The Services Sector as a Driver of Change: Indonesia’s Experience in the ASEAN Context

Christopher Findlay, Mari Elka Pangestu

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

By various performance indicators, the Indonesian services sector ranks below those of its main ASEAN neighbours. This is concerning for Indonesia, given the the increased attention worldwide on the services sector as a likely source of growth, the contribution of the services sector to the competitiveness of other sectors, and the opportunities available for capturing the gains from innovation and change in services. There is scope, we argue, to increase the number of formal jobs in the sector and to dispel its reputation as the employer of last resort. We find that a restrictive policy regime contributes to the sector’s poor performance, leading to an argument for reform. We discuss a potential strategy for such reform, focusing on four factors: increasing transparency and policy information; capturing the opportunities from international commitments; and exploring the potential of, one, new technology, and, two, urbanisation.

Original languageEnglish
Pages (from-to)27-53
Number of pages27
JournalBulletin of Indonesian Economic Studies
Volume52
Issue number1
DOIs
Publication statusPublished - 2 Jan 2016

Keywords

  • policy reform
  • productivity
  • services sector

Fingerprint Dive into the research topics of 'The Services Sector as a Driver of Change: Indonesia’s Experience in the ASEAN Context'. Together they form a unique fingerprint.

Cite this