Indonesia : Private Sector Development Strategy

The report reviews the Bank's private sector development strategy in Indonesia, stipulating that the country's potential will not be realized without a pattern of private sector activity, - different from the past - but, taking the opportunity offered by the crisis to make fundamental changes in the business environment, and in how business is conducted. The first priority calls for the banking, and corporate sectors to speed up the resolution of corporate debt, and ease financial flows for investment, and working capital to resume. Second, the structural inefficiencies, partly conducive to the crisis, and to its long lasting effect, need to be overcome; therefore, reforms should enable Indonesia to become a modern market economy, able to avoid future crises. This encompasses fighting corruption in the public administration, ensuring the rule of law through the court system, reinforcing property rights, and dispute resolution mechanisms, and, ensuring transparency and corporate governance. Third, broad-based, and sustainable economic growth need to be ensured by measures such as removal of obstacles to small, and medium enterprise (SME) activity, as well as SME development promotion, including physical, and social infrastructure building. Finally, the creation of an infrastructure, and regulatory framework to take full advantage of new information/communications technologies, is paramount.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2001-01-04
Subjects:	ACCOUNTING, ADB, AGGREGATE DEMAND, AGRICULTURE, ASSET MANAGEMENT, ASSET SALES, ASSETS, AUDITS, AUTHORITY, BANK CAPITAL, BANK DEPOSITS, BANK INDONESIA, BANK LENDING, BANK RECAPITALIZATION, BANK RESTRUCTURING, BANKING SECTOR, BANKING SYSTEM, BANKRUPTCY, BANKRUPTCY PROCEEDINGS, BANKS, BENCHMARKING, BONDS, BOOK VALUE, BORROWING, BTO, CAPITAL ADEQUACY, CAPITAL INFLOWS, CAPITAL MARKETS, CAR, CASH FLOWS, CENTRAL BANK, COLLUSION, COMMERCIAL BANKS, COMPARATIVE ADVANTAGE, COMPETITION LAW, COMPETITION POLICY, CORPORATE FINANCIAL STRUCTURE, CORPORATE GOVERNANCE, CORPORATE RESTRUCTURING, CORPORATE SECTOR, CORRUPTION, COURT SYSTEM, CURRENCY DEPRECIATION, DEBT, DEBT OVERHANG, DEBT RESTRUCTURING, DECENTRALIZATION, DECENTRALIZATION PROCESS, DEPOSITS, DEVALUATION, DEVELOPMENT STRATEGY, ECONOMIC GROWTH, ECONOMIC POWER, ECONOMIC REFORM, ECONOMIC STRUCTURE, EMPLOYMENT, ENABLING ENVIRONMENT, ENFORCEMENT OF REGULATIONS, EXPORTS, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL LIBERALIZATION, FINANCIAL MARKETS, FINANCIAL RESTRUCTURING, FINANCIAL SECTOR, FINANCIAL SERVICES, FINANCIAL STRUCTURE, FINANCIAL SYSTEM, FISCAL, FISCAL RESOURCES, FISCAL YEAR, FOREIGN BANKS, FOREIGN BORROWING, FOREIGN DEBT, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FOREIGN TRADE, GDP, GNP, GOVERNMENT POLICIES, GROSS DOMESTIC PRODUCT, GROSS NATIONAL PRODUCT, HUMAN RESOURCES, INCENTIVE FRAMEWORK, INFORMAL SECTOR, INFORMATION DISCLOSURE, INSOLVENT, INTEREST RATES, INVESTMENT CLIMATE, JUDICIAL REFORM, KNOWLEDGE ECONOMY, LACK OF TRANSPARENCY, LEGAL FRAMEWORK, LEGAL SYSTEM, LIQUIDITY, LOCAL FINANCIAL INSTITUTIONS, MERGERS, MINISTRY OF FINANCE, MONOPOLIES, NATIONALIZED BANKS, PENSIONS, POLITICAL INSTABILITY, POLITICIANS, POOR GOVERNANCE, PORTFOLIOS, PRIVATE BANKS, PRIVATIZATION, PRODUCTIVE ASSETS, PROFITABILITY, PROPERTY RIGHTS, PRUDENTIAL REGULATIONS, PUBLIC ADMINISTRATION, PUBLIC SECTOR, PUBLIC SERVICES, REGIONAL DEVELOPMENT BANKS, REGULATORY FRAMEWORK, REGULATORY FRAMEWORKS, REGULATORY SYSTEM, REGULATORY SYSTEMS, RISK MANAGEMENT, SECURITIES, SHAREHOLDERS, SOCIAL INFRASTRUCTURE, SOCIAL SECTORS, SOCIAL SERVICES, STATE BANKING, STATE BANKS, STATE ENTERPRISES, STATE OWNERSHIP, STATE POWER, STATE-OWNED ENTERPRISES, STOCK EXCHANGES, SUPERVISORY FRAMEWORK, TAXATION, TECHNICAL ASSISTANCE, TELECOMMUNICATIONS, TIME DEPOSITS, TRANSPARENCY, TRANSPORT, TRUST FUND, TRUST FUNDS, URBAN DEVELOPMENT, VALUE ADDED, VENTURE CAPITAL, VULNERABILITY, WEALTH, WORKING CAPITAL PRIVATE SECTOR DEVELOPMENT, PRIVATIZATION CRITERIA, CHANGE OF VENUE, BUSINESS ENVIRONMENT, SMALL & MEDIUM SCALE ENTERPRISES, BUSINESS MANAGEMENT, BANKING SECTOR REFORMS, CORPORATE DEBT, FINANCIAL FLOWS, INVESTMENT EFFECTIVENESS, WORKING CAPITAL, STRUCTURAL ADJUSTMENT, STRUCTURAL REFORMS, MARKET ECONOMY, RULE OF LAW, COURT ADMINISTRATION, DISPUTE RESOLUTION, PHYSICAL INFRASTRUCTURE, SOCIAL DEVELOPMENT, INFRASTRUCTURE REGULATION, INFORMATION TECHNOLOGY, COMMUNICATIONS DEVELOPMENT,
Online Access:	http://documents.worldbank.org/curated/en/2001/01/828314/indonesia-private-sector-development-strategy http://hdl.handle.net/10986/14959
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