Survey of Recent Developments

Abstract

* The authors are very grateful to the many interviewees in Jakarta, who shared their insights and time, and to the members of the Indonesia Study Group at ANU, who provided extensive comments. Any errors are the authors' own. Rahardja's views are personal and do not necessarily reflect the views of the World Bank and its Board of Directors.

Survey of Recent Developments

“…And, owing to a lack of data, we have not costed Law 40/2004 on Social Security, which obliges the government to establish health and labour insurance programs. As Armstrong and Rahardja (2014) explain, both these programs began in 2014 through the introduction of the National Social Security System (Sistem Jaminan Sosial Nasional), whose costs are expected to grow considerably.…”

“…Allford and Soejachmoen (2013), Armstrong and Rahardja (2014), and the World Bank (2014a) all provide extensive coverage. What follows is only a brief overview and update.…”

What Do Changes in Corporate Ownership in Indonesia Tell Us?

“…This raises the question whether large firms with political connections were able to seek preferential policy interventions or otherwise gain from their relations with state players. Studies of the policy environment in post-crisis Indonesia have pointed to higher domestic barriers to trade and policy interventions that protect particular firms (Bird, Hill, and Cuthbertson 2008;Armstrong and Rahardja 2014). Insofar as wealth is concentrated in sectors such as natural resources, where a degree of regulatory discretion is almost inevitable, firm-level political connections may facilitate preferential treatment.…”

Survey of Recent Developments

“…Indonesia's ranking in the 2014-15 World Economic Forum, a widely cited report, is now 34th of 144 countries, an appreciable rise in recent years. 3 Indonesia is also cited as the 'most promising' Asian investment destination in the latest survey conducted by the influential Japan Bank for International Cooperation, ranking ahead of India, China, and Thailand (Armstrong and Rahardja 2014).…”