The Indonesian Economy In The Nineteenth And Twentieth Centuries

Indonesia is now the fourth largest country in the world, but many aspects of its economic history remain poorly understood. This book is the first comprehensive survey of Indonesian economic history in the 19th and 20th centuries, examining both the Dutch colonial era, and the post-independence period. Extensive use is made of recent work by Dutch, Indonesian and Australian scholars to develop a number of key themes relating to economic growth and structural transformation of the Indonesian economy from the early 19th century to the present.

Indonesia’s trajectory towards successful economic growth has been long and capricious. Studies of the process often focus either on the Netherlands Indies or independent Indonesia, suggesting the existence of fundamental discontinuities. The authors of the 17 essays in this book adopt a long-term perspective that transcends regimes and bridges dualist economic models in order to examine what did and did not change as the country moved across the colonial-postcolonial divide, and shifted from reliance on exports of primary products to a multi-centred economy. The aim is to analyse how economic development grew out of the interplay of foreign trade, new forms of entrepreneurship and the political economy. The authors deal with entrepreneurship and economic specialization within different ethnic groups, the geographical distribution of exports and resource drains from exporting regions, and connections between an export economy and mass poverty. One recurring issue is the way actors from different ethnic groups occupied complementary niches, highlighting the rich variety of roles played by Asian entrepreneurs. A study of the international sugar trade shows how regime change fostered co-operation between different ethnic groups and nationalities involved with trading networks, inter-island shipping, urban public transport, and the construction sector. A comparison of export earnings and population groups involved in trade before and after 1900 shows that unexpected agricultural and industrial transitions could underpin a fundamental shift in income growth, with improved living standards for broad sectors of the population.

An 'Indonesian economy' first took shape in the latter part of the nineteenth century, consisting of a dominant export industry supported by a rural agrarian sphere. The agricultural sector provided food and labour to the export sector, which was firmly embedded in the world economy. This economic pattern survived several shifts of the leading export industry and persisted even after Indonesia became independent in the mid-20th century. Hiroyoshi Kano uses international trade statistics to analyze three key elements in the Indonesian economy: the balance of international payments and trade, the transformation undergone by leading export industries, and the way in which the agricultural sector supplied land, labour and food. Dividing the 150-year time span covered by the book into four periods based on the prevailing major export industries, he identifies key actors and analyzes long-term changes in agricultural production and rural society, and how they shaped the national economy

History matters. At the beginning of a new century and amidst the turmoil of a new democracy, a historical perspective on modern Indonesia is needed more than ever. This innovative economic history connects back to the colonial era and helps to explain why the transition from colonialism to Independence and from the New Order to democracy has been so difficult and sometimes traumatic. The Emergence of a National Economy identitifies three grand themes in this transformation: globalisation, state formation and economic integration. Globalisation affected the Indonesian archipelago even before the arrival of the Dutch—the New Order experience was only the most recent wave. Modern state formation began in Java under Governor-General Daendels (1808-11) and culminated in the centralised, military-bureaucratic state of Soeharto's New Order (1966-98). A national economy emerged gradually from the 1930s as the Outer Islands were reoriented towards an industrialising Java. These three themes link chronological chapters from the pre 1800 period through the modern colonial era to the breakdown of the colonial system after 1930, the birth of modern Indonesia, the remarkable economic transformation under the New Order, and the 'meltdown' during the Asian crisis of 1997/98. This overarching story gives a unity and rythm to Indonesia's modern history, while helping to explain why the future is likely to be different. The four authors—senior scholars from Australia (Howard Dick), Germany (Vincent Houben), the Netherlands (Thomas Lindblad) and Indonesia (Thee Kian Wie)—draw on a very wide range of sources to combine the insights of history, economic history and economics.

This study examines the Indonesian Muslim intellectuals of the twentieth century and their approaches in dealing with the problems that faced Indonesian Muslims at that time. Like their intellectual ancestors in Islamic history these recent Indonesian intellectuals carefully examined the society in which they lived. On one level they studied the original and historical teachings of Islam and attempted to fit that message to the Southeast Asian region. On another level they reacted to the great waves of culture that arrived from Europe, North America, and Asia throughout the twentieth century. They did all of this at a time when the Indonesian nation was forming itself, beginning with the nationalist movements of the early part of the century when the Dutch controlled the archipelago, and continuing into the last half of the century when Indonesia was an independent nation.

Based on new datasets, this book presents an economic history of Indonesia. It analyses the causes of stagnation of growth during the colonial and independence period, making use of new theoretical insights from institutional economics and new growth theory. The book looks at the major themes of Indonesian history: colonial exploitation and the successes and limitations of the post 1900 welfare policies, the price of instability after 1945, and the economic miracle after 1967. The book not only discusses economic change and development – or the lack thereof – but also the institutional and socio-political structures that were behind these changes. It also presents a lot of new data on the changing welfare of the Indonesian population, on income distribution, and on the functioning of markets for rice, credit and labour. Concluding with a discussion on whether the poor profited from the economic changes, this book is a useful contribution to Southeast Asian Studies and International Economics.

Indonesia is often viewed as a country with substantial natural resources which has achieved solid economic growth since the 1960s, but which still faces serious economic challenges. In 2010, its per capita GDP was only nineteen per cent of that of the Netherlands, and twenty-two per cent of that of Japan. In recent decades, per capita GDP has fallen behind that of neighbouring countries such as Malaysia and Thailand, and behind China. In this accessible but thorough new study, Anne Booth explains the long-term factors which have influenced Indonesian economic performance, taking into account the Dutch colonial legacy and the reaction to it after the transfer of power in 1949. The first part of the book offers a chronological study of economic development from the late nineteenth to the early twenty-first century, while the second part explores topics including the persistence of economic nationalism and the ongoing tensions between Indonesia's diverse regions.