Tiếng Việt
中文 (中国)
中文 (台灣)Indonesia is known as a populous country in the Southeast Asian region and has the highest number of native languages in the world. Additionally, a large proportion of the global population speaks Indonesian. Moreover, it is also nicknamed the ‘archipelago country’ due to its captivating natural landscapes and unique culture. The economic development is also an attracting factor for investors, professionals, and laborers.
Based on the World Bank’s data, Indonesia’s Gross Domestic Product (GDP) in 2023 reached 1,390 billion U.S. dollars, according to nominal GDP. The growth rate was higher compared to 2022, with a 3.6% increase. Additionally, according to the IMF’s estimate, the per capita income in Indonesia in 2023 reached 5,016 USD, reflecting a 10.1% increase compared to 2022.
It is known that Indonesia is among the top 5 countries with a developed economy in Asia and leads the Southeast Asian region. Thanks to the implementation of new economic policies, Indonesia has transformed from a poor country into a nation with significant economic potential. Evidence of this transformation can be seen in the reduction of the poverty rate in Indonesia by 40.9% from 1998 to the present, bringing it down to 9%. This demonstrates that these policies have brought about significant changes contributing to economic development and improving the quality of life for the population. Indonesia is also anticipated by experts to continue its economic growth in the coming years
The journey of Indonesia towards becoming the largest economy in Southeast Asia?
Since 1970, when Indonesia adopted new economic policies, the country achieved impressive economic growth and continued to thrive throughout the 1990s. At one point, Indonesia became the largest economy in the Southeast Asian region. However, in 1997-1998, the Asian financial crisis severely impacted Indonesia’s economy, leading to significant setbacks such as increased poverty rates and unemployment. During that time, Indonesia implemented economic reforms to minimize risks to the lowest possible level. The government strengthened financial and monetary management with the aim of controlling inflation, stabilizing the Rupiah, avoiding budget deficits by reducing public spending, increasing taxes, raising interest rates, reducing foreign exchange sales, and bolstering foreign exchange reserves. Additionally, Indonesia promoted international integration, invested in infrastructure development, and enhanced the quality of its workforce. After overcoming the crisis period, Indonesia’s economy began to recover in the following years, starting around the year 2000
The government focuses on significantly reducing the poverty rate by creating more job opportunities, increasing income for the people, investing in education and healthcare, and implementing social welfare programs to support the poor and near-poor. Indonesia actively participates in economic development activities such as signing the Regional Comprehensive Economic Partnership (RCEP), Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), Indonesia-China Free Trade Agreement (ICFTA), and Indonesia-Korea Free Trade Agreement (IKFTA). These initiatives aim to help Indonesia achieve substantial achievements. In the period from 2015 to 2022, Indonesia’s GDP growth rate reached 5.5%, higher than the world average. The poverty rate in Indonesia has decreased from 28.6% in 2000 to 9% in 2022. Indonesian Minister of Investment, Bahlil Lahadalia, stated, “Indonesia has attracted USD 45.6 billion in foreign direct investment (FDI) in 2023, a 44.2% increase compared to 2022 and exceeding the government’s target of USD 40 billion. This represents the highest FDI growth rate in the world for 2023”.
Despite various challenges and difficulties, Indonesia is now recognized as the largest economy in Southeast Asia. The country’s economy primarily thrives in the agriculture, industry, and services sectors. For example, agriculture involves the cultivation of staple crops such as rice, sugar cane, corn, coffee beans, cocoa, and pepper, along with aquaculture and livestock farming. The industrial sector encompasses coal and oil extraction, shipbuilding, automobile manufacturing, electronics, textiles, food processing, and various other industries.
In particular, the tourism, financial, insurance, real estate, and logistics sectors in Indonesia have experienced significant development. Tourism, in particular, plays a crucial role in Indonesia’s foreign exchange earnings, with popular destinations like Bali, Jakarta, and Yogyakarta attracting a large number of international tourists. Furthermore, Indonesia is also one of the world’s largest exporters of goods, exporting commodities such as oil, coal, rubber, wood, and agricultural products. As a result, Indonesia has rapidly emerged as a country with a burgeoning market economy and is ranked among the largest economies in the Southeast Asian region.
What makes Indonesia stand out and attract the attention of investors, laborers, and foreign tourists?
