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Indonesia, the world's fourth most populous nation and the dominant power of Southeast Asia, was characterised in the early 1960s as a 'chronic economic dropout'. Out of the turbulence of the mid-1960s has emerged one of the developing world's major socio-economic transformations. This is the first book to provide an integrated treatment of the Indonesian economy since 1966. Hal Hill offers a balanced analysis, evaluation and explanation of Indonesia's economic performance over the past three decades. It highlights the successes - rapid industrialisation, major achievements in the food crop sector, the adoption from the mid-1980s of outward-looking policies, and generally good social progress. It also draws attention to the country's challenges, including the rocky path towards economic reform, the large external debt, regional and ethnic disparities, and the need for a transparent and predictable policy environment.