The Indonesian economy, like the Indonesian nation state, took shape as part of the colonial transformation of the archipelago by the Dutch in the mid-nineteenth century. The agricultural sector of the economy provided food and labor to the export sector, which was firmly incorporated into the world economy through international trade. This economic pattern survived several shifts and persisted even after Indonesia became independent in the mid-twentieth century.
Hiroyoshi Kano uses international trade statistics to analyze three key elements of the Indonesian economy: the balance of...