Projecting the long-run impact of an economic reform: the case of the Indonesian Omnibus Law

Abstract

My presentation at GTAP Conference. In this paper, we project the long-run impact of improving Indonesian investment climate via the Omnibus Law. We observe the need for the government to commit to a current account deficit to ensure efficient capital allocation and smooth economic transition. With efficient capital allocation, smooth transition toward manufacturing can be achieved before 2045, which is in line with the Indonesian development plan.

Krisna Gupta

Lecturer

Research mainly on international trade and investment policy and its impact on firms. Indonesia in particular is my main geographical focus.