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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...