Author:
IBC Team
15 August 2024
Indonesia’s chapters of socio-political dynamics have led to maturing governance
Since proclaiming independence, Indonesia has undergone a dynamic evolution of its governance structures, transitioning through periods of political upheaval and economic challenges. From the early days of establishing sovereignty to navigating the complexities of regional diversity, Indonesia has progressively matured into a more stable governance system. This maturation has been marked by significant reforms, including the fostering of democratic processes, the strengthening of civil society, and the decentralization of power.
Central Government’s authority has devolved across the archipelago – bringing governance closer to where people live
Despite multiple political transformations and economic drawbacks, the improvement of Indonesia’s governance has managed to bring about overall progress for the nation, and the country’s socio-economic indicators have been showing notable improvements across the boards.
Considered as one of the “High Performing Asian Economies” or the “East Asian Miracles” because of its significant economic growth from the 1960s to the 1990s, Indonesia was characterized by high rates of investment and savings, rapid industrialization, declining income inequality, reduced poverty, rapid demographic transition and dynamic agricultural sector, skilled labor force development, and a notable increase in exports.
Though the Asian Financial Crisis of 1997-1998 highlighted vulnerabilities in Indonesia’s economic structure, leading to severe economic and social upheavals – the crisis has prompted major governance reforms that eventually stabilized the economy and set the stage for future growth.
Macroeconomic indicators
Socio-economic development indicators
Indonesia’s achievements in the past were driven by well-measured policy. Historically, prior to all of Indonesia’s significant reduction in infant mortality rate and poverty while increasing primary school enrollment in the last decades, progress was driven by well-measured policies. For instance, in the 1970s and 1980s, the Indonesian government intensively promoted a birth control program in response to the outstanding infant mortality rate. Study finds that, due to that policy, Indonesia was estimated to have prevented 523,885 to 663,146 maternal deaths between 1970 to 2017, simultaneously becoming one of the contributing factors to improving quality and aggregate productive age group1 (Utomo et al., 2021).
