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Indonesia Critical Development Constraints
Indonesia: Critical Development Constraints
Indonesia, despite steady economic growth in recent years, faces formidable challenges going forward.
Economic growth has not returned to the level that prevailed before the 1997 Asian financial crisis.
Progress toward reducing poverty and inequalities too has been slow during the recent years. Moreover,
economic growth in the last decade has not been accompanied by significant employment generation.
The country diagnostic study—Indonesia: Critical Development Constraints—presents a diagnosis of
the critical development constraints the country faces. The report proposes policy options to help
overcome constraints and to set the country on a path of high and sustained inclusive economic
growth in the medium term.
About the Asian Development Bank
ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member
countries substantially reduce poverty and improve the quality of life of their people. Despite the region’s
many successes, it remains home to two-thirds of the world’s poor: 1.8 billion people who live on less
than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty
through inclusive economic growth, environmentally sustainable growth, and regional integration.
Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments
for helping its developing member countries are policy dialogue, loans, equity investments, guarantees,
grants, and technical assistance.
About the International Labour Organization
ILO is devoted to advancing opportunities for women and men to obtain decent and productive work in
conditions of freedom, equity, security, and human dignity. Its main aims are to promote rights at work,
encourage decent employment opportunities, enhance social protection, and strengthen dialogue in
handling work-related issues.
ILO was founded in 1919 to pursue a vision based on the premise that universal, lasting peace can be
established only if it is based upon decent treatment of working people. In 1946, ILO became the United
Nations’ first specialized agency.
About the Islamic Development Bank
The Islamic Development Bank (IDB) formally commenced operations on 15 Shawwal 1395H (20 October
1975) with the objectives of fostering economic development and social progress of member countries
and Muslim communities in non-member countries in accordance with the principles of Shari’ah (Islamic
Law). The IDB’s vision is transforming human development in the Muslim world to restore its dignity. Its
priority areas of focus are alleviating poverty, improving health, promoting education, improving governance and prospering the people. Headquartered in Jeddah, Kingdom of Saudi Arabia, it has 56 member
countries from Africa, Asia, Middle East, Europe and Latin America.
The Islamic Development Bank: “Providing Resources, Fighting Poverty, Restoring Dignity”
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