THE INSTITUTIONALISATION OF MACRO ECONOMIC MEASUREMENT IN INDONESIA BEFORE THE 1980s

Pierre van der Eng

Abstract

Macro-economic measurement goes back to the seventeenth century and became
common practice in Western countries since the late-nineteenth century. Since then, the
composition of some of the largest economies in Asia, particularly India and Japan,
was also probed. And since the 1940s government agencies in many Asian countries
had responsibility for the development and implementation of consistent national
accounting practices to assist the planning of economic development. While this
was in principle also the case in Indonesia, it took into the 1970s before consistent
processes of macro- economic measurement were put in place that facilitated the
analysis of long-term economic growth. The paper asks why this was the case. It finds
that institutional discontinuities and limited resources prevented the establishment of
consistent and well-defined national accounting practices until well into the 1970s.
Keywords: National accounts, Economic growth, Macro-economic measurement

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