Publication: Indonesia Development Policy Report : Beyond Macroeconomic Stability
Date
2003-12-04
ISSN
Published
2003-12-04
Author(s)
World Bank
Abstract
The year 2004 will mark another crucial
step in Indonesia's long-term transition. The country
will go to the polls to elect new national and regional
Parliaments, and for the first time in the history o f the
Republic, to directly elect a President. This milestone in
the country's democratization is accompanied by one in
economic policy: for the first time since the onset o f the
crisis, the Government will not have a program supported by
the IMF. The Government's decision to graduate from its
IMF program is warranted by the strong improvements in the
country's macroeconomic conditions, and has been
broadly welcomed by the markets and the international
community. The Government's "Economic Policy
Package Pre and Post IMF" or White Paper, issued as a
presidential instruction on September 15th has helped build
confidence in the Government's policies in the election
year ahead. The policy package is intended to "bridge
the credibility gap." The White Paper is a unique
document: it is the first time that the Government commits
itself transparently to a time-bound action plan to
implement policies. The document shows continuity in
macroeconomic policies and financial sector reforms, but
also proposes a set of specific policy and institutional
measures to address issues that have undermined the
country's investment climate. While the timetable for
adopting these measures is a short term one - fifteen months
- many o f the proposed measures address fundamental longer
term problems, and some will take several years to see
through fully. The private sector, which has a high "
stake in the measures included in the paper, has emerged as
an independent monitor of progress. Since the White Paper is
so central to Indonesia in the year ahead, much of this
brief is devoted to discussing it. Beyond recent
developments, the report discusses and analyzes critical
policy actions from the White Paper. The report also points
at the White Paper measures that may not necessarily be in
line with the stated goals of the document. And finally, the
report identifies policies that are needed beyond the White
Paper to ensure Indonesia builds on the macroeconomic
stability achieved to attain more rapid growth and poverty reduction.
Link to Data Set
Citation
“World Bank. 2003. Indonesia Development Policy Report : Beyond Macroeconomic Stability. © Washington, DC. http://hdl.handle.net/10986/14664 License: CC BY 3.0 IGO.”