Advanced Search
MyIDEAS: Login

Survey of recent developments


Author Info

  • Ross Mcleod


The new government of Susilo Bambang Yudhoyono (SBY) has been performing well relative to the standards of recent governments. The confidence of the business community in Indonesia's near-term future continues to improve, resulting in rapid growth of investment activity, steady gains on the stock market, and a return of private capital inflow. City skylines are again decorated with cranes for the construction of apartment buildings, shopping malls and the like, while expenditure on cars and motorcycles, cell phones and air travel is growing rapidly. The rate of economic growth is now not far below that typically achieved in the Soeharto era. Macroeconomic management is broadly on the right track. The budget deficit is small enough not to pose a problem of fiscal sustainability and, although the monetary authority continues to make things difficult for itself by pursuing conflicting targets, prices remain reasonably stable. At the microeconomic level, how-ever, there are still plenty of causes for concern, the most serious of which, perhaps, is the dissipation of Indonesia's current oil price windfall in wasteful and extraordinarily costly subsidies to domestic consumption, notwithstanding the recent increase in domestic fuel prices. Little has been achieved in relation to privatisation, and the government has scant enthusiasm for it. Paradoxically, it is encouraging heavy private sector involvement in infrastructure, which would otherwise be provided by state enterprises. Such involvement will be difficult to achieve, partly for the same reasons that privatisation has been hindered, but not least because the government has yet to come to grips with the implications for pricing of infrastructure services if such activities are to be made profitable—a prerequisite for private sector involvement. Problems with infrastructure as they manifest themselves at lower levels of government are illustrated and analysed in this Survey by a short case study of West Java province and its capital city, Bandung. There has been a great deal of anti-corruption activity, resulting in several high profile arrests. But this falls far short of what is required to achieve significant improvement in the performance of the public sector, broadly defined, on which healthy and sustained growth of the economy depends heavily. The government has been slow to appoint new people to the top levels of the bureaucracy, and reformist ministers have also been frustrated by civil service rules and regulations that make it exceedingly difficult to appoint the best available individuals to these and other important positions.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Bulletin of Indonesian Economic Studies.

Volume (Year): 41 (2005)
Issue (Month): 2 ()
Pages: 133-157

as in new window
Handle: RePEc:taf:bindes:v:41:y:2005:i:2:p:133-157

Contact details of provider:
Web page:

Order Information:

Related research


Other versions of this item:


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Ross McLeod, 1999. "Crisis-Driven Changes to the Banking Laws and Regulations," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 35(2), pages 147-154.
  2. Ross McLeod, 1997. "Explaining chronic inflation in Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 33(3), pages 392-410.
  3. Mudrajad Kuncoro & Tri Widodo & Ross McLeod, 2009. "Survey of recent developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 45(2), pages 151-176.
  4. Mari Pangestu & Miranda Swaray Goeltom, 2001. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(2), pages 141-171.
  5. Chris Manning & Kurnya Roesad, 2006. "Survey of recent developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 143-170.
  6. Reinhart, Carmen & Khan, Mohsin, 1995. "Capital Flows in the APEC Region," MPRA Paper 8200, University Library of Munich, Germany.
Full references (including those not matched with items on IDEAS)


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:taf:bindes:v:41:y:2005:i:2:p:133-157. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.