Indonesia’s Troublesome Economic Path

Integrating with the global market place was once Indonesia’s offensive strategic choice to accelerate economic reform and development. The country has benefited significantly from opening up to trade and investment. It responded without hesitation to plummeting revenues from oil exports in the early 1980s with sweeping reforms to reduce tariffs, non-tariff barriers, red tape in customs clearance and procedures for obtaining business permits. These reforms spurred the expansion of light-manufacturing industries and helped the economy reach a steady rate of per capita real income growth of 5 per cent per annum until the Asian Financial Crisis in 1997.

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