[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-112725-en":3,"doc-seo-112725-105":29,"detail-sidebar-cat-0-en-105":90},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":4,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},112725,1099514067438,"River Wang","https://ap-avatar.wpscdn.com/avatar/100002539ee87300030?x-image-process=image/resize,m_fixed,w_180,h_180&k=1780474512215547542",8,"Research & Report","Indonesia Streamlined Country Diagnostic - Five-Year Priorities","Indonesia has sustained strong growth for decades, reaching upper-middle-income status in 2023 and reducing extreme poverty from 83% in 1998 to 5% in 2025. Jobs and work income drove more than 70% of poverty reduction, yet job-rich, formal-sector expansion remains limited, especially for women. This streamlined country diagnostic evaluates drivers and challenges to sustain equitable, sustainable prosperity over the next five years under the Golden Indonesia 2045 vision and its development pillars.","Public Disclosure Authorized Public Disclosure Authorized  \nV. Indonesia Streamlined Country Diagnostic  \nIndonesia has achieved strong growth for decades, reaching upper middle-income status in 2023 and driving the extreme poverty rate down from 83 percent in 1998 to 5 percent in 2025. Growth over the past decade has been especially beneficial for the poorest members of society, with the bottom 40 percent achieving 4.5 percent consumption growth on average per year, 0.8 percentage points higher than the top 60 percent. Jobs and income from work have been the primary driver of this achievement, accounting for more than 70 percent of the poverty reduction attained over the past decade. This streamlined country diagnostic (SCD) assesses the drivers and challenges to continue progress generating equitable and sustainable prosperity over the next five years.  \nThe government’s Golden Indonesia 2045 national development plan lays out an even bolder vision. The President’s administration describes the Medium-Term Plan (2025–2029) as the first stage of an expansive commitment to rapidly reach high-income levels of national prosperity and elevate the economy from the world’s tenth largest into the top five in the next twenty years. The plan focuses on building a “united, sovereign, advanced, and sustainable”Indonesia through programs and reforms around four development pillars: (i) human development and mastery of science and technology; (ii) sustainable economic development;(iii) equitable development; and (iv) strengthened national resilience and governance. Strategic programs to achieve these goals concentrate on food and energy security, infrastructure and quality job creation, accelerated downstreaming of strategic commodities, strengthened human capital, community-led poverty reduction, and policy reforms emphasizing good government.  \nA new model is needed to reach Indonesia’s job-rich growth ambitions for prosperity. Though the country’s traditional resource-intensive sources of growth successfully propelled Indonesia from low to middle-income status, they have delivered diminishing returns in recent years. To become a high-income country by 2045, output per worker must triple even as the working-age population grows by a projected 15.5 million. But the formal sector, dominated by conglomerates and businesses of the state, faces little competition, weak incentives for reallocation, and generates limited firm dynamism.i Since COVID-19, labor formality and worker productivity have both declined, erasing past gains.ii At current rates, only one in five new workers will secure a formal job, and for women, just one in ten. Strong aggregate growth has not sufficed to generate broadly shared economic security as job creation has remained concentrated in informal, low-productivity sectors. As a result, the poverty rate remains high when benchmarked against countries with similar levels of income. In 2025, 65 percent of Indonesians lingered below the upper-middle-income poverty threshold of $8.3 per person per day, more than twice the average among other upper middle-income countries, and indicative of a relatively low labor share of national income. The continuation of recent trends would leave Indonesia at an income level roughly two-thirds of the way to the high-income target. Achieving the ambitious 'Golden Indonesia 2045' vision requires a structural shift led by the private sector into productive, human-capital intensive, and higher value-added production.  \nThough many priorities identified in the previous systematic country diagnostic remain relevant, the current moment also presents new challenges and uncertainties. As elaborated in the previous diagnostic, Indonesia continues to face sluggish productivity growth (or even reversal) while generating too few stable, well-paid jobs. As before, progress is hampered by restrictive trade and foreign direct investment policies, a lack of competitive pressure in domestic industries, s","cbCaieVfQPszhXYD","https://ap.wps.com/l/cbCaieVfQPszhXYD","pdf",290576,1,14,"English","en",105,"# Indonesia Streamlined Country Diagnostic\n## Progress and remaining gaps\n## Golden Indonesia 2045 vision and development pillars\n## Need for structural shift and job-rich growth\n## Key challenges and risks\n## Diagnostic focus and interlocking priorities","[{\"question\":\"What has driven poverty reduction in Indonesia over the past decade?\",\"answer\":\"Jobs and income from work have been the primary driver, accounting for more than 70% of the poverty reduction achieved over the past decade.\"},{\"question\":\"Why does strong aggregate growth not translate into broadly shared economic security?\",\"answer\":\"Job creation remains concentrated in informal, low-productivity sectors, and labor formality and worker productivity have declined since COVID-19.\"},{\"question\":\"What is the purpose and time horizon of this streamlined country diagnostic (SCD)?\",\"answer\":\"The SCD assesses the drivers and challenges to continue progress toward equitable and sustainable prosperity over the next five years under the Golden Indonesia 2045 agenda.\"}]",1784496833,35,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":85,"head_meta":87,"extra_data":89,"updated_unix":27},"indonesia-streamlined-country-diagnostic-five-year-priorities","",{"@graph":35,"@context":84},[36,53,67],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/indonesia-streamlined-country-diagnostic-five-year-priorities/112725/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":61,"encodingFormat":60,"isAccessibleForFree":62,"interactionStatistic":63},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-19",true,{"@type":64,"interactionType":65,"userInteractionCount":4},"InteractionCounter",{"@type":66},"ViewAction",{"@type":68,"mainEntity":69},"FAQPage",[70,76,80],{"name":71,"@type":72,"acceptedAnswer":73},"What has driven poverty reduction in Indonesia over the past decade?","Question",{"text":74,"@type":75},"Jobs and income from work have been the primary driver, accounting for more than 70% of the poverty reduction achieved over the past decade.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"Why does strong aggregate growth not translate into broadly shared economic security?",{"text":79,"@type":75},"Job creation remains concentrated in informal, low-productivity sectors, and labor formality and worker productivity have declined since COVID-19.",{"name":81,"@type":72,"acceptedAnswer":82},"What is the purpose and time horizon of this streamlined country diagnostic (SCD)?",{"text":83,"@type":75},"The SCD assesses the drivers and challenges to continue progress toward equitable and sustainable prosperity over the next five years under the Golden Indonesia 2045 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