The document summarizes Indonesia's experience with globalization and economic crisis in the late 1990s. It describes how the 1997 Asian Financial Crisis severely impacted Indonesia's economy and led to political reforms. The IMF provided assistance to Indonesia through loan programs from 1997-2003 with policy recommendations focusing on fiscal discipline, privatization, trade deregulation, and banking restructuring. While the IMF programs helped Indonesia recover from the crisis, the country still faced challenges in reducing corruption and improving government bureaucracy and infrastructure. Overall, the document outlines Indonesia's economic difficulties, the IMF's role in its recovery, and ongoing work needed for continued democratic and economic development.

1. THE GLOBALIZERS ACTION:
AN INDONESIAN EXPERIENCE
DEDDY S. BRATAKUSUMAH, PhD
Abudhabi
2007

2. BACKGROUND
THE ASIAN ECONOMIC CRISIS 1997-1998,
WAS THE MOST DRAMATIC EVENT,
SET THE ECONOMIC AND SOCIAL
CONDITIONS BACK FOR YEARS,
INDONESIAN CRISIS IS THE MOST SEVERE
IN EAST ASIA,
TRIGERED POLITICAL REFORM ACTION,
ADHERENCE ACTION OF ECONOMIC AND
POLITICAL REFORM

3. THE IMF ROLE
IMF CAME INTO ACTION IN INDONESIA TO
OVERCOME THE PROBLEM WITH MANY
“RECIPES” TO BE IMPLEMENTED.
THE OFFICIAL AGREEMENT BETWEEN THE
REPUBLIC OF INDONESIA GOVERNMENT AND
THE IMF WAS SIGNED ON OCTOBER 31 1997
THE AGREEMENT SO CALLED LETTER OF
INTENSE (LoI) BECAME THE WORKING
DOCUMENT OF INDONESIAN GOVERNMENT
DURING THE CRISIS.
AS THE RESULT MANY PUBLIC POLICIES BASED
UPON THE LoI

4. THE THREE PILLARS OF POLICY
FIRSTLY, THE FRAMEWORK OF MACROECONOMICS
TO ACHIEVE THE ADJUSTMENT IN EXTERNAL
CURRENT ACCOUNT AS WELL AS UNITED THE
ADJUSTMENT FISCAL WITH THE MONETARY POLICY
AND THE EXCHANGE RATE.
SECONDLY, THE FINANCIAL SECTOR
RESTRUCTURIZATION COMPREHENSIVE STRATEGIES.
THIRDLY, THE REFORM ACTION STRUCTURAL THAT
INCLUDES THE AREA TO INCREASE THE GOVER-
NANCE, INCLUDING THE POLICY OF INVESTMENT, THE
INTERNATIONAL TRADE, DEREGULATION AND THE
PRIVATIZATION, THE ENVIRONMENT SUSTAINABILITY,
AND THE SOCIAL SAFETY NET PROGRAM

5. INDONESIA:
ARRANGEMENT WITH THE IMF 1997–2003
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--
ACCESS AMOUNT DRAWN
------------------------------- -----------------------------
APP DATE EXP DATE SDR BNS US$ BNS SDR BNS US$ BNS
-----------------------------------------------------------------------------------------------------------------------------------
--
STAND-BY
ARRANGEMENT
(SBA) NOV 5, 1997 AUG 25, 1998 8.3 11.4 3.7 4.9
EXTENDED
FUND FACILITY
(EFF) AUG 25, 1998 FEB 4, 2000 5.4 7.2 3.8 5.2
EXTENDED
FUND FACILITY FEB 4, 2000 DEC 31, 2003 3.6 5.0 2.9 4.0
-----------------------------------------------------------------------------------------------------------------------------------
-
SOURCE: IMF

6. THE IMF RECOMMENDATION
1. THE TIGHT MONETARY POLICY,
2. FISCAL DISCIPLINE,
3. THE PRIVATIZATION,
4. DEREGULATION OF THE TRADE,
5. DEREGULATION OF INVESTMENT,
6. THE RESTRUCTURING AND
RECAPITALIZATION OF THE BANKS.

