Modern Economy:
the Changing Profile: Agriculture, Industry and Services

Thirty years of growth under Indonesia's New Order government have brought about far-reaching changes in the profile of Indonesia's economic base. In the late 1960s and early 1970s the emphasis was on strengthening Indonesia's infrastructure and increasing agricultural output.

With the acheivement of self-sufficiency in rice growth, and helped by the oil boom of the mid-1970s, Indonesia began to devote more resources to industrial development.

In the 1980s, more intense reforms aimed at ending the reliance on the oil sector and diversifying the industrial base. These policies succeeded, diversifying the economy and actually increasing its overall growth rates. From 1983 to 1993 the manufacturing sector contribution to GDP increased from 12.7 to 22.3 percent. Agriculture fell from 22.9 percent to 17.9 percent during the same period, as did minerals and mining from 20.8 percent to 9.6 percent.

In the same period, the GNP increased by 45 percent.

Over the next twentyfive years, Indonesia is planning to join the ranks of the middle income industrialized nations, with an economic mix that values industry and services over agriculture.

Changes in profile of Indonesian economy over time