Towards 2015 : Spending for Indonesia's Development, Shaping the Prospects of a Middle-Income Country

This report discusses the future of Indonesia's public expenditures as it enters the 21st century. It contributes to the discussion on Indonesia's spending priorities for the years ahead. These choices will impact the lives of Indonesians, and their opportunities to grow richer and receive better services. The report will contribute to Indonesia s next five-year plan, the RPJM, which will take effect in January 2010. Indonesia has been one of the most successful countries in reducing its debt-to-GDP ratio. Since 1999, when debt levels reached over 90 percent of GDP, Indonesia has reduced its debt levels to just above 30 percent of GDP by the end of 2008. Education spending increased from 11 percent of total government spending in 2001 to 15 percent in 2008. Chapter 1 discusses public spending from 2001 to 2009, including discretionary spending, key sectors, subsidies and decentralization. Chapter 2 analyzes Indonesia's economy in the current (2009) economic downturn. Indonesia is in a position of relative economic strength despite the impact of the global financial crisis. This is largely thanks to its broad-based growth that has avoided over-reliance on exports. The share of output that Indonesia exports is the smallest of the major Southeast Asian economies. Chapter 3 presents the future of Indonesia's fiscal growth to 2015. Notwithstanding noteworthy achievements over the past decade, Indonesia continues to face significant economic and social challenges, and major gaps remain in many areas of public expenditure. However, sustained fiscal consolidation and governance reforms, as well as resilience in the face of the global crisis, leave Indonesia well placed to push forward with sustained poverty reduction. Strategic use of public resources and continued growth could see swift improvement in economic and social outcomes over the coming five years.

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2009-08
Subjects:ABSENTEEISM, ACCESS TO SAFE WATER, ACCOUNTABILITY, ACCOUNTING, ALLOCATION, ALLOCATION OF FUNDS, ALLOCATION OF RESOURCES, ANNUAL BUDGET, ANNUAL REPORTS, AUTOMATIC STABILIZERS, BENEFICIARIES, BOND YIELDS, BONDS, BUDGET ALLOCATION, BUDGET ALLOCATIONS, BUDGET DEFICIT, BUDGET EXECUTION, BUDGET IMPLEMENTATION, BUDGET PLANNING, BUDGET PREPARATION, CAPITAL BUDGET, CAPITAL EXPENDITURE, CAPITAL EXPENDITURES, CAPITAL FLIGHT, CASH TRANSFERS, CENTRAL BUDGET, CENTRAL GOVERNMENT, CENTRAL GOVERNMENT BUDGET, CENTRAL GOVERNMENT EXPENDITURE, CENTRAL GOVERNMENT SPENDING, CITIES, CIVIL SERVANTS, CIVIL SERVICE, CIVIL SERVICE SALARIES, COMMODITY PRICES, COMMUNITY HEALTH, CONSTITUTIONAL COURT, DEBT, DEBT BURDEN, DEBT RATIO, DEBT SERVICE, DEBT SERVICE PAYMENTS, DEBT SERVICING, DECENTRALIZATION, DECENTRALIZATION PROGRAMS, DISTRICT, DISTRICT GOVERNMENTS, DISTRICT LEVEL, DISTRICTS, DOMESTIC DEMAND, DOMESTIC INCREASES, ECONOMIC DOWNTURN, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ECONOMIC POLICIES, EDUCATION BUDGET, EDUCATION EXPENDITURES, EDUCATION SERVICES, EDUCATION SPENDING, EFFECTIVENESS OF PUBLIC SPENDING, EFFICIENCY GAINS, ELECTRICITY, ELECTRICITY SUBSIDIES, EXPENDITURE, EXPENDITURE ALLOCATIONS, EXPENDITURE BUDGET, EXPENDITURE DATA, EXTERNAL FINANCING, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL MARKET, FINANCIAL POSITION, FINANCIAL SECTOR, FISCAL AFFAIRS, FISCAL COST, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL MANAGEMENT, FISCAL POLICIES, FISCAL POLICY, FISCAL POSITION, FISCAL RISK, FISCAL RISKS, FISCAL SPACE, FISCAL SUSTAINABILITY, FISCAL YEARS, GOVERNMENT BUDGET, GOVERNMENT DEBT, GOVERNMENT EXPENDITURE, GOVERNMENT POLICY, GOVERNMENT REVENUE, GOVERNMENT SPENDING, GROWTH POTENTIAL, GROWTH RATE, HEALTH CENTERS, HEALTH FINANCING, HEALTH INSURANCE, HEALTH OUTCOME, HEALTH OUTCOMES, HEALTH SECTOR, HEALTH SERVICES, HEALTH SPENDING, HEALTH WORKERS, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE SERVICES, INTEREST