It is a great pleasure to be back in Jakarta to launch the 4th OECD Economic Survey of Indonesia of Indonesia and our first ever Education Policy Review – a fitting first, given that today we are also opening the OECD’s Jakarta office: our first ever in a Key Partner country.
Having made impressive progress in widening access to basic education, Indonesia must now consolidate these gains and develop an education system that will support better the needs of a rapidly emerging economy in its transition towards high-income status. This report provides guidance on how Indonesia can rise to this challenge. It highlights three main policy directions which, pursued together, would help Indonesia advance on the path towards stronger growth and more inclusive and sustainable development. The first priority is to raise the quality of education and ensure that all learners acquire the skills they need to succeed in life and work. The second goal is to widen participation, requiring a concerted effort to improve access for disadvantaged groups and expand provision beyond the basic level. The final challenge is to increase efficiency, with a more data-driven approach to resource allocation, better tailoring of provision to local needs, and stronger performance management.
The aim of this year’s Forum is to bring together OECD experts and Southeast Asian policymakers to discuss regional integration and openness. This theme couldn’t be more timely given the impending launch of the ASEAN Economic Community and the substantial progress with other regional integration initiatives such as the Trans-Pacific Partnership, the Regional Comprehensive Economic Partnership, and APEC.
It is a pleasure to welcome you during a seminal week for the OECD’s relationship with Indonesia and the wider Southeast Asia region. The OECD’s relationship with Indonesia has blossomed in recent years, reflecting both the country’s economic dynamism and its growing role on the world stage, as well as our own efforts to build a more inclusive organisation.
Mr. Gurría presented the 2015 OECD Economic Survey of Indonesia as well as the publication Education in Indonesia: Rising to the Challenge. The Secretary-General also delivered opening remarks at the Southeast Asia Regional Forum on “Regional Integration and Openness” and held high-level bilateral meetings including with Mr. Jusuf Kalla, Vice-President of Indonesia.
Indonesia can claim many economic and political achievements over the last 15 years: the country posted consistently high economic growth rates, joined the G20, stabilised its young democracy, and devolved budgetary power and decision making. Extending this track record further depends on Indonesia’s ability to deliver sustainable and sufficient energy supply to markets and ultimately to consumers.
Even though it remains a net energy exporter due to the expansion of its coal and liquid biofuel production, the country is consuming more energy as a result of rising living standards, population growth and rapid urbanisation. Indonesia is already highly dependent on oil imports. Meeting demand growth and ensuring the environmental sustainability of energy supplies must remain key pillars of its economic and investment policies and strategies.
Indonesia has implemented important changes since the IEA published its first review of the country’s energy polices in 2008. Key milestones include the 2007 Law on Energy, the 2008 National Energy Policy, the 2009 Law on Electricity, and the 2009 Law on Mineral and Coal Mining. However, the government needs to continue this reform process vigorously and implement further improvements to Indonesia’s institutional set-up, alongside stronger policy planning and implementation, more investment in critical energy infrastructure, and continued movement towards regulated energy markets and cost-reflective pricing.
This review analyses the energy policy challenges facing Indonesia and provides critiques and recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future.
English, PDF, 96kb
This country note from Going for Growth 2015 for Indonesia identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.
English, PDF, 175kb
Many policy initiatives have been implemented in Indonesia, in recognition of the key role quality plays in strengthening health care systems.
Angel Gurría, Secretary-General of the OECD congratulated the newly elected President of Indonesia, Joko Widodo, for taking a bold first step in his economic reform agenda by substantially cutting fuel subsidies.
English, PDF, 155kb
The unemployment rate in Indonesia continues to trend downwards. At 5.7% in Q1 2014, Indonesia’s unemployment rate is considerably below the levels observed in 2007 (above 9%). It is also now well below the OECD average of 7.4%.