M Ikhsan Modjo

M Ikhsan Modjo is a PhD Candidate at the Department of Economics, Monash University, Melbourne, Australia. He is also lecturer at Facuty of Economics, Airlangga University , Surabaya. He completed his master degree in commerce at the Faculty of Commerce and Economics, University of New South Wales, Sydney, Australia. Mr. Modjo was appointed as analyst for four years, from 1997 - 2001 in various respectful companies including Westpac Banking Corporation. During his PhD study, Ikhsan serves as lecturer Department of Economics, Monash University.

On The Role of Government in Economy

This paper sets some general principles and mechanisms for effective institutional arrangements on the role of the government, which contributes to the current lively debate on institutional arrangements for sustainable economic development in Indonesia. The paper is motivated both by the Indonesian economic experience, before and after the crisis, and newly empirical observations in several countries, which suggest that neither notorious interventionist nor pure liberal strategist would deliver a sustainable and prolong economic growth. Instead, as will be argued, a combination of both in the form selective interventions might be warranted, as long as strong adherence to some principle and mechanisms are upheld.