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INDONESIAN ECONOMY: ENTERING A NEW ERA

 

 

 Indonesia today is a different Indonesia compared to when it first proclaimed its independence in 1945, when it started a new economic paradigm in 1966, and even when it began its democratic reform in 1998.  Today, Indonesia exists in a vastly different social, economical, and political environments. This book, Indonesian Economy: Entereing a New Era, has been prepared with this “new era” in mind.

     Indonesia and the rest of the world have entered a new era of challenges and approaches. The new global and local eras necessitate different approaches as economic policies are not made in social and political vacuum.  This book aims to examine what happened during the current Indonesia, in the new era. It focuses on the events during the reform period, while also discussing the events since the beginning of the New Order.  It also presents some policy recommendations for the current government of Indonesia, in the context of a search for a new world development paradigm.

    The book  is expected to be very useful for both beginners and experts on Indonesian economy.  However,  the book does not  cover all economic issues in Indonesia during the new era.  It focuses on  three macro issues examined in three parts, apart from the introduction. Part I introduces the book and provides  a brief history of Indonesian economy since the beginning of the New Order (1966-1998).  Part II, consisting of four chapters, covers the   monetary and fiscal issues, which are the core tools in macro-economic policies that have been important sources of boom and bust in the economies. Recognizing the importance of Indonesia’s large population with the rising income and aspiration, Part III, consisting of three chapters, examines the domestic market. Focusing on the domestic market is a recognition that Indonesia should be less dependent on export promotion and financial liberalization. Had Indonesia been very successful in its drive for export promotion and financial liberalization, the impact of the 2008-2009 global crisis on Indonesian economy would have been much greater. Part III also  indicates the need for  a change of development paradigm in Indonesia’s economic development, by providing more weights to domestic economy.

   The search for new  development paradigms have also been going on in  all over the world. The main focus of the Part  IV, which comprises three chapters, is to further discuss new world development paradigms from an Indonesian perspective.

    The book is a result a collaboration between Institute of Southeast Asian Studies (ISEAS) in Singapore and Bank Indonesia (BI) in Jakarta. It is to be published by ISEAS in the middle of 2011.  Hal Hill (Australian National University) provides the foreword for the book.  The authors in the book consist of both scholars and practioners.  The editors are Aris Ananta, Senior Research Fellow, Institute of Southeast Asian Studies; Muljana Soekarni, Director, Indonesian Banking Development Institute, Jakarta; and Sjamsul Arifin, Senior Advisor to Board of  Governors on International Relations, Bank Indonesia, Jakarta.

 

Contents:

PART   I.   INTRODUCTION

      1.     Economic Challenges in a New Era

                  Aris Ananta, Muljana Soekarni, and Sjamsul Arifin

       2.     Government Economic Policies since the Beginning of New Order Era

                Muljana Soekarni and Ferry Syarifuddin

PART  II.  MONETARY AND  FISCAL POLICIES

         3      The Dynamics of Monetary Policy

                 Ascarya

         4     The Financial System: Balancing Stability and Growth

                Suhaedi and Pungky P. Wibowo

        5       Economic Crisis and Fiscal Policy Management

                 Silvia Mila Arlini and Yohanes Eko Riyanto

       6      Understanding the Roles of Fiscal Stimulus in Maintaining Economic Resilience

               Iskandar Simorangkir and Haris Munandar

 

PART  III: DOMESTIC  ECONOMY

         7.      Regional Heterogeneity of the Large Market and Production Base

                 Evi Nurvidya Arifin

         8.    Industrial Relation in the Democratizing Era

                 Indrasari Tjandraningsih

          9.    Decentralisation and Domestic Trade Interdependence

                 Siti Astiyah, Salomo P. Matondang, and Guruh Suryani R.

  

PART  IV:  SEARCH  FOR  NEW  PARADIGMS

           10.    Embracing ASEAN Economic Integration 2015: A Quest for ASEAN Business Cycle- Indonesian point of  view

                 Yati Kurniati and Aida S. Budiman

          11.    Governance and Economic Performance

                    Muljana Soekarni and Sjamsul Arifin

         12.    A Search for a World Development Paradigm: with specific recommendations for Indonesia

                 Aris   Ananta

 

 Inquiries about the book should be directed to  Publication Unit, Institute of Southeast Asian Studies. (*)

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* Target dan Kebijakan Perekonomian Indonesia

Ekonomi Kerakyatan dan Paradigma Pembangunan

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