Upward and Onward: Main Reasons for Indonesia’s Resilience
Indonesia is a beautiful country home to over 18,000 islands, the komodo dragon, jungle elephants, beautiful beaches and incredible volcanoes. Its beauty brings tourism and natural resources, but there is still high poverty rates that the Indonesian government is determined to decrease. Despite challenges of poverty and natural disasters, here are the main reasons for Indonesia’s resilience.
Indonesia Learns from the Past
Indonesia is particularly exposed to natural disasters such as volcanoes, flooding earthquakes and tsunamis. Over the last ten years Indonesia has undergone multiple earthquakes with over a 6.0 magnitude. Of the more recent earthquakes, the most devastating was one that hit Sumatra at the end of September 2009 with a 7.6 magnitude that caused over a 1000 casualties.
The history of natural disasters coupled with a high risk of more to come has fortified the Indonesian government to be ready for any future events. In April of 2012, Indonesia’s National Tsunami Warning Center alerted the Banda Aceh community of a tsunami threat.
Luckily the earthquake did not create a tsunami, and the alarm went off as intended, but misunderstood and confused procedures lead to panic and disorder. However, events like these contribute towards finding the holes, implementing solutions and ultimately, fixing the problems. Many locations like Banda Aceh have now marked evacuation routes and built safety shelters.
At 10.2 percent, Indonesia’s poverty rate is the lowest it’s ever been. With a population of about 261 million, the fourth largest in the world, Indonesia still hosts over 26 million people living below the poverty line. However, the nation’s standard of living and social assistance increased over the last twenty years.
In particular, the poverty rate dropped about 5 percent over the last ten years. The National Development Planning Minister Bambang Brodjonegoro acknowledged the need for further improvement and hoped to see the rate drop to under 10 percent in the near future.
Growing Tourism and Economic Strength
With so many beautiful attributes, it’s not hard to believe that Indonesia’s tourism rose from a little over 12 million tourists in 2015 to over 14 million in 2017. The growing tourism industry goes a long way towards helping Indonesia make comebacks.
Even when the worldwide slowdown hit after 2011, Indonesia still received an increasing number of foreign tourists — 7.65 million in 2011, 8.04 in 2012 and 8.8 million in 2013.
Indonesia has the tenth largest economy in the world for purchasing power. The nation’s gross domestic product grew from $861.3 billion in 2015 to $932.3 billion in 2016.
This bounce-back occurred after a dip in the GDP output but was still an overall increase. The government is still looking for ways to strengthen the economy, such as outing corruption by strengthening the legal framework or improving infrastructure by decreasing fuel and electricity subsidies.
Looking at the Long-Term Goal
Powerful changes, such as those listed for the building economic strength, will help to make Indonesia more attractive for foreign investment. However, some changes — such as cutting fuel subsidies — can result in a short-term struggle causing many citizens to become dissatisfied.
If the country can make it past the initial difficulty, the eventual removal of the subsidies will lead to long-term gain. Indonesia’s ability to recognize what sacrifices will lead to longevity is one of many reasons for Indonesia’s resilience, and a hopeful sign for the future.
– Natasha Komen