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Indonesian Growth Dynamics

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Author Info

  • M Chatib Basri
  • Hal Hill

Abstract

This paper provides an analytical narrative of Indonesian economic growth over the past two decades. Particular attention is paid to the key economic crisis events of 1997-98 and 2008-09, and how and why Indonesia's response to them was completely different. We emphasize and illustrate how the years 1997-98 were a watershed in the country's economic history and political economy. We underline the country's generally good economic performance, especially the rapid recovery over the past decade, while also highlighting the fact that its economic growth has never quite matched that of the very high growth East Asian economies. The final section analyzes some key policy challenges, including embedding reforms in a highly fluid political environment, maintaining a broadly open commercial policy regime, the regional and international architecture, macroeconomic management, and 'connectivity' and regional (sub-national) development.

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File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2010/wp_econ_2010_10.pdf
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Bibliographic Info

Paper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2010-10.

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Length: 43 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:pas:papers:2010-10

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Related research

Keywords: Indonesia; growth dynamics; economic crises; policy reform;

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References

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  1. Prema-Chandra Athukorala, 2006. "Post-crisis export performance: The Indonesian experience in regional perspective," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 177-211.
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Cited by:
  1. Basri, Muhammad Chatib, 2013. "A Tale of Two Crises: Indonesia’s Political Economy," Working Papers 57, JICA Research Institute.
  2. Hal Hill, 2012. "The Best of Times and the Worst of Times: Indonesia and Economic Crises," Departmental Working Papers 2012-03, The Australian National University, Arndt-Corden Department of Economics.

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