The Indonesian Crisis: Results from IFLS2/2+

Indonesia experienced vast changes in the both the economic and the political environment during 1998. Output fell by 12-15% relative to its 1997 level and inflation was 80% for the year. Riots and demonstrations took place in a number of Indonesian cities, leading to but not ending after the resignation of President Suharto in May of 1998.

Few Indonesians have remained untouched by these and other events of the last several years. The drought of 1997, the price shocks associated with the collapse of the rupiah, and removal of subsidies and the income shocks arising from changes in demand combine to yield an extremely complex picture of substantial change throughout the society. The effects of the crisis on the welfare of the population are nuanced and heterogeneous. They vary by region, across socio-economic groups, and across demographic groups. If policies are to succeed at mitigating the effects of the crisis, they must be based on solid information about who has been affected, how they have been affected, and how they are changing their behaviors in response to the crisis.

The IFLS seeks to provide information on these topics. For the purpose of understanding how the economic crisis has affected welfare, the responses of individuals interviewed in the second half of 1997 (IFLS2) can be compared to responses obtained through reinterviews with those same individuals in the second half of 1998. For additional description of these surveys please see HOUSEHOLD SURVEY: IFLS1 AND IFLS2 and IFLS2+. In addition, several papers using the IFLS data to characterize the crisis are available.

The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesian Family Life Surveys by Elizabeth Frankenberg, Duncan Thomas, and Kathleen Beegle.

This paper presents a wide array of preliminary findings on the impact of the crisis drawn from analysis of the IFLS2 and the IFLS2+. This study presents information on changes in a number of dimensions of family and individual well-being between 1997 and 1998. Among other topics, the study examines expenditure patterns, employment and earnings, education, use of health care and family planning, and health status.

In addition to "The Real Costs of Indonesia's Economic Crisis," there are several other papers that draw on the IFLS2 and IFLS2+ data and focus on specific areas of interest. These are also available in PDF format.

"Household Budgets, Household Composition and the Crisis in Indonesia: Evidence from Longitudinal Survey Data." Duncan Thomas, Elizabeth Frankenberg, Kathleen Beegle, and Garciela Teruel.

"Health, Education and the Economic Crisis in Indonesia." Elizabeth Frankenberg, Kathleen Beegle, Duncan Thomas, and Wayan Suriastini. The full text and tables are available in Adobe Acrobat (PDF) format.

"Indonesia's Economic Crisis and its Effect on Health and Family Planning." Kathleen Beegle, Elizabeth Frankenberg, Duncan Thomas, Wayan Suriastini, and Victoria Beard. The full text and tables are available in Adobe Acrobat (PDF) format.