Economic Policy in Indonesia and Prospects of Russian-Indonesian Trade and Economic Cooperation

Cover Page

Cite item


The article is devoted to the analysis of the current economic situation in Indonesia and the prospects for RussianIndonesian economic cooperation. The author covers the economic development of Indonesia since 1998 Asian economic crisis, the domestic economic agenda and the policy of new President D. Widodo, as well as the history and potential for the further development of trade and economic relations between Russia and Indonesia. The relevance of the research is determined by the increasing role of Indonesia in international politics in the 21st century. Indonesia is the fourth largest country in terms of population, after China, India and the United States. Its economy is 16th in the world and first in ASEAN. It is a member of G20. It is expected that Indonesia will enter the top five largest world economies by 2030. For Russia, the development of relations with the rapidly developing Asian countries is an important element in of its foreign policy strategy of diversifying trading partners and entering the promising markets of developing countries. The main purpose of the article is to analyze current challenges faced by the Indonesian government in implementing new economic policy, to identify promising areas of bilateral cooperation of Russia and Indonesia in the context of anti-Russian sanctions. The article points out the potential of these relations and the mutual benefits for the Russian and Indonesian economy. The author used mainly the historical method, which allows tracing the history of the development of the economic situation in Indonesia and the evolution of Russian-Indonesian relations. While analyzing Indonesia’s domestic economic policy, the key research method has been a comparative analysis, which contributed to summarizing the achievements of Indonesian politics. In conclusion, the author identifies promising areas for further development of Russian-Indonesian trade and economic relations taken into account modern Indonesian economic policy’s need agenda.

About the authors

Dame Maria-Nova Sibarani

RUDN University

Author for correspondence.

Postgraduate student, Theory and History of International Relations Department

Moscow, Russian Federation


  1. Boediono. (2005). Managing the Indonesian Economy: Some Lessons from the Past. Bulletin of Indonesian Economic Studies, 41 (3), 309—324.
  2. Cornot-Gandolphe, S. (2017). Indonesia’s Electricity Demand and the Coal Sector: Export or meet domestic demand? Oxford Institute for Energy Studies. March. URL: (accessed: 21.11.2018).
  3. Drugov, A.Y. (2007). Indonesia in 2006. Economic Stabilization and Elite Disagreement. Southeast Asia: Current Development Challenges, 10, 190—212. (In Russian).
  4. Drugov, A.Y. (2009). Russia — Indonesia: “Ebbs and Flows”. Asia and Africa Today, 12, 5—12. (In Russian).
  5. Efimova, L.M. (2010). Foreign Policy Process in Indonesia. Vestnik MGIMO-University, 37 (4), 200—211. (In Russian).
  6. Efimova, L.M. (2014). Russian-Indonesian Relations in 21st Century. International Relations, 37 (4), 73—81. (In Russian).
  7. Efimova, L.M. (2016). The Foreign Policy Doctrine of Indonesian President Joko Widodo. Southeast Asia: Current Development Challenges, 33, 55—69. (In Russian).
  8. Elias, S. & Noone, C. (2011). The Growth and Development of the Indonesian Economy. Reserve Bank of Australia Bulletin, 33—43.
  9. Hamilton-Hart, N. & Schulze, G. (2016). Taxing Times in Indonesia: The Challenge of Restoring Competitiveness and the Search for Fiscal Space. Bulletin of Indonesian Economic Studies, 52 (3), 265—295.
  10. Khokhlova, N.I. (2011). Yudhoyono’s First Term: Avenues and Horizons of Indonesian Foreign Policy. Vestnik MGIMOUniversity, 19 (4), 54—60. (In Russian).
  11. Khokhlova, N.I. (2018). Relations between Russia and Indonesia at the Present Stage. Southeast Asia: Current Development Challenges, 18 (2), 99—105. (In Russian).
  12. Kurniawan, R. & Managi, S. (2018). Economic Growth and Sustainable Development in Indonesia: An Assessment. Bulletin of Indonesian Economic Studies, 54 (3), 339—361. doi: 10.1080/00074918.2018.1450962
  13. Nugroho, A.E. (2001). Trade Policies and the Export Performance of Indonesia, 1983—1997. The Winners, 2 (1), 38—46.
  14. Pangestu, M., Rahardja, S. & Ing, L.Y. (2015). Fifty Years of Trade Policy in Indonesia: New World Trade, Old Treatments. Bulletin of Indonesian Economic Studies, 51 (2), 239—261.
  15. Pardede, R. & Zahro, S. (2017). Saving not Spending: Indonesia’s Domestic Demand Problem. Bulletin of Indonesian Economic Studies, 53 (3), 233—259.
  16. Patunru, A.A. & Rahardja, S. (2015). Trade Protectionism in Indonesia: Bad Times and Bad Policy. Sydney: Lowy Institute.
  17. Rajah, R. (2018). Indonesia’s Economy: Between Growth and Stability. Lowy Institute, 15 August. URL: (accessed: 20.11.2018).
  18. Ray, D. & Ing, L.Y. (2016). Addressing Indonesia’s Infrastructure Deficit. Bulletin of Indonesian Economic Studies, 52 (1), 1—25.
  19. Resosudarmo, B.P. & Abdurohman. (2018). Is Being Stuck with a Five Percent Growth Rate a New Normal for Indonesia? Bulletin of Indonesian Economic Studies, 54 (2), 141—164.
  20. Robison, R. & Hadiz, V.R. (2017). Indonesia: A Tale of Misplaced Expectations. The Pacific Review, 30 (6), 895—909.
  21. Rock, M.T. (2018). Indonesia’s Centripetal Democracy and Economic Growth. Journal of the Asia Pacific Economy, 23, 156—172.
  22. Sabon, V.L. (2012). Development of Trade and Economic Cooperation between Russia and Indonesia. RUDN Journal of Economics, 1, 41—48. (In Russian).
  23. Touwen, J. (2008). The Economic History of Indonesia. Economic History Association. URL: (accessed: 20.11.2018).

Copyright (c) 2019 Sibarani D.M.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

This website uses cookies

You consent to our cookies if you continue to use our website.

About Cookies