印尼投资指南2022-英

2022INDONESIAINVESTMENTGUIDEBOOK7INDONESIAINVESTMENTGUIDEBOOK3ForewordFOREWORDnvestment

plays

a

significant

important

role

for

the

economic

growth

of

a

country.In

addition

to

creating

jobs,

investment

also

has

a

multiplier

effect

from

oneeconomic

sector

to

another.

Realization

of

investment

in

Indonesia

indicates

animproved

performance

from

the

previous

year.

Data

from

BKPM

shows

theinvestment

value

in

January-September

2022,

both

for

Domestic

Investment

andForeign

Investment

reached

IDR892.4

trillion,

or

an

increase

of

35.3

percent

comparedtothesameperiodofthepreviousyear.The

confidence

of

investors

to

invest

in

Indonesia

is

definitely

very

exhilarating,considering

that

this

is

proof

that

this

country

has

potential

natural

resources,competent

human

resources,

and

conducive

government

policies

for

investment.Therefore

we

will

try

to

maintain

this

trust

so

that

investment

in

Indonesia

can

achieveimpressive

growth

in

the

coming

years

especially

in

the

next

year

where

there

areincreasingchallengesofinflationandrecession.President

Jokowi

has

emphasized

that

the

competition

to

find

investors

will

betougher

and

tighter.

Other

countries,

including

developed

countries,

will

compete

toattract

investors

into

their

country.

So,

investor’s

trust

in

Indonesia,

which

has

grownwell

so

far,

must

be

properly

maintained

by

implementing

policies

that

support

thegrowthoftheinvestmentclimate,includingfiscalandmonetarypolicies.Therefore,

I

hope

that

this

guidebook

can

provide

an

overview

to

investors

regardingincentives,

opportunities,

business

licensing,

and

the

tax

system

in

Indonesia

inrelation

to

investment

and

ease

of

doing

business,

so

that

we

can

provide

the

bestservice

and

ensure

that

every

investment

that

enters

Indonesia

can

provide

multiplebenefits

and

effects

that

are

not

only

beneficial

for

the

investors

but

also

beneficial

forthisnation.December2022H.E.

Bahlil

LahadaliaMinisterofInvestment/theHeadoftheBKPMTableofContents4TABLE

OF

CONTENTSFOREWORDTABLE

OF

CONTENTS34I.

INDONESIA

AT

A

GLANCE781.

Regions

in

Indonesia2.

The

State

Capital

City

of

Nusantara

(Ibukota

Negara

Nusantara/IKN)3.

Demography4.

Economic

Overview4.1

GeneralOverview4.2

VisionofIndonesia20454.3

TheEconomicZoneasaStrategicInvestmentLocation5.

Political

Overview6.

Business

Culture111419192223363738384050515152537.

Investment

Climate7.1

SovereignCreditRatingIndonesia7.2

NationalIndustrialDevelopmentMasterPlanfor2015-20358.

Payment

System9.

Living

in

Indonesia9.1

HousingandLivingCost9.2

HealthandEducationFacilities9.3

CommunicatingwithLocalCommunityII.

INVESTMENT

PROCEDURES5455555758646467696973801.

OSS

RBA1.1

TheRiskBasedApproach(RBA)Concept1.2

AboutOSSRBA(OnlineSingleSubmissionRiskBasedApproach)1.3

InformationSubsystem,BusinessLicensingandSupervision2.

Starting

a

Bussiness2.1

ClassificationofCompanyBasedonCapital2.2

CategoriesofBusinessScaleandBusinessActors2.3

ExplanationofFormsofBusinessforNon-UMK2.4

InvestmentLimitations2.5

FormsofForeignBusinessinIndonesia2.6

EstablishmentProcessofaForeignInvestmentCompany5TableofContents3.

Getting

a

License84848587883.1

OSSRBAAccessRights3.2

ProcessesConductedattheOSSRBASystem3.3

IndonesianStandardIndustrialClassification3.4

BasicRequirementsforRisk-BasedBusinessLicensingIII.

