AID AND POVERTY REDUCTION: THE INDONESIAN EXPERIENCE

Abstract

In the beginning of the ‘new order ’ (NO) regime in 1966, the average Indonesian earned only roughly US$50 a year; about 60 % of adult Indonesian could not read or write; and close to 65 % of the country’s population lived in absolute poverty. Facing this condition, the new order government launched five-year economic development plans, with the first plan started in 1969, and made several crucial economic policies in the 1970s and 1980s, including liberalization in

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