STATE REGULATION OF THE ECONOMY OF INDONESIA DURING ECONOMIC CRISES OF 1997–98 AND 2008–09

The article is analyzing the models of state regulation of the economy of Indonesia throughout the Asian financial economic crisis of 1997–98 and the World economic crisis of 2008–09 and the effects on the national economy of Indonesia. The statistics of economic development (GDP and GDP per capita and other social and economic indicators) of Indonesia are analyzed and several graphs and tables have been created for the scientific research purposes. According to the research data, it has been proved that Indonesia has been constantly improving its major economic indicators (like GDP per capita, especially in comparison to the world average level) showing 5–7% rate of economic growth, only with the exception of the period of the Asian financial-economic crisis of 1997–98, when the country's economy was hit hard by the crisis. Throughout the article the comparative analysis of successes and failures of different models of state regulation during the economic crises of 1997–98 and 2008–09 is given. The article provides a comparative table of the model for the management of the economy in Indonesia throughout the two crises periods. The experience of Indonesia indicates that the correct and responsible, effective macroeconomic policy of the government during the world economic crises has very important meaning for the national economy of the respective country. The experience of Indonesia in successful overcome and avoiding of the international crisis of 2008–09 — is interesting and useful for the governments, committees and ministries of economic development, as well as for economists in Ukraine and other countries of the world. Unfortunately, all the economic reforms that have been implemented in Ukraine over the last 30 years have not produced the desired result. In Ukraine, in contrast to Indonesia, no high levels of economic growth were observed during the recent 30 years. In the process of 1990s economic reforms in Ukraine, there was a sharp decline in production and a great portion of the working-age population was forced to leave the country in search of better-paid jobs abroad. On the other hand, through sound economic policies, Indonesia has been able to make significant strides in creating a modern, powerful economy throughout the recent 30–40 years. At the moment the GDP of Indonesia is the 7th largest in the world (behind Germany and Russia and before Brazil).