Few important findings:
Transport congestion and logistics bottlenecks are preventing better integration with global value chains and inhibiting growth more generally. Investment in power generation and water treatment is also lagging.
While PISA outcomes are in line with Indonesia’s current stage of development, the education system still suffers from serious quality
and access problems.
Key recommendations:
Implementing policies for inclusive and sustainable growth
- Raise public spending on infrastructure. Focus on transportation and logistics to support industry, as well as natural disaster prevention and water treatment.
- Avoid protectionist measures that inhibit openness to trade and foreign investment with uncertain development payoff.
- Increase, and further improve targeting of, spending on poverty alleviation and health measures.
- Direct more public resources to improving education access and outcomes. Continue regular teacher assessments and professional development, and link teacher salaries more closely to qualifications and performance.
- Increase financial inclusiveness by further developing branchless banking, drawing lessons from such countries as India, Mexico, the Philippines and Kenya.
- Tackle labour market informality by reducing rigidities in the formal sector, and by enhancing the effectiveness of the tax-transfer system for poverty alleviation and channelling other social benefits.
Temuan dan rekomendasi OECD adalah sangat gamblang. Dengan jumlah populasi yang besar pada usia produktif saat ini, maka Indonesia amat berpeluang untuk masuk pada kelompok negara ebrpendapatan menengah, lapis atas.
Sumber OECD Report
