Publication

This paper assesses Indonesia's economic record before and after the 1997 East Asian financial crisis in light of the "Washington Consensus" economic prescriptions. The author explains how before the crisis, Indonesia was considered to be a model example by international financial institutions. Yet, when the crisis struck, Indonesia was the worst affected in Asia, despite of its sound macroeconomic fundamentals. The paper seeks to reconstruct and analyze where it all went wrong for Indonesia during the East Asian financial crisis and what policy measures the country implemented afterward.