Indonesia’s GDP: Unaudited budget deficit in 2022
According to unaudited data, Indonesia’s fiscal deficit in 2022 was 464.3 trillion rupiah, or 2.38% of gross domestic product, substantially lower than anticipated, according to Sri Mulyani Indrawati, the country’s finance minister. According to the minister, the biggest economy in Southeast Asia probably expanded annually 5.2% last year.
Indonesia’s GDP per capita was $10,765 in 2020, according to data from the World Bank’s World Development Indicators website. The prefix “2021PPP” denotes that local currency was translated into U.S. dollars at 2021 Purchasing Power Parity exchange rates. Accordingly, Indonesia’s GDP per capita (2021PPP$25,699) was 41.9% of Malaysia’s. If, and only if, Indonesia regularly grows at a greater rate than Malaysia, its GDP per capita will overtake Malaysia’s.
It is difficult to forecast future growth rates for developing nations. Particularly, nations who are expanding faster than their own prior trend have a significant propensity to return to that rate of expansion. Please take special note that the computations below are projections of historical trends rather than forecasts of what will really occur.
2.38 percent of Indonesia’s GDP is Unaudited
Real GDP per capita increased at a pace of 4.2% annually in Indonesia from 2006 to 2016. Compared to 2.9% annually in Malaysia over the same ten-year period. If these growth rates were to continue indefinitely. Indonesia’s GDP per capita would surpass Malaysia’s present level in 2037. Naturally, Malaysia won’t be stagnant. Instead, it’ll be expanding, albeit more slowly than Indonesia. It would take until 2084 for Singapore to surpass Malaysia in terms of GDP per capita. When it would be roughly $182,000PPP. It goes without saying that a lot could happen between now and then. Therefore, this is just an estimate based on current growth rates.
Despite the fact that Malaysia’s average income is larger than Indonesia’s, the disparity between the two countries’ GDP per capita may not be as large as it appears.
Lastly, supply and demand determine price generally. Prices are influenced by a number of factors, including government regulation (tariff, tax), cost of manufacturing and transportation, pricing in rival enterprises, and purchasing power, which influences demand. Malaysia has a more cost-friendly environment for product procurement as seen by its similar/lower price level compared to nations with lower income levels.
In addition, to the import tax (for raw materials/production and consumer items) and other price-related considerations, Indonesia in particular has logistic cost concerns that could increase the cost of goods delivery. As a result, improving interisland connectivity through infrastructure development is crucial for ensuring Indonesian consumers have access to affordable commodities.