LEGAL

OVERVIEW

FOR

FOREIGN

INVESTOR1.

Employment92931.1

UtilizationofForeignWorkers1.2

Fixed-TermWorkers93961.3

Outsourcing971.4

WorkingHours971.5

TerminationofEmployment1.6

RegionalMinimumWage1.7

SocialSecurityProgram2.

Immigration

Process2.1

TypesofVisa2.2

StayPermit3.

Land

and

the

Environment3.1

LandRights981001001011011031031031071091101111111121131151151151161201201201211223.2

ConformityofSpatialUtilizationActivities3.3

Buildings3.4

Environment4.

Logistics4.1

NationalLogisticEcosystem(NLE)CollaborativePlatform4.2

SeaportsinIndonesia5.

Infrastructure6.

Trade6.1

TradeAgreements6.2

ExportsandImports6.3

DistributionofGoods7.

Utilization

of

Domestic

Products7.1

IncreasingtheuseofDomesticProducts7.2

DomesticComponentLevel(TKDN)7.3

CompanyBenefitWeight(BMP)8.

Investment

ProtectionTableofContents6IV.

TAXATION1231251251261261271291301331351361371381391401401411411411431441.

Corporate

Income

Tax

(CIT)1.1

FinancialStatatement1.2

TaxRate1.3

TaxIncentivea.

TaxHolidayb.

TaxAllowancec.

R&D,VocationalTaxFacilities&Labor-IntensiveTaxFacilitiesd.

Importdutyexcemption1.4

WithholdingTaxes1.5

TransferPricing1.6

TaxAdministration2.

Individual

Income

Tax3.

Dividend4.

VAT

and

Luxury-Goods

Sales

tax4.1

Value-AddedTax4.2

Luxury-GoodsSalesTax5.

Other

Taxes5.1

PBB5.2

StampDuty6.

Statute

of

LimitationCONTACT

US1467IndonesiaatAGlanceChapter

1Indonesia

at

a

GlanceIndonesiaatAGlance81.

REGIONS

IN

INDONESIAIndonesia

is

an

archipelagic

country

which

since

July

2022

administratively

consists

of

38

provinces.The

last

three

Provinces

are

the

result

of

the

expansion

of

the

Papua

Province,

namely:

CentralPapua

Province

with

Timika

as

the

capital,

Highlands

Papua

Province

with

Wamena

as

the

capital,and

South

Papua

Province

with

Merauke

as

the

capital.

The

38

provinces

of

Indonesia,

according

totheirdistributionareas,asofJuly2022,areasfollows:12Kalimantan5Sulawesi17341612433810442583Sumatra2756Maluku

&

Papua695123465Java12Bali

&

Nusa

Tenggara3IslandNo1.2.3.4.5.6.7.8.9.10ProvinceCapital

CityBandaAcehMedanNanggroeAcehDarussalamNorthSumatraSouthSumatraWestSumatraBengkuluPalembangPadangBengkuluSumatraRiauPekanbaruTanjungPinangJambiRiauIslandsJambiLampungBandarLampungPangkalPinangBangkaBelitung9IndonesiaatAGlanceIslandNo1.ProvinceBantenCapital

CitySerangDKIJakartaBandungSemarangYogyakartaSurabayaPontianakSamarindaBanjarmasinPalangkarayaTanjungSelorDenpasarKupang2.DKIJakartaWestJavaCentralJava3.Java4.5.

