The Organisation for Economic Co-operation and Development (OECD) has released its OECD Economic Survey of Indonesia 2024, focusing on two key themes: the green transition and digitalization. This annual report provides a comprehensive analysis through policy dialogues between the OECD and senior policymakers from both developed and developing countries, including Indonesia. The survey highlights Indonesia's post-pandemic economic recovery, noting that the country's economy has bounced back. However, the OECD stresses the importance of carefully managing fiscal and monetary policies to ensure macroeconomic stability. According to the OECD, Indonesia's economy is projected to grow by 5.2% in 2025.
Finance Minister Sri Mulyani welcomed the survey's findings, emphasizing that Indonesia has maintained its economic resilience amid global uncertainties. This success is attributed to prudent fiscal and monetary policies, as well as ongoing structural reforms. Indonesia aims to become a high-income country with a more inclusive and robust economy. Key policies, such as industrial downstreaming in strategic minerals like copper and nickel, as well as in agriculture, will continue to be strengthened. The OECD also noted that Indonesia's per capita income has tripled over the past 25 years, and extreme poverty has significantly decreased. In addition, the government’s efforts to expand access to education and vocational training have improved labor quality and prepared workers for modern industries. The OECD highlighted the growing participation of women in the workforce, reducing gender gaps. Furthermore, the report emphasizes the role of Indonesia's digital economy in driving growth, with rapid growth in e-commerce and the digital startup ecosystem. E-government initiatives are improving public services and cutting operational costs. Minister Sri Mulyani also acknowledged the challenge of developing physical infrastructure and digital connectivity in Indonesia’s vast archipelago, stressing the importance of continued investment. Lastly, Indonesia's green transition, including the early retirement of coal-fired power plants and investment in renewable energy, positions the country as a proactive player in global climate action, aiming for Net Zero Emissions by 2060 or sooner.
