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The Services Sector as a Driver of Change: Indonesia's Experience in the ASEAN Context

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  • Christopher Findlay
  • Mari Pangestu

Abstract

By various performance indicators, the Indonesian services sector ranks below those of its main ASEAN neighbours. This is concerning for Indonesia, given the the increased attention worldwide on the services sector as a likely source of growth, the contribution of the services sector to the competitiveness of other sectors, and the opportunities available for capturing the gains from innovation and change in services. There is scope, we argue, to increase the number of formal jobs in the sector and to dispel its reputation as the employer of last resort. We find that a restrictive policy regime contributes to the sector's poor performance, leading to an argument for reform. We discuss a potential strategy for such reform, focusing on four factors: increasing transparency and policy information; capturing the opportunities from international commitments; and exploring the potential of, one, new technology, and, two, urbanisation.

Suggested Citation

  • Christopher Findlay & Mari Pangestu, 2016. "The Services Sector as a Driver of Change: Indonesia's Experience in the ASEAN Context," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 52(1), pages 27-53, April.
    • Handle: RePEc:taf:bindes:v:52:y:2016:i:1:p:27-53
    DOI: 10.1080/00074918.2016.1161499
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    References listed on IDEAS

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    1. repec:ilo:ilowps:471767 is not listed on IDEAS
    2. Manning, Chris. & Aswicahyono, H. H., 2012. "Trade and employment in services : the case of Indonesia," ILO Working Papers 994717673402676, International Labour Organization.
    3. World Bank, 2016. "Indonesia Economic Quarterly," World Bank Publications - Reports 25266, The World Bank Group.
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    Cited by:

    1. , Aisdl, 2018. "The role of gender on the effects of Indonesian manpower skills on their competition readiness/preparedness," OSF Preprints hvyg8, Center for Open Science.

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