PAYMENTS, LEVEL OF PUBLIC SPENDING, LOCAL GOVERNMENTS, MARGINAL TAX RATES, MASS TRANSIT, MEDIUM-TERM DEVELOPMENT, MINISTRY OF FINANCE, MONETARY POLICY, NATIONAL BUDGET, NATIONAL EXPENDITURE, NATIONAL GOVERNMENT, NATIONAL PRIORITY, NATURAL RESOURCES, OIL PRICES, OUTCOME INDICATORS, OVERSIGHT MECHANISMS, PENSION FUND, PERFORMANCE ORIENTATION, PERSONAL INCOME, PERSONAL INCOME TAX, PERSONNEL EXPENDITURES, PERSONNEL EXPENSES, POLICY CHOICES, POLICY DISCUSSION, POLICY-MAKERS, POVERTY ASSESSMENT, POVERTY REDUCTION, PRIVATE INVESTMENT, PROGRAM IMPLEMENTATION, PROGRAMS, PROVINCE, PROVINCES, PROVINCIAL ROADS, PUBLIC, PUBLIC DEBT, PUBLIC EDUCATION, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE ON HEALTH, PUBLIC EXPENDITURE REVIEW, PUBLIC FINANCES, PUBLIC FINANCIAL MANAGEMENT, PUBLIC FINANCING, PUBLIC GOODS, PUBLIC HEALTH, PUBLIC HEALTH WORKERS, PUBLIC INVESTMENT, PUBLIC INVESTMENT IN INFRASTRUCTURE, PUBLIC RESOURCES, PUBLIC REVENUES, PUBLIC SECTOR, PUBLIC SERVICE, PUBLIC SERVICE DELIVERY, PUBLIC SERVICES, PUBLIC SPENDING, PUBLIC SPENDING PATTERNS, PUBLIC SUBSIDIES, PUBLIC WORKS, QUALITY OF EDUCATION, REAL ECONOMIC GROWTH, REALLOCATIONS, RESOURCE ALLOCATIONS, ROAD MAINTENANCE, ROAD NETWORK, ROADS, SANITATION, SAVINGS, SERVICE EMPLOYMENT, SMALL DEFICITS, SOCIAL EXPENDITURE, SOCIAL PROTECTION, SOCIAL SAFETY NETS, SOCIAL SECURITY, SOCIAL SERVICES, SOCIAL WELFARE, SPENDING LEVELS, SUB-NATIONAL, SUB-NATIONAL GOVERNMENT, SUB-NATIONAL GOVERNMENTS, SUBNATIONAL, SUBNATIONAL GOVERNMENT, SUBNATIONAL GOVERNMENTS, TAX ADMINISTRATION, TAX BASE, TAX BRACKETS, TAX COLLECTIONS, TAX CREDITS, TAX CUTS, TAX REGISTRATION, TAX REVENUES, TAXATION, TAXPAYERS, TELECOMMUNICATIONS, TOTAL EXPENDITURES, TOTAL NATIONAL BUDGET, TOTAL PUBLIC EXPENDITURE, TOTAL PUBLIC SPENDING, TOTAL SPENDING, TOWNS, UNCERTAINTY, URBANIZATION, UTILITIES, VILLAGE, VILLAGES,
Online Access:http://documents.worldbank.org/curated/en/2009/08/16348630/indonesia-towards-2015-spending-indonesia s-development-shaping-prospects-middle-income-country
https://hdl.handle.net/10986/12988
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Summary:This report discusses the future of Indonesia's public expenditures as it enters the 21st century. It contributes to the discussion on Indonesia's spending priorities for the years ahead. These choices will impact the lives of Indonesians, and their opportunities to grow richer and receive better services. The report will contribute to Indonesia s next five-year plan, the RPJM, which will take effect in January 2010. Indonesia has been one of the most successful countries in reducing its debt-to-GDP ratio. Since 1999, when debt levels reached over 90 percent of GDP, Indonesia has reduced its debt levels to just above 30 percent of GDP by the end of 2008. Education spending increased from 11 percent of total government spending in 2001 to 15 percent in 2008. Chapter 1 discusses public spending from 2001 to 2009, including discretionary spending, key sectors, subsidies and decentralization. Chapter 2 analyzes Indonesia's economy in the current (2009) economic downturn. Indonesia is in a position of relative economic strength despite the impact of the global financial crisis. This is largely thanks to its broad-based growth that has avoided over-reliance on exports. The share of output that Indonesia exports is the smallest of the major Southeast Asian economies. Chapter 3 presents the future of Indonesia's fiscal growth to 2015. Notwithstanding noteworthy achievements over the past decade, Indonesia continues to face significant economic and social challenges, and major gaps remain in many areas of public expenditure. However, sustained fiscal consolidation and governance reforms, as well as resilience in the face of the global crisis, leave Indonesia well placed to push forward with sustained poverty reduction. Strategic use of public resources and continued growth could see swift improvement in economic and social outcomes over the coming five years.