The Indonesian Economy: Entering a New Era

"Surveys in English of Indonesia's economy have tended to be by non-Indonesians .. so this collection of essays, written by researchers with experience of Indonesian economic management, and edited by three Indonesian economists, deserves special appreciation. The first of its four parts opens with a brief history of Indonesia's  economic policies, from those of the New Order to President Yudhoyono's 'development for all' paradigm. Readers short of time would do well to absorb the messages of part 1. Part 2 provides a comprehensive account of monetary and fiscal policies in Indonesia, particularly those implemented after the 1997-98 Asian financial crisis. Its contributions seek to clarify for readers the complexities of the Indonesian monetary and fiscal policies after independence, as well as the role of the financial system in Indonesia's development during globalisation. In part 3, Evi Nurvidya Arifin links decentralisation with changes to the heterogeneity of Indonesia's population, assessing variations in size, family planning, provincial migration, age and sex structure, ethnicity, and education. Policy makers should note [other] authors' observation that large economic disparities still exist between Indonesia's western and eastern regions, despite decentralisation. Part 4 is perhaps the most engaging ... it widens the discussion to take in the difficulties faced by ASEAN. Its three chapters discuss the organisation's goal of economic integration, the relationship between governance and economic performance across the region, and the search for a shared development paradigm. The book gives readers updated and comprehensive information, and new analysis, on many critical elements of the Indonesian economy, and it presents a new way of thinking about the country's future development" (Bulletin of Indonesian Economic Studies).