Within the next two decades Indonesiaaspires to generate prosperity, avoid a middle-income trapand leave no one behind as it tries to catch up withhigh-income economies. These are ambitious goals. Realizingthem requires sustained high growth and job creation, aswell as reduced inequality. Can Indonesia achieve them? Thisreport argues that the country has the potential to rise andbecome more prosperous and equitable. But the risk of'floating in the middle' is real. Which pathwaythe economy will take depends on: (i) the adoption of agrowth strategy that unleashes the productivity potential ofthe economy; and (ii) consistent implementation of a few,long-standing, high-priority structural reforms to boostgrowth and share prosperity more widely. Indonesia isfortunate to have options in financing these reforms withoutthreatening its long-term fiscal outlook. The difficultieslie in getting the reforms implemented in a complexinstitutional and decentralized framework. But Indonesiacannot afford hard to not try harder. The costs ofcomplacency, and the rewards for action, are too high.
PDF
download
878987797
028-85220240
