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Mineral Wealth, Development and Social Policy in Indonesia

In: Mineral Rents and the Financing of Social Policy

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  • William Ascher

Abstract

Indonesia has been moderately endowed with natural resources, most notably hydrocarbons, hard minerals and forests. The export revenues have sometimes been channelled constructively into sound development projects and social programmes, though with serious problems arising on occasion. This chapter assesses the chequered experience with hydrocarbons. After situating Indonesia’s hydrocarbon wealth in comparison with that of other hydrocarbon-exporting countries, the chapter outlines the approaches and problems that have marked Indonesia's general experience with converting natural resource wealth into development, especially in making social services available and accessible, and then focuses on the patterns specific to hydrocarbon revenues. Despite leakages in converting hydrocarbon revenues into social programmes, reforms under the Suharto administration (1967–98) and subsequently have been impressive. In addition, though institutions directly involved with hydrocarbon exploitation have been weak, Indonesia has long benefited from strong institutions in the central management of economic policy, finance and planning.

Suggested Citation

  • William Ascher, 2012. "Mineral Wealth, Development and Social Policy in Indonesia," Social Policy in a Development Context, in: Katja Hujo (ed.), Mineral Rents and the Financing of Social Policy, chapter 8, pages 223-256, Palgrave Macmillan.
    • Handle: RePEc:pal:sopchp:978-0-230-37091-3_8
    DOI: 10.1057/9780230370913_8
    as

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