INDONESIA'S RESOURCES BOOM IN INTERNATIONAL PERSPECTIVE: POLICY DILEMMAS AND OPTIONS FOR CONTINUED STRONG GROWTH

Ross Garnaut

Bulletin of Indonesian Economic Studies, 2015, vol. 51, issue 2, 189-212

Abstract: In the decade to 2011, developments in the Chinese economy gave the world its biggest ever resources boom and set the scene for a resources deflation. The boom generated high incomes and investment in global resources, especially coal. It boosted Indonesian growth and diverted the policy focus from the productivity-raising reforms that are necessary for broad-based growth. Arbitrary interventions reduced the gains from the boom, especially in commodities other than coal, but also diminished the size of the boom and therefore the economic adjustment challenge that faces Indonesia now. Indonesia handled the Dutch disease and related challenges better than some countries and worse than others. Australia and Indonesia are now the world's largest coal exporters, so this comparison receives attention here. The end of the boom can create opportunities for a return to broad-based development, so long as policy settings are favourable to productivity growth and improved economy-wide competitiveness. The fuel-subsidy reforms are a good start.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://hdl.handle.net/10.1080/00074918.2015.1061910 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:bindes:v:51:y:2015:i:2:p:189-212

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CBIE20

DOI: 10.1080/00074918.2015.1061910

Access Statistics for this article

Bulletin of Indonesian Economic Studies is currently edited by Firman Witoelar Kartaadipoetra, Arianto Patunru, Robert Sparrow, Sarah Xue Dong and Sean Muir

More articles in Bulletin of Indonesian Economic Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().