COMPARATIVE ANALYSIS OF THE INDONESIAN ECONOMY ANDTHE PHILIPPINES FROM AN ECONOMIC DEVELOPMENT PERSPECTIVE

Abstract

This study aims to examine the economic transitions of Indonesia and the Philippines from an economic development perspective by tracing changes in economic structure from 1960 to the Reformasi era. The study analyzes general economic conditions, specific economic sectors that were the mainstays of recovery, and the economic policies implemented during the transition period following the fall of the regime. The Philippines began its transition period after the fall of Ferdinand Marcos in 1986, triggered by a prolonged economic crisis that culminated in a sharp contraction in 1984-1985. Meanwhile, Indonesia experienced a transition when the Asian monetary crisis of 1997-1998 caused economic collapse and triggered political changes leading to the Reformasi era. The results show that the two countries adopted different approaches: the Philippines adopted economic liberalization and labor remittances as their primary strategies, while Indonesia emphasized structural reform, fiscal stabilization, and strengthening the industrial and MSME sectors. This study highlights the differences in national development strategies chosen by the two countries and provides insight into the influence of the political context on the effectiveness of economic policies