Productivity levels are low, due to a large agricultural sector, as well as many other structural and regulatory bottlenecks. Regional variance is high and inclusive outcomes require progress be made at all levels of government.
Source: OECD June 2016 Economic Outlook database; OECD, Income Distribution and Poverty database; and OECD Secretariat calculations from EU-SILC – preliminary results.
Chapter 1 of OECD Economic Survey of Indonesia discussed productivity issues in the context of inclusive and sustainable growth.
van der Eng, P. (2013), “Total Factor Productivity and Economic Growth in Indonesia”, in Prasada Rao and Bart Van Ark (ed.), World Economic Performance: Past, Present and Future, Edward Elgar Publishing, Cheltenham UK, pp. 193-226.
Productivity - enhancing institutions
There is no single institution in Indonesia dedicated to productivity issues. The Ministry of Finance, the Ministry of National Development Planning (BAPPANAS) and the Ministry of Manpower, among others, are all responsible for policies related to productivity.