Major Issues Summary The Asian currency crisis arose from a collapse of confidence in the ability of a number of countries to maintain their fixed exchange rates while continuing to allow the free movement of foreign finance capital at a time of increasing current account deficits. The Indonesian rupiah was initially not affected by the pressure on other regional currencies. When it begin to fall, however, the underlying weakness of the Indonesian financial sector was revealed and private foreign debt was far higher than previously thought.
A Historical Glimpse The first known hominid inhabitant of Indonesia was the so-called "Java Man", or Homo erectus, who lived here half a million years ago. Some 60, years ago, the ancestors of the present-day Papuans move eastward through these islands, eventually reaching New Guinea and Australia someyears ago.
Much later, in about the fourth millennium B. Trade contracts with India, China and the mainland of Southeast Asia brought outside cultural and religious influences to Indonesia. One of the first Indianized empires, known to us now as Sriwijaya, was located on the coast of Sumatra around the strategic straits of Malacca, serving as the hub of a trading network that reached to many parts of the archipelago more than a thousand years ago.
On neighboring Java, large kingdoms of the interior of the island erected scores of exquisite of religious monuments, such as Borobudur, the largest Buddhist monument in the world.
The last and most powerful of these early Hindu-Javanese kingdoms, the 14th century Majapahit Empire, once controlled and influenced much of what is now known as Indonesia, maintaining contacts with trading outposts as far away as the west coast of Papua New Guinea.
Indian Muslim traders began spreading Islam in Indonesia in the eighth and ninth centuries. By the time Marco Polo visited North Sumatra at the end of the 13th century, the first Islamic states were already established there. Soon afterwards, rulers on Java's north coast adopted the new creed and conquered the Hindu-based Majapahit Empire in the Javanese hinterland.
The faith gradually spread throughout archipelago, and Indonesia is today the world's largest Islamic nation. Indonesia's abundant spices first brought Portuguese merchants to the key trading port of Malacca in Prized for their flavor, spices such as cloves, nutmeg and mace were also believed to cure everything from the plague to venereal disease, and were literally worth their weight in gold.
The Dutch eventually wrested control of the spice trade from Portuguese, and the tenacious Dutch East India Company known by initials VOC established a spice monopoly which lasted well into the 18th century.
During the 19th century, the Dutch began sugar and coffee cultivation on Java, which was soon providing three-fourths of the world supply of coffee.
By the turn of the 20th century, nationalist stirring, brought about by nearly three centuries of oppressive colonial rule, began to challenge the Dutch presence in Indonesia. A four-year guerilla war led by nationalists against the Dutch on Java after World War II, along with successful diplomatic maneuverings abroad, helped bring about independence.
The Republic of Indonesia, officially proclaimed on August 17th,gained sovereignty four years later. During the first two decades of independence, the republic was dominated by the charismatic figure of Sukarno, one of the early nationalists who had been imprisoned by the Dutch.
|Keep Exploring Britannica||These average annual growth percentages were calculated by Booth by fitting an exponential curve to the data for the years indicated. Up to data refer only to Java.|
|History of Indonesia | timberdesignmag.com||See Article History Asian financial crisis, major global financial crisis that destabilized the Asian economy and then the world economy at the end of the s.|
Soeharto eased Sukarno from power in Indonesia's economy was sustained throughout the 's, almost exclusively by oil export. On May 21,Soeharto resigned after 32 years in power and was replaced by B.
Habibie following bloody violence and riots.
Indonesia held its first democratic election in Octoberwhich put Abdurrahman 'Gus Dur' Wahid in the role of president.In the excellent first book-length survey of Indonesia’s modern economic history was published (Booth ). The stress on synthesis and lessons is also present in a new textbook on the modern economic history of Indonesia (Dick et al ).
The economic history of Indonesia analyzes a range of topics, varying from the characteristics of the dynamic exports of raw materials, the dualist economy in which both Western and Indonesian entrepreneurs participated, and the strong measure of regional variation in the economy.
The apparent end to this success will have grave implications for the political stability of the Indonesian state. The crisis has been a psychological blow to confidence that Indonesia had finally overcome its long history of economic and political instability and was set on a long-term path to prosperity.
Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania.
Indonesia is an archipelago comprising approximately 17, islands. It has 33 provinces with over million people, and is the world's fourth most populous country. Indonesia is .
Indonesia was the country hardest hit by the Asian financial crisis of – Against the US dollar, the rupiah dropped from about Rp. 2, to a low point of 14,, and the economy shrank by %. VIDEO LECTURES "Structure of the Global Crisis" Greek Public TV June 27, ; Central Bank of Argentina Conference on Money and Banking, October 1, - Part 1 of 3.