Beyond reasons such as abundant natural resources, favorable geographical location, and open policies, the cultural and religious diversity is also a factor that attracts foreign investment in Indonesia. With a population of nearly 280 million, Indonesia is the most populous country in Southeast Asia and ranks fourth globally. The youthful demographic, particularly the large working-age population, is notable. The Muslim community in Indonesia, constituting 87.2% of the total population, significantly influences social life through important traditional festivals such as Eid al-Fitr and Eid al-Adha.
This creates value in terms of cohesive connectivity, political stability, and a large consumer market. In addition, the Indonesian government has implemented investor-friendly policies such as tax incentives, financial support, public-private partnerships, infrastructure development, and human resource enhancement. Moreover, the Indonesian government has increased the openness of its policies towards international experts, providing high-skilled professionals with opportunities to work, and even offering financial support or loans. They particularly prioritize experts in the fields of technology, renewable energy, and high-tech agriculture. The goal is to promote economic development by enhancing productivity in key industries. Furthermore, Indonesia facilitates favorable conditions for foreign blue-collar workers, such as visa applications, work permits, income tax exemptions, healthcare and education subsidies for their children, and creates numerous job opportunities, especially in the construction, manufacturing, and service sectors due to the shortage of local labor.
On the other hand, Indonesia consists of 17,508 islands and is home to approximately 300 ethnic groups, with 840 languages used throughout the country. Among them, 718 indigenous languages are spoken as mother tongues, contributing to the rich linguistic diversity and unique character of Indonesia. Additionally, this diversity sparks interest and attracts an increasing number of foreign tourists to Indonesia. Specifically, according to a report by BPS, Indonesia welcomed around 8.5 million international visitors in the first nine months of 2023, surpassing the full-year figure of 5.88 million in 2022. All of these factors make Indonesia increasingly attractive to investors and experts.
Why should one learn Indonesian?
With a robust economic potential and a dense population, Indonesia is predicted by the IMF to become the fourth-largest economy in the world by nominal GDP in 2030. This opens up numerous opportunities and benefits for those learning Indonesian. Additionally, according to international data from Ethnologue, Indonesian is ranked eleventh and is becoming increasingly integrated into the formal education curriculum in many countries worldwide.
In Vietnam, Indonesian became widely known in 2019 through events, tourism, commerce, television, and film. Consequently, there was a significant surge in the demand for Indonesian translation and increased interest among professionals. However, at that time, finding proficient Indonesian speakers was quite rare. Recognizing the potential for development, the Ministry of Education in Vietnam began promoting the demand for learning Indonesian by incorporating it into the regular university curriculum. To date, there are nearly 10 universities offering specialized Indonesian language programs with an average of 300-600 graduates. This indicates that the Indonesian language is gradually making strides in Vietnam. However, in reality, less than 2% of learners can achieve fluency in Indonesian. From there, it is evident that there is a shortage of proficient Indonesian speakers to meet the demands for research, translation, and work. One of the surveyed reasons for this shortage is attributed to inconsistent teaching methods, programs that are not closely aligned with reality, and limited opportunities for communication or interaction with native speakers.
Understanding this demand, PLG has continuously made efforts to search for highly qualified instructors to support learners in harnessing their Indonesian language skills. Students from remote areas can choose online tutoring or have direct in-person classes with teachers. The practical teaching method will bring positive outcomes and shorten the time needed for communication with native speakers. Additionally, being proficient in Indonesian also enables communication with Malaysians as both languages belong to the Malay-Polynesian language group, sharing similarities in grammar, vocabulary, and pronunciation.
Marijah – a PLG teacher, graduated from the prestigious Gadjah Mada University in Indonesia and was awarded a full scholarship during her studies there. Moreover, she is fluent in Malay and is recognized as the first Indonesian language interpreter in Vietnam. With her regular assignments, she accompanies government officials, businesses, and tourist organizations between the two countries. She shared, “The Indonesian language is formed from languages such as Malay, Javanese, Sundanese, and some indigenous languages of Indonesia. Although there are many similarities between Indonesian and Malay language, with a similarity rate of up to 76%, there are still slight differences in terms of local accents. Therefore, those who are fluent in Indonesian and have long-term practical experience will easily distinguish and have knowledge of Malay language as well. It is an advantage when learning Indonesian, as this language allows communication with people from Malaysia, Brunei, and some residents of Singapore”.
If you are interested in the Indonesian Tutoring service at PLG, please click here and fill in the required information or send an email to daotaongonngu@plg.com.vn to receive a quote promptly.