Publication: Towards 2015 : Spending for Indonesia's Development, Shaping the Prospects of a Middle-Income Country
Date
2009-08
ISSN
Published
2009-08
Author(s)
World Bank
Abstract
This report discusses the future of
Indonesia's public expenditures as it enters the 21st
century. It contributes to the discussion on
Indonesia's spending priorities for the years ahead.
These choices will impact the lives of Indonesians, and
their opportunities to grow richer and receive better
services. The report will contribute to Indonesia s next
five-year plan, the RPJM, which will take effect in January
2010. Indonesia has been one of the most successful
countries in reducing its debt-to-GDP ratio. Since 1999,
when debt levels reached over 90 percent of GDP, Indonesia
has reduced its debt levels to just above 30 percent of GDP
by the end of 2008. Education spending increased from 11
percent of total government spending in 2001 to 15 percent
in 2008. Chapter 1 discusses public spending from 2001 to
2009, including discretionary spending, key sectors,
subsidies and decentralization. Chapter 2 analyzes
Indonesia's economy in the current (2009) economic
downturn. Indonesia is in a position of relative economic
strength despite the impact of the global financial crisis.
This is largely thanks to its broad-based growth that has
avoided over-reliance on exports. The share of output that
Indonesia exports is the smallest of the major Southeast
Asian economies. Chapter 3 presents the future of
Indonesia's fiscal growth to 2015. Notwithstanding
noteworthy achievements over the past decade, Indonesia
continues to face significant economic and social
challenges, and major gaps remain in many areas of public
expenditure. However, sustained fiscal consolidation and
governance reforms, as well as resilience in the face of the
global crisis, leave Indonesia well placed to push forward
with sustained poverty reduction. Strategic use of public
resources and continued growth could see swift improvement
in economic and social outcomes over the coming five years.
Citation
“World Bank. 2009. Towards 2015 : Spending for Indonesia's Development, Shaping the Prospects of a Middle-Income Country. © Washington, DC. http://openknowledge.worldbank.org/handle/10986/12988 License: CC BY 3.0 IGO.”