B.E. Assessment

Policy Paper #9 - Turning BDS into Business, Asian Dev Bank, 2001

    Retrospective analysis of the politically unintended growth of the business services sector is promoting international consensus on the benefits of favorable framework conditions over specific support measures. Policies should focus on enhancing competitive pressure, liberalizing service markets, and promoting education policies that emphasize multidisciplinary and lifelong learning. Review of standards and norms and promotion of corporate governance that supports an open and contestable market for corporate control deserves particular attention.

    In Indonesia, priority should be given to creating a business environment that provides incentives for innovation and quality improvement, promotes competition, and enables SMEs to grasp new opportunities. Market liberalization, improving SME access to finance, enhancing tax coverage and tax compliance, and a new approach to enforcing norms and standards based on certification by accredited providers deserve particular attention.

    This paper examines the reasons for the strong dynamic of the BDS sector in industrialized countries and ways policy makers can support market development and it assesses whether a similar dynamic can be expected for Indonesia. Policy measures to support the sector's development are analyzed and synthesized into a policy agenda for Indonesia.

    Associated Activities and Documents
    »Strengthening the Business Environment and BDS in Indonesia, AsDB/ GFA/ SC, 2003