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burdensome administrative prices and increased investment in infrastructure must also assist on this regard. Natural resources are a pillar of the economy. The nation is a significant producer and exporter of minerals (e.g. nickel ore, bauxite, tin and copper), power assets and agricultural products . Taken together, pure resource-based mostly actions accounted for 21.5% of value added in 2017 and made up half the country’s exports (Figure 1.2). Some provinces, together with East Kalimantan, Riau and Papua, derive half their economy from natural useful resource-primarily based activities. The contribution of extractive industries to GDP has declined since 2011 as a result of fall in global commodity costs as well as authorized and regulatory uncertainty, high administrative barriers, global competitors and depletion of identified reserves . Non-oil and gas mining edged again up in 2017, however, aided by the recovery of worldwide costs. Following the Asian financial crisis, Indonesia gradually moved away from an economy primarily based on agricultural production to at least one primarily based on manufacturing and services. The service sector has been the primary progress engine and is now the largest contributor to the economic system, accounting for forty five% of GDP, with most value added coming from wholesale and retail trade, transport, communication and the finance, insurance and real property sector. Tourism, at 4%, contributes a modest share by OECD standards but is growing quick, with an rising variety of guests coming from China. Industry is the second-largest sector, accounting for forty one% of GDP, with most value added coming from manufacturing, construction, and mining and quarrying. The agricultural sector accounts for 14% of GDP, which is high by international comparison, and it employs 30% of the inhabitants (in comparison with 17% in

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