Understanding Indonesia: the Role of Economic Nationalism

Abstract

In this paper it is argued that economic nationalism in Indonesia, in its variousmanifestations, has been an important factor in determining particular economicpolicies since Indonesias independence up to the present. These economic policiesparticularly related to the ownership of productive assets owned by foreigners orby residents considered to be foreign, particularly Dutch business interests before1957 and the ethnic Chinese, including Sino-Indonesians, and to the economicfunctions performed by foreigners or by foreign residents. Focusing on one factoralone to understand Indonesia, specifcally Indonesias economic policies over time,is necessarily arbitrary and subjective. However, looking at Indonesias moderneconomic history since independence through the prism of economic nationalismdoes to an important degree explain or highlight the major considerations underlyingparticular economic policies of the Indonesian government because they re?ectedIndonesias national aspirations or national interests.