SpecialRegionofYogyakarta6.1.2.3.4.5.1.2.3.1.2.3.4.5.6.1.2.3.4.5.6.7.8.EastJavaWestKalimantanEastKalimantanSouthKalimantanCentralKalimantanNorthKalimantanBaliKalimantanNusaTenggaraandBaliEastNusaTenggaraWestNusaTenggaraGorontaloMataramGorontaloMamujuWestSulawesiCentralSulawesiNorthSulawesiSoutheastSulawesiSouthSulawesiNorthMalukuMalukuPaluSulawesiManadoKendariMakassarTernateAmbonSouthwestPapuaWestPapuaSorongManokwariJayapuraTimikaMalukuandPapuaPapuaCentralPapuaHighlandPapuaSouthPapuaWamenaMeraukeIndonesiaatAGlance10Top

10

Provinces

by

Regional

GDP

(PDRB)

2016-2021(InIDRtrillion)ProvinceDKIJakartaEastJava20162,159.11,855.71,653.21,087.3626.120172,365.42,012.91,788.11,172.8684.620182,592.62,188.81,960.61,268.3741.320192,768.22,299.82,084.61,347.9811.220202,772.42,299.52,08820212,914.62,454.52,209.81,420.8859.9WestJavaCentralJavaNorthSumatraRiau1,348.6811.3681.7704.7752.3728.6729.2843.2EastKalimantanBanten508.9591.9635.5607.6626.4695.2517.9563.6613.8626.0607.3665.9SouthSulawesiSouthSumatra377.1415.6461.8504.1504.5545.2353.9382.9419.4456.6458.4491.6Source:StatisticsIndonesia(BPS)Top

5

FDI

by

Location

2016-2021(InUSDBillionexcl.upstreamoil,gas,andfinancialsectors)ProvinceWestJava20165.520175.14.6320185.620195.920204.820215.2DKIJakartaBanten3.44.94.13.63.32.92.81.92.12.2CentralJavaCentralSulawesi1.02.41.52.42.71.41.51.61.31.81.82.7Source:MinistryofInvestment(BKPM)Until

now,

the

capital

of

the

country

is

DKI

Jakarta

and

the

economic

cycle

is

still

centered

on

theisland

of

Java.

Nevertheless,

the

government

continues

to

encourage

the

creation

of

equitabledevelopment

for

all

regions

of

Indonesia.

Infrastructure

development

in

eastern

Indonesia(Sulawesi,

the

Nusa

Tenggara

Islands,

Bali,

the

Maluku

Islands

and

Papua)

is

to

be

implementedmore

quickly.

The

transfer

of

the

capital

of

the

State

named

Nusantara

to

the

Province

of

EastKalimantan.11IndonesiaatAGlance2.

THE

STATE

CAPITAL

CITY

OF

NUSANTARA(IBUKOTA

NEGARA

NUSANTARA/IKN)Indonesia

will

have

a

new

capital

city

based

on

Law

Number

3

Year

2022

on

IKN.

Nusantara

is

theofficial

name

of

the

new

state

capital

which

will

replace

Jakarta

starting

in

2024.

The

state

capital

cityof

Nusantara,

abbreviated

as

IKN,

is

located

on

the

east

coast

of

the

island

of

Kalimantan,

namelyNorth

Penajam

Paser

Regency

and

Kutai

Kartanegara

Regency

which

is

Sambo

TenggarongMetropolitanarea.Thetransferofthestatecapitalisanurgentmatterforthefollowingreasons:Around57%ofIndonesia'spopulationiscurrentlyconcentratedinJava.ThecontributionoftheJavaIslandeconomyis59.0%oftheNationalGDP.ThereisWaterAvailabilityCrisisinJava,EspeciallyinDKIJakartaandEastJava.ThelargestlandconversionoccursinJava.VeryhighDecreaseintheThreatsofflood,urbanizationgrowthisaccompaniedbyhighcongestionandunhealthyaircarryingcapacityoftheenvironmentofJakarta,namelythedeclineinearthquakeandlandsinkinJakarta.quality.groundwaterlevels,heavilypollutedreservoirsandrivers,andsealevelsrise.IKN

will

be

designed

in

such

a

way

as

to

be

the

most

sustainablecity

in

the

world,

namely

a

safeandaffordable

city,

designed

in

accordance

with

natural

conditions,

connected,

active

and

accessible,circular

and

robust,

as

well

as

low

in

carbon

emissions.

IKN

has

become

a

symbol

of

the

identity

ofthe

Indonesian

people

with

a

distinctively

Indonesian

diversity

with

the

motto

"Bhinneka

Tunggal

Ika"(Unity

in

Diversity).

