The Oil Boom and After Indonesian Economic Policy and Performance in the Soeharto Era

It is now nearly a decade since OUP published The Indonesian Economy during the Soeharto Era, edited by Anne Booth and Peter McCawley - the first comprehensive assessment of economic policy-making in the New Order period. At that time, Indonesia was riding the crest of the oil boom, and although it was clear that world oil prices were unlikely to remain at the level prevailing in 1981, it was far from clear how the Indonesian economy would adjust to a sharp fall. In the event, economic policy-makers in Indonesia have embarked on a process of economic restructuring during the 1980s which is still continuing, and which is intended to lay the foundations for the country's transformation into a dynamic industrial economy in the twenty-first century. This book assesses the process of economic restructuring, and its implications for the country's future economic development. It is divided into three broad parts: the first examines monetary, fiscal, and balance of payments policies; the second assesses the performance of crucial economic sectors, including agriculture, industry, transport, and trade; the third examines the implications of economic restructuring and deregulation policies for employment, the distribution of income, living standards, and regional development. An overview chapter explores the lessons which the Indonesian experience has to offer other developing economies embarking on the long and difficult process of policy reform.