ABSTRACT
Events in the second half of 1997 made it a difficult year for the Indonesian economy. A rise in surface ocean temperatures east of the archipelag~ periodic phenomenon known as EI Nifio--contributed to a drought severe enough to cause hundreds of deaths in Irian Jaya while calling into question the ability of the national government to maintain stable prices for basic foodstuffs. Smoke from forest fires in Kalimantan created an atmospheric haze broad and dense enough to result in the closing of schools and airports and the cancellation of tourist visits. The fires and haze endangered the health of at least twenty million Indonesians and caused considerable damage to natural resources.
