ABSTRACT

INTRODUCTION Despite the economic downturn of the mid-1980s, statist-nationalism has retained considerable popularity within government ranks, and a number of senior state officials have continued to urge that state resources be directed towards the construction of an integrated, industrialised and independent economy. Although the vision of a strong and self-reliant economy able to deal on equal terms with other, more powerful, nations is shared by virtually all of Indonesia’s planners, the distinctive feature of the ideas put forward by these officials is the emphasis they place on the role of the state, organising society to strengthen the economy. Many of the views of these officials are broadly similar to those put by proponents of an outward-looking form of economic nationalism in Chapter 3, and testify to the strength of this stream of thought in official circles. The buoyant economic conditions following the second oil boom of 1978/79 gave them the confidence to begin implementing some of the ideas that had already emerged. But from the mid-1980s these propositions now had to be put forward in a very different social environment. This chapter presents the arguments of the more prominent of these officials in the changed economic circumstances following the end of the oil boom.