chapter  3
16 Pages

The Politics of Economic Policy-making in Indonesia since 1965: A general overview

This chapter examines the most important of the actors as well as illustrating how their fortunes have risen and fallen according to structural changes in the economy. The members of business group have been strong supporters of a more market-based approach to economic policy-making. The technocrats have nevertheless been amongst the most important economic policy-makers during the New Order period. A recurrent theme in their arguments has been that the economic development model pursued by the government has led to increasing inequality within Indonesian society. The relative influence that these groups have exercised over the Indonesian government's economic policies has fluctuated according to structural changes in the economy. The New Order came to power amidst one of the worst economic crises that Indonesia has experienced since independence. Like the politico-bureaucrats, Indonesia's conglomerates have benefited substantially from the New Order's intervention in the economy.