INDONESIAN ECONOMIC DEVELOPMENT
Historical background and style of the structure of the Indonesian economy can not be separated from the history of colonialism experienced by this country. As known, starting from the early 17 th century, the Indonesian people successively colonized by the Dutch trade union called the VOC, the Dutch Kingdom, the United Kingdom, and by the occupation government.
Apart from these direct impacts, the impact of the crisis of American capitalism require attention seriously is the political development of the Indonesian economy in the long run. As a country that became the American colonies during the last 40 years, is substantially true, there is nothing really new for Indonesia. In fact, if the observed development of the Indonesian economy in the last two centuries, which is continuously faced this country, except in the Sukarno era, is the ongoing systematic process of permanent liberalization in Indonesia.
The crisis has reduced the rate of economic growth in Indonesia. Dollar exchange rate had fallen sharply since July 1997 caused Indonesia's economic growth in the third quarter and fourth quarter declined to 2.45 percent and 1.37 percent. In the first quarter and second quarter of 1997, Indonesia recorded economic growth of 8.46 percent and 6.77 percent. In the first quarter of 1998 recorded a negative growth of -6.21 percent.
Decline in economic growth can not be separated from the problem of private sector business conditions are more slow performance. This delay occurred partly because of the difficulty of getting raw material imports are not associated with receipt of LC Indonesia and burden of foreign debt payments are more swollen in line with the weakening rupiah and higher bank interest rates. Riots that swept several cities in the month of May 1998 is expected to further slow down private performance at the next turn further reduce economic growth, especially in the second quarter of 1998. Meanwhile, export growth in March 1998 showed that non-oil export growth that is encouraging about 16 percent. This growth rate is achieved thanks to the export commodity prices are more competitive with the falling value of rupiah. This increase contributed to a trade surplus jumped to 1.97 billion dollars compared with 206.1 million U.S. dollars in March 1997. Sharply declining imports is another factor creating the surplus. Imports in March 1998 fell by 38 percent in line with the decline in economic growth.
In addition, the direct impact of the crisis of American capitalism Indonesian real sector appear prominently on the occurrence of a sharp decline in export prices of primary commodities Indonesian couple. Oil prices, for example, in May 2008 that could penetrate U.S. $ 140 a barrel, later dropped drastically to around U.S. $ 35 per barrel. While the price of palm oil (Crude Palm Oil), which until mid-July 2008 continued to increase reaching the highest level of U.S. $ 1300 per ton, later fell quite sharply to only about U.S. $ 500 per ton. The picture is more or less the same can be seen in some other export commodities such as coffee, rubber, and cocoa.
The greatest challenge facing the Indonesian people today really is not about anticipating the impact of the crisis or to determine a strategy to overcome. Much more fundamental than that is the growing urgency of the need to launch a series of struggles that real independence.
