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OECD Reviews of Regulatory Reform: Indonesia 2012

Strengthening Co-ordination and Connecting Markets

image of OECD Reviews of Regulatory Reform: Indonesia 2012

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.

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Regulatory and competition issues in ports, rail and shipping

This chapter is a summary of the background report Regulatory Settings for Ports, Rail and Shipping in Indonesia. It finds that recent changes to the law in Indonesia introduce important market disciplines and have the potential to stimulate a positive transformation of Indonesia’s rail and maritime industries. However, while the laws are fundamentally sound, some provisions are at odds with the broad strategic direction and policy goals of the Indonesian government. The chapter recommends specific measures to clarify a number of practical administrative arrangements that will ensure the effective separation of regulatory and operational functions, increase competition and encourage private sector participation in the ports, rail and shipping sectors.

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