IKN

is

the

driving

force

of

Indonesia's

future

economy

with

convenience

andefficiency

through

technology

and

innovation,

as

well

as

providing

strong

economic

opportunities

forall.IndonesiaatAGlance12The

province

of

East

Kalimantan

was

chosen

because

there

are

already

large

areas

of

land

which

areowned

by

the

government

or

by

BUMN,

thus

reducing

the

cost

of

land

procurement.

Geographically,East

Kalimantan

is

located

in

the

middle

of

Indonesia.

The

population

structure

is

heterogeneousand

open,

so

that

the

potential

for

low-conflict

and

has

a

culture

that

is

open

to

newcomers,representing

justice.

This

province

has

the

carrying

capacity

of

raw

land

and

water,

close

to

theexisting

city

which

has

been

developed

for

the

efficiency

of

initial

infrastructure

investment.

EastKalimantan

fulfills

the

perimeter

of

defense

and

security,

at

least

against

natural

disasters.

Defensecan

be

supported

by

the

Tri

Dimensions

of

Land,

Sea

and

Air.

Location

accessibility

is

high,

close

totwomajorcities:BalikpapanandSamarinda.NorthKalimantanEastKalimantanWestKalimantanSamarindaBalikpapanCentralKalimantanSouthKalimantanThe

main

infrastructure

of

IKN

is

the

Balikpapan-Samarinda

and

trans-Kalimantan

toll

roads;Airports

in

Balikpapan

and

Samarinda;

Kariangau

Container

Terminal

in

Balikpapan

and

SemayangPort

in

Samarinda.

IKN

is

located

in

the

Indonesian

Archipelagic

Sea

Lane

II

(Makassar

Strait).

IKNland

is

wide,

with

the

status

of

Production

Forest

(Hutan

Produksi/HP)

and

Plantation.

Raw

watercomesfrom3existingreservoirs,2plannedreservoirs,4riversand4watersheds.IKN

consists

of

3

areas,

the

first

is

IKN

West

Area

which

consists

of

offices,

business

areas,

talentdevelopment

centers,

and

universities.

The

second

area

is

Central

Government

Core

Area

(KawasanInti

Pusat

Pemerintahan/KIPP)whichconsistsofnationalgovernment,smartgovernmentandoffices.And

the

third

area

is

IKN

East

Area

which

consists

of

offices,

business

areas,

talent

developmentcenter,

business

hotels,

and

MICE

(Meeting,

Incentive,

Convention

and

Exhibition).

IKN

has

an

areaof256,142.72

ha.75%

ofIKNAreawillbeplannedtobeagreenopenspaceofwhich65%

becomeaprotected

area

and

10%

for

food

production.

IKN

is

developed

with

100%

clean

energy.

The56,180.87

hectare

of

IKN

area

(Kawasan

IKN/K-IKN)

comprises

various

mixed-use

zones

andneighborhoods

that

support

the

“10-minute

walk”

concept

and

social

connectivity.

K-IKN

aredesigned

in

harmony

with

nature,

with

a

minimum

of

50%

green

space.

80%

of

trips

are

undertakenvia

public

transportation

or

the

active

mobility

of

residents.

100%

green

space

turnover

for

each13IndonesiaatAGlanceK-IKN

is

a

city

within

a

City

within

a

forested

area,

the

shade

of

'green

and

blue'

which

supports

anactiveandhealthylifestyle.Housingforstatecivilservants(Aparatur

Sipil

Negara/ASN)isdesignedina

sustainable

manner,

supports

the

concept

of

walkability

and

facilitates

social

relations.

The

centralgovernment

core

area

(KIPP)

which

consists

of

the

center

of

government

and

residential

areas

forASN

housing

are

designed

with

sustainable

design,

supporting

the

concept

of

walkability

andfacilitating

social

relations,

harmony

with

nature,

supporting

the

concept

of

walkability,

ease

ofaccessibility,windcirculation,andvehicle-freearea.The

initial

transfer

from

DKI

Jakarta

to

IKN

is

to

becarried

out

in

2020-2024.

