Indonesia's Steady Growth Masks Widening Inequality, Calls for Accelerated Reforms
Indonesia's economy grew by 5.0% in Q2 2017, staying steady since 2014. Despite being one of the fastest-growing large economies, the lack of acceleration is worrying. The government plans to increase spending in 2018 while keeping deficits in check. To close the gap with other countries, more private sector investments are needed. Physical and human capital, as well as institutional quality, still need improvement. Maintaining reform momentum is crucial for Indonesia's economic growth.