Authors: Chris Manning, ANU, and Raden M Purnagunawan, Padjadjaran University

Although there are some uncertainties, the Indonesian economy is well placed for what will now almost certainly be a sharp downturn in the world economy.

Foreign reserves were at a record high at just under US$120 billion at the end of the second quarter, inflation was down to below 5 per cent, investment up significantly, and growth steady at 6.5 per cent year on year. Certainly, macroeconomic policymakers are not ignoring the potential impact of another global recession; but Indonesia seems relatively unaffected by the immediate- to medium-term impacts of the US’s much slower-than-expected recovery in August and the ongoing debt crisis in Europe. Read more…

Author: Chris Manning, ANU

Recent years have seen Indonesia achieve significant political reforms with consequent international recognition. A lesser known achievement of the Susilo Bambang Yudhoyono (SBY) administration has been its concerted efforts to reduce poverty and disadvantage.

This quiet revolution has immense significance for future generations, providing a counterweight to Indonesia’s frequent natural disasters and their debilitating effects for the poor. Read more…

Author: Hal Hill and Chris Manning, ANU

President Susilo Bambang Yudhoyono (universally known as SBY) announced the cabinet for his second five-year term shortly after his inauguration on October 20. Its composition and quality provide one of the best indications of the president’s policy priorities, as well as his political strategy.

SBY’s Democrat Party emerged as the major, though minority, party at the April parliamentary polls, while he had a resounding victory in the July presidential election. He is therefore in a much stronger position than in 2004. In May, he made a surprising choice of Dr Boediono as his vice presidential running mate, a ‘non-politician’, a respected economic policy maker (and also an Australian graduate). Read more…

Author: Chris Manning, Indonesia Project, ANU

It’s all but official, yet still a surprise. Economic analyst, manager and academic, Dr Boediono, the current Central Bank Governor, has been named as President Yudhoyono’s choice of running mate for the first round of Presidential elections in July.

Some nine political parties have been jostling for influence in Indonesia’s emerging political make-up for 2009-2014. Many, especially in the main Muslim parties, would dearly have liked their leader to be selected by the popular President as the ‘CA-WA-PRES’, SBYs Vice Presidential running mate. In return, they would surely pledge their political support.

So why select a technocrat? Is SBY hankering for the bad old Soeharto days, when technocrats proposed and the President decided on policy, seemingly oblivious to social forces around him?

Read more…