THE STATE IN INDONESIAN CAPITALISM 49 NOTES 1. In this connection, it should be noted that while rates of gross domestic savings have been very high and more than investment rates, the rates of gross national savings have been substantially lower, and are typically lower than investment rates by between 1 and 4 per cent of wGDP over this period. This reflects the importance of domestic savings generated by multinationals operating in Indonesia, whose income makes up around one-fiftrrof GDP, and who typically export a substantial proportion of savings in the form of outflow. 2. The various measures are highly sensitive to the sample of the survey used to estimate the extent of poverty. However, the same basic methodology is used for calculation of poverty figures in all the estimates: a minimum calorie requirement is specified, and then the expenditure is estimated on the basis of costs of foodgrains which supply this minimum along with some allowance for essential non-food expenditures. 3. The regional spread of poverty also reinforces the conclusion that many rural areas, especially in the Outer Islands, remain impoverished. The largest declines in poverty, according to the official statistics, are to be found in the island of Java. Some Outer Islands, such as Kalimantan and Sumatra, actually show increases in rural poverty. 4. The rapid pace of deforestation points to the difficulties in sustaining manufacturing growth based on forestry products, especially the plywood and paper industries which are among the fastest growing sectors in terms of both output and employment. REFERENCES Bradford, Colin I. Jr., and William H. Branson (eds.) [1987], Trade and Structural Change in Pacific Asia, Chicago: University of Chicago Press. Dapice, David [1980], "An overview of the'Indonesian economy", in G. Papanek (ed.). The Indonesian Economy, New York: Praeger. Donges, Juergen B., Bernd Stecher and Frank Wolter [1980], "Industrialization in Indonesia", in G. Papanek (ed.). The Indonesian Economy, New York: Praeger. Erquiaga, Philip [1987], "Improving Domestic Resource Mobilization through Financial Development: Indonesia", ADB Economic Staff Paper no. 40, Manila: Asian Development Bank. Firdausy, Carunia Mulya [1994], "Urban poverty in Indonesia: Trends, issues and policies" in Asian Development Review^ Vol. 12 No. 1, pp. 68-89. Higgott, Richard and Richard Robison (eds.) [1985], Southeast Asia: Essays in the Political Economy of Structural Change, London: Routledge and Kegan Paul. Morris-Suzuki, Tessa [1991], "Reshaping the international division of labour: Japanese manufacuring investment in South-East Asia", in Jonathan Morris (ed.), Japan and the Global Economy, London: Routledge. Robinson, Wayne [1985], "Imperialism, dependency and peripheral industrialization: The case of Japan in Indonesia", in Higgott and Robison (eds.), Southeast Asia, London. Robison, Richard [1985], "Class, capital and the state in New Order Indonesia", in Higgott and Robison (eds.), Southeast Asia, London. Robison, Richard [1987], "After the gold rush: the politics of economic restructuring in Indonesia in the 1980s", in Richard Robison, Kevin Hewison and Richard Higgott (eds.), Southeast Asia in the 1980s: The Politics of Economic Crisis, Sydney: Alien and Unwin. Thorbecke, Erik et al [1992], Adjustment and Equity in Indonesia, OECD Development Centre Study, Paris: OECD. Wawn, Brian [1982], The Economies of the ASEAN Countries, London: Macmillan. World Bank [1989], Indonesia: Strategy for Growth and Structural Change, Washington, D.C. World Bank [1990a], Indonesia: Foundations for Sustained Growth, Washington D.C. World Bank [1990b], Indonesia: Poverty Assessment and Strategy Report, Washington, D.C. World Bank [1992], Indonesia: Agricultural Transformation Challenges and Opportunities, Washington, D.C.