The government should budget for social services, invest in child-sensitive social protection and ensure adequate nutrition for children to support their growth and development, the UN says.
UNICEF's 2009 report says children and women are particularly vulnerable to economic turmoil.
"Childrens' development is vulnerable to high food prices and poor health services. The government plays an important role in making the two accessible to children," says the report, which was released to mark the 20th anniversary of the United Nations Convention on the Rights of the Child.
The report also says the government should "restore access to education".
"Education has a direct social impact on children. Any disruption to the social order," the report says, "heightens the potential for women and children to be exploited for economic and social purposes."
Data from the National Commission for Child Protection says there were 6.5 million child workers in Indonesia in 2008. The number of children working as prostitutes was 2.1 million in 2008, up from 1.8 million in 2007.
The report also says the government should implement people-oriented policies related to water and food as climate change and a burgeoning population put pressure on limited resources.
"This should also raise concerns about food security into the future," says the report.
Julian Wilson, head of the delegation of the European Commission to Indonesia and Brunei Darussalam, said Friday the improvement of children's lives was a cumulative effort for the government, international agencies, NGOs, the media and families.
"These parties are expected to make sure all values stated in the Convention of the Rights of the Child are translated into a living reality for every child," he said in his opening speech at a UN conference in Jakarta.
State Women's Empowerment Minister Linda Amalia Sari Gumelar told the conference she would like to implement a "spatial-shape" policy for children.
"We would like to develop cities fit for children in a program called the Child-Friendly City by working together with city administrations across the country," she said.
She also said Finance Minister Sri Mulyani Indrawati had issued a decree on gender-responsive budgeting that was expected to be implemented next year.
"I am sure this will have a significant impact on men and women, as well as children next year," she said. (nia)
