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Indonesia: Selected Issues

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  • International Monetary Fund

Abstract

This Selected Issues paper explores structural reforms to achieve high-income status in Indonesia. Indonesia aims to achieve high-income status by 2045. Efforts are needed to strengthen the quality of Indonesia's infrastructure and logistics, its business environment and lay the ground for an infrastructure base capable of supporting stronger economic activity. Achieving inclusive growth will require to minimizing human development gaps. This includes efforts to enhance heath, reduce labor vulnerability and informality, and gender gaps, so as to level up living conditions broadly, without dividing the population between those gaining from stronger growth and those left behind. The results indicate that external sector regulation and economic openness, governance, business regulation and human development areas should be implemented in priority, as they would enhance inclusiveness and support a leveling up of living standards for the country as a whole. Moreover, these reforms have been shown to be complementary and likely to deliver stronger output effects when bundled together.

Suggested Citation

  • International Monetary Fund, 2024. "Indonesia: Selected Issues," IMF Staff Country Reports 2024/271, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2024/271
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