The report focuses on the interrelationships between human development, democracy and economic progress in Indonesia, in the wake of the East Asian financial crisis. The Report is an ambitious and innovative undertaking, posing a question that is very much on the agenda of policy-makers in Indonesia: How can Indonesia achieve steady progress in all indicators of human development as it restructures its economy, refashions its governance institutions, and devolves decision-making to regions and localities? The answer, the Report argues, lies in building a new social consensus for Indonesia that renews a shared commitment to human development, establishing that all Indonesians are entitled to nationally mandated standards of human development. The report also contains a wealth of new statistical tables including the HDI, which is now available at the provincial and district levels, allowing key HD issues and priorities to be publicized and debated throughout the country. Despite the odds confronting Indonesia's nascent democracy, including weak political parties, the escalation of social conflict and the demise of social consensus, the Report is optimistic that these challenges can be overcome.