Indonesia rely its economy through various activities. The resources and commodities includes agricultural i.e. tea, coffee, beans, etc.; Mining i.e. coal, crude oil, valuable stones, etc.; Plantation i.e. palm oil, and many others.
There are some tourism attraction spots that contribute in the GDP, such as Bali, Lombok, Yogyakarta, etc. Although, the maximum value of the resources have not achieved yet, the GDP of Indonesia is already top 5 in Asia.
Indonesia has made a positive and stable trend in these past ten years, few reasons that caused this to happen is the stability of the political condition that in a sense favor the people more and more, which pushes job creation ...view middle of the document...
This might be caused by the October 2 second Bali bombing that shook off the economy quite greatly.
During the global financial crisis, Indonesia took the hardest hit, where it experienced deep recession and jump down from 6.5 percent to 4 percent. As the value quickly recover, around 2011 the growth percentage scored the all time high value of 7 percent. Sadly, the growth is just constantly declined on the years after.
GDP per Capita of Indonesia 2005-2014
The GDP per capita graph above is arguably had a very steady increment over the years. In the period of 2 years the GDP value per capita in average has raised 100 dollar, from 1,250 or 1,300 US dollar per capita in 2005 to 1,800 US dollar per capita in 2014.
To boost the GDP earned, there are few ways that government had done. These are: increase taxes in tobacco production and consumption, as the fact stated that quarter of Indonesian population is smoker. The steady escalation of GDP per Capita and demand for overseas holiday also being used by government to increase taxes in ticket and airport services.
Tax cuts are as well offered to the full on labour industries e.g. clothing. They also slash the luxury taxes on domestic products that encourage national goods consumptions and hold back imports. However, tax extreme tax raise will be put onto supercars ownership and branded items.
Labour Market Analysis
Unemployment Rate of Indonesia 2005-2014
The positive trends on the overall economy influence the unemployment rating in Indonesia. Predominantly, the flow of the graph indicates reduction in unemployment over 10 years period. However, the bombing in mid 2005 seems temporarily shuts down the tourism activities, therefore, the rate are actually gone up one percent from 10 percent mark. But, year after that the unemployment percentage is actually lessen, except in 2013 where the number increase a little from 5.8/5.9 percent to 6 percent.
Types of Unemployment
Frictional unemployment is happening under the normal market turnover of labour. The turnovers in the market that are caused by creation and destruction of jobs forced previously employed workers and newly unemployed generation (i.e. freshly graduated students, housewives, blue collar workers) to find new jobs. While a lot of number of applicants is waiting to get accepted, their status is still consider unemployed.
In the case of Indonesia, the ‘waiting’ time can be longer and unsatisfactory at some point, because the jobs that actually available with the number of people who applied is still insufficient, no matter how qualified the worker is. In some cases while they are jobless they will cause troubles for the society to get the extra ‘pocket money’.
Structural unemployment is happening when the advancement of technology, development of a worker skills and foreign competition substitutes how the job are being done and...