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This country note presents student performance in science, reading and mathematics, and measures equity in education in Indonesia.
In 2014, the tax-to-GDP ratios of Indonesia, Malaysia, the Philippines and Singapore were below 17% of GDP compared to Japan and Korea, which both recorded tax-to-GDP ratios above 24%,according to new data released in the third edition of the OECD’s annual publication Revenue Statistics in Asian Countries.
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Foreign investment can be an important ally in supporting diversification and productivity growth, and greater efforts to strengthen the investment environment in Indonesia would likely yield substantial dividends.
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For Indonesia to achieve its universal health coverage goal in a context of rapidly accelerating demand for healthcare, the country will need to make substantial investments in service delivery capacities and mechanisms to provide financial protection against the cost of ill health.
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Indonesia is a resource-rich and biodiverse country. Economic prospects are favourable, but realising them will require placing Indonesia’s development trajectory on a more environmentally sustainable path.
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Fighting corruption is crucial for Indonesia as many of the sectors that are central to the country’s economic development are at high risk of corruption. The Indonesian government has stepped up its anti-corruption efforts and these reforms need to continue, with a particular focus on local governments, the police and the private sector.
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The performance of the Indonesian economy could be improved considerably by removing administrative and regulatory barriers to competition through a programme that reviews regulations.
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Sustained growth and job creation have helped increase Indonesian living standards significantly, but the quality of available jobs remains low, which is a major drag on well-being. In particular, a high incidence of informal jobs in Indonesia means that a large number of workers face the risk of persistent poverty.
The Secretary-General launched the OECD-Indonesia Joint Work Programme for 2017-2018 and presented the 2016 Economic Survey of Indonesia and Open Government Review of Indonesia.