English, PDF, 374kb
Corruption is perceived as a more severe problem in Indonesia than in many other countries. While international corruption indicators suggest some improvement, Indonesia needs to address gaps in integrity and anti-corruption laws, policies, and implementation to ensure continuing progress.
English, PDF, 357kb
Properly addressing the issue of food security will require an effective policy platform that can respond to a diversity of food insecurity scenarios, rather than focusing policy attention on domestic production of staple foods.
Growth has slowed recently, and the backlog of required reforms is mounting. The government needs to increase revenues to finance higher spending on infrastructure, social security, education and health. Natural resources should be better managed.
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.
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.
This dialogue between Indonesia and the OECD supports policy makers in their efforts to enhance disclosure of beneficial ownership and control as part of overall efforts to improve corporate governance standards and practices in Indonesia.
English, PDF, 175kb
Many policy initiatives have been implemented in Indonesia, in recognition of the key role quality plays in strengthening health care systems.
ASEAN-OECD Investment Programme fosters dialogue and experience sharing between OECD members and ASEAN member states to enhance the investment climate in the region.
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%.