The U.S. Chamber and AmCham Indonesia asses that Indonesia’s business climate is moving in the right direction, but the country needs to quicken the pace of its economic reforms, according to the annual U.S.-Indonesia Investment Report. This year’s report, entitled “Indonesia’s Journey,” examines the economic progress made under Indonesian President Joko Widodo’s administration and compares the country’s investment environment to other such environments in Southeast Asia.
The report recognizes the focus President Jokowi has placed on infrastructure development and discuss areas that have held back the program from reaching its full potential, including budgetary pressures, an over-reliance on state-owned enterprises, and limited success with public-private partnerships. Issues related to permits, licenses, and land acquisition also stymie the preparation of financially feasible infrastructure projects.
Under President Jokowi’s tenure, there have been substantial improvements in access to health care as well as education reforms that have helped poorer students stay in school, according to the report. Continued education reforms are vital if the country is to develop the workforce it needs for a 21st century economy.
“Indonesia’s Journey” makes recommendations for short and medium-term action as well as the need for expanded dialogue with the private sector. The report was launched on Septemer 27, 2018 at the 6th annual U.S.-Indonesia Investment Summit in Jakarta, and is a part of “Initiative Indonesia,” a joint program between the U.S. Chamber and AmCham Indonesia designed to increase trade and investment between the two countries.
