Indonesia - Accelerating Recovery in Uncertain Times : Brief for the Consultative Group in Indonesia

Indonesia - Accelerating Recovery in Uncertain Times : Brief for the Consultative Group in Indonesia

The study reviews Indonesia's recovery so far, which in spite of only modest growth, is taking hold, and its base has expanded beyond consumption. With inflation under control, real wages are rising again, and poverty declined from a peak of o...

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Bibliographic Details
Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	ACCOUNTABILITY AGRICULTURE ASSET MANAGEMENT ASSET SALES AUTONOMY BALANCE OF PAYMENTS BANK ACCOUNTS BANK INDONESIA BANK LENDING BANK RECAPITALIZATION BANK RESTRUCTURING BANKING SYSTEM BANKRUPTCY BONDS BOOK VALUE BORROWING BUDGET DEFICIT CAPITAL ADEQUACY CAPITAL GOODS CIVIL SERVICE COLLUSION CONSENSUS CONSUMER PRICE INDEX CONSUMERS CORPORATE RESTRUCTURING CORRUPTION CPI DEBT DEBT RESTRUCTURING DECENTRALIZATION DECREE DEFICITS DEVELOPMENT STRATEGY DEVOLUTION EMPLOYMENT ENTERPRISE REFORM ENTERPRISE RESTRUCTURING EXPORT GROWTH EXPORTS FARMS FINANCIAL INSTITUTIONS FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SUPPORT FISCAL FISCAL DEFICIT FISCAL MANAGEMENT FISCAL SUSTAINABILITY FISCAL YEAR FORECASTS FOREIGN DEBT FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FORESTRY FREE TRADE GDP GDP PER CAPITA GOVERNMENT FINANCE GOVERNMENT OFFICIALS GOVERNMENT REVENUES GOVERNMENT SPENDING GOVERNMENT'S POLICY GOVERNMENTAL ORGANIZATION GROSS DOMESTIC PRODUCT IMPORTS INCOME INFLATION INFORMAL SECTOR INSURANCE INTEREST RATES INTERNATIONAL RESERVES INVENTORIES INVENTORY JUDICIARY LABOR FORCE LABOR MARKET LABOR PRODUCTIVITY LEGAL SYSTEM LOCAL GOVERNMENTS M2 MACROECONOMIC POLICY MINIMUM WAGES MINISTRY OF FINANCE MONETARY POLICY MONOPOLIES NATIONAL ACCOUNTS NEW ENTRANTS OIL OIL PRICES OPEN MARKETS POLICY MAKERS POLITICAL MANAGEMENT POLITICAL UNCERTAINTY POVERTY ALLEVIATION PRICE INCREASES PRIVATIZATION PRIVATIZATION OF STATE PRODUCERS PROFITABILITY PUBLIC EXPENDITURE PUBLIC INSTITUTIONS PUBLIC INVESTMENT PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SERVICES REAL WAGES RECAPITALIZATION REPRESENTATIVES SAVINGS SOCIAL PROGRAMS SOCIAL SAFETY SOCIAL SAFETY NET STATE BANKS SUBSIDIARY SUSTAINABLE GROWTH TAX ADMINISTRATION TAX COLLECTIONS TAX EXEMPTION TAX REVENUES TELECOMMUNICATIONS TRADE TAXES TRANSPARENCY UNEMPLOYMENT VALUE ADDED WAGES WORLD TRADE ORGANIZATION WTO ECONOMIC RECOVERY ECONOMIC GROWTH POLITICAL ASPECTS OF ECONOMIC DEVELOPMENT INFLATION RATES WAGE LEVELS POVERTY REDUCTION EXPORT PERFORMANCE CAPITAL OUTFLOWS DEFICIT FINANCING FINANCIAL DEVELOPMENT BANKING CORPORATE GROWTH MARKET FORCES POLICY OBJECTIVES DONOR PARTICIPATION POVERTY ASSESSMENTS LEGAL REFORM JUDICIAL REFORM CIVIL SERVICE REFORMS FINANCIAL MECHANISMS MILITARY POLICY
Online Access:	http://documents.worldbank.org/curated/en/2000/10/693057/indonesia-accelerating-recovery-uncertain-times-brief-consultative-group-indonesia http://hdl.handle.net/10986/14985

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Summary:	The study reviews Indonesia's recovery so far, which in spite of only modest growth, is taking hold, and its base has expanded beyond consumption. With inflation under control, real wages are rising again, and poverty declined from a peak of over twenty three percent. The rapid export growth, and high oil prices were factors to offset capital outflows, thus, Indonesia's cushion of international reserves increased, lowering the deficit, and limiting financing needs, which resulted in bank, and corporate emergence. But financial markets were doubtful of the real economic developments, aggravated by political turmoil, and the developments in East Timor, which created market uncertainty. However, the study reflects optimism on the country's agenda, encouraged by the Government's program to accelerate recovery, with broad domestic and international support. The study examines policy options for fiscal sustainability, and the role of donors, and, assesses poverty within a constructive strategy for the future, exploring as well governance improvement through legal and judiciary reforms, suggesting the rule of law is still far from being assured. The study recommends changes within the political process, and to its legal system and civil service, as well as changes from the role of the military, to the way Government handles its finances.