Economic Freedom in Indonesia: Review of Recent Development

Nawa Thalo
Report The Indonesian Institute • November 2007 Indonesia

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(English, 42 pages)


This report is the outcome of extensive research carried out by the Indonesian Institute, Center for Public Policy Research, comprising the revised outcome of the paper presented at the Public Discussion on 22 November 2007 at Menara Peninsula Hotel, Jakarta. It provides a comprehensive view of the Indonesian socio-political and economic condition. Knowing what to measure and how to measure it makes a complex issue much less so. In order to examine the country's current situation, this particular report fittingly employs methods adhere to the recommendations forwarded by the Economic Freedom of the World (EFW) report, covering all five aspects of economic freedom measurement. Building on the pioneering work of the late Nobel laureate in economics Milton Friedman, the index published in the EFW report measures the degree to which the domestic institutions and policies support the foundation of economic freedom: personal choice, voluntary exchange, freedom to complete and protection of private property. This study, in some way, stands at an avant-garde corner of research into the nature and pattern of the Indonesian socio-political and economic life. It makes a valuable contribution, however, not only towards an understanding of the Indonesian economy but also to the study of comprehensive political affairs amid societies beset by fundamental economic and social development. We, the Economic Freedom Network Asia, are pleased to support the study. It is important to note that the financial support from the Friedrich Naumann Stiftung für die Freiheit, which has made possible the research programme, is gratefully acknowledged. However, the Foundation has no responsibility for the ideas set forth in this study.




The Indonesian Institute

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