Just over a decade ago, in 1998, Indonesia was the hardest-hit country during the 1997/1998 Asian financial crisis, resulting in severe economic, political and social disorder. Since the crisis, Indonesia’s political system has undergone a profound transformation, however, few studies have attempted to examine the nature of policy-making processes in Indonesia to date. 

This paper not only tries to enhance the debate about policy-making in Indonesia but goes further in assessing the role that knowledge has played. Specifically, this paper aims to inform the Australian International Agency for International Development (AusAID)’s current effort to develop a programme in support of Indonesia’s knowledge sector. The objectives of the study are to: 1) describe formal policy processes in Indonesia; 2) uncover the realities or informal practices of policy processes and 3) assess the factors that motivate policy-makers to invest in, demand and/or use knowledge in policy-making.

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