BY MANY MEASURES, the Indonesian economy prospered under the New Order of President Suharto after he came to power in 1966; growing industries added the benefits of modern technology to the natural abundance of the tropics, once the mainstay of the colonial economy. In 1965, before the New Order was initiated, the Indonesian economy had virtually no industry and little more total production per capita than when controlled by Dutch colonialists. However, so complete was the economic transformation under the New Order that, by the mid-1980s, the production of steel, aluminum, and cement was far more valuable than the produce of many thousands of hectares of plantations. Perhaps the New Order's greatest asset was the resolve to alter policies when they no longer worked. For example, throughout the 1970s, tax revenues earned from oil helped fund growing government investment. In the ...
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