In this regard, structural reforms, particularly to address economic productivity, has become vital to elevate the economy to a higher level which in turn will absorb more work force. In line with efforts to promote equitable distribution of economic development outcomes, Bank Indonesia has welcomed the Government’s initiative to explore the eminent sectors.
The diversification of source of economic growth, both in sectoral as well as spatial terms, will create a buffer for the economy. On spatial terms, regional development needs to be harmonized with the characteristic of each region considering that the region may have diverse potential (Diagram 2). Figure 19.