Studies on Growth with Equity - Indonesia

Indonesia: Reinforcing domestic demand in times of crisis

Indonesia was one of the few economies to have demonstrated resilience to the global crisis in terms of both growth and employment. This study shows that the ability of this country to weather the crisis was almost entirely due to the country’s reliance on a series of strong social protection schemes which were implemented after the 1997 Asian financial crisis. It also addresses the challenges which lie ahead and the areas for improvement.


Indonesia's post-crisis economic and labour market performance has been remarkable , even in comparison with other Asian countries that have also fared well. This report examines in detail the macroeconomic developments which occurred during the course of the crisis (section A), with particular emphasis on reviewing how the labour market has coped over this period (section B). This country review is part of a series entitled: "Studies on Growth with Equity" prepared by the International Institute for Labour Studies (only available in English). More country reviews are to be found hereunder.