Economic Crisis and Recovery: The Indonesian's Case

The economic crisis in Indonesia can be seen in two perspectives. First, it is a contagion effect of a currency crisis that.hit Thailand in May 1997. Second, it is a combination of economic and political crises of confidence in the country. No one can precisely predict what is going to happen in the near future. Too many domestic factors influence the national economic situation. From the economic point of view, the current crisis reminds policy makers hardly that orientation on growth can not sustain the development. In addition to political reform, economic reform is absolutely needed. This includes a new orientation of development, openness of information, fairness of business deals as well as strong efforts and real actions to eliminate "unhealthly culture" of collution, corruption, croniism and nepotism. Keywords: corruption: collusion and nepotis