Macroeconomic Policies in Indonesia: Indonesia economy since the Asian financial crisis of 1997

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9781138195103: Macroeconomic Policies in Indonesia: Indonesia economy since the Asian financial crisis of 1997

This book gives insight on the dynamics and route of economic policies that have been taken and implemented since the point of institutional reforms in 1998 that were triggered from the context of the financial crisis in 1997/1998. The condition brought a different paradigm on the landscape of economic and development policies, especially in the case of the monetary and financial structure, the international trade sector, the manufacturing sector, the taxes administration policy and the evolved context of decentralization and development of public sector policies in general.

Given state of current economic development, this book offers suggestions to address economic issues that require improvements. This book is unique as: 1) it is about Indonesia, a country mostly affected by 1997/1998 financial crisis, which also lead to a change in regime; 2) it covers a broad range of thematic topics on sectors development and institutional changes from major policies that have been taken; and 3) it posits both existing and future challenges on monetary and financial sectors, trade, manufacturing and competitiveness, as well as on development of decentralization policies.

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About the Author:

Anwar Nasution graduated from the Faculty of Economics, University of Indonesia, in 1968. He obtained a Master's degree in Public Administration from the Kennedy School of Government, Harvard University, in 1973, and a PhD in Economics from Tufts University in 1982. Anwar was a member of the International Policy Advisory Group (Shadow G-20) in 2013, under the Chairmanship of Professor Jeffrey Sachs of Columbia University, the Dean of the Faculty of Economics at the University of Indonesia (1988–2001) and the Sasakawa Distinguished Professor for the Chair in Development Economics at UNU/WIDER Institute in Helsinki, Finland. He was consultant to UN-ESCAP, UN-ECLAC, US-AID, ADB, the World Bank, IMF and MITI of Japan. He was a visiting research fellow at NBER in Cambridge, MA, USA, IDE in Tokyo, the Research School of Pacific Studies at the Australian National University in Canberra and Kyoto University.


"Macroeconomic Policies in Indonesia fills a tremendous gap in the literature of Indonesian studies. Although much has been written about Indonesia’s economic miracle during the three decades of President Suharto’s New Order, little has been written about macroeconomic policies in post-Suharto democratic, decentralized Indonesia. This book provides an insightful overview of monetary and fiscal policies in Indonesia since the 1997 Asian financial crisis, as well as a perceptive examination of Indonesia’s financial and capital markets policies in this "reformasi" era. Macroeconomic Policies in Indonesia is an invaluable book for scholars of Indonesia’s economic policies since the fall of Suharto."Jay K. Rosengard, Faculty Chair, Harvard Kennedy School Indonesia Program

"This book is one of the few to analyze the Indonesian economy across several sectors since 1997. It asks and answers questions of interest to those concerned with Indonesia's policies and future: Why have industry and manufactured exports stalled so badly? Why is growth of around 5% a year since 2000 so slow compared to previous decades? What will happen to the natural-resource based growth now that China is slowing? The various authors, experts in their own right, produce a coherent story which is informed by the political economy of the country. Since Indonesia is critical to the success of Southeast Asia and is one of the few models of successful Muslim democracies, the answers to these questions will be of interest to a wider audience than just economists. The book deserves attention."David Dapice, Professor of Economics, Tufts University and Economist of the Vietnam Program, Harvard University's Kennedy School of Government

"Anwar Nasution, one of Indonesia’s most respected economists, has prepared this excellent collection of articles on current issues in Indonesian economic policy. The banking system in Indonesia needed to be rebuilt after the 1997-98 Asian financial crisis; Professor Anwar provides a survey of the key steps which were crucial in making it possible for Indonesia to move forward after the crisis. Other contributors, all very experienced commentators and policy-makers in Indonesia, discuss central issues in fiscal and trade policies, manufacturing, decentralization, innovation, and other topics. The book is a must read for scholars and policy makers who wish to understand the economic challenges for Indonesia in the decade ahead." ― Peter McCawley, Former Head, Indonesia Project, Australian National University

"This is a diverse collection of studies by well-known economists from both academia and practical policy-making, all experts on Indonesia. It covers not only macro-economics (monetary policy, finance and fiscal issues), but trade and industry policy as well. It has valuable insights into the fascinating post-Asian-crisis period." Stephen Grenville, Visiting Fellow, Lowy Institute for International Policy, Australia


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