B.E. Assessment

OECD Reviews of Regulatory Reform: Indonesia 2012: Strengthening Co-ordination and Connecting Markets

    Although Indonesia is a rapidly growing economy, it faces considerable challenges in delivering the infrastructure necessary to promote continued economic growth and the distribution of economic opportunity throughout the dispersed archipelago of over 17 000 islands. The government aims to address the infrastructure deficit through public private partnerships. This will depend on efficient regulatory frameworks as well as good PPP governance. Improving the institutions and processes of governance in Indonesia is critical to the governments stated ambition in the Master Plan for Acceleration and Expansion of Indonesia’s Economic Development, 2011-2025 to “create an independent, well developed, equitable and prosperous society.” Regional integration in ASEAN and APEC will also both require and underpin liberalisation of domestic markets through clearer regulation.

    The Regulatory Reform Review of Indonesia identifies policy findings that the government of Indonesia should implement to strengthen existing systems to improve the co-ordination of regulatory management practices and establish clear policy frameworks and institutional responsibilities for regulatory reform. These are a prerequisite for effective and coherent management of key markets and economic sectors. Good governance of public-private partnerships is also essential to secure private investment in infrastructure.

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