Country Economic Review: Indonesia

Abstract

Indonesia continues to experience modest growth. Real GDP grew at 3.7% in 2002, the second year in succession, although slower than the 4.8% growth in 2000. Growth has been supported by strong household consumption stimulated by the rise in real wages for selected segments of the population as nominal wages rose and inflationary pressures subsided. However, despite some increases in agricultural productivity, the rural population has not benefited from any real income gains.