/ Republic of Indonesia
Overview
Indonesia is an archipelago nation located in Southeast Asia and Oceania, situated between the Indian and Pacific Oceans. It is the world's largest island country, consisting of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guinea. Indonesia shares land borders with Papua New Guinea, East Timor, and Malaysia, and maritime borders with Singapore, Vietnam, the Philippines, and Australia. The country covers a land area of approximately 1.9 million square kilometers and has an estimated population of 282.5 million as of early 2026. Indonesia is a presidential republic divided into 38 provinces, including the Special Capital Region of Jakarta (transitioning to the new capital, Nusantara, in East Kalimantan).
In 2025, the GDP reached approximately US$1.52 trillion, and per capita GDP was US$5,380. Indonesia's economy is characterized by a strong service sector, which accounts for c.46% of its GDP, driven by telecommunications, wholesale trade, and financial services. Domestic consumption and large-scale infrastructure projects are the primary drivers of economic growth. The country’s economy is a major global supplier of commodities and is increasingly focused on downstream mineral processing. Its largest trading partners are China, the United States, Japan, India, and Singapore. Indonesia is the world's largest producer of nickel and palm oil, and a significant exporter of coal, rubber, and copper. The "downstreaming" of nickel for the electric vehicle (EV) battery supply chain and the development of the digital economy are expected to be major future growth drivers. Additionally, the tourism sector has expanded significantly, contributing c.5.1% to the GDP in 2025. The country's industrial sector represents approximately 41% of its GDP and employs about 19% of the workforce, while the agricultural sector accounts for c.13% of GDP and employs 28% of the labor force. Imports of refined petroleum, iron and steel, and electronic components are among the highest in the country, with top import partners being China, Singapore, Japan, and South Korea.
Indonesia has a vast history ranging from the powerful maritime empires of Srivijaya and Majapahit to the colonial era under the Dutch East India Company. The nation declared independence on August 17, 1945. Since then, Indonesia has emerged as the largest economy in Southeast Asia and a member of the G20, maintaining a neutral foreign policy while fostering regional stability through its leadership in ASEAN.
