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Indonesia needs to ease service sector restrictions, World Bank says
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Former World Bank development policy and partnerships managing director Mari Elka Pangestu speaks at the 12th Annual International Forum on Economic Development and Public Policy (AIFED) on Dec. 7, 2023 in Nusa Dua, Bali. (Finance Ministry/-)
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ndonesia may reap significant benefits if the country can fully utilize its services potential, but the government must first ease restrictions and enact sweeping policy reforms to actually realize it, World Bank said.
World Bank lead economist for Indonesia and Timor Leste Habib Rab said on Wednesday that Indonesia is one of several countries that have restrictive services policies.
Without reforms, Indonesia may miss many opportunities presented from much-fragmented global economies amid rising geopolitical tensions.
"Even though Indonesia has managed to cut tariff barriers, there are still other restrictions that Indonesia should ease up on, like non-tariff measures that limit access to much-needed imports," Rab said during a panel discussion at the 12th Annual International Forum on Economic Development and Public Policy (AIFED).
Mari Elka Pangestu, former trade minister between 2004 and 2011, said on Thursday that services and trade play a pivotal role in reshaping global value chains.
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Mari, who also sits as World Bank development policy and partnerships managing director, pointed out the world is moving toward servitization, which implies integration of services into manufacturing to augment efficiency and aid expansion.
