Survey of recent developments

According to the author, although quickening growth in 1983 and 1984 had suggested a rapid recovery from the recession of the previous year, the Indonesian economy has now clearly run out of steam. The further decline in oil export revenues - the main reason for the sudden collapse of economic growth. The paper surveys balance of payments, fiscal policy, inflation, money supply, interest rates, undesirable side effects, which undermine the government's industrialisation drive and agriculture. Growth much better sustained in the rural sector than in the modern urban sector. (DÜI-Sen)