This is consistent with the observed increase in saving, in part indicating greater caution on the behalf of households. Even when compared with financial wealth alone, household debt declined after the GFC, only increasing very recently. Undoubtedly, financial liberalisation and persistently lower nominal interest rates have supported greater debt accumulation, and this appears a marked phenomenon of the 1990s-2000s.
Growth diagnostic analysis for Indonesia 19. Bank Indonesia has also conducted research using growth diagnostic analysis, which takes into account the view that development priorities should not only put emphasis on factor-driven aspects, but also efficiency-driven and innovation-driven areas, all combined to avoid middle-income trap. 20.