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Changes in Demographic Characteristics of Indonesia

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´╗┐Changes in Demographic Characteristics of Indonesia By: Aadharsh. D Economics 10B ________________ Indonesia is currently the fourth most populous country in the world with a population of 245, 613, 043 million[1] people. It is also the largest archipelago in the world with 5 main islands. The Indonesia economy is the 18th largest in the world by nominal GDP and 15th largest by purchasing power parity.2 It is considered to be one of the fastest growing developing countries in the world especially since it is richly endowed with natural resources but they are exploited and poverty still remains as a major widespread problem in the country. Population growth rate is defined as the annual change in population for a country. In 2011 (July 2011 est.), Indonesia has a growth rate of 1.069% which is the 111th highest in the world.3 For the past 10 years, Indonesia?s population rate has been decreasing and there is no increase at all. 4[2] 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1.4 1.3 1.3 1.3 1.3 1.3 1.2 1.2 1.2 1.1 1.1 As you can see from the graph, the population is still growing, but just at a slower rate. A decrease in the growth rate could have been caused by factors such as increased knowledge and awareness about contraceptive methods. ...read more.


and those who are in the labor force (productive part). The ratio is usually written as a percentage. The dependency ratio is usually measured by this formula: [8]11 12 [9]13 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 54.3 (%) 53.6 53 52.4 51.8 51.3 50.8 50.3 49.8 49.2 The current age dependency for the young and the old is 40% and 9% respectively. When you add these up, you get the 49% which is the total dependency ratio of the whole country. The age dependency ratio has been decreasing since 1970 and this is a positive change since it means that more people are now working. This could be due to more job opportunities created by the development of various industries and fields. Urbanization can also play a part in this because as people move from rural areas to an urban place where there are a lot of job opportunities, it would be easier for them to find a job. This would decrease unemployment and also a larger labor force would contribute more to the GDP of the country. The graph above shows that the urban population is growing and this supports my statement that age dependency ratio is decreasing due to more people moving to an urban location in search of employment. ...read more.


Another indicator that points to whether a country is progressing or not is the percentage of population that is below the poverty line. As you can see in the graph, we have had 2 decreases and 2 increases in the percentage in the last decade itself. It decreased from 2000-2004 and then increased from 2004-2006 and then started decreasing again until 2010. In terms of population growth rate, when the growth rate decreases and the population is stabilized and under control, the poverty decreases too. This is because there will be less people unemployed and more people will have an income source which will bring them above the poverty line. In terms of age dependency ratio, as the ratio decreases, there are more people available to work and earn a living so that they don?t have to live in poverty. In terms of the sex ratio, there more job opportunities for men than women and so as the ratio gets higher, lesser people will live in poverty. When the standard of living of a country increases, the life expectancy increases and the infant mortality rate decreases and this shows that the poverty has decreased in that country. Due to some reasons, Indonesia is considered a second-world county and a developing country. If Indonesia is able to efficiently use their large amount of natural resources, it will help in growing the GDP and the country could make a good progress. ...read more.

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