Indonesia is now the fourth largest country in the world, but many aspects of its economic history remain poorly understood. Anne Booths study is the first comprehensive survey of Indonesian economic history in the 19th and 20th centuries, examining both the Dutch colonial era, and the postindependence period. Extensive use is made of recent work by Dutch, Indonesian and Australian scholars to analyse a number of key issues relating to economic growth and structural transformation of the Indonesian economy from the early 19th century to the present. Particular attention is paid to the role of government in the economy, the impact of growing involvement in international trade, and the changing distribution of income and wealth between ethnic groups, social classes and regions. It is argued that an understanding of both the successes and failures of past economic policies is crucial for anyone interested in the development challenges which still confront this important Asian economy.