ABSTRACT
Indonesia's record of economic development since 1970 has been quite remarkable. Indonesia has also been praised, and rightly, for its handling of the many economic crises it has faced—the Pertamina crisis of 1975, the shocks of the oil price increase during the 1970s and its sharp decline during the 1980s, and for its adeptness and agility in reducing the dependence on oil. This chapter is concerned with Indonesia's industrial development, focusing on the issue of the depth of industrialization, and explores the extent to which public policy has helped or hindered the development of a strong industrial base. It looks at Indonesia's achievements in the industrial sector and analyses the role industrial policy has played, thereby arriving at an appreciation of the usefulness of this experience for other countries. Indonesia is the world's fourth most populous country, after China, India and the United States of America.
