In our September review of the Indonesian economy we take a look at the country's economic development, its balance of payments as well as its banking and monetary policies. Indonesia has achieved notable GDP growth rates of 6. 1% in Pelita III, 5. 2% in Pelita IV, and 6. 9% in Pelita V over the past 25 years. Per capita income increased to US$650 in 1992, indicating an improved standard of living. Despite challenges like falling oil prices and currency depreciation, Indonesia has implemented reforms to boost competitiveness and decrease reliance on oil and gas. The country faces a current account deficit issue and rising foreign debt, but increased foreign investment approvals offer hope for growth. Banks are raising interest rates due to US rate hikes, and the stock market has recently rebounded after a downturn in 1994.