With the application of the right policies, Indonesia could return to growth above 6%, and perhaps eventually reach the 7% target set by the new president. The government intends to double expenditure in the key areas of public works, transport and agriculture, and new plans include the construction of 2600 km of roads, 15 airports, 24 ports, 3258 km of railway and the addition of around 35,000 MW to the state electricity company’s current capacity. The investments to be made in infrastructure have the potential to boost the economy in both the short and long term. A shift to more investment and less consumption would help lead to more sustainable growth and insulate the country from external shocks. Already the numbers are starting to head in the right direction.

Troubled Transit considers the situation of asylum seekers stuck in limbo in Indonesia from a number of perspectives. It presents not only the narratives of many transit migrants but also the perceptions of Indonesian authorities and of representatives of international and non-government organizations responsible for the care of transiting asylum seekers. Fascinated by the extraordinary and seemingly limitless resilience shown by asylum seekers during their often lengthy and dangerous journeys, the author highlights one particular fragment of their journeys — their time in Indonesia, which many expect to be the last stepping stone to a new life. While they long for their new life to unfold, most asylum seekers become embroiled in the complexities of living in transit. Indonesia, a vast archipelago of more than 17,000 islands, is more than a location where people spend time waiting; it is a nation state that interacts with transiting asylum seekers and formulates policies that have a profound impact on their experience in transit there. Troubled Transit tries to explain the complexities faced by the transiting migrants within the context of the Indonesian government and its political challenges, including its relationship with Australia. The Australia-centric view of recent asylum seeker issues has tended to ignore the larger socio-political context of the migratory routes and the perspectives of transit states towards asylum seekers stuck in transit. This book hopes to direct the Australia-centric gaze northwards to take Indonesian policies and policymaking into account, thereby giving Indonesia more relevance as a transit country and as an important partner in regional protection schemes and migration management. Even though some Indonesian policies and practices are less than favourable for asylum seekers, and even reprehensible from a human rights perspective, more attention must be paid to ongoing developments that impact on transiting asylum seekers in Indonesia if any of the hardships they suffer there are to be alleviated.

This report provides guidance on how Indonesia can consolidate gains in access to basic education and develop an education system that will support an economy in transition towards high-income status.

Although Chinese and global demand, low commodity prices and rising wages will continue to challenge trade growth in 2016, Indonesia remains on a positive trajectory. Rising domestic demand, increasing liberalization measures, improvements to the investment climate and a shift towards value-added production will bolster both exports and investment. At the same time, new trade agreements with the world's largest economies look set to drive long-term trade expansion. Prudent government policy, an ambitious reform agenda and rising recognition of the role of the private sector should help to keep investment and trade stable in 2016, and despite exports and growth have dipped in recent years, the country is well positioned to make the crucible transformation from a consumption- to investment-based economy.

In 2018 the Indonesian economy recorded a growth rate of 5.2%, the highest in five years. This was in spite of a slump in the rupiah and a trade imbalance, and took place against a backdrop of rising US interest rates and deteriorating trade relations between the world’s two biggest economies. The country’s emphasis on industrialisation and infrastructure development is laying the foundations for continued economic growth. Moreover, the archipelago’s growing middle class population, geographical position and human capital development agenda, alongside progress in free-trade agreements, make it a strong contender on the global economic stage. The country holds considerable potential for developing entrepreneurial and creative prowess, already being home to four unicorn startups. Investors have continued to look beyond traditional destinations, with emerging cities like Surabaya and Palembang showing strong possibilities for economic growth. Although the outcome of the April 2019 national election will determine the course of further infrastructure development and tax reforms, the future looks promising, with predictions of continued growth accompanied by stable inflation.

In 2004 the Indonesian government made a commitment to provide its entire population with health insurance coverage through a mandatory public health insurance scheme. It has moved boldly already provides coverage to an estimated 76.4 million poor and near poor, funded through the public budget. Nevertheless, over half the population still lacks health insurance coverage, and the full fiscal impacts of the government's program for the poor have not been fully assessed or felt. In addition, significant deficiencies in the efficiency and equity of the current health system, unless addressed will exacerbate cost pressures and could preclude the effective implementation of universal coverage (Ue and the desired result of improvements in population health outcomes and financial protection. For Indonesia to achieve UC, systems' performance must be improved and key policy choices with respect to the configuration of the health financing system must be made. Indonesia's health system performs well with respect to some health outcomes and financial protection, but there is potential for significant improvement. High-level political decisions are necessary on key elements of the health financing reform package. The key transitional questions to get there include: [ the benefits that can be afforded and their impacts on health outcomes and financial protection; [ how the more than 50 percent of those currently without coverage will be insured; [ how to pay medical care providers to assure access, efficiency, and quality; [ developing a streamlined and efficient administrative structure; [ how to address the current supply constraints to assure availability of promised services; [ how to raise revenues to finance the system, including the program for the poor as well as currently uninsured groups that may require government subsidization such as the more than 60 million informal sector workers, the 85 percent of workers in firms of less than five employees, and the 70 percent of the population living in rural areas.

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.