OECD Reviews of Regulatory Reform: Indonesia 2012

Strengthening Co-ordination and Connecting Markets

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The OECD Review of Regulatory Reform in Indonesia focuses on the administrative and institutional arrangements for ensuring that regulations are effective and efficient. It covers the medium term macroeconomic linkages with regulatory policy; of institutional and procedural arrangements for regulatory policy and governance; non-tariff barriers and behind the border constraints to market openness; competition policy in relation to infrastructure; and budgetary and governance arrangements for the management of Public Private Partnerships (PPP). A specific emphasis has been given to the challenges of decentralization for improving connectivity across the Indonesian archipelago and regulatory obstacles in the areas of ports rail and shipping.



Market openness

This chapter is a summary of the background report Market Openness in Indonesia. It identifies how enhancing Indonesia’s performance in trade and investment will be the key to achieving its goals for real economic growth and improvements to health, education and poverty reduction. It assesses the recent developments in trade and investment policy in Indonesia and recommends further measures that Indonesia should take to improve the regulatory process and link its internal domestic market, and its economy as a whole, to world markets. These focus on applying an economy-wide evaluation of policies and regulation, implementing systematic public consultation, streamlining licensing, and improving co-ordination of the regulatory powers of the central government and the regions.


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