2001年-世界发展银行全球_Indonesia___Private_Sector_Development_Strategy_48页_4mb

Summary of the World Bank Group Private Sector Development Strategy for Indonesia

Core Content

This document outlines the World Bank Group (WBG) strategy for promoting private sector development in Indonesia, with a focus on economic recovery, growth, and long-term sustainability. It highlights the challenges faced by the private sector, particularly in the wake of the 1997-1998 financial crisis, and proposes a comprehensive approach to address them.

Main Constraints to Private Sector Recovery and Growth

The document identifies several key constraints that hinder private sector recovery and growth in Indonesia:

1. Banking and Corporate Restructuring

• The banking and corporate debt overhang remains a major obstacle.
• The Indonesian Bank Restructuring Agency (IBRA) has faced criticism for its slow progress, lack of transparency, and questionable restructuring outcomes.
• The bank recapitalization program has been costly and inefficient, with only partial success in restoring financial flows for investment.
• Many corporate restructuring deals have focused on debt extension rather than real operational reform.

2. Structural Weaknesses

• Poor governance and corruption in the public sector.
• Uncertainties surrounding decentralization.
• Inefficient legal and judicial systems.
• Weak corporate governance and lack of enforcement.
• Lack of competition and state dominance in key sectors.
• Excessive regulation and red tape affecting SMEs.
• Underdeveloped SME sector, which is critical for broad-based growth.

3. Impediments to Long-Term Sustainable Development

• Limited access to micro-finance and poor public services in rural areas.
• Ineffective privatization of infrastructure due to lack of independent regulation and transparency.
• High levels of illegal logging due to poor enforcement of forestry regulations.
• Slow adoption of information and communications technologies (ICTs), with a lack of legal and regulatory framework for e-commerce.

World Bank Group Strategy

The WBG strategy is structured around three main pillars:

1. Responding to the Crisis

• Short-term focus on resolving the financial crisis and corporate debt overhang.
• Restoring financial flows for investment and working capital.
• Supporting banking and corporate restructuring through technical assistance, lending, and advisory services.

2. Addressing Structural Weaknesses

• Public sector governance and decentralization.
• Legal and judicial reform to ensure transparency and enforce contracts.
• Corporate governance improvements, including promoting transparency and accountability.
• Competition policy and privatization of public monopolies.
• Support for SMEs through policy advice, improved business development services, and building bank capacity to lend to SMEs.
• Infrastructure development, including transport, energy, and telecommunications.

3. Promoting Long-Term Sustainable Development

• Private sector-led growth through development of social infrastructure (health, education, pensions) and physical infrastructure.
• Technology adoption, including the development of a national networking strategy and support for e-commerce.
• Forest policy reform and support for sustainable forestry practices.
• Investment in oil, gas, and mining, with a focus on small-scale mining in a decentralized environment.

Key Information

• Private sector accounts for 60% of GDP but 99.5% of employment is in SMEs and micro-enterprises.
• Ownership concentration is high, with the top ten families controlling 60% of corporate assets.
• Corporate debt in late 2000 was $117 billion, with 48% owed to foreign creditors and 70% in foreign currency.
• 49% of corporate debt is distressed, with 75% of large corporate debt in need of restructuring.
• Bank lending has resumed, but primarily for short-term working capital.
• The government controls 70% of deposits in the banking system, which is a concern for long-term stability.
• The WBG is working closely with the IMF, ADB, and IFC to support recovery.
• The Joint Bank/IFC SME Unit is a key initiative to promote SME development.
• The WBG is also focusing on foreign direct investment (FDI), corporate governance, and competition policy.

Conclusion

The WBG's strategy emphasizes the need for transparent governance, efficient markets, and strong institutions to support a sustainable and inclusive private sector in Indonesia. The goal is to create a business environment that fosters competition, innovation, and growth, while ensuring poverty reduction and economic resilience.