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Key economic trends in Indonesia since 1990

Lesson details

Learning outcome

I can explain how Indonesia's economic sectors have changed since 1990.

Key learning points

  1. Indonesia has experienced rapid economic change.
  2. In Indonesia, there has been rapid economic change in GDP and per capita GNI since 1990.
  3. In Indonesia, there have been changes in the importance of economic sectors since 1990.
  4. In Indonesia, there have been economic changes in the type of foreign direct investment since 1990.

Keywords

  • GDP per capita - total value of goods and services produced within a country, divided by its population

  • GNI per capita - GDP plus income from foreign investments and remittances, divided by the population

  • Foreign direct investment - (FDI) foreign countries invest in businesses or industries in another country, often by setting up or buying local companies

  • Development - process of improving living standards, economy, healthcare and education, often measured by factors like life expectancy

Common misconception

In Indonesia, agriculture remains the dominant sector in the economy.

Agriculture was once Indonesia’s economic backbone, but its role has declined since the 1990s. Today, industry and services dominate GDP, with manufacturing, finance, tourism, and digital sectors growing.

Teacher tip

Youtube has several useful videos about Batam Special Economic Zone, which students could study to identify the types of industries investing in Batam and the infrastructure improvements made by the Indonesian government to boost economic development in the island.

Licence

This content is © Oak National Academy Limited (2026), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).

Lesson video

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Prior knowledge starter quiz

6 Questions

Q1.
What type of landform best describes Indonesia?

Peninsula
Continent
Correct answer: Archipelago
Plateau

Q2.
What major ocean lies to the south of Indonesia?

Atlantic Ocean
Correct answer: Indian Ocean
Arctic Ocean
Southern Ocean

Q3.
Which tectonic feature causes frequent earthquakes and volcanoes in Indonesia?

Mid-ocean ridges
Stable continental plates
Sand dunes
Correct answer: Plate boundaries on the Pacific Ring of Fire

Q4.
What type of climate does Indonesia have?

Desert
Tundra
Temperate
Correct answer: Tropical

Q5.
Which Indonesian island is the most densely populated?

Borneo
Correct answer: Java
Sumatra
Papua

Q6.
What natural hazard is Indonesia especially vulnerable to due to its geography?

Tornadoes
Blizzards
Avalanches
Correct answer: Tsunamis

4 Questions

Q1.
Which of the following best describes Indonesia’s GDP growth trend since the 1990s?

Constant decline
Correct answer: Steady growth with occasional slowdowns
Fluctuating with sharp downturns
No growth

Q2.
Which of the following sectors is currently the most important contributor to Indonesia’s economy?

Agriculture
Correct answer: Industry and services
Fishing
Mining

Q3.
What is a major challenge Indonesia has faced in its economic development since 1990?

Decline in natural resources
High population growth
Complete reliance on agriculture
Correct answer: Income inequality and poverty

Q4.
What is Foreign Direct Investment (FDI)?

When a country borrows money from international organisations
Correct answer: When foreign countries invest in businesses or industries in another country
When a country sells goods to foreign markets
When a government regulates its trade balance

To help you plan your 11 geography lesson on: Key economic trends in Indonesia since 1990, download all teaching resources for free and adapt to suit your pupils' needs...