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Indonesia: Building an Inclusive Development Model

In: Moving Toward A New Development Model For East Asia-The Role of Domestic Policy and Regional Cooperation

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  • Tulus T.H. Tambunan

Abstract

More than ten years ago, Indonesia was hit by an extremely severe economic crisis ever happened since the country’s independence in 1945, known as the Asian financial crisis, which led Indonesian economy to an economic recession with -13 % of economic growth in 1998. Since then, Indonesia has become a different country. It has embarked upon a far-reaching institutional transformation and has become one of the region’s most vibrant democracies. Wide reforms in all economic areas including trade, finance and industry have been carried out, and development strategy has been shifted from ‘exclusive’ to ‘inclusive’. The main aim of this study is to examine the process of change in Indonesian development strategy from ‘exclusive’ oriented before the Asian financial crisis 1997/98 (during the ‘New Order’ era) towards “inclusive’ oriented. Specifically, it discusses main important ‘inclusive’ policies that have been introduced or implemented so far by the Indonesian government. In addition to this, based on a number of indicators of inclusive development in the literature, the study also proposes an inclusive development index to measure its achievement.

Suggested Citation

  • Tulus T.H. Tambunan, . "Indonesia: Building an Inclusive Development Model," Chapters, in: Zhang Yunling & Fukunari Kimura & Sothea Oum (ed.), Moving Toward A New Development Model For East Asia-The Role of Domestic Policy and Regional Cooperation, chapter 7, pages 223-254, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:chaptr:2011-rpr-10-07
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    File URL: http://www.eria.org/RPR_FY2011_No.10_Chapter_7.pdf
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    1. repec:ilo:ilowps:370985 is not listed on IDEAS
    2. Sachs, Ignacy., 2004. "Inclusive development strategy in an era of globalization," ILO Working Papers 993709853402676, International Labour Organization.
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    Cited by:

    1. Fanny Salignac & Julien Hanoteau & Ioana Ramia, 2022. "Financial Resilience: A Way Forward Towards Economic Development in Developing Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 1-33, February.
    2. Tambunan, Tulus, 2015. "Financial Inclusion, Financial Education, and Financial Regulation: A Story from Indonesia," ADBI Working Papers 535, Asian Development Bank Institute.

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