A Brief History and Analysis of Indonesia's Forest Fire Crisis

Abstract

Two major events of 1997 and 1998-the forest fires and smoke covering Southeast Asia and the worst financial crisis since the beginning of President Suharto's New Order-have made it safe to say that Indonesia has lost its invisibility.2 On the surface, the fires and the crisis seem like unrelated events which each emerged from a series of causes beyond the regime's control. One could be forgiven for thinking that the fires were simply a natural crisis. Obviously, the regime could do nothing to control the periodic warming of ocean currents known as the El Nifio Southern Oscillation (ENSO), which brought extended drought to the country. Similarly, the long-praised sound fundamentals of Indonesia's economy seemed unshakable until (and even after) Thailand's currency crisis led to a parallel currency crisis and investor lack of