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ECONOMY

Welcome to

Center for

Economic & Financial

Development

Indonesia faces structural economic and financial challenges...

This Center is dedicated as a platform for various scholarly approaches towards solving Indonesia’s economic and financial challenges. Indonesia faces significant economic barriers that hinder its financial advancement and long-term growth potential. The declining share of manufacturing in GDP signals a weakening industrial base, while a shrinking middle class and an expanding vulnerable population erode consumer purchasing power. Additionally, the state budget is under increasing strain due to volatile commodity prices, growing subsidy demands, and rising debt interest payments. The financial sector further exacerbates these issues with limited access, shallow markets, and inefficiencies that contribute to high funding costs. Without urgent reforms to address these fiscal and financial constraints, Indonesia risks falling behind its regional peers and missing critical opportunities for sustainable growth.

These challenges require immediate:

COLLABORATIONS

ACTIONS

SOLUTIONS

Collaborations. Actions. Solutions.

Financial Development for Strong and Equitable Growth

The Indonesian Business Council (IBC) embarked on a comprehensive research study to identify strategic policy recommendations aimed at enhancing financial access, inclusivity, and competitiveness in Indonesia’s financial sector. The overarching goal of this research initiative was to bolster the efficiency and stability of Indonesia’s financial landscape, thereby fostering sustainable economic growth and development.​ The research encompassed seven key policy areas that were deemed essential for improving financial development in Indonesia such as financial product innovations, tax reforms, advancement of non-bank institutions, enhancement of credit information and collateral regulations, support for bank consolidations, fiscal and macroeconomic management and NPL management improvement through Asset Management Companies (AMCs).

The study underscored the importance of evidence-based policymaking, stakeholder engagement, and empirical studies to refine and implement these policy recommendations effectively. By addressing these structural challenges and implementing the proposed policy measures, Indonesia aims to enhance its financial competitiveness, attract more foreign investments, reduce borrowing costs, and promote sustainable economic growth. This holistic approach is crucial for overcoming the barriers to financial development and advancing Indonesia’s position in the global economic landscape.​

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Forecasting the Course Ahead

The Indonesian Business Council (IBC) hosted the ‘IBC Business Competitiveness Outlook 2025,’ emphasizing four key approaches to enhance collaboration with the business sector and attract investment. These include governance reforms to improve ease of doing business, private-public collaboration in infrastructure development to boost socio-economic quality, advancing industrialization through downstream strategies, and promoting a green economy. Explore the IBC’s 2025 Outlook.

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Agendas

Indonesia Economic Summit 2025

IES is a high-level forum designed to bring together international business leaders, policymakers, thinkers, and industry champions. The forum will explore Indonesia's current and future economic development, and how it...

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18 February 2025

Fellows

⁠Kahlil Rowter, S.E., M.A.
Senior Fellow
Prof. Dr. Telisa Aulia Falianty, S.E., M.E.
Senior Fellow
Adelia Surya Pratiwi, S.E., M.Sc.
Fellow
Citra Handayani, S.Sos, M.P.A
Fellow
⁠⁠Alifa Salsabila, S.T.
Fellow
Khalafi Xenon Abdullah, S.T.
Fellow