2021 OECD Economic Surveys: Indonesia 2021

image of OECD Economic Surveys: Indonesia 2021

Indonesia experienced its first recession in over two decades in 2020, although large-scale fiscal stimulus and monetary support limited its depth and impact. The approval of an ambitious package of structural reforms, covering labour laws, taxes and ease of doing business, testifies of the authorities’ commitment to attract high-quality investment that will enhance wealth and well-being. This is key at a time when Indonesia embarks in trade and investment liberalisation through the Regional Comprehensive Economic Partnership with East Asia and Oceania partners, with new opportunities and challenges. Nevertheless, the pandemic leaves behind strong headwinds. The COVID-19 impact compounds pre-existing challenges, notably a very high incidence of informality and relatively low levels of skills. Uncertainty surrounds the vaccination roll-out and the resumption of a normal life, especially for children who have been deprived of school for an unprecedentedly-long period. The crisis will have a lasting effect on some vulnerable socio-economic sectors and therefore requires improvements in the delivery of social services.



Basic statistics of Indonesia, 2019

(Numbers in parentheses refer to the OECD average)*

This Survey was prepared in the Economics Department by Andrea Goldstein and Patrice Ollivaud under the supervision of Vincent Koen. Alexander Hijzen and Sébastien Martin, from the Directorate for Employment, Labour and Social Affairs (ELS), contributed to the second chapter. Cecilia Tam, from the Environment Directorate (ENV), provided the box on clean energy financing. Yvan Guillemette also contributed to the report; research assistance was provided by Natia Mosiashvili, and editorial support by Sisse Nielsen and Michelle Ortiz. The previous Survey of Indonesia was issued in October 2018. The Survey was discussed at a meeting of the Economic and Development Review Committee on 25 January 2021 with participation of representatives of the Indonesian government and of Italy and New Zealand as lead speakers.The Survey is published under the responsibility of the Secretary-General of the OECD.Information about the latest as well as previous Surveys and more details about how Surveys are prepared is available at www.oecd.org/eco/surveys.


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