Indonesia: Supporting Strong, Sustainable, and Inclusive Economic Growth

As Indonesia recovers from the pandemic and weathers a series of global economic shocks, Prospera supports the Indonesian government to safeguard economic stability, and pave the way to transform into a high-income economy by 2045 in line with Indonesia’s vision.

Prospera supports Indonesia across three breakthrough areas:

• Expanding markets creating jobs: Building a robust private sector through an enabling environment for job creation, capital formation, and technical innovation.
• Safeguarding economic and financial stability: Ensuring a strong foundation for sustainable growth through sound macro policy and financial development.
• Improving public finances and government performance: More revenue, better spending, and government administration through improved policy and systems.

Underpinning these are three enabling areas: capable and coordinated institutions support to Indonesia’s development transition, better policies that are inclusive of gender and disability, and effective partnership between the Government of Australia and the Government of Indonesia.

Prospera combines advisers with extensive knowledge of Indonesia, those with reform experience elsewhere, and advanced technical skills along with peer practitioners from the Australian public service. Advisers are based in Indonesia, working side by side with Indonesian partners, while others engage from around the world. Prospera responds to immediate policy issues requested by government while keeping a lens on emerging policy challenges such as digital transformation and climate policy. Prospera’s multiskilled teams engage across agencies to achieve policy outcomes.

Results include:

• Supporting Indonesia’s economic recovery and reform with the Law on State Finances to cushion the impact of Covid-19, and structural change with the Job Creation Law.
• Contributing to design of Covid-19 rescue measures including new employment training program and financial assistance, and grants for small business, including many women-led micro business.
• Supporting transformative multi-year digitalisation of Indonesia tax administration system, with a target launch end-2023.
• Charting Indonesia’s transformative growth path across assets of physical, human, natural, and social capital, and advancing climate and energy policy.