Indonesia: a tale of misplaced expectations

Abstract

Few countries have been burdened with such great expectations as Indonesia and have failed to meet them in the ways expected. Economists have persistently predicted that Indonesia could be an economic giant in the region, challenging the state-led economies of Northeast Asia on the basis of free market policies. After the fall of Soeharto in 1998, pluralist political scientists saw Indonesia as a shining light for democratic transition. More recently, Indonesia has been hailed as a model for how democracy might work in a Muslim-majority country. Yet, we are still waiting for a new economic giant to emerge while democracy has not been able to resolve growing concentration of power and wealth ..