Abstract
Domestic politics matters in the regionalism process. The changes in domestic politics potentially shift the direction of a state’s involvement in the regionalism process. Such an examination on Indonesian political life is necessary to provide insights into, and a deeper understanding of, the changes in Indonesian domestic politics and their influence on Indonesia’s commitments to regional financial cooperation. This chapter provides an assessment of the three types of administration—non-democratic, transition and democratic—in Indonesia, to the development of financial regionalism in East Asia. It also provides analysis on the influence of democratisation on the process of financial regionalism at Indonesia’s national level. Specifically, this part analyses a new configuration of policy-making processes and policy coordination among relevant authorities.
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