Inefficient Economy

INDONESIA’s economy is becoming increasingly inefficient, a legacy left by Joko Widodo for the new administration. Like an outdated gas-guzzling car, inefficiency means the Indonesian economy requires more fuel to move and grow.

One key ‘fuel’ for economic growth is investment. A sharp rise in Indonesia’s incremental capital output ratio (ICOR) highlights this inefficiency. To achieve every one percent of economic growth,

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