## Indonesia: Selected Issues

_IMF Staff Country Reports, February 6, 2018_

## Source details

**Canonical URL:** [Indonesia: Selected Issues](https://www.imf.org/en/publications/cr/issues/2018/02/06/indonesia-selected-issues-45615)

## Other formats

- [Markdown version](/en/publications/cr/issues/2018/02/06/indonesia-selected-issues-45615/index.md)
- [Structured JSON version](/en/publications/cr/issues/2018/02/06/indonesia-selected-issues-45615/index.json)
- [Bundle manifest](/en/publications/cr/issues/2018/02/06/indonesia-selected-issues-45615/bundle-manifest.json)

## Bibliographic details
- Published: February 6, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484340707.002

---

### Summary and key findings
- The paper focuses on challenges and opportunities related to reaping Indonesia’s demographic dividend.
- Demographic trends can impact growth through various channels, including the size of the labor force, productivity, and capital formation.
- Indonesia’s growth is set to have a sizeable tailwind from demographic trends.
- Aging is projected to start kicking in less than 15 years.
- In the long-term, Indonesia can grow old before becoming rich.
- The rapid speed of aging implies that Indonesia, similar to many Asian economies, may face the prospect of becoming old before becoming rich.

### Implications for growth and labor markets
- Maximizing the demographic dividend should be a priority given Indonesia’s favorable demographic trends.
- Reaping the demographic dividend requires appropriate policies to:
  - raise productivity; and
  - create enough quality jobs for the growing working-age population.
- Investing in human capital early on, including education and health care, is essential to improve the productivity of the workforce and increase the size of the demographic dividend.

### Policy recommendations
- Prioritize policies that maximize the demographic dividend during the available window of opportunity (aging begins in less than 15 years).
- Focus on:
  - human capital investment (education and health care); and
  - measures to boost productivity and job creation for the expanding working-age population.

### Subjects and keywords
- Subject: Aging, Capital markets, Exports, Financial inclusion, Financial markets, Infrastructure, International trade, National accounts, Population and demographics
- Keywords: Africa, Aging, Asia and Pacific, Capital markets, CR, equity-enhancing priority expenditure, export, export destination, Exports, Financial inclusion, financial market, Global, growth strategy, IMF staff estimate, Indonesia, Infrastructure, ISCR, old-age dependency ratio, population share, VAT, VAT threshold, workforce, workforce training

---

## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2018/cr1833.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2018/cr1833.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2018/02/06/indonesia-selected-issues-45615_