The book features an analysis of teacher reform in Indonesia, which entailed a doubling of teacher salaries upon certification. It describes the political economy context in which the reform was developed and implemented, and analyzes the impact of the reform on teacher knowledge, skills, and student outcomes.

The book focuses on Indonesia's most pressing labor market challenges and associated policy options to achieve higher and more inclusive economic growth. The challenges consist of creating jobs for and the skills in a youthful and increasingly better educated workforce, and raising the productivity of less-educated workers to meet the demands of the digital age. The book deals with a range of interrelated topics---the changing supply and demand for labor in relation to the shift of workers out of agriculture; urbanization and the growth of megacities; raising the quality of schooling for new jobs in the digital economy; and labor market policies to improve both labor standards and productivity.

This 2016 OECD Economic Survey of Indonesia examines recent economic developments, policies and prospects. The special chapters cover: Regional Development and Public Spending.

In Indonesia, as elsewhere in Asia, education will inevitably play a key role in the national development experience as the twenty-first century unfolds. Not much international attention is paid to how the education sector is faring in Indonesia, but that is not because nothing is happening. The past decade has seen major changes in the structure of the education system and in the schooling trajectories of Indonesian children and adolescents. The administration of primary and secondary education has been decentralized to the regions. A new paradigm of school-based management has been introduced. Public spending on education has finally reached one-fifth of total government spending, as required by law. But although enrolment rates at all levels continue to increase, the quality of education remains low and has not improved, and the tertiary sector continues to experience problems of autonomy and unsatisfactory performance.

Indonesia has urbanized rapidly since its independence in 1945, profoundly changing its economic geography and giving rise to a diverse array of urban places. These places range from the bustling metropolis of Jakarta to rapidly emerging urban centers in hitherto largely rural parts of the country. Although urbanization has produced considerable benefits for many Indonesians, its potential has only been partially realized. Time to ACT: Realizing Indonesia’s Urban Potential explores the extent to which urbanization in Indonesia has delivered in terms of prosperity, inclusiveness, and livability. The report takes a broad view of urbanization’s performance in these three key areas, covering both the monetary and nonmonetary aspects of welfare. It analyzes the fundamental reforms that can help the country to more fully achieve widespread and sustainable benefits, and it introduces a new policy framework—the ACT framework—to guide policy making. This framework emphasizes the three policy principles of Augment, Connect, and Target: • Augment the provision and quality of infrastructure and basic services across urban and rural locations • Connect places and people to jobs and opportunities and services • Target lagging areas and marginalized groups through well-designed place-based policies, as well as thoughtful urban planning and design. Using this framework, the report provides policy recommendations differentiated by four types of place that differ in both their economic characteristics and the challenges that they face— multidistrict metro areas, single-district metro areas, nonmetro urban areas, and nonmetro rural areas. In addition to its eight chapters, Time to ACT: Realizing Indonesia’s Urban Potential includes four spotlights on strengthening the disaster resilience of Indonesian cities, the nexus between urbanization and human capital, the “invisible†? crisis of wastewater management, and the potential for smart cities in Indonesia. If Indonesia continues to urbanize in line with global historical standards, more than 70 percent of its population will be living in towns and cities by the time the country celebrates the centenary of its independence in 2045. Accordingly, how Indonesia manages this continued expansion of its urban population—and the mounting congestion forces that expansion brings—will do much to determine whether the country reaches the upper rungs of the global ladder of prosperity, inclusiveness, and livability.

Since the early 2000s, Indonesia has taken a number of steps to prioritize early childhood development - ranging from the inclusion of Early Childhood Development (ECD) in the National Education System Law No. 20 in 2003 to a Presidential Declaration on Holistic and Integrated ECD and the launch of the country's first ever ECD Census in 2011. These policy milestones have occurred in parallel with sustained progress on outcomes included in the Millennium Development Goals, including for child malnutrition, child mortality and universal basic education. Additional progress could be achieved by strengthening ECD policies further. This report presents findings from an assessment of ECD policies and programs in Indonesia based on two World Bank tools: the ECD module of the Systems Approach for Better Education Results (SABER) and a guide on essential interventions for investing in young children. Results from the application of both tools to Indonesia are used to suggest a number of policy options for consideration.