Indonesia gains entry into 'trillion-dollar club'

wonkcerbon · Post time 19-1-2012 09:29 PM

Indonesia gains entry into 'trillion-dollar club'
Zubaidah Nazeer & Zakir Hussain
The Straits Times
Publication Date : 18-01-2012

Indonesia's Trade Minister has hailed the country's entrance into an exclusive club - one in which South-east Asia's largest economy has joined such money-making giants as China, India and South Korea.
"We have just joined what people call the trillion-dollar club. Indonesia's GDP stands at a little bit more than US$1 trillion," said Mr Gita Wirjawan, who took over the trade portfolio in October last year.
"Some economists have projected that Indonesia's economy is expected to grow to US$9.3 trillion by 2030... staggering but not an impossibility."
In a speech to the Jakarta Foreign Correspondents Club, he also noted investment figures to be released by the end of the week will show a rapid spread of capital beyond Java, which is home to some 60 per cent of the population.
Other islands accounted for only 18 per cent of investment capital in 2009.
"In 2010, that rose to 33 per cent and figures for 2011 show at least 45 per cent," said Mr Gita.
Both he and Finance Minister Agus Martowardojo, who spoke yesterday at a separate briefing organised by the Fitch credit-rating agency, expressed optimism that Indonesia's economy will continue to grow rapidly in spite of the sputtering global economy.
Foreign direct investment was projected to soar with last month's upgrade of the country's sovereign debt rating to investment grade by Fitch, said Mr Agus.
This, he said, could help create good jobs for Indonesians, lift pay, reduce poverty, and beef up the country's foreign exchange reserves.

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