July 2019

Indonesia: 2019 Article IV Consultation - Press Release and Staff Report

This report summarises the Article IV consultation held in July 2019 between the Executive Board of the International Monetary Fund (IMF) and Indonesian officials.


Publisher

International Monetary Fund (IMF)


Document Type

Reports


Country

Indonesia

Region

Asia

Building Block

Assessment and diagnostics


Useful Links


Tags

#CentralBanks #PublicFinancialManagement #TaxReform #PolicyReform #PublicExpenditure #GoodGovernance

Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions, known as "Article IV consultations", with member states, usually every year. Article IV consultation reports can be useful sources of financial and economic data for the assessment and diagnostic phase of an integrated national financing framework (INFF).

During this Article IV consultation, an IMF team of economists visited Indonesia to assess economic and financial developments and discuss the country's economic and financial policies with government and central bank officials. Discussions were held May 1-14 2019.

The consultation found that the Indonesian economy performed well in 2018, despite external headwinds, including capital flow reversals. President Joko Widodo was been re-elected for a second term and has committed to push ahead with economic reforms. Creating quality jobs for the young and growing population to harness Indonesia’s demographic dividend requires a stronger impetus to growth, which has been constrained by structural weaknesses, including low tax revenues, shallow financial markets, and labour and product market rigidities.

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