Most of Indonesia's banking system collapsed during the 1997-98 financial and economic crisis. We estimate that the net cost to taxpayers of the government's blanket guarantee of banks' liabilities, issued in February 1998, is about 40 per cent of annual GDP. Large banks fared worse in the...

Abstract: Despite repeated commitments by successive governments in Indonesia to divestment of state-owned enterprises, little has occurred. There has been considerable experimentation with a different kind of privatisation, however, involving reforms that opened up markets previously dominated...

Indonesia’s depreciation vastly exceeded that of all other countries hit by the Asian crisis. It also experienced far higher inflation. This paper argues that there is a close medium- to long-term relationship between money growth and inflation in Indonesia, and that this has not been greatly...