Indonesia

A Budget Analysis of the Indonesia

By

Fathullah “Karimi”

The flag

GeographyCapital: Jakarta

Official languages: Indonesian

Area: 1,919,440 sq km

Independence: Declared 17 August 1945

Currency: Rupiah (IDR)

GDP: $843.7 billion

Population: 237,512,352

People

Ethnic groups:Javanese 40.6%, Sundanese 15%, Madurese 3.3%,

Minangkabau 2.7%, Betawi 2.4%, Bugis 2.4%, Banten 2%, Banjar

1.7%, other or unspecified 29.9%

Religions:Muslim 86.1%, Protestant 5.7%, Roman Catholic 3%, Hindu 1.8%,

other or unspecified 3.4%

Languages:Bahasa Indonesia (official, modified form of Malay), English,

Dutch,local dialects (the most widely spoken of which is

Javanese)

History

1. Kingdom of Muslim religion(13th century)

2. Slavery system in 2nd century B.C

3. Be colonized by Portuguese(1955),

Dutchman (340 years), Japanese(World

War II).

4. Declared in 17 August, 1945

5. Be a member state in Dec. 27, 1950

Wedding custom

1.Woman marry man

2.Earlier marriage (Java island)

3.Many wives (Mohammedanism culture)

4.Wedding treatment in girl from mother side.

5.Confinement in childbirth

Politics

-The politics of Indonesia takes place in a framework of a

presidential representative democratic republic

-the President of Indonesia is both head of state and head of

government, and of a multi-party system.

-Legislative power is vested in both the government and the two

People's Representative Councils. The Judiciary is independent of the

executive and the legislature.

-The President of Indonesia is directly-elected for five-year terms,

and is the head of state, commander-in-chief of Indonesian armed

forces and responsible for domestic governance and policy-making

and foreign affairs. The president appoints a cabinet, who don't have

to be elected members of the legislature.

Economy

Indonesia has a market-based economy in which the government

plays a significant role. It owns more than 164 state-owned enterprises

and administers prices on several basic goods, including fuel, rice, and

electricity. In the aftermath of the financial and economic crisis that

began in mid-1997, the government took custody of a significant portion

of private sector assets through acquisition of nonperforming bank

loans and corporate assets through the debt restructuring process.

the presence of US banks, manufacturers, and service providers

expanded, especially after the industrial and financial sector reforms of

the 1980s.

The economic crisis made continued private financing imperative but

problematic. New foreign investment approvals fell by almost two-thirds

between 1997 and 1999.

The BudgetGovernment Revenues 1.635,4

Tax Revenue 1.246,1

Non Tax Revenue 386.9

Grant 2,3

Government Expenditures 1.876,9

Central Government Expenditure 1.280,4

Block Grant 596,5

Financing 241,5

Domestic 254,9

International (13,4)

Classified Budget

Infrastructure Funds Expenditure by program

Deficit of Budget

• Indonesia's Budget Deficit Reaches IDR

25.9 trillion as of May 2013

• Data released by a department of

Indonesia's Ministry of Finance showed

that the country's budget deficit amounted

to IDR 25.9 trillion (USD $2.64 billion) on

31 May 2013. This figure is equivalent to

16.9 percent of the target that is set in the

2013 State Budget (IDR 153.3 trillion ).

Deficit of Budget

The IDR 25.9 trillion deficit translates to 0.27

percent of Indonesia's gross domestic

product (GDP). The maximum amount of

deficit - as stipulated by the State Budget

Law of 2013 - that is allowed to be

maintained is equivalent to 1.65 percent of

GDP. The current deficit is in sharp contrast

with May 2012 when the budget recorded a

surplus of IDR 27 trillion.

Recommendations and Analysis

• Indonesia should Plan a growth in his

budget

• Continuous audits

• Other parameters include inflation, the

rupiah exchange rate against the US

dollar, oil prices, oil production and three-

month treasury bills.

Reference

• http://en.wikipedia.org/wiki/Indonesia#Geography

• https://www.cia.gov/library/publications/the-world-

factbook/geos/id.html

• http://tw.youtube.com/watch?v=-

CP6ykzsK0M&feature=related

• Special thanks to Yasmin Purnomo from Indonesia our

interviewee.

Thank you for lisntening