During

this

period,

the

maininfrastructure

(the

Presidential

Palace,

the

MPR/DPRBuilding)

and

housing

complexes

will

be

constructedin

the

Primary

KIKN

area,

the

transfer

of

initial

ASN(TNI,

Polri,

MPR),

basic

main

infrastructure

hasfinished

construction

and

has

operated

(e.g.

water,energy,

rail)

for

500

thousand

residents

in

the

initialstage.

The

President

will

transfer

to

the

KIKN

before16

August

2024

and

celebrate

the

Commemoration

ofIndonesian

Independence

Day

at

the

KIKN

on

17August

2024.

Then

in

2025-2035

the

IKN

will

beestablished

as

a

formidable

core

area.

During

thisperiod,

the

next

phase

of

the

city

(innovation

andeconomic

center)

is

developed,

the

transfer

of

the

IKNgovernment

center

is

completed,

the

priorityeconomic

sectors

are

developed,

and

the

incentivesystem

is

implemented

for

the

priority

economicsectors,

so

as

to

achieve

the

SustainableDevelopmentGoals(SDGs).In

addition

to

using

the

State

Revenue

andExpenditure

Budget

(Anggaran

Pendapatan

BelanjaNegara/APBN),

the

development

of

IKN

is

alsoconducted

through

the

Public-Private

Partnership(PPP)scheme.Thecooperationschemesare:TariffScheme/AvailabilityDesign,Build,FinanceandMaintenance(DBFMHolland)SchemeDesign,Build,Finance,OperateandMaintenanceSchemePaymentIndonesiaatAGlance14TurnkeyProjectandMaintenanceDirectInvestmentSubscriptionModel(SubscriptionModelMasayoshiSoftbank)Model1with50%governmentandModel2with100%privateDirectInvestmentfinancedbytheprivatesectorsandNational/Regionalownedenterprises(Badan

UsahaMilik

Negara/Daerah/BUMN/D)The

development

is

estimated

to

cost

IDR

466

trillion,

the

majority

of

which

is

sourced

from

PPPs.State

budget

funds

are

to

be

used

for:

Construction

of

the

State

Palace

and

strategic

IndonesianNational

Armed

Forces

(TNI)/Indonesian

National

Police

(POLRI)

buildings

(military

bases),procurement

of

land

and

basic

infrastructure

(access

roads),

Diplomatic

Compound

(land),

Greenopenspaces(includingculturalparks),HousesofASN/TNI/OfficialsPOLRI.PPPfundsaretobeusedfor

the

construction

of

Executive,

Legislative

and

Judicial

Buildings,

Connectivity

improvement(airports,

ports,

and

toll/non-toll

roads),

educational

facilities,

museums

and

health

facilities,

as

wellasbasicinfrastructureandutilities,aswellasASN/POLRIhousingsthatarenotincludedinthestatebudget

(APBN).

Meanwhile,

funds

sourced

from

the

private

sector

or

BUMN/D

are

used

to

buildpublic

housing,

universities

and

private

educational

institutions,

Science-techno

parks,

privatehealthfacilities,shoppingcenters,andMICE.3.

DEMOGRAPHYThe

total

population

of

Indonesia

in

2022

is

275.8

million.

Indonesia's

population

has

never

beenreduced,

every

year

it

always

increases

at

a

rate

of

about

1%.

A

large

population

reflects

the

amountof

manpower

resources.

Despite

the

unequal

population

density.

DKI

Jakarta

is

the

most

populousprovince,

far

from

the

state

capital

city

of

Nusantara,

which

will

be

located

in

East

Kalimantan.

Of

the35

provinces,

DKI

Jakarta

has

the

highest

population

density,

while

East

Kalimantan

has

the

lowestrankof35.15IndonesiaatAGlanceFigure

3.1.

