Indonesia: Critical Development Constraints

Indonesia, despite steady economic growth in recent years, faces formidable challenges going forward. Economic growth has not returned to the level that prevailed before the 1997 Asian financial crisis. Progress toward reducing poverty and inequalities too has been slow during the recent years. Moreover, economic growth in the last decade has not been accompanied by significant employment generation. The country diagnostic study Indonesia: Critical Development Constraints presents a diagnosis of the critical development constraints the country faces. The report proposes policy options to help overcome constraints and to set the country on a path of high and sustained inclusive economic growth in the medium term.