Indonesia is comprised of 13,677 islands which are richly endowed with a diverse stock of human and natural resources. However, of the population of 172 million, about 107 million people (62%) are located in the inner islands (Java, Madura, Bali-and Lombok), which together have about 8% of the total land area. The resulting population density of 78 8 people per square kilometer is among the highest in the world.
The predominant form of employment in Indonesia is agriculture. Three quarters of employment in manufacturing, construction, transport and communications, and trade is concentrated in Java. Agricultural practices in Indonesia range from shifting cultivation, to settled irrigated rice cultivation, to modern fruit and tree crop plantations. Manufacturing activities also show a great diversity, ranging from simple handicraft production, through agro-processing, to sophisticated petrochemical, plastics and aircraft production. Economic activity is underpinned by a vast base of natural resources. In addition to Indonesia's role as a major exporter of crude oil and natural gas derivatives, the country enjoys substantial reserves of coal, tin, gold, aluminium, and other minerals. |