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Business responses to crisis in Indonesia: the 1930s and the 1990s

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  • J. Thomas Lindblad

Abstract

This article looks at the responses of foreign business firms to crisis in a comparative historical perspective. The focus is on Indonesia in the 1930s and the late 1990s. The main approach is one of case studies in order to gain an insight into strategies of adjustment to deteriorating business conditions. For the late 1990s, such information is supplemented by macroeconomic evidence covering a wider range of firms. The article reaffirms a basic resilience of foreign direct investment in times of economic crisis even when there is an overall economic decline, as in Indonesia in the 1990s. The capacity of foreign firms in Indonesia to adjust successfully was considerable both in the 1930s and the late 1990s. Yet, prospects for a swift recovery are far better in the latter case than in the former period, reflecting the different nature of the two crises.

Suggested Citation

  • J. Thomas Lindblad, 2003. "Business responses to crisis in Indonesia: the 1930s and the 1990s," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 43(2), pages 169-182, July.
    • Handle: RePEc:bla:ozechr:v:43:y:2003:i:2:p:169-182
    DOI: 10.1111/1467-8446.t01-1-00049
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