Indonesia is one of Australia's nearest neighbours yet very few Australians are aware of the important demographic and economic changes occurring in Indonesia. Much of the material on Indonesia stresses the diversity of the Indonesian people and indicates that Indonesia has vast quantities of natural resources and a large and growing population.
This report has two key objectives. First, to identify how Indonesia's manufacturing industry has developed to the present day by focusing on the interactions between demographic, economic and political developments and other relevant influences. Second, with a clear picture of how and why manufacturing has developed, the report goes on to speculate about how it might develop in the future. The report also aims to alleviate some of the lack of awareness of Indonesia, and to provide some idea of the tremendous opportunities which are presently emerging in Indonesia for Australian business.
The report is the result of analysis of the results of an extensive literature search on recent material dealing with economic and demographic developments in Indonesia.
Indonesia is tremendously diverse in geography, ethnicity, population distribution and income distribution.
Indonesia's population is already very large, but is also growing rapidly; it will pass 200 million in 2000. Fertility declines are evident, but there is a long lead time before they are transferred into the population structure. This will continue to place increasing pressure on education, health, labour market and other service delivery systems.
A key result is that growth of the labour force in Indonesia will continue at a rate faster than the population as a whole through to the first half of the 21st century. This means that Indonesia's population growth problem will be increasingly felt as an employment problem - particularly on the islands of Java and Sumatra where 79% of the labour force will be contained by 2000.
Indonesia also has a very uneven regional population distribution which has placed considerable stress on the resources of the most populous islands Java, Madura and Bali. This problem has received considerable attention from the Indonesian Government over time. Their efforts to deal with it have met with mixed success. Population growth in many overcrowded regions will……