In an integrated global economy, specialisation in trade is an increasingly prominent strategy. A labour-abundant, resource-rich economy like Indonesia faces stiff competition in labour-intensive manufactures; meanwhile, rapid growth in demand for resources from China and India exposes it to the...

After a brief look at political events, the authors survey the balance of payments situation between 1983 and 1988, fiscal and monetary policies, momentum of deregulation, non-oil exports, foreign and domestic investment, the situation of agriculture etc. of Indonesia. They point out that the...