The islands of Java and Bali are the primary contributors to the Indonesian economy. The Greater Jakarta area is in Java. Java is the country’s most populous island, with 60% of the Indonesian population residing on the island. It contributes more than 58% of the nation’s total economic production. Bali provides nearly 28%, Sumatra 23.9%, and Kalimantan 8.73%.
The reason Java, Bali, Sumatra, and Kalimantan contribute more towards the national economy is that they are closer to foreign countries such as Malaysia and Singapore. Jakarta and Bali also have many foreign companies and popular domestic brands. Bali is also a well-known tourist destination that also makes it a significant contributor to the country’s economy. The islands of Java, Sumatra, and Kalimantan are also major contributor to the country’s palm oil industry, making these regions essential contributors towards the Indonesian economy.