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DispatchFactbookEconomy

by The Thalassocracy of Imperial Majapahit. . 111 reads.

Majapahit | Economy


Economy of Majapahit


Majakarta, Imperial capital and second-largest city.

Currency

Majapahiti dhana (Dh)

Fiscal year

Calendar year

Indicators

Population

301.980.112 (1 January 2020)

GDP

$2,17 trillion

GDP per capita

$7.215

GDP by sector (2019)

Services: 55,1%
Industry: 35,7%
Agriculture: 9,2%

Inflation

1,8% (1 January 2020)

Human
Development
Index

0,785; high (2018)

Unemployment

4,8%

Executives

Minister of Finance

Laksmana Pradhana

Minister of Industry

Ananda Pamungkas

Minister of Labour

Kalingga Siregar

The economy of Majapahit is a mixed market economy with a nominal GDP of $2,1 trillion in 2019, the largest in Southeast Asia and 8th largest in the world according to the International Monetary Fund. It features large state-owned enterprise sector alongside an almost equally large private sector. Labour productivity in Majapahit has grown exponentially over the past couple of decades, mainly due to high density of knowledge-based industries and adoption of cutting edge technology for manufacturing and digital economy. According to the Global Competitiveness Report 2019, the Majapahit Empire is the 25th most competitive country in the world in the period of 201819.

The Majapahit economy is expected to grow 6,1% in 2020, a slight decrease from the 6,3% in 2019. Per capita income in 2020 is projected at $7.215. Inflation stays at 1,8%, along with unemployment which also stays at 4,8% despite several employment programmes put in motion by Premier Sri Indra Thohir's government in the beginning of its term. Nevertheless, most Majapahiti citizens enjoy a relatively high standard of living compared to its neighbours. This is reflected in the Human Development Index score of 0,785 recorded in 2018, which is among Linkthe 'high' category alongside countries like Thailand and Mexico. Majapahit held on to $650,7 billion in foreign-exchange reserves in 2020, Linkthe fourth-largest in the world, surpassing Russia and just below Switzerland.

Under the Imperial Framework (Constitution) of 1915, natural resources considered of strategic importance to the Empire and its subjects (such as oil, gas, rare minerals, energy, and water) should only be extracted or produced and distributed by the state. Thus, no private company, domestic or foreign, are allowed to explore and/or exploit the resources. This Linkstatist policy aims to ensure that the aforementioned resources are used for the prosperity of the people, not for the accumulation of profits.

The Majapahiti dhana (Dh) is the official currency of Majapahit. It is issued, controlled, and regulated by Bank Majapahit, the Empire's central bank established in 1852. Its name is derived from the Sanskrit word Dhāna, which means "prize" or "stake". The current dhana consists of coins from 1 to 10 dhana and banknotes of 10 to 1.000 dhana. According to the exchange rate as of 1 January 2019, 1 NSD is worth 12,8 dhana.

As the sole country that has control over the LinkStrait of Malacca, international trade plays a very significant role in Majapahit's economy. The main trade partners of Majapahit are LinkJapan and LinkChina. Through bilateral agreements, Majapahit has consistently attempted to balance its economic relations with the two countries. However, the rapid growth of China in the recent years meant a shift towards Beijing in trade policy was ultimately necessary, proven by the growth of Chinese investments in Majapahit surpassing that of Japan.
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Sectors



Oil is a major sector in the Majapahiti economy. During the 1980s, Majapahit was a significant oil-exporter and participated in Linkthe Organisation of Petroleum Exporting Countries. Since the dawn of the 21st century, domestic consumption has continued to rise while production has been falling, so in recent years oil exports have decreased significantly. Fuel subsidies provided by the government has also increased as a result; a popular albeit costly policy. Over 41 basins have been explored and exploited by Pertamaja, the state-owned petroleum and mineral company. The rate of oil extraction as of January 2020 has reached 1.694.600 barrels per day.

Majapahit is the largest producer and consumer of palm oil, providing more than half of the world's palm oil supply. It is an essential ingredient for the food industry as cooking oil or in the production of processed foods. Over 13 million hectares of land in the Empire is used for plantations, producing nearly 32 million tonnes of palm oil with a highly mechanised and digitised production system. In mid 2019, the Imperial Government has passed a policy on increasing labour and carbon regulations as advised by H.I.M. Emperor Jayanagara VII and numerous international organisations. This has resulted in the decrease of plantation expansion, although production levels are still growing slowly but steadily as of 2020.

As the fastest-growing in Southeast Asia, Majapahit's tourism industry also an important sector in the Empire's economy. It is a significant source of foreign exchange revenues. Destinations such as Bali with its exquisite beaches, Java with its ancient Hindu-Buddhist temples, Bandar Singa with an amazing urban environment, and West Papua with its Raja Ampat islands are among the most famous and sought-after destinations by foreign tourists. Additionally, the Imperial Tourism Bureau has drafted plans to overhaul and expand preexisting 'minor' destinations, such as those in Sumatra and Sulawesi, to improve its attractiveness and accessibility to foreign tourists. The Bureau has also planned to achieve 8 percent of GDP from the tourism sector and targeted to attract about 20 million visitors by 2019.

The small and medium-sized enterprises (SME) sector has shown steady and consistent growth in the past decade. The Majapahiti government has been providing incentives to enhance the growth of small entrepreneurs. Imperial citizens can opt to receive a low-interest credit package from the Imperial Development Bank (IDB) that could be used to expand their enterprises. Furthermore, through the Bureau of Education, the government has also been providing extensive training courses in entrepreneurship and business management for free to Imperial citizens who are not able to pursue tertiary education due to financial constraints with the hope of them later establishing their own business to ensure security for themselves and grow the economy.

RawReport