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What is the Indonesia Rupiah (IDR)?

Credit Ratings & Outlook

In the latest credit ratings from December 1970, Moody's gives Indonesia a Ba1 rating, with a stable outlook. Fitch has a positive outlook with a BB+ rating. Finally, S&P last issued a BB+ rating, with a positive outlook.

Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

Central Bank Rate

The current central bank interest rate is 5.75%. This is lower than 2011, which was 6.00%.

GDP

In 2010 the total GDP was $706,558,240,891 in US Dollars, while the per capita GDP was $2,945. It grew by 6.10% over the previous year.

Unemployment

The latest unemployment rate for 2011 is 6.56%.

Consumer Price Index

The latest consumer price index for 2010 is 145.59.

Political Structure

The current head of the government is President Susilo Bambang Yudhoyono, who is also the head of state (in an executive role).

Currency Details

The name for the Indonesia Rupiah was adopted from the Indian form of currency, the Rupee. Prior to the Rupiah, Indonesia used the Dutch guilder from 1610 to 1817, when the Dutch East Indies guilder was introduced. The Rupiah was first introduced during the World War II Japanese occupation. Following the end of the war, the Java Bank briefly issued its own Java Rupiah as a replacement. Preceding their independence, the Indonesian Rupiah was introduced on November 2, 1949 as the new national currency. The Riau islands and the Indonesian half of New Guinea (Irian Barat) had their own variants of the Rupiah, but these were incorporated into the national Rupiah in 1964 and 1971. Devalued by inflation, in 1965 the New Rupiah was introduced at a rate of 1000 old Rupiah to one new Rupiah. More recently, the Asian economic crisis of 1997-1998 depreciated the Rupiah’s value by 35% in a matter of one night and was a major factor in the overthrow of President Suharto’s government. The Rupiah had traded at about 2000-3000 Rupiah per 1 US dollar, but reached a low of 16,800 Rupiah per dollar in June 1998. The Rupiah is a freely convertible currency, but remains plagued by high inflation. As of early June 2005, 1 US dollar is worth approximately 9,560 Rupiah.

Moody’s Rating
Ba2, 16 Sep 2009
S&P Rating
BBB-

Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

What does it look like?

Political Structure

The Presidency is the highest executive office, with direct legislative powers and authority to appoint the Cabinet. The legislature of Indonesia is referred to as the Peoples’ Consultative Assembly, which consists of the 550-member House of Peoples’ Representatives plus 128 regional representatives. Starting in 2004, all political representatives, including the President, are to be directly elected. In Indonesia, the political power has historically been concentrated in the hands of the Presidency, but recent constitutional amendments have been lending a greater role for the legislature. The central bank in Indonesia is called Bank Indonesia.

Prominent Figures

Chief of State President Susilo Bambang YUDHOYONO (since 20 October 2004); Vice President BOEDIONO (since 20 October 2009); note – the president is both the chief of state and head of government
Head of Government President Susilo Bambang YUDHOYONO (since 20 October 2004); Vice President BOEDIONO (since 20 October 2009)
Cabinet Cabinet appointed by the president
Elections president and vice president are elected for five-year terms (eligible for a second term) by direct vote of the citizenry; last held on 8 July 2009 (next to be held in 2014)
Election Results Susilo Bambang YUDHOYONO elected president; percent of vote – Susilo Bambang YUDHOYONO 60.8%, MEGAWATI Sukarnoputri 26.8%, Jusuf KALLA 12.4%

Key Economic Factors

Foreign Trade:

The difference between exports and imports of foreign trade in goods and services is represented by the balance of trade. Indonesia’s primary export is oil; however, as a result of mismanaged oil infrastructure, exports have declined while imports have risen. Also, due to post-tsunami (Dec. 2004) renovation efforts, imports continue to increase.

Gross Domestic Product:

GDP measures the total production and consumption of goods and services in Indonesia. It is compiled by both production and expenditure approaches encompassing the entire economy. Since the 1997-98 Asian financial crisis, the economy has been strengthening under rule of President Yudhoyano. However, even so, more economic reform is still necessary.

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