The Impact of the 2008-2009 Global Economic Crisis on a Developing Country’s Economy : Studies from Indonesia

This paper aims to examine the Indonesian experience with the 2008/09 global economic crisis. The paper is based on secondary data analysis and a review of key literature. It has three main parts. The first part provides empirical evidence of the impact of the crisis on Indonesian economy. The second part gives a theoretical explanation of main transmission channels of the impacts of economic crises. The third part gives a summary of findings of crisis monitoring activities by various institutes in Indonesia during the crisis. This paper shows that the Indonesia economy seemed to be relatively resilience to the crisis, although its economic growth was lower than expected and exports of some commodities dropped. Based on the crisis monitoring activities, at the regional and household levels within the country, the impacts have been found to vary between regions and among different households