This 2010 edition of OECD's periodic survey of the Indonesian economy includes chapters covering achieving sustainable and inclusive growth, phasing out energy subsidies, tackling the infrastructure challenge, and enhancing the effectiveness of social policies. It finds that Indonesia's economy withstood the recent global crisis very well, thanks to appropriate stabilisation policies and increased economic and financial resilience. Nevertheless, a number of institutional reforms and policy changes will be needed to deal with the several cross-cutting challenges of decentralisation, capacity-building at the local level, and improved economic governance.
Table of contents:
-Basic statistics of Indonesia Executive summary Assessment and recommendations Chapter 1. Achieving sustainable and inclusive growth -Recent economic developments -Key challenges over the longer term -Macro-economic policy framework -Financial markets -Labour markets -Climate change and deforestation -Governance -Summary of policy recommendations -Annex 1.A1. Explaining inflation in Indonesia -Annex 1.A2. Estimation and projection of Indonesia's potential output growth Chapter 2. Phasing out energy subsidies -Energy subsidies are large by international standards -Energy subsidies entail significant costs -Removing subsidies will enhance Indonesia's long-term growth prospects -Policy considerations Chapter 3. Tackling the infrastructure challenge -The state of infrastructure -Financing investment in infrastructure -Comparing Indonesia's regulatory framwork with OECD countries -Selected infrastructure sectors --Electricity --Water and sanitation services --Road transport --Telecommunications --Ports and shipping Chapter 4. Enhancing the effectiveness of social policies -Education -Health care -Social protection -Annex 4.A1. The effect of school infrastructure development on educational attainment -Annex 4.A2. Health insurance and utilisation in Indonesia -Annex 4.A3. The determinants of poverty in Indonesia