ABSTRACT
The growth path of the Indonesian economy from the late 1960s to the early 1990s was not always smooth. Indonesia experienced several economic crises, usually dictated by the development of external events, which resulted in the deterioration of the current account. The problem stemmed from the fact that throughout the 1970s, Indonesian exports depended heavily on oil, gas and primary products. From 1973 to 1980, the value of Indonesian exports was dominated by oil, gas and timber, which made up approximately 60 per cent of the total exports. As more and more processing plants developed domestically, the share of semi-processed goods in total exports rose steadily, and from the mid-1980s to the early 1990s became one of the most important foreign exchange earners.
