Realizing Indonesia's economic potential

Indonesia has done well during the past two decades by building a more resilient and inclusive economy and by achieving remarkable socio-economic progress. Home to more than 260 million people, Indonesia is the fourth most-populous country in the world and the largest economy in Southeast Asia. Indonesia's economy has been shaped by periods of extended prosperity, a major socio-economic and political crisis in the late 1990s, and a strong and sustained recovery during the past 20 years. Despite this rich history and the large the size of the economy, the economic literature on Indonesia remains limited. This book provides a comprehensive economic analysis and uncovers the underlying forces that are likely to shape Indonesia's economy. It also makes recommendations on how to strengthen the policy frameworks and toolkits - the country's 'soft infrastructure' - to help ensure that the Indonesian economy and the Indonesian people continue to prosper. Finally, it investigates the main constraints to growth and proposes options to boost potential economic growth. As the global landscape continues to evolve and shift, Indonesia's policy frameworks and toolkits must be adapted to fit this new economic environment. The chapters explore the key economic issues policymakers will likely face in the coming years.