The Soeharto presidency (1966 – 1998) saw Indonesia’s economy grow at the extraordinary rate of nearly 7% p.a. for 30 years.
The 1997 Financial Crisis marked a dramatic and painful end of that phase but also the start of transformational change. Today, Indonesia has achieved a remarkable transition to democracy and a stable and expanding economy. As the Economist reports (The World in 2009 – 19 Nov 2008) “the country has consistently surprised on the upside”.
Indonesia’s macro-economic management has mostly been sound for the past forty years. The period of success started in the 1960s under Soeharto’s leadership and with the support of the “Berkeley Mafia” – the famous group of US trained economists whom Soeharto largely entrusted with economic policy. The present team, particularly Coordinating Minister for the Economy and Minister for Finance of Sri Mulyani, Bank Indonesia Governor Boediono, and Trade Minister Mari Pangestu, is also highly competent.
How will Indonesia deal with the current global financial turmoil? Why is Australia offering support? The Coordinating Minister for the Economy Sri Mulyani explained that “although faced with the impact of the global financial crisis, the Indonesian economy will be able to chart 5% growth in 2009”. With the impact of slowing economies in the rest of the world, 5% growth would be a very encouraging performance under the present global economic conditions.
Minister Sri Mulyani has announced the Indonesian Government will:
Aim to maintain strong consumer spending;
Disburse Rp 100 trillion (around $US 10 billion) to help finance government projects and maintain liquidity;
Give tax relief (including scrapping import duties on inputs) to 10 business sectors – food and beverage, electronics, chemicals and steel; and
Provide access to financial resources both to stabilise the financial system and to provide affordable sources of funding for development. These funds will be available as bilateral swap arrangements from Japan, China, South Korea and other forms of finance from France, Australia, the Asian Development Bank and the World Bank.
Although there remain significant uncertainties in the global environment Indonesia is currently well prepared.
Indonesia – Facing the Global Financial Crisis
The Soeharto presidency (1966 – 1998) saw Indonesia’s economy grow at the extraordinary rate of nearly 7% p.a. for 30 years.
The 1997 Financial Crisis marked a dramatic and painful end of that phase but also the start of transformational change. Today, Indonesia has achieved a remarkable transition to democracy and a stable and expanding economy. As the Economist reports (The World in 2009 – 19 Nov 2008) “the country has consistently surprised on the upside”.
Indonesia’s macro-economic management has mostly been sound for the past forty years. The period of success started in the 1960s under Soeharto’s leadership and with the support of the “Berkeley Mafia” – the famous group of US trained economists whom Soeharto largely entrusted with economic policy. The present team, particularly Coordinating Minister for the Economy and Minister for Finance of Sri Mulyani, Bank Indonesia Governor Boediono, and Trade Minister Mari Pangestu, is also highly competent.
How will Indonesia deal with the current global financial turmoil? Why is Australia offering support? The Coordinating Minister for the Economy Sri Mulyani explained that “although faced with the impact of the global financial crisis, the Indonesian economy will be able to chart 5% growth in 2009”. With the impact of slowing economies in the rest of the world, 5% growth would be a very encouraging performance under the present global economic conditions.
Minister Sri Mulyani has announced the Indonesian Government will:
Although there remain significant uncertainties in the global environment Indonesia is currently well prepared.