How to Build a Diverse Nation: Lessons from the Indonesian Experience

This article is based on the Mubyarto Public Policy Forum Keynote Lecture delivered on 6 August 2024. A slightly shorter version of the paper was accepted for publication in the Bulletin of Indonesian Economic Studies where it was solicited and subject to peer review (available DOI: https://doi.org/10.1080/00074918.2025.2582855). I am grateful to the Australian National University Indonesia Project, Gadjah Mada University, Firman Witoelar, and Gumilang Aryo Sahadewo for hosting me, and to Muhammad Ryan Sanjaya and Jahen F. Rezki who provided comments on the lecture. The research described in this article is based on collaborations with the following amazing coauthors: Arya Gaduh, Matthew Gudgeon, Masyhur Hilmy, Gabriel Koehler-Derrick, Benjamin Marx, Alexander Rothenberg, and Maisy Wong. Numerous research assistants supported this research as well, and I am grateful for their contributions. Faiz Essa provided excellent research assistance on this paper. I would also like to extend a special thanks to Sudarno Sumarto who supported my work in Indonesia over the past two decades, along with others at the SMERU Research Institute including Asep Suryahadi. I thank the National Science Foundation (SES-1942375) for funding support on some of the projects described in this paper. Everything in the paper reflects my own views and not necessarily those of the institutions or individuals acknowledged here. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.