Indonesia has extensive natural wealth, yet, with a large and rapidly increasing population, it remains a rather poor country. The staple crop is rice. Once the world's largest rice importer, Indonesia is now nearly self-sufficient. Foreign investment has also boosted manufacturing output and exports in recent years. Indeed, the economy's growth is highly dependent on the continuing expansion of nonoil exports.
Japan remains Indonesia's most important customer and supplier of aid.
Rapid growth in the money supply in 1989-90 prompted Jakarta to implement a tight monetary policy in 1991, forcing the private sector to go to foreign banks for investment financing. The growth in off-shore debt prompted Jakarta to limit foreign borrowing beginning in late 1991. All Rights Reserved. The information herein was obtained from sources which The Emerging Markets Companion, Inc. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.