Hal Hill

The Indonesian economy since 1966 : Southeast Asia's emerging giant

1. Introduction 2. An overview of economic development since 1966 3. Money and finance 4. Fiscal policy 5. International dimensions 6. The state and public policy: ideology and intervention 7. Agricultural modernisation 8. Industrial transformation 9. The services revolution 10. Poverty, inequality and social progress 11. The regional dimension 12. Conclusion: looking to the future.

Indonesia’s Changing Economic Geography

Abstract Indonesias regional socio-economic data base extends over 30 years, so it is now possible to draw conclusions about regional development dynamics since the 1970s. We examine economic growth, inequality, convergence, structural change, demographic dynamics and social indicators over this period. There continues to be great diversity in economic and social outcomes, but growth and social progress have been remarkably even: the poorest regions, located mainly in Eastern Indonesia, have generally performed about as well as the national average. The better performing regions include those that are the most ‘connected’ to the global economy. In this respect, Jakarta stands out, growing richer than the rest of the country over time. As expected, conflict is harmful to economic development. There is no clear natural resource story: the performance of the resource-rich provinces has varied considerably.

Indonesia's new order : the dynamics of socio-economic transformation

TablesFiguresNotes on contributorsGlossaryPrefaceIntroduction1 Politics2 The economy3 Demographic perspectivesFertility decline in the New Order period: the evolution of population policy 1965-90Labour force and education4 Resource utilisation and the environment5 Cultural expression6 Local society and cultureBibliographyIndex

Indonesia's Industrial Transformation 1 Part I

It is now possible to obtain a fairly complete picture of Indonesian industril development, based on the 1986 Economic Census and subsequent Updates, the mcorporation of the huge oil and gas sector, and die earlier industrial data base. The picture is one of dramatic growth and transformation since the late 1960s when Indonesia was one of the least industrialised countries for its size. In this paper we examine the pattern and changing structure of industry, focusing on industry composition, regional industrialisation, ownership, scale and wages. Indonesias industrial transformation is evident not only in rapid Output and employment growth, but also in the transition to more capital and skill-intensive industries, a narrowing in the earlier very large (almost ‘dualistic’) productivity differentials, strong productivity and wage growth, a broadening of the industrial base outside Java, and a probable reduction in concentration levels (at least by establishment). 1 I am indebted to the Biro Pusat Statistik...

Indonesia After the Asian Crisis

Indonesia was deeply affected by the 1997–1998 crisis, more so than its East Asian neighbors. Its economic contraction was deeper and more prolonged. It was the only one to experience a (temporary) loss of macroeconomic control. It also suffered “twin crises,” in the sense that its serious economic and financial problems were accompanied by regime collapse. Consequently, recovery was a slow and complex process, as new institutions had to be created, and old ones reformed under successive short-lived administrations. But this process is largely over. The directly elected president with a strong popular mandate is in power. The new institutional framework for economic policy-making is in place. Macroeconomic stability has been restored. Although growth has yet to return to pre-crisis levels, by 2004 per capita income and poverty incidence had recovered to levels prevailing in the mid-1990s, and in the circumstances economic recovery has arguably proceeded about as quickly as could reasonably have been expected.

Indonesia's Industrial Policy and Performance: "Orthodoxy" Vindicated

There is hardly an economic policy-whether for the levying of income tax or an urban real estate tax, or for tariff protection of domestic industry, or for subsidies to depressed industries, or for minimal regulation of foreign investment or of road traffic, or for conservation of forests, or for provision of rural credit to farmers, or for priorities in investment credit by state banks, or for social welfare services or development projects of every kind-which, whatever its economic or technical merits, does not need to be weighed-and often ruled out-almost wholly on grounds of its administrative impracticability in the face of corruption. (H. W. ARNDT)5

Export Success Against the Odds: A Vietnamese Case Study

Vietnam has achieved notable export success in its textile and garment industry over the past decade. Such an outcome might at first appear puzzling in view of many obstacles in the way of export success: the country had hitherto experienced a long period of international commercial isolation; its exporters have continued to be excluded from the key US market; there is a large and generally very inefficient state-owned enterprise (SOE) sector; its private sector faces active harassment and discrimination; much of the regulatory bureaucracy has at best a poor understanding of the operation of international markets; and there are notable institutional weaknesses. In seeking an explanation for this export success, several features of the general policy regime are emphasized, especially those associated with the doi moi reform process which took root from the late 1980s. It is argued that the lessons---both positive and negative---from this Vietnamese case study are generalizable to other transitional and late-comer export economies. Keyword(s): Asia, Vietnam, textiles and garments, exports, transitional economies

An overview of the issues

Until 1997, the major challenge for a researcher working on Southeast Asia was to explain why most of the major economies had grown so quickly for so long. Now, the question is why and how the fortunes of some of these economies have been transformed so drastically. This paper introduces the major themes and issues which are addressed by the contributors: what has happened, why it has happened, what are the socio-economic effects, and what are some of the broader policy and analytical implications of the crisis? The country papers examine developments in the six major economies of ASEAN, highlighting common challenges of national economic management in an ever more interdependent global and regional economy, and the very different effects and responses within the region. The thematic contributions focus on broader questions related to financial reform and regulation, poverty, exchange rate policy options, attempts to model the crisis and its aftermath, regional economic co-operation, and political economy issues related to the crisis.

What happens to industrial structure when countries liberalise? Indonesia since the mid‐1980s

A separator assembly for separating different density fluids, such as gas and liquid, which comprises three stages, i.e., an inducer stage, a mixed flow impeller stage, and a centrifugal separator stage. The assembly is usually associated with a pump or pumps for pumping the separated fluids from the assembly. The inducer stage comprises a screw means which, with the impeller stage, delivers fluid to be separated into the separator stage. The impeller stage imparts rotary motion to the fluid. The centrifugal separator stage is a centrifuge and comprises inner and outer cylindrical members which rotate in unison and wherein centrifugal force on the fluid separates the heavier and lighter components, which components flow from the separator stage to the associated pump or pumps.

'Perspiration' vs 'Inspiration' in Asian Industrialisation: Indonesia Before the Crisis

This article examines trends in and determinants of total factor productivity (TFP) in 28 manufacturing industries in Indonesia over the period 1975-93. The reforms of the mid-1980s appeared to have resulted in a significant acceleration of TFP growth. Among the inter-industry determinants of TFP growth, trade policy and orientation, domestic competitive pressures and ownership factors are singled out for scrutiny. The trade regime and one measure of domestic competition emerge as consistently important explanatory factors.