Population

Density

by

Province

(people/km2)Rank1ProvinceDKIJakarta2019159001394133812271058831750273244267200189181140130112110107100922020159071365123211711113851747286260252203194189141132109105104101922021159781379124811851120855755290262258205196190142133111106105102932WestJava3Banten4SpecialRegionofYogyakartaCentralJava56EastJava7Bali8WestNusaTenggaraLampung91011121314151617181920212223242526RiauIslandsNorthSumatraSouthSulawesiNorthSulawesiIndonesiaWestSumatraEast

NusaTenggaraSouthKalimantanGorontaloBengkuluSouthSumatraAceh939192BangkaBelitungIslandsWestSulawesiRiau918990828586807375Jambi727172SoutheastSulawesi716970IndonesiaatAGlance16Rank27ProvinceCentralSulawesiNorthMalukuMaluku2019493938342918119202048403937291713119202149414037301814119282930WestKalimantanEastKalimantanCentralKalimantanPapua31323334Westpapua35NorthKalimantan10Source:CentralBureauofStatistics(2022)https://www.bps.go.id/indicator/12/141/1/ketan-penduduk-mensurat-provinsi.htmlIn2021,69.28%ofthepopulationwillbeintheproductiveagegroup(15-64years).Meanwhile,thepercentageoftoddlersandchildrenismuchhigherthantheelderly.Figure

3.2.

Population

Composition

by

Age

Group

2021

(in

%)Age

GroupToddlers0-4YearsChildren5-9yearsoldYouth10-14yearsoldProductive15-64YearsSeniors65-75+Male8.18%8.16%8.26%69.36%6.03%Female7.99%Total8.08%7.99%8.08%7.95%8.11%69.20%6.87%69.28%6.45%Total100.00%100.00%100.00%Source:StatisticsIndonesia(BPS)Imagesource:TheJakartaPost17IndonesiaatAGlanceA

large

population

is

a

large

market

potential.

The

average

expenditure

per

capita

in

2021

isIDR971,445.

Expenditures

on

food

still

dominate.

Despite

the

decline

in

growth

due

to

the

COVID-19pandemic,householdexpensescontinuetoincreaseeachyear.Figure

3.3.

Average

Expenditure

per

Capita

(Rupiah

Per

Month)

2013-2021Average

expenditure

per

capita

(Rupiah

per

month)Output

Type201320142015201620172018201920202021Food299,112

336,738

366,834

397,100

457,927

479,558

490,754

518,073

545,942206,349

235,848

292,580

314,166

322,666

372,548

392,075

415,622

425,503505,461

572,586

659,414

711,266

780,593

852,105

882,829

933,695

971,445Non-FoodTotalTotal

Growth13.28%

15.16%

7.86%9.75%9.16%3.61%5.76%4.04%Source:StatisticsIndonesia(BPS)In

the

future,

Indonesia's

population

is

estimated

to

be

above

300

million

in

2033.

The

dependencyratiowillbeabove50%after2037.Thedemographicbonuswillbeexperienceduntil2037.Parameter20152016201720182019202020212022(1)(2)(3)(4)(5)(6)(7)(8)(9)PopulationMale128483,4

129910,2

131310,6

132683,0

134025,6

135337,0

136623,4

137891,0127104,5

128586,3

130044,9

131478,7

132886,3

134266,4

135625,0

136968,1255

587,9

258

496,5

261

355,5

264

161,6

266

911,9

269

603,4

272

248,5

274

859,1FemaleTotalAge

Composition

(%)0-1426,068,35,725,769,55,925,468,66,125,169,66,324,868,76,524,568,76,724,268,87,024,068,87,315-6665+Depency

Ratio

(%)46,346,145,945,745,645,545,445,4IndonesiaatAGlance18Parameter20232024202520262027202820292030(1)(10)(11)(12)(13)(14)(15)(16)(17)PopulationMale139138,1

