Indonesia's Economy: Between Growth and Stability

Roland Rajah
Content Type
Commentary and Analysis
Lowy Institute for International Policy
Indonesia has much economic potential but the trade-off between growth and stability continues to bind its growth ambitions. Indonesian economic policy continues to prioritise stability over growth but the adequacy of economic growth has become the bigger issue. President Joko Widodo’s commendable pro-growth efforts have so far only stabilised Indonesia’s trajectory rather than boost it. Doing better will require reforms to be calibrated to make the trade-off between growth and stability less binding while enhancing productivity.
Government, International Trade and Finance, Economy, Economic Growth
Political Geography
Indonesia, Asia-Pacific