PENDEKATAN MALAYSIA DAN INDONESIA DALAM MENGATASI KRISIS EKONOMI 1997: KESAN TERHADAP PELABURAN MALAYSIA DI INDONESIA.

Abstract

The economic crisis in 1997, which hit Thailand, South Korea, the Philippines, Malaysia, and Indonesia has a huge impact on economic inflation and the currency values of these countries. Malaysia and Indonesia were also negatively affected by thiseconomic crisis. The focus of this study is to analyse the steps taken by both the Malaysian and Indonesian governments to overcome and recover from the economic crisis. This study thoroughly examines the differences in policies and strategies practised by the Malaysian and Indonesian governments to judge their impacts on economic recovery by using qualitative methods. In addition, this study also examines the effect of the economic crisis of 1997 on Malaysian investment in Indonesia. The findings show that the failure to overcome theeconomic crisis of 1997 not only impacted national economic development, but also the national political environment. This situation impacted Indonesia politics to the extent that it brought about the fall of Suharto’s New Order government. Indonesia’s failure to improve the economic situation in the short-term affected Malaysia investment, especially in agriculture, in Indonesia. This then meant the discontinuation of agriculture operations until Indonesia’s economy has recovered.

Received: 27 September 2018

Reviewed: 17 January 2019

Accepted: 12 October 2019