Survey of Recent Developments

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Authors: J. Thomas Lindblad; Thee Kian Wie

Apart from the peaceful December elections in Aceh, many major recent news stories from Indonesia have been about disasters of some kind: the sinking of an interisland ferry, the crash of a commercial plane, the continuing misery caused by a seemingly unstoppable mud flow in East Java, and severe flooding in and around Jakarta. Read More »

On-Lending in Indonesia: Past Performance and Future Prospects

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Author: Blane D. Lewis

On-lending to sub-national governments in Indonesia has a long and generally disappointing history. Among other noteworthy problems, an insufficient amount of funds has been channelled through the system vis-a-vis capital financing needs, and loan repayments have proved poor. Read More »

The Manpower Law of 2003 and its implementing regulations: Genesis, key articles and potential impact

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Authors: Chris Manning; Kurnya Roesad

This paper reviews Indonesia’s Manpower Law 13/2003 and related regulations, against a backdrop of slow employment growth, business concerns about the legislation and government attempts to change it in 2006. Read More »

The Promise and the Peril of Microfinance Institutions in Indonesia

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Authors: Jay K. Rosengard; Richard H. Patten; Don E. Johnston Jr; Widjojo Koesoemo

After the 1997 East Asian crisis, central banks throughout the region tried to reduce the risk of future bank failures by promulgating regulatory reforms. The results in Indonesia have been to concentrate rather than mitigate banking risks, and to decrease the access of low-income households and enterprises to formal financial services, especially in rural areas. Read More »


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