (Asian Development Bank, 2013). Moreover, the government of Indonesia plays a major role in enhancing a market-based economy where the state owns about 141 enterprises and sets prices for various basic goods like electricity, fuel, and rice (Michigan State University, 2013). This ensures that unscrupulous investors do not destabilize the country’s economy. Indonesia participates in global trade where it sells unripe oil to big oil companies like Shell, Castro, and Hexon at competitive prices that guarantee huge returns to the nation. More so, the nation sells raw oil