In an effort to control increases in the prices of certain tradable commodities in recent years, the Indonesian government has experimented with a variety of policy interventions. Palm oil is important both as an export commodity and for household consumption in the form of cooking oil. We...

A major challenge for Indonesian economic policy makers is to avoid the recurrence of conditions that could trigger a new economic crisis. One of the important dimensions of this challenge will be to conduct fiscal policy in a way that is sustainable, given the level of interest rates and the...

This paper examines changes to the value added tax (VAT) system proposed recently by the Indonesian Ministry of Finance-in particular that the exemptions for certain sectors be ended. Using the input-output relationships in the economy as a basis, it analyses the implications of these changes...

For decades the government of Nusa Tenggara Timur (NTT) province has exploited the sandalwood sector, to the detriment of the growers of the trees. Severe depletion of the stock of sandalwood in the province has been the result. This paper documents NTT policies toward the sector, which it...

Two major factors, one internal and one external, shaped developments through the middle of 2004. The internal factor was the national election process, which led to a realignment of political power among the parties in the legislative elections in April, and offered the prospect of even greater...

B.J. Habibie ascended to the presidency in the midst of a severe economic crisis, and with a reputation as an economic nationalist rather than reformer. Nevertheless, Habibie had the mantle of reformer thrust upon him, and important steps toward economic reform were taken during his 1998-99...