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Consultative Group on Indonesia mid-year review meeting, Jakarta, June 2, 2004 : economic and social update (Inglês)

Continued macroeconomic stability and a stronger international economy are supporting renewed growth in Indonesia, and are contributing to a reduction in poverty. The Government's Economic Policy Package, known as the White Paper, has played an important part in this, as it clearly laid out the Government's own commitment to reforms in the aftermath of the IMF supported program and helped to maintain the momentum of those reforms. But despite the progress made in meeting most of the White Paper targets, Indonesia has yet to see a demonstrable positive impact on levels of investment, exports, employment or service delivery to the poor. In part, this is because many of the White Paper measures are in the form of the passage of laws and decrees or the establishment of new institutions, whose effective implementation and performance will need to be proven over time. In addition, specific policy actions outside the context of the White Paper and controversial court decisions continue to damage perceptions of Indonesia's investment climate. The challenge for Government is to maintain the momentum on the White Paper to ensure effective implementation of the measures adopted towards improving the investment climate and competitiveness in the medium run. This is needed for broad-based growth, which coupled with actions to improve service delivery will be key to substantial poverty reduction and meeting the targets of the Millennium Development Goals on which Indonesia is lagging. This will require better policy coordination and management - in particular in the critical area of justice sector reform and anti-corruption to ensure that all policy actions work to support the White Paper goals.

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