Title: Indonesia - External shocks, policy response and adjustment performance
Abstract: This paper examines Indonesia's adjustment to a series of external shocks since 1981, focusing on the Government's policy initiatives and economic performance. The paper notes that the Government has implemented a broad range of adjustment measures and structural reforms. As a result, good progress has been made towards restoring financial stability and stimulating the recovery of the economy. Despite considerable success in reducing financial imbalances and the cautious approach to external borrowing, the debt burden has risen sharply due to the impact of the adverse external environment. In view of this, the paper notes the need to maintain the adjustment effort in the short run. On the other hand, the social objectives of providing higher earning jobs and of reducing the incidence of poverty have become more pressing. In order to ensure that the pursuit of these important social goals does not compromise financial stability, the paper emphasizes the need for Indonesia to maintain the consistency of macroeconomic policies and strengthen the ongoing structural reform program.
Publication Year: 1989
Publication Date: 1989-06-30
Language: en
Type: article
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Cited By Count: 1
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