Macroeconomic Policies in Indonesia Indonesia economy since the Asian financial crisis of 1997

This book gives insight on the dynamics and route of economic policies that have been taken and implemented since the point of institutional reforms in 1998 that were triggered from the context of the financial crisis in 1997/1998. The condition brought a different paradigm on the landscape of economic and development policies, especially in the case of the monetary and financial structure, the international trade sector, the manufacturing sector, the taxes administration policy and the evolved context of decentralization and development of public sector policies in general.

Given state of current economic development, this book offers suggestions to address economic issues that require improvements. This book is unique as: 1) it is about Indonesia, a country mostly affected by 1997/1998 financial crisis, which also lead to a change in regime; 2) it covers a broad range of thematic topics on sectors development and institutional changes from major policies that have been taken; and 3) it posits both existing and future challenges on monetary and financial sectors, trade, manufacturing and competitiveness, as well as on development of decentralization policies.

Introduction 1. Rebuilding the Banking System in Indonesia Since 1997, Anwar Nasution 2. Towards A Market-Based Monetary Policy, Anwar Nasution 3. Developing Indonesia’s Mutual Fund Industry: Booms, Busts, Frauds and Scandals, Llyod M. Kenward 4. Are Emerging Asia’s Reserves Really Too High?, Marta Ruiz-Arranz and Milan Zavadjil 5. Tax Administration Reform and Fiscal Adjustment: The Case of Indonesia (2001–07), John Brondolo, Carlos Silvani, Eric Le Borgne, and Frank Bosch 6. Intergovernmental Transfers: Effectiveness and response on government, Raksaka Mahi and Riatu Qibthiyyah 7. Managing Indonesia’s Trade Policy: How to remove the agenda?, Lili Yan Ing, Mari Elka Pangestu and Sjamsu Rahardja 8. Indonesian Manufacturing Sector: Searching for identity amidst challenging environment, Dionisius Narjoko and Sjamsu Rahardja 9. Globalization and Innovation in the Indonesian Manufacturing, Ari Kuncoro 10. Indonesia’s Democracy and Decentralization in The Post-1997 Era, Maria Monica Wihardja

Anwar Nasution graduated from the Faculty of Economics, University of Indonesia, in 1968. He obtained a Master's degree in Public Administration from the Kennedy School of Government, Harvard University, in 1973, and a PhD in Economics from Tufts University in 1982. Anwar was a member of the International Policy Advisory Group (Shadow G-20) in 2013, under the Chairmanship of Professor Jeffrey Sachs of Columbia University, the Dean of the Faculty of Economics at the University of Indonesia (1988–2001) and the Sasakawa Distinguished Professor for the Chair in Development Economics at UNU/WIDER Institute in Helsinki, Finland. He was consultant to UN-ESCAP, UN-ECLAC, US-AID, ADB, the World Bank, IMF and MITI of Japan. He was a visiting research fellow at NBER in Cambridge, MA, USA, IDE in Tokyo, the Research School of Pacific Studies at the Australian National University in Canberra and Kyoto University.