7. REGIME CHANGE IN INDONESIAREGIME CHANGE IN INDONESIA
May 1998-October 1999
Accountability Speech
Rejected
Declined to run for
President
May 1998-October 1999
Accountability Speech
Rejected
Declined to run for
President
August 1945 - March
1968
Elected by the PPKI
Impeached by MPRS
August 1945 - March
1968
Elected by the PPKI
Impeached by MPRS
 October 1999 – July 2001
 Elected by MPR
 Impeached by MPR
 October 1999 – July 2001
 Elected by MPR
 Impeached by MPR
SukarnoSukarnoSukarnoSukarno
B.J. HabibieB.J. HabibieB.J. HabibieB.J. Habibie
Abdurrahman WahidAbdurrahman WahidAbdurrahman WahidAbdurrahman Wahid
October 2004 – 2009
Directly elected
October 2004 – 2009
Directly elected
Susilo BambangSusilo Bambang
YudhoyonoYudhoyono
Susilo BambangSusilo Bambang
YudhoyonoYudhoyonoJuly 2001 – October
2004
Elected by MPR
Lost election to SBY
July 2001 – October
2004
Elected by MPR
Lost election to SBY
MegawatiMegawatiMegawatiMegawati
March 1968 - May 1998
Elected by MPRS
Resigned under
pressure
March 1968 - May 1998
Elected by MPRS
Resigned under
pressure
SuhartoSuhartoSuhartoSuharto

8. THE END OF IMF ASSISTANCE
THE IMF PROGRAM WAS TERMINATED
IN YEAR 2004.

9. WHAT WE HAVE DONE
CONSTITUTION AMENDMENT
DIRECT PRESIDENTIAL ELECTION
CONTINUNING REFORMATION ON
BUREAUCRACY, AND PUBLIC
INSTITUTIONS
RESTRUCTURING THE FINANCIAL SECTOR
RESHAPING CENTRAL-LOCAL
RELATIONSHIP

10. WHAT WE HAVE TO DO TO PUBLIC
ADMINSTRATION
GOVERNMENT FUNCTION REDESIGN
PUBLIC BUREAUCRACY PHILOSOPHY
THE STRUCTURE OF PUBLIC ORGANIZATION
REVISION OF THE REGULATIONS AND LAWS
THE POLICY OF PUBLIC SERVANTS
THE MANAGEMENT OF THE BUREAUCRATIC
REFORMS
PUBLIC BUREAUCRACY WELFARE

11. POSITIVE GROWTH TRAJECTORY
Source: CBS .
 ECONOMY IS ON A STEADY
UPWARD TREND. INDONESIA’S
PERFORMANCE IS VERY MUCH
COMPARABLE IN THE REGION
 OVER THE MEDIUM TERM, THIS
ACCELERATION PROCESS
SHOULD CONTINUE ASSUMING
THAT ALL REFORM PROGRAMS
ARE IMPLEMENTED.
2001-2003
4 %
5.25 %
5 - 6 %
> 7%
2004-2005 2006 2007 - 2009 2010 - beyond
6 - 7 %

12. THE PROSPECTS
MANAGEABLE DEMOCRACY DYNAMISM
BECOME THE 4th
LARGEST
DEMOCRATIC COUNTRY
BANISHING CORRUPTION
EFFECTIVE, EFFICIENT, AND PRODUCTIVE
BUREACRACY
BETTER ECONOMIC AND SOCIAL
INFRASTRUCTURES

13. THE PROSPECTS
HARMONIOUS, ACCOUNTABLE, AND
CONTROLLED CENTRAL-LOCAL
INTERACTION
MORE COMPETITIVE NATIONS
WELL MANAGED ENVIRONMENT AND
NATURAL RESOURCES

14. THE FINAL REMARKS
1. ALTHOUGH THE IMF PRESENCE IN INDONESIA
WAS PRECEDED WITH CONTROVERSIAL, BUT THE
FACT IS THE PROGRAMS BROUGHT INDONESIA
LEFT THE CRISIS
2. NO GENERIC PRESCRIPTION FOR ALL COUNTRIES
EXPERIENCING THE ECONOMIC CRISIS. IT
SHOULD BE HANDLED RATHER CASE BY CASE
AND IN SPECIFIC MANNER FOR EACH COUNTRY.
3. SUPPORT FOR THE REFORM PROGRAM BY THE
COUNTRY'S POLITICAL SYSTEM ALSO ANOTHER
KEY FACTOR

15. THANK YOU