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A review of events in Indonesia since the overthrow of Communism and of Indonesia's current plans for economic development. The priorities set by Indonesian economic planners are in accord with the best judgment of the international economic profession: an emphasis on increasing food production, on encouraging those industries that produce inputs for agriculture, and on developing Indonesia's plantations and extractive industries. Indonesia has passed an excellent law on investment of foreign capital to encourage private foreign investment in those sectors that are the major source of foreign exchange earnings. 10 pp.

This report is part of the RAND Corporation paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

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