Indonesia particularly needs to focus on reforms to make education more widely accessible, to strengthen its ability to deal with natural disasters and to accelerate reforms to social protection, particularly the pension system. The environment for business also needs to be improved.

Improvements to government policies, through reforms to make the current scholarship and CCT programmes more efficient and other measures, will be key to achieving wider access to education. Indonesia is highly exposed to natural disasters that have claimed lives and wreaked financial and economic damage, with the poor disproportionately affected. Given this exposure, which may well increase with climate change, the country’s natural disaster management system, particularly with regard to flooding, urgently needs to be strengthened. The country’s pension system, one of the pillars of its social protection system, is currently ill suited for providing secure income for the majority of the retired population. Reforms to the system need to be accelerated. Indonesia also needs to improve its business climate to ensure that its economic growth can be maintained. A key priority is to build on and reinforce the recent progress made in improving the investment climate by moving to simplify business procedures.

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