Indonesia Economic Prospects, June 2023
Commodity windfalls and private consumption have sustained Indonesia’s growth despite a difficult global environment, but signs of normalizing domestic demand are emerging. Inflation is easing at a faster pace than markets anticipated. Indonesia’s external vulnerabilities remain moderate. The fiscal stance has normalized reflecting faster fiscal consolidation, anchored by a broad-based rise in revenues and prudent public spending. Softening inflation and resilient capital flows have led Bank Indonesia (BI) to ease its pace of monetary tightening. The outlook remains stable as the economy normalizes following the post-pandemic recovery. While this is a robust outcome given levels of global uncertainty, Indonesia still faces declining productivity growth like other emerging market economies. Policy makers are encouraged to build on recent reforms and adopt further market-friendly policies and reduce constraints to competition to accelerate productivity growth. The Government of Indonesia (GoI) has put tremendous efforts into mitigating the learning disruption caused by COVID-19. This study provides new evidence of learning loss in math and language, comparing data on grade 4 student learning before and after the COVID-19 pandemic-induced school closures across Indonesia. In line with international literature on COVID-19 - induced learning losses, students’ future earnings and Indonesia’s future productivity will be negatively affected if no action is taken. This study highlights the urgency of addressing learning loss by stimulating political commitment for learning recovery and prompting deliberate actions, with adequate resources to complete them.
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| Format: | Report biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2023-06-26
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| Subjects: | COVID-19, PANDEMIC, EDUCATION SYSTEM, LEARNING, LEARNING LOSSES, |
| Online Access: | http://documents.worldbank.org/curated/en/099062323023530087/P179556020fd80030087730cbc843df07de https://openknowledge.worldbank.org/handle/10986/39921 |
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| Summary: | Commodity windfalls and private
consumption have sustained Indonesia’s growth despite a
difficult global environment, but signs of normalizing
domestic demand are emerging. Inflation is easing at a
faster pace than markets anticipated. Indonesia’s external
vulnerabilities remain moderate. The fiscal stance has
normalized reflecting faster fiscal consolidation, anchored
by a broad-based rise in revenues and prudent public
spending. Softening inflation and resilient capital flows
have led Bank Indonesia (BI) to ease its pace of monetary
tightening. The outlook remains stable as the economy
normalizes following the post-pandemic recovery. While this
is a robust outcome given levels of global uncertainty,
Indonesia still faces declining productivity growth like
other emerging market economies. Policy makers are
encouraged to build on recent reforms and adopt further
market-friendly policies and reduce constraints to
competition to accelerate productivity growth. The
Government of Indonesia (GoI) has put tremendous efforts
into mitigating the learning disruption caused by COVID-19.
This study provides new evidence of learning loss in math
and language, comparing data on grade 4 student learning
before and after the COVID-19 pandemic-induced school
closures across Indonesia. In line with international
literature on COVID-19 - induced learning losses, students’
future earnings and Indonesia’s future productivity will be
negatively affected if no action is taken. This study
highlights the urgency of addressing learning loss by
stimulating political commitment for learning recovery and
prompting deliberate actions, with adequate resources to
complete them. |
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