Indonesia Development Policy Report : Beyond Macroeconomic Stability

World Bank

Indonesia Development Policy Report : Beyond Macroeconomic Stability

Autores

World Bank

Editor

Washington, DC

Descripción

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.

Palabras clave

ACCOUNTABILITY, ACCOUNTING, ADB, AGRICULTURE, ANTI-CORRUPTION, AUTHORITY, BALANCE SHEETS, BANK INDONESIA, BANK PORTFOLIOS, BANK RESTRUCTURING, BANKING SYSTEM, BUDGET DEFICIT, CAPITAL ACCOUNT, CAPITAL ADEQUACY, CAPITAL ADEQUACY RATIOS, CAPITAL MARKETS, CENTRAL BANK, CENTRAL GOVERNMENT, CIVIL SERVICE, CIVIL SOCIETY, COALITIONS, COMMERCIAL BANKS, COMPARATIVE ADVANTAGE, CONSENSUS, CONSOLIDATION, CONSUMER PRICE INDEX, CONSUMPTION GROWTH, CORPORATE GOVERNANCE, CORRUPTION, CPI, DEBT, DECENTRALIZATION, DECREE, DEMOCRATIZATION, DEPOSIT INSURANCE, DEVELOPMENT ASSISTANCE, DEVELOPMENT GOALS, DEVELOPMENT POLICY, ECONOMIC DEVELOPMENT, ECONOMIC POLICY, ECONOMIC REFORM, ECONOMISTS, ELECTED REPRESENTATIVES, ELECTORAL POLITICS, EMPLOYMENT, EXCHANGE RATE, EXCHANGE RATES, EXPORT GROWTH, EXPORTS, FINANCIAL MANAGEMENT, FINANCIAL SECTOR, FINANCIAL SERVICES, FISCAL, FISCAL POLICY, FISCAL YEAR, FOREIGN DIRECT INVESTMENT, FORESTRY, GDP, GENERAL ELECTIONS, GOVERNMENT BONDS, GOVERNMENT CONSUMPTION, GOVERNMENT POLICIES, GOVERNMENT REGULATION, GOVERNMENT SPENDING, GOVERNMENTAL ORGANIZATION, GROSS DOMESTIC PRODUCT, GROWTH RATE, HUMAN CAPITAL, IMPORTS, IMPROVING GOVERNANCE, INCOME, INFLATION, INSTITUTIONAL INVESTORS, INSURANCE, INTEREST RATE, INTEREST RATES, INTERMEDIATE INPUTS, INTERNAL AUDIT, INTERNAL CONTROLS, INTERNATIONAL ENVIRONMENT, INTERNATIONAL RESERVES, INTERNATIONAL TRADE, INVESTMENT CLIMATE, JUDICIARY, LABOR FORCE, LAWS, LOCAL GOVERNMENTS, MACROECONOMIC INSTABILITY, MACROECONOMIC POLICIES, MACROECONOMIC STABILITY, MEDIUM TERM, MINISTRY OF FINANCE, NATIONAL PLANNING, NATIONS, NONPERFORMING LOANS, OIL, OIL PRICES, POLICY MEASURES, POLICY PACKAGE, POLICY UNCERTAINTY, POOR GOVERNANCE, POVERTY ALLEVIATION, POVERTY REDUCING, POVERTY REDUCTION, POVERTY REDUCTION STRATEGY, PRESIDENTIAL CANDIDATES, PRESIDENTIAL ELECTIONS, PRIVATE CONSUMPTION, PRIVATIZATION, PRODUCTIVITY, PRUDENTIAL REGULATIONS, PUBLIC ADMINISTRATION, PUBLIC ADMINISTRATION REFORM, PUBLIC DEBT, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE MANAGEMENT, PUBLIC SERVICES, RAPID GROWTH, REGULATORY BODY, REPRESENTATIVES, SECTOR REFORMS, SECURITIES, SOCIAL PROTECTION, SOCIAL SAFETY, SOCIAL SAFETY NET, STATE BUDGET, TAX REFORM, TAX SYSTEM, TAXATION, TRANSPARENCY, VALUE ADDED, VOTERS, WAGES, WEALTH, WHITE PAPER, WORLD TRADE ORGANIZATION, WTO POLITICAL DEVELOPMENT, MACROECONOMIC STABILITY, MONETARY POLICY, INFLATION RATES, INTERNATIONAL TRADE, FISCAL POLICY, EXTERNAL FINANCE, TAX REFORMS, TAX ADMINISTRATION, PUBLIC EXPENDITURES, GOVERNMENT SPENDING POLICY, DECENTRALIZATION IN GOVERNMENT, DEBT MANAGEMENT, FINANCIAL SECTOR REFORM, RESTRUCTURING, CAPITAL MARKETS, MONEY LAUNDERING, BANKING SYSTEMS, INSURANCE INDUSTRY, PENSION SYSTEMS, EXPORT DEVELOPMENT, INVESTMENT ENVIRONMENT, TRADE PROMOTION, REGULATORY FRAMEWORK, EMPLOYMENT RATES, LEGAL REFORM, JUDICIAL REFORM, POLITICAL ACCOUNTABILITY, POVERTY REDUCTION STRATEGIES, EMPOWERMENT, HUMAN CAPITAL DEVELOPMENT, SOCIAL PROTECTION SYSTEMS