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Djoko Suryo

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            cultural.  The situation in the country now is that the economy
            is still experiencing a down turn, political corruption is still all
            pervasive, and Indonesian society is threatened by social ten-
            sion and conflict which may, if the general situation worsens,
            lead to widespread social unrest. Sadly, the successful economic
            development of the past three decades now seem to be reversed.
            The deep economic and political crisis in Indonesia is clearly
            indicated by the dramatic deterioration in economic indicators.
            The value of currency fell from about Rp.2,500 per U.S. dollar
            at the omset of the crisis to Rp. 17,000 in January 1998;  and it is
                                                               6
            estimated that in 1998 tens of millions of ordinary Indonesian
            people have sunk back into poverty. 7
                Specific political problem that need to be overcome by Indo-
            nesia are crisis of leadership and the general crisis of credibil-
            ity within the life of nation state which is based on a plural
            society distributed over 17000 islands set in a sensitive geo poli-
            tical maritime context.
                The economic and political crisis in Indonesia, as well as in
            Thailand and Malaysia, may well greatly weaken ASEAN. In
            turn, the weakening of ASEAN would affect the Asia Pacific
            Economic Cooperation forum and the ASEAN Regional forum
            in which the ASEAN leadership is understandably prominent.


            3. Regional Cooperation and Socio Cultural Cooperation

                It is interesting that, dialectically speaking, the Southeast
            Asian economic crisis in Indonesia and Thailand has led to the
            birth of a reformation movement in both countries, with the
            aim of moving toward greater openness and reform in the po-



                5  Hadi Soesastro, “The Indonesian Economy under Abdurrahman
            Wahid”, in Southeast Asian Affairs 2000 (Singapore: Institute of Southeast
            Asian Studies, 2000), pp. 134 – 144.
                6  Ibid., pp. 135.
                7  The Economist ,19 September, 1998, pp. 31 – 32.

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