Indonesia

Over the past ten years economic growth in Asia has contributed to a reduction of poverty as well as fertility rates, and greater prosperity has contributed to gains in life expectancy. However, at present many workers still work in informal employment, frequently for long hours at little pay and without social protection coverage. A growing demand for social support, extending the coverage of social protection benefits and improving the job quality of workers will be among Asia’s major challenges in future. This report considers these challenges, providing policy examples from countries to illustrate good practice, including Bangladesh, Indonesia, Japan, Korea, Malaysia, Pakistan, Singapore and Viet Nam.

In recent years, Indonesia has undergone major economic, social and political transformations. Given the significant emigration of the Indonesian population and the recognition of the contributions of the diaspora, Indonesian authorities are seeking to better understand this pool of talent residing abroad, which has great potential to contribute to the economic and social development of Indonesia. This review provides the first comprehensive portrait of the Indonesian diaspora in OECD countries. By profiling Indonesian emigrants, this review aims to strengthen knowledge about this community and thus help to consolidate the relevance of the policies deployed by Indonesia towards its emigrants.

Thanks to a prolonged period of robust economic growth, combined with political and social stability, Indonesia has achieved a dramatic reduction in poverty and major improvements in living standards for the majority of its population over the past two decades. However, there remain structural barriers to the inclusive growth that the government has identified as key to its economic ambitions and sustained social cohesion – barriers that social protection can overcome. This chapter examines the context for social protection, assessing the trajectories of poverty and inequality and analysing the risks individuals face along the life cycle, including pervasive informality. Finally, it maps the threats and opportunities that lie in store for Indonesia, its population and its economy in the future.

2005: Decree No. 91/PMK.05; amends Decree No. 231/KMK.017 of 2002 that defines a framework for contributions and benefits under both defined contributions and defined benefit plans.

Indonesia’s economic performance in 2009-10 has been impressive. The country has come out of the global crisis relatively unscathed when compared both with previous episodes of economic distress and with other emerging markets. Appropriate macroeconomic management, a low exposure of financial markets to toxic assets and a high reliance on domestic demand, rather than on international trade, explain this strong performance. Macroeconomic and structural reforms have also improved the country’s capacity to withstand adverse economic shocks. But progress have been more rapid in some areas than in others, and potential output growth is expected to slow in the coming decade, when the effects of population ageing will begin to kick in. Over the long term, reforms will be needed to realise the government’s economic growth targets, as set out in its Medium Term Development Plan (Rencana Pembanginan Jangka Menengah Nasional, RPJMN), and to speed up economic progress.