Indonesia Growth and Jobs Report - Running Faster, for Longer: Structural Transformation, Productivity, and Good Jobs - January 2026

Jul 19, 2026

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Indonesia Growth and Jobs Report January 2026 examines how structural transformation can accelerate economic growth while improving job creation and the quality of employment. It analyzes macroeconomic features of growth and jobs, including labor market dynamics, worker capacities, and the role of foundational infrastructure, business-enabling policies, and private capital mobilization. The report then explores microeconomic factors across manufacturing and services, focusing on productivity, market dynamics, contestability, connectivity, capabilities, and digital technology adoption. It also assesses large firms and the competitiveness of Indonesia’s business environment, emphasizing regulatory predictability and market restrictions.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages116

Reading Time4 h 52 min

Acknowledgements

Abbreviations and Acronyms

Foreword

Key messages

Overview

Macroeconomic Features of Growth and Jobs

Growth and structural transformation

Job creation

Worker capacities vs. good job opportunities in the labor market

Three pillars for growth and good jobs

Structural reforms and growth

Long-term growth prospects

Microeconomic Features of Growth and Jobs

Manufacturing sector overview

Productivity and market dynamics in manufacturing

Service sector overview

Service sector links to manufacturing and other sectors

Contestability, connectivity, and capabilities in the services sector

Digital technology adoption and its links to market dynamics and services

Large Firms and the Competitiveness of the Business Environment

Characteristics of large firms

Evolution of listed firms and selected conglomerates

Leading industrialists behind Indonesia’s mega firms

Predictability of the business regulatory environment

Market restrictions in selected manufacturing industries

Competition policy

Public Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disc losure Authorized Pub lic Disclosure Authorized COUNTRY GROWTH&JOBS REPORT Indonesia Running Faster, for Longer: Structural Transformation, Productivity, and Good Jobs January 2026 COUNTRY GROWTH&JOBS REPORT © 2026 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; [Internet: www.worldbank.org](Internet: www.worldbank.org) [Some rights reserved.](Some rights reserved.) This work is a product of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, links/footnotes and other information shown in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The citation of works authored by others does not mean The World Bank endorses the views expressed by those authors or the content of their works. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: “World Bank. 2026. Running Faster, for Longer: Structural Transformation, Productivity, and Good Jobs. Indonesia Growth and Jobs Report © World Bank.” Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e mail: [pubrights@worldbank.org](pubrights@worldbank.org). CONTENTS Acknowledgements .......................................................................................................................... v Abbreviations and Acronyms ....................................................................................................... vii Foreword ....................................................................................................................................... viii Key messages ................................................................................................................................... xi Overview ........................................................................................................................................... 1 1. Macroeconomic Features of Growth and Jobs ....................................................................... 10 1.1 Growth and structural transformation ............................................................................................... 10 1.2 Job creation ............................................................................................................................................. 14 1.3 Worker capacities vs. good job opportunities in the labor market ................................................ 16 1.4 Three pillars for growth and good jobs: (1) foundational infrastructure (2) business-enabling policies, and (3) private capital mobilization ............................................... 17 1.5 Structural reforms and growth .............................................................................................

FAQs

What does the report identify as key pillars for growth and good jobs?

It highlights three pillars: foundational infrastructure, business-enabling policies, and private capital mobilization.

How does the report connect worker capacities with job opportunities?

It contrasts worker capacities with the availability of good job opportunities in the labor market, linking labor-market outcomes to employment quality.

Which sectors are analyzed in the microeconomic chapter on growth and jobs?

The report analyzes manufacturing and services, including how services connect to manufacturing and other sectors and how technology adoption affects market dynamics.

Jul 19, 2026

Upload by Jiven