Indonesia’s Crisis and the Agricultural Sector the Relevance of Agricultural Demand-Led Industrialisation

Abstract

Following a remarkable period of sustained economic growth and development over the past three decades, Indonesia is experiencing an unprecedented economic and social crisis. The effects of the economic crisis have seriously undermined social welfare gains made by Indonesia over the past three decades. Indonesia has commenced a comprehensive program of economic and social reform aimed at restructuring the economy. This paper provides an overview of the social impact of economic crisis and how the economic crisis has impacted on the agricultural sector. Particular emphasis is placed on the relevance of agricultural demand-led industrialisation (ADLI) to address the economic crisis in Indonesia. The ADLI strategy argues that agriculture can be developed as an engine for economic recovery.