Economic Crisis in Indonesia



Edited by ISHIDA Masami
Published in 2000

Contents (550KB)

Preface (90KB) / Masami Ishida

Chapter 1.

Revisiting the Cause of the Indonesian Economic Crisis / Tubagus Feridhanusetyawan, Titik Anas

1. Introduction
2. The Course of the Asian Crisis: Some Theoretical Views
 2-1. External Factors
    Unstable International and Financial Markets
 2-2. Internal Factors
    Balanced of payment crisis (macroeconomic Policy weaknesses induced crisis
    Self-fulfilling prophecies
    Financial panics or bank runs
    Bubbles collapse
    Moral hazard
    Disorderly workouts
    Mismanagement, poor governance and political misfortunes
3. The Course of the Indonesian Crisis
 3-1. 1997: The Indonesian Currency Crisis as Part of the Asian Crisis
    June-July 1997: Indonesia got the virus from Thailand
    August-September 1997: The economy was sick, but Indonesia did not know what to do
    October-November 1997: Indonesia went to the doctor, but did not follow the order
 3-2. 1998: the Year of the Indonesian Total crisis
    December1997-January1998: the emergency situation
    February-April1998: the mounting crisis of confidence
    May1998: the final days of the New Order
    June-July1998: still looking for the tunnel
    Ausust-december1998: Indonesia found the tunnel?
 3-3. 1999: Booming out At last?
4. Revisitiong the Crisis
 4-1. The Situation before the Crisis
 4-2. July through November 1997
 4-3. Devember 1997 to May 1997: Rapidly Deteriorating Economic Condition
 4-4. June-December 1998: Indonesia in the Tunnnel
5. Final Remarks and Lessons Learnt

Chapter 2.
1. Introduction
2. Recent Situations of Private Debt Problems
3. Frankfurt Conference and the Scheme of Indra
4. Bankruptcy Act
5. Jakarta Initiative
6. Debt Restructuring by way of IBRA
 6-1. Launching of Debt Restructuring by IBRA
 6-2. Scheme Presented by IBRA
 6-3. Signing the "Letter of Commitment"
 6-4. Delays of Restructuring Process Caused by Bank Bali Scandal
 6-5. Restarting of Debt Restructuring Process by IBRA after New Government
7. Measures for Corporate Restructuring
 7-1. Operational Restructuring
 7-2. Financial Restructuring
8. Several Case Studies
 8-1. PT Danareksa
 8-2. PT Bakrie Brothers
 8-3. PT Astra International
9. Concluding Remarks

Chapter 3.

Growth,Capotal Accumulation and Net Debts: The Theory and Evidence in Indonesia / Jonni Manurung, Ferdinand D.Saragih

1. Introduction
2. Empirical Facts
 2-1. Economic Growth, Total Investment and Private Consumption
 2-2. Government Fiscal Policy
3. Open Economy Growth Model
 3-1. Model
 3-2. Balanced Growth Path
4. Changes of Parameters in the Balance Growth Path
 4-1. Population Growth
 4-2. Interest Rate Shocks
 4-3. Stabilization of Assets by Fiscal Policy
5. Relative the Model to Empirical Evidence
 5-1. Empirical Model
 5-2. Results of the Model of Investigation
6. Discussion and Conclusion
 6-1. Population and Technology
 6-2. Debt Interest Rates and Marginal Tax Rates
 6-3. Postponing the Payment of Debt Principals and Interests
 6-4. The Postponement of the Payment of Principals or Interests
 6-5. Conclusion

Chapter 4.

Declining Standards of Living and the Social Safety net Programs / Tana Bakti H.sopr0b, Nur Hadi Wiyono

1. Introduction
2. Highlight of Economic Crisis in Indonesia
3. Poor People Affected by Crisis
4. Employment in Crisis
 4-1. Unemployment Rate
 4-2. Underemployment Rate
 4-3. Worker displacement
 4-4. Formal and Informal Sector
5. Education in Crisis
6. Health in Crisis
7. Social Safety Net
8. Closing Remarks