economy of Indonesia and the Asian financial crisis

indonesia is countries with high economic potential which began to be noticed internationally Southeast Asia's largest economy - has a number of characteristics that put the country in a good position to experience rapid economic growth.

Previous indonesia this often mentioned as a candidate the right to be included in the brazil,rusia,china country group.and Indonesia is gaining attention because its members have sophisticated financial systems and fast-growing populations. A few years ago gross domestic product (GDP).

the Indonesian government wants to reduce traditional dependence on crude commodity exports and increase the role of the manufacturing industry (eg through Law No. 4 of 2009 on Mineral and Coal Mining), it is a difficult road especially since the private sector is still hesitant to invest But this transformation is important because falling commodity prices after 2011 (largely due to weakening Chinese economic growth) has had a drastic impact on Indonesia. Indonesia's export performance weakened significantly, implying lower foreign exchange earnings and reduced public purchasing power, leading to an economic slowdown.

now the Indonesian government is under the leader joko widodo

who was inaugurated as Indonesia's seventh president in October 2014) has implemented several structural reforms aimed at long-term economic growth but causes short-term pain. For example, most of the fuel oil subsidies (BBM) have been successfully dismissed, remarkable achievements (since the previous cuts in fuel subsidies have always caused great outrage in the community) were helped by the world's low crude oil prices.

ASIAN FINANCIAL CRISIS

The Asian financial crisis of the late 1990s was one of the most important events in Indonesian history. Beginning with the financial crisis (Krismon), the crisis rapidly spread into a social and political crisis that resulted in the end of Suharto's rule legitimized by economic development. Indonesia became the country hardest hit by this crisis so that some of the economic progress achieved during the New Order regime became useless.