This paper assesses some of the major policy debates currently occurri
ng in Indonesia. It is argued that, while Indonesia's economic perform
ance over the past 30 years has been very good, some of these debates
are centred on misleading or irrelevant 'myths' which may have adverse
policy consequences. There is some evidence that the reform momentum
has slowed in the past few years, while other pressing policy challeng
es have not been addressed with the vigour evident in the 1980s. Debat
e over these myths may therefore be contributing to a somewhat less co
herent policy regime, just as the country is wrestling with post-Soeha
rto succession scenarios.