Resource information
Within the next two decades Indonesia
aspires to generate prosperity, avoid a middle-income trap,
and leave no one behind as it tries to catch up with
high-income economies. Can Indonesia achieve them? This
report argues that the country has the potential to rise and
become more prosperous and equitable. But the risk of
floating in the middle is real. Which pathway the economy
will take depends on: (i) the adoption of a growth strategy
that unleashes the productivity potential of the economy;
and (ii) consistent implementation of a few, long-standing,
high-priority structural reforms to boost growth and share
prosperity more widely. Indonesia is fortunate to have
options in financing these reforms without threatening its
long-term fiscal outlook. The difficulties lie in getting
the reforms implemented in a complex institutional and
decentralized framework. The report identifies the reforms
of institutions and processes that govern the functioning of
the state as critical for unleashing the country's
development potential. The report provides an analytical
underpinning for the Bank's country partnership
strategy 2009-14 and shapes the Bank's support to the
government's rencana pembangunan jangka menengah
nasional (RPJMN) 2010-2014.
