The political economy of Indonesia and Asian development Bank Partnership towards economic liberalization during President Susilo Bambang Yudhoyono's second administration (2009-2014)

Olivia, Mashita (2016) The political economy of Indonesia and Asian development Bank Partnership towards economic liberalization during President Susilo Bambang Yudhoyono's second administration (2009-2014). Bachelor thesis, Universitas Pelita Harapan.

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Abstract

Indonesia has been a member of Asian Development Bank (ADB) since its first establishment in 1966. Since then, the partnership between Indonesia and ADB has developed to complex needs of a rapidly evolving middle-income country. This thesis is built from the 2008 Global Financial Crisis (GFC), where ADB’s role becomes more prominent in ensuring its ability and flexibility in meeting its current and future member countries’ needs. Using this momentum, President Yudhoyono utilized ADB’s ability that was crucial in the process of economic recovery for Indonesia. The role of its involvement in domestic economy helped President Yudhoyono brought economic changes necessary. Thus, three research questions rise: (1) what is the background information of Indonesia and Asian Development Bank partnership that leads to economic liberalization? (2) to what extent does ADB promote economic liberalization in Indonesia? (3) to what extent does the political pressures hinder or slow down the process of economic liberalization? This thesis finds that ADB emphasizes on good governance, democracy, and development must go hand-in-hand along the way in order to create strong foundation of economic liberalization, with the purpose in attaining inclusive and sustainable economic growth and poverty reduction. However, such economic liberalization is hard to realize due to the opposition from political pressures by the parliament and coalition politics.

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