The report reviews the Bank'sprivate sector development strategy in Indonesia,stipulating that the country's potential will not berealized without a pattern of private sector activity, -different from the past - but, taking the opportunityoffered by the crisis to make fundamental changes in thebusiness environment, and in how business is conducted. Thefirst priority calls for the banking, and corporate sectorsto speed up the resolution of corporate debt, and easefinancial flows for investment, and working capital toresume. Second, the structural inefficiencies, partlyconducive to the crisis, and to its long lasting effect,need to be overcome; therefore, reforms should enableIndonesia to become a modern market economy, able to avoidfuture crises. This encompasses fighting corruption in thepublic administration, ensuring the rule of law through thecourt system, reinforcing property rights, and disputeresolution mechanisms, and, ensuring transparency andcorporate governance. Third, broad-based, and sustainableeconomic growth need to be ensured by measures such asremoval of obstacles to small, and medium enterprise (SME)activity, as well as SME development promotion, includingphysical, and social infrastructure building. Finally, thecreation of an infrastructure, and regulatory framework totake full advantage of new information/communicationstechnologies, is paramount.
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