Indonesia's COVID-19 Vaccination and Economic Resilience Strategy
Conducive Environment
Underpinning Stable Growth Fundamentals Amid Temporary Moderation
Largest Economy
in South East
Asia
Manageable
Inflation Rate
4th Most
Populous country
in the World;
64% in
productive age
Rising Middle
Class and
Affluent
Customers
From commodity-based to
manufacturing and service sectors via
infrastructure development
From consumption-led to investment-
led growth via a stronger
manufacturing sector and more
investment initiatives
Policies to maintain purchasing power
to stimulate domestic economy in the
midst of weakening macroeconomic
conditions
Large and
Stable
Economy
Consistent
Budget Reform
Reform-Oriented
Administration
New
Economic
Structure
High
Infrastructure
Investments
Budget reform as
a part of larger
economic reform
initiative
Tax base to be
broadened
from one
reduce
dependency on
commodities
Fuel subsidies
significantly
reduced and
spending redirected
to more productive
allocation
Prudent debt
management
Three main sources of financing for
investment needs: State and regional
budget, State Owned Enterprises and
PPP
Continuing from 2015 policy,
infrastructure spending will be higher
than fuel subsidy
Infrastructure spending focused on
basic infrastructure projects
Fiscal and non-fiscal incentives to
attract infrastructure investment and
promote PPP
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