Economic reform: lessons from the Indonesian experience

Abstract

IN response to falling oil prices, the Indonesian economy has undertaken major economic reforms in just about every sector. The aim of this paper is to analyse the Indonesian experience in undertaking reforms. The first two sections of the paper are aimed at analysing the process of reforms during two periods in the post oil boom years: 1981-85 and 1986-present. The year 1986 provides the turning point in the Indonesian economic reform process due to the impetus of plummeting oil prices. A summary table of the reforms, organised sectorally and chronologically is provided in Table 1.