Indonesia's industrial policy reforms and their environmental impacts

Abstract

The fast growth of the manufacturing sector in Indonesia during the 1970s and 1980s and its relatively steady growth during the 1990s and early 2000s were argued to be the result of the kind of industrial policy reforms that were implemented. However, another important development since the early 1970s has been the rapidly deteriorating quality of environmental conditions in the country. Thus, the purpose of this paper is to analyse how industrial policy reforms have impacted on the environmental performance of industry, as well as to describe whether the introduction of industrial environmental policies has reduced industries' environmental impact.