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• W153020035 abstract "The Indonesian Economy. (2nd edition). By Hal Hill. Cambridge: Cambridge University Press, 2000. Pp. 366. Hal Hill's latest work is a second edition of his original 1996 volume entitled The Indonesian Economy Since 1966: Southeast Asia's Emerging Giant. Of the original work he could legitimately claim to fill a gap in the literature and provide a big account of the Indonesian economy under the Soeharto regime. This volume remains a superb account of Indonesia's economy by a leading authority on the subject. The second addition of The Indonesian Economy differs from the first in only one substantial regard. There is an extra chapter on the financial crisis at the end. Hill states in his new preface that [t]his is not a complete re-write of the entire text - that will have to wait for another day, when the dust has settled. Thus Hill's book, like quite a number of post-Soeharto books on Indonesia, is a text written in Soeharto's time with an updating section at the end to give some salience to the work. Therefore the first twelve chapters, out of thirteen, cast the reader back to 1996 (the original publication date), which means one must suspend all knowledge of events after that date. Much of what appears in these chapters, written in present tense, is in fact past tense, while the numerous references to former President Habibie as the current Minister for Research and Technology are the most striking given that he had not held this position for 16 months when Hill penned the second preface in May 1999. Furthermore, the original conclusion, which looks forward from 1996, remains in this volume - yet seems well overtaken by events. That said, one can understand the tack Hill has taken here. Either leave the work as it is, or rewrite it entirely when a detailed analysis of the turbulent aftermath of Soeharto's rule may not yet be opportune. However, the chronology of events at the end draws to a close in December 1993 - this at least could have been extended. Soeharto, upon assuming the mantle of leadership from Sukarno, reversed the founding president's destructive socialist policies. Indonesia went from being a basket case (p. 1) in the 1960s to be officially listed as a middle income country by the World Bank in 1980. From 1966 hyperinflation was brought under control, the debt burden was eased, while export-driven economic growth matched the other emerging Asian economies in most years prior to the 1997 financial crisis. The overall structure of the Indonesian economy also changed towards manufacturing and services. Hill's account gives the reader an insight into the success of Indonesia's economic policies in overcoming some of the challenges of underdevelopment. The strength of this volume is that it avoids the extremes of platitudinous praise for New Order policies (as exhibited by some journalists and economists prior to the crash) and the complete condemnation offered by others. Hill gives credit where it is due, but equally he also does not hesitate to point out the major flaws of the Soeharto era. The volume is rich in detail, including a monumental compilation of socioeconomic data into tables and graphs, while engaging in sophisticated analysis. Overall the reader is reminded of the terrible shambles of the Sukarno period and the tremendous achievements of the Soeharto regime in terms of economic and social development - albeit partly undermined by the financial crisis and the growing corruption of the first family. Hill gives the reader the picture of an economy with some underlying problems includes slipshod record keeping, uneven tax collection, capricious decision-making, an out of control financial system, and a weak legal structure. While the Soeharto government publicly maintained a balanced budget principle, in reality a small budget deficit was incurred in most years due to off budget expenditure - chiefly for large industrial projects and military funding (pp. …" @default.
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