Indonesia in 2003

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : ECOA107 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra


Case Length : 11 Pages
Period : 2003
Organization : -
Pub Date : 2003
Teaching Note : Not Available
Countries : Indonesia, Asia
Industry : -


Indonesia had gone through major upheavals in the late 1990s following the Asian currency crisis. The departure of General Suharto, amid a deepening financial, economic and social crisis marked a turning point. Suharto's protege and vice-president, BJ Habibie, took over the presidency from Suharto until October 1999, when Abdurrahman Wahid, a moderate Islamic cleric, was elected to the office. The controversial Wahid was impeached and replaced by his vice-president, Megawati Sukarnoputri, in July 2001. While Megawati seemed to be consolidating her power, and the prospects for the economy had improved significantly since the ousting of Wahid, various concerns remained to be addressed:

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political instability, corruption and foreign debt. Meanwhile, in view of the threats to secede by some territories, and the Bali bombing, some observers were even doubtful whether Indonesia, in its existing form, could survive. The case illustrates the linkages between social, political and economic policies in developing economies.


  Page No.
Introduction 1
Background Note 2
Economic Policies 5
Corruption 8
Foreign Trade 8
Concluding Notes 10


Indonesia, Country case study, Economics case study, Megawati Sukarnoputri, Bahasa Indonesia, Largest Islamic nation, General Suharto, Tourism industry in Indonesia, BJ Habibie, Java Bank, Berkeley Mafia, Most corrupt nation, Corruption in Indonesia, Economic policies in Indonesia, Foreign trade in Indonesia

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