OECD Economic Survey of Indonesia 2016
The Economic Survey of Indonesia 2016 released by the OECD (INSME Moral Sponsor) shows that despite the weak global economic situation, growth remained relatively stable in Indonesia. First of all, the survey points out that the policy framework registered considerable progress as important steps have been made in terms of the implementation of policies towards strengthening product markets and improving the business climate. Secondly the survey highlights how more efficient public spending would allow to allocate resources to more productive uses such as the development of needed infrastructure and social programmes, with the ultimate goal of creating a more inclusive society. Last but not least, the survey reports that if decentralization created a closer relationship between the government and the people, inter-regional disparities still exist. The survey suggests to strengthen the capacity of sub-national governments by working closely with them to homogenize the regulation of businesses across regions and move it to best practice; by experimenting with different incentives in special economic zones for example with more flexible labour regulation; and by increasing the assistance to regions to improve their budget planning and implementation capacity.