Economic Freedom — the ability to own property and trade freely — is a key component of prosperity. This is demonstrated by the Economic Freedom of the World Report, the Index of Economic Freedom, and the Ease of Doing Business Report. These rankings provide an image of the status of economic policy within the country. However, Atlas Network’s partner — The Indonesian Institute, Center for Public Policy Research (TII) — decided to take it a step further. In one of the topics in its 2018 Indonesia Report, TII conducted a deep-dive study into the factors that are limiting freedom in Indonesia.
“Indonesia as an emerging market country also continues to improve economic competitiveness through various policy deregulations,” said Riski Wicaksono, a researcher in economic affairs at The Indonesian Institute. “Based on the recent publication of the Fraser Institute, Indonesia’s economic freedom index is ranked 62 out of 165 countries. This rating is better when compared to the previous year in which it ranked 75 out of 162.”
TII launched its own report on the condition of Indonesia’s economic freedom. The goal was to learn what areas needed the most improvement.
“The results of the TII study concludes that although the Indonesian economic freedom index shows improvement every year, there are still some important notes,” said Wicaksono. “The government’s commitment so far in the context of economic freedom is still weak against the policy implementation process. In addition, financial inclusion programs still have a limited target, where financial inclusion programs are still not friendly and provide justice for all levels of society, especially for people with disabilities.”
A country-level analysis is vital for finding the key areas for improvement. Through this project, TII is better able to focus on policy areas that will have the greatest impact.