This book examines the dynamics shaping the economic process of economic liberalisation in Indonesia since the mid-1980's. Much writing on the process of economic liberalisation in developing countries views economic liberalisation as the victory of economic rationality over political and social interests. In contrast, this book argues that economic liberalisation should not be understood in these terms, but rather in the way that political social interests shape processes of economic reform in both a positive and negative sense. Specifically, Rosser argues that economic liberalisation needs to be understood in terms of the extent to which economic crises shift the balance of power and influence within society away from coalitions opposed to reform and towards those in favour of reform. In the Indonesian context, the main coalitions that need to be examined in this respect are the politico-bureaucrats and the conglomerates who have generally opposed reform and mobile capitalists who have generally supported reform. Based on extensive original research, and providing much new material, the book considers the politics of economic policy-making in Indonesia in a range of sectors including the capital market, intellectual property law, the banking industry, and the trade and investment sectors. Analysing why the nature of economic policy in Indonesia has varied over time, this study argues that there is nothing inevitable about a transition to a fully-fledged liberal market order in Indonesia, and outlines possible future scenarios for the country's political economy.

Despite increased Western interest in Indonesian economic growth, domestic interpretations remain largely unknown outside Indonesia and have rarely been available in English. Translating key speeches and articles from the political debates surrounding Indonesian economic development, the authors present and analyse trends in development thinking by leading Indonesian figures over the last thirty years.

Using 1981-99 panel data on Indonesian manufacturing establishments and a survey of 2000 top business in Indonesia, Indonesia's Financial Liberalization analyses the consequences of financial liberalization on investment and allocation of credit, noting differential effects depending on size of firms, organizational form, and other categorizations.Using rigorous econometric tools, the conclusion derived is that although financial liberalization has increased borrowing costs, particularly for smaller firms, it has widened access to finance. The move from administrative-based to market-based allocation of credit has increased credit flow to firms that are more efficient, and these firms consequently have a higher concentration of investment.

This book, first published in 1978, analyses the underlying structure of the Indonesian mass-based economy and its problems, and goes on to show how the hectic economic activity after 1965 failed to come to terms with the real needs of the people. It divides the new Indonesian economy into endogenous and exogenous parts in order to highlight the gulf between ‘growth’ and ‘development’.

Surveys in detail the most significant problems now facing Indonesia, raises vital issues for further investigation, and analyzes the results of the 1999 election.

Three decades of authoritarian rule in Indonesia came to a sudden end in 1998. The collapse of the Soeharto regime was accompanied by massive economic decline, widespread rioting, communal conflict, and fears that the nation was approaching the brink of disintegration. Although the fall of Soeharto opened the way towards democratization, conditions were by no means propitious for political reform. This book asks how political reform could proceed despite such unpromising circumstances. It examines electoral and constitutional reform, the decentralization of a highly centralized regime, the gradual but incomplete withdrawal of the military from its deep political involvement, the launching of an anti-corruption campaign, and the achievement of peace in two provinces that had been devastated by communal violence and regional rebellion.

Policymakers around the world have increasingly agreed that macroeconomic discipline, microeconomic liberalization, and outward orientation are prerequisites for economic success. But what are the political conditions that make economic transformation possible? At a conference held at the Institute for International Economics, leaders of economic reform recounted their efforts to bring about change and discussed the impact of the political climate on the success of their efforts. In this book, these leaders explore the political conditions conducive to the success of policy reforms. Did economic crisis strengthen the hands of the reformers? Was the rapidity with which reforms were instituted crucial? Did the reformers have a "honeymoon" period in which to transform the economy? The authors answer these and other questions, as well as providing first-hand accounts of the politically charged atmosphere surrounding reform efforts in their countries.