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Indonesia Economic Snapshot

Economic Forecast Summary (June 2022)

GDP growth is projected to strengthen to 4.7% in 2022 and 2023, as the improving health situation underpins the rebound of domestic demand, exports of raw materials increase and tourism slowly restarts. The rise in inflation, however, is already damping consumers’ purchasing power and demand for durable goods. The output gap will remain considerable, limiting at least initially the pass-through of higher global commodity prices to consumer prices. However, the current account deficit will rise.

Reform Priorities (April 2021)

Going for Growth 2021 - Indonesia

The COVID-19 crisis has brought to the fore the vulnerability of the population to economic shocks, notably due to extensive informality, lagging skills and low social security coverage. Reforms in areas of skills, labour market regulation and barriers to entrepreneurship are hence top priority for a more resilient and equitable growth.

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2021 Structural Reform Priorities

  • Education and skills: Improve outcomes in education
  • Labour market: Reform labour regulations to reduce informality
  • Competition and regulation: Ease barriers to entrepreneurship and investment, and strengthen institutions to fight corruption
  • Infrastructure: Improve the regulatory environment for infrastructure
  • Energy: Continue to make energy prices more cost-reflective

 

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Economic Survey of Indonesia - 18 March 2021

Executive Summary

Presentation

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