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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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Setting priorities for reform and development in Indonesia

This chapter sets out the social and economic context for the Review of Regulatory Reform in Indonesia. It describes the significant political and economic challenges faced by Indonesia over the past 15 years, including the impact of the Asian financial crisis, widespread growth in democracy and “big bang” decentralisation. It identifies that significant progress has been made but argues that Indonesia has to continue to commit to a path of institutional transformation to improve the performance of the public administration, consolidate the gains so far and address the regulatory complexities and overlaps resulting from a process of rapid transformation. Regulatory reform must be high on Indonesia's political agenda to ensure that it achieves the objective of building responsive and open regulatory systems that will support its economic and development goals to create competitive domestic markets and be competitive in the ASEAN region.

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