Indonesia

Indonesia: strong, sustained growth, 1980–2025

Rapid growth under Suharto ended abruptly in the 1997-98 Asian financial crisis and subsequent political transition; since then, resource exports and a large domestic market have driven a steadier expansion. Between 1980 and 2025, Indonesia's GDP per capita grew from $487 to $5,060 (current US$), a compound annual growth rate of 5.3% — strong, sustained growth. Annual GDP growth averaged 5.0% with a year-to-year standard deviation of 3.3 points, reflecting relatively stable macroeconomic conditions. Structurally, agriculture's share of the economy moved from 24.1% to 13.1% of GDP (a classic decline as the economy industrialized/modernized), while services rose from 39.3% to 43.9% of GDP, underscoring a shift toward a services-driven economy. On human development, life expectancy rose from 58.7 to 71.3 years, while tertiary school enrollment moved from 3.4% to 44.9%, while the urban population share grew from 22.1% to 59.4%.

What this growth cost: Growth was not without cost: per-capita CO2 emissions rose from 0.61 to 2.87 tonnes CO2e per person; income inequality (Gini index) widened from 32.3 to 34.4; the poverty headcount ratio fell from 86.2% to 4.0%.