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This paper presents Post-Program Monitoring Discussions for Indonesia. Macroeconomic and financial market developments were on the whole favorable in 2004. Inflation, after a temporary increase, peaking at 71⁄4 percent (y/y) in July, edged back down, ending the year at 61⁄2 percent. External developments were favorable. Besides a benign external environment, these favorable developments were helped by the overall sound economic policies pursued over the last few years. The IMF staff welcomes the government’s commitment to improving the investment climate in the country.
This important book is set to be a key document for those interested in Indonesia's recent economic and political history. There have been many unanswered questions about exactly how the regional currency crisis snowballed into a full-scale banking crisis in Indonesia, coupled with a total loss of credibility within a short time. This record by the official in the midst of the banking crisis, the ex governor of Bank Indonesia, gives a fuller and intriguing picture of the events, including the actions of President Soeharto, as well as a balanced account of the much criticised interventions by the International Monetary Fund. The author also analyses the lessons for monetary policy to avoid future such crisis. This is essential reading for economists and Indonesia watchers.
Building A Modern Financial System provides penetrating insights into the upheavals in Indonesia, and explains the kinds of policies that can lead to the development of a modern financial system in a large, relatively underdeveloped country. The study covers all facets of the financial system, emphasising the role of the monetary authorities, the transition from government-dominated to a predominantly private banking system, and the rapid expansion of the capital market. Indonesia is a particularly interesting case because its economy and financial system was in shambles in the mid-1960s owing to political adventurism and economic mismanagement. Until more recently sensible economic policies and growth-promoting reforms provided a sound financial system and a balanced expansion of agriculture and industry. However since the mid-1990's the stability of the Indonesian system has once again been called into question.
When Megawati Soekarnoputri became the President of Indonesia in July 2001, there were strong expectations. But so far, fundamental economic and political reforms have yet to be undertaken. The deadly Bali bombings on 12 October 2002 presented a wake-up call for the Megawati government. Terrorism on an international scale had now hit home. Now, more than ever, there is greater urgency on the part of the Megawati government to tackle the myriad of political and economic problems plaguing the country. This volume features some of the major issues that faced the Megawati government even before the devastating Bali attacks. The contributors include academics, practitioners and activists, offering a diversity of views.
The financial system appears to be broadly resilient, has strong capital and liquidity buffers but remains relatively small and dominated by banks, especially few state-owned banks. Household and corporate indebtedness and public debt are low. The macroprudential policy framework features both financial stability and development objectives. The recently passed Financial Sector Omnibus Law (FSOL) will make notable reforms to the financial sector.
This book is a work of historical analysis focusing on the development of Islamic financial institutions from 1992 to 2011 in Indonesia as they relate to Islamic banking using a political-economic approach. Indonesia plays an influential role in various international political and Islamic organizations because it has the largest Muslim population in the world. Although Indonesia was late in establishing its banking initiatives, it did so 1992 in response to the growth of the Islamic financial institutions. From 1992 to 2011 many laws and regulations were established to support the growth of Islamic banking in Indonesia, but by national financial market indicators, Islamic banking in Indonesia fell behind many expectations. This analysis suggests that the shortcomings may be due in part to the waning power of key elements of the political superstructure to push policies that supported Islamic banking and Islamic economic systems, and establish synergies with institutions of Islamic economic education and stakeholders to accelerate the growth of Islamic banks in terms of service, national market share, and public trust.
The military have had a key role to play in Indonesia's recent history and may well have a decisive role to play in her future. This book looks at the role of the military in the downfall of Suharto and their ongoing influence on the succeeding governments of B.J. Habibie and Abdurrahman Wahid. The author also examines such key features as human rights, reconciliation, civic-military discourse and ongoing security dilemmas. The book is unique in providing the best overview of the role of the military in the world's fourth most populous nation.
English for Banking is written to fulfill students' needs to learn English for Specific Purposes. This book is designed to provide an opportunity for the students to develop their English skills more communicatively and meaningfully. It consists of twenty eight units. Each unit presents reading, writing, and speaking section. Reading section consists of pre-reading, reading comprehension, and vocabulary exercises related to the topic of the text. In writing section, some structure and sentence patterns are completed with guided writing exercises. Meanwhile, in speaking section students are provided with models and examples followed by practical activities which are presented in various ways. The materials have been arranged and graded in accordance with their language levels. Above all, to improve the quality of this textbook, criticisms and suggestions for better editions are highly appreciated.