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Indonesia: Growth and Stability in a Global Economy

By: Lakshmi Iyer
  • Format:Print
  • | Language:English
  • | Pages:9
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Abstract

This country case on Indonesia is designed to enable a discussion of the potential risks in financial globalization. The country suffered a severe economic crisis in 1997-98 when global capital withdrew from many Asian countries. A significant currency depreciation of 21 percent during 2013 raised the possibility of another crisis, but Indonesia's economy weathered this change extremely well. The case enables students to understand when global capital inflows pose a risk, and how national economic strategies can successfully benefit from globalization. This case can also be used to discuss the costs and benefits of decentralized decision making, democratic institutions and potential tradeoffs between growth and redistribution.

Keywords

Indonesia; Growth; Stability; Currency Depreciation; Decentralization; Currency; Balance and Stability; Globalization; Economic Growth; Indonesia

Citation

Iyer, Lakshmi. "Indonesia: Growth and Stability in a Global Economy." Harvard Business School Teaching Note 716-063, February 2016.

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