Our visiting fellow Paul Gretton has co-authored a new publication titled: “Projecting the Long-Run Impact of an Economic Reform: The Case of the Indonesian Omnibus Law” 

The paper traces how Indonesia's unique job creation law aims to improve its investment climate by cutting red tape, streamlining regulations, and adopting a risk-based approach to business licensing. This study explores the law's potential using the GDyn-FS global economy model, finding positive impacts for investment and trade over time, and flow on impacts for industries and households. The analysis also indicates that the pursuit of the government's Import Substitution Strategy (ISS) may hinder broader economic progress. 

Read the full paper to uncover the implications of these reforms on investment, trade, and economic growth in Indonesia.

https://onlinelibrary-wiley-com.virtual.anu.edu.au/doi/full/10.1111/apel.12428