140363,2

141564,8

142740,7

143888,8

145007,9

146096,9

147154,6138294,3

138602,0

140889,7

142155,2

143396,5

144612,2

145801,0

146961,5279

432,4

279

965,2

282

454,4

284

895,9

287

285,3

289

620,2

191

897,9

294

116,1FemaleTotalAge

Composition

(%)0-1423,768,77,523,568,77,822,368,68,123,168,58,422,968,48,722,768,39,022,568,29,322,468,09,615-6665+Depency

Ratio

(%)45,545,645,745,946,146,446,747,0Parameter20312032203320342035203620372038(1)(18)(19)(20)(21)(22)(23)(24)(25)PopulationMale148179,4

149169,7

150124,7

131043,8

151926,6

152772,8

153582,2

154354,5148091,9

149190,7

150256,6

151288,4

152285,3

153246,4

154170,7

155057,4296

271,3

298

360,4

300

381,3

302

332,2

204

211,9

306

019,3

307

752,9

309

411,9FemaleTotalAge

Composition

(%)0-1422,267,99,922,167,710,247,721,967,510,648,121,867,310,948,521,767,111,249,021,666,911,549,521,566,711,950,021,466,512,250,415-6665+Depency

Ratio

(%)47,419IndonesiaatAGlanceParameter2039204020412042204320442045(1)(26)(27)(28)(29)(30)(31)(32)PopulationMale155090,0

155788,8

156451,4

157078,5

157670,9

158229,5

158735,0155906,2

156716,8

157489,3

158224,0

158921,3

159581,8

160206310

996,2

312

505,6

313

940,7

315

302,5

316

592,2

317

811,3

318

961,0FemaleTotalAge

Composition

(%)0-1421,266,312,550,921,166,112,851,321,066,913,151,820,965,713,352,220,965,513,652,620,865,413,953,020,765,214,153,415-6665+Depency

Ratio

(%)4.

ECONOMIC

OVERVIEW4.1

General

OverviewGross

Domestic

Product

(GDP)

is

the

monetary

market

value

of

all

final

goods

and

services

producedwithin

a

country

during

a

given

period.

GDP

gives

an

idea

of

the

size

of

a

country's

economy.

If

divid-ed

by

the

total

population,

the

GDP

per

capita

indicates

the

level

of

welfare

of

the

population.

In2022,Indonesiaisranked16thoutof212countriesaroundtheworld.In

ASEAN,

Indonesia

always

ranks

first.

Indonesia

has

the

largest

area

and

population

with

thelargestnumber,whichmakesIndonesiathelargesteconomyinallofASEAN.IndonesiaatAGlance20GDP

(current

billion

US$)ASEAN

CountryIndonesia20171,0163193433286120181,0423593773476720191,1193653753776920201,0593373453627920211,18637339739465MalaysiaSingaporePhilippinesMyanmarVietnam2814561230950714330544133435001236350614ThailandBruneiDarussalamCambodia2225272627LaoPDR1718191919Source:WorldDevelopmentIndicatorIndonesia's

economic

growth

from

year

to

year

is

relatively

stable

compared

to

other

ASEAN

coun-tries.

When

the

Covid-19

pandemic

hit,

Indonesia

had

experienced

negative

economic

growth,

butthenitturnedpositiveagainin2021.GDP

growth

(annual

%)ASEAN

CountryIndonesia20175.075.814.666.935.756.944.181.337.006.8920185.174.843.666.346.407.204.220.057.476.2520195.024.441.106.126.757.152.153.877.055.462020-2.07-5.65-4.14-9.523.1720213.693.137.615.70-17.982.591.57-1.613.032.53MalaysiaSingaporePhilippinesMyanmarVietnam2.94Thailand-6.201.13BruneiDarussalamCambodiaLaoPDR-3.100.50Source:WorldDevelopmentIndicator21IndonesiaatAGlanceThe

primary

driving

force

of

the

economy

is

household

consumption.

The

composition

of

GDP

fromthe

expenditure

side

is

Household

Consumption,

Investment,

Government

Expenditure,

and

netexport.

Indonesia's

2021

GDP

shows

that

55.6%

comes

from

household

consumption,

9.1%governmente