Indonesian The Economy in the Year 2001: Prospects and Policies

 This paper is made up of an Executive Summary and four chapters. In Chapter II, the economic performance through CY 2000 is assessed. After reviewing recent trends, the importance of speeding up economic recovery to avoid deepening social problems including unemployment, poverty, and debt burdens is pointed out. In chapter III, the prospects for the economy in 2001 including the likely economic recovery path are examined. In chapter IV the policy agenda needed to speed up recovery analyzed. The strategy to ensure fiscal sustainability is developed. Another key point is the importance of accelerated non-discriminatory asset sales and privatization (following clear legal procedures). These are important in their own right but should also increase market confidence as well. Finally, in Chapter V industry and agriculture development strategies are examined. Competitiveness in Indonesian traditional export industries was eroding just prior to the crisis, but has been restored and more at current levels of real depreciation. Areas for policy concentration are proposed and the history of previous interventions revealed. In agriculture and food policy short term issues in pricing policy and poverty reduction are explored. Longer-term issues on agriculture productivity and the industrial transformation as related to rural/urban migration are addressed.
 
This study was developed as background for the macroeconomic framework and key policy challenges in 2001.

Contents:

Contents

List of Tables

List of Figures

List of Boxes

Preface

Chapter I. Executive Summary

Chapter II. The State of The Recovery

Chapter III. Economic Prospects for The Year 2001

Chapter IV. Major Policy Issues in The Outlook

Chapter V. Selected Sectoral Issues

References