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Indonesia Compare to Asean Country

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Indonesia Compare to Asean Country
COUNTRY PAPER

Study Meeting on Expansion and Development of the
Service Industry in Asia
APO Project No. 08-RP-38-GE-STM-B

17-20 June, 2008
At
Seoul, Republic of Korea

Submitted By:
Kenedi Nababan and Romi Prasetio – Indonesia

Kenedi Nababan Romi Prasetio
Arco Backend Agency Bank Sinarmas
Hongkong and Shanghai Bank Corporation Bank Sinarmas KC. Sukabumi, Jl. A. Yani No 235
Wisma HSBC JL Asia Afrika No. 116 Ruko No. 3 Sukabumi
Bandung 40112 Telephone :62-266-229377
Telephone :62-22-4233022 Fax :62-226-229366
Fax :62-22-4230182 E-mail : romi.prasetio@banksinarmas.com
E-mail : kenedinababan@hsbc.co.id

I. Composition of Services Industry in Indonesia : II. Banking and Finance sector a. Bank b. Insurance c. Other financial institution III. Infrastructure of Health Sector a. Hospital b. Medical Clinic c. Puskesmas (rural region) IV. Tourism a. Hotel b. Restaurant V. Construction a. Highways b. Bridges c. Public Services VI. Transportation and Freight a. Air transportation b. Sea Transportation c. Land Transportasion ( bus, railways) VII. Communication a. Fixed Line b. Cellular Telecommunications

II. Service Industry Influence to economic Growth An economic growth in Indonesia contain several of main sector, first agriculture (16,8%), services (2.1%), financing (1%), trade and tourism (0,9%) and electricity (0,6%). Service industry can give composition of national income for the period 1997-2007 20%-22%, tradable sector 30%-31% and tax 40%-45%.

III. Growth and influences to the National Vocations In Indonesia, telecommunication is highest sector that can achieve average 20% per year of growth, but influence to the vocation only 2% per year. It is inversely proportional with



References: Arifa, A and Azmat Gani and MD Clements, 2003. “ An Empirical Investigation of The Spillover Effects of Service and Manufacturing Sectors in Asean Countries,” Asia-Pasific Development Journal, vol 10 no 2. Arndt, H.W., 1989. “Trade in services,” ASEAN Economic Bulletin, vol. 6, No. 1, pp. 1-7. Gani, A. and M.D. Clemes, 2002. “Services and economic growth in ASEAN economies,” ASEAN Economic Bulletin, vol. 19, No. 2, pp. 155-169. Gani, A. and P. van Diermen, 2001. “Some determinants of small firm ‘presence’ in Indonesia’s manufacturing sector,” Applied Economics Letters, vol. 8, No. 7, pp. 471-474. Rabobank, 2007 Country Report Indonesia Economic Research Department Country Risk Research May. The World Bank, 2001. World Development Indicators CD-ROM 2001 (Washington, D.C., The World Bank). , 2000. World Development Report 2000 (New York, Oxford University Press). , 1994. The East Asian Miracle: Economic Growth and Public Policy , (New York, Oxford University Press).

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