The Asian Financial Crisis of 1997-98 interrupted Indonesia’s robust economic growth and trade performance. Regaining its previous position, let alone expanding in world markets, now seems a challenge. Prior to the crisis, trade had long been an important driver of economic growth in Indonesia. On the demand side, net exports had been positively contributing to growth, while on the supply side, the expansion of production facilities for exports had boosted expansion of the entire economy. The crisis damaged structural relationships across the economy, and coupled with macroeconomic instability, firms were adversely affected, diminishing their ability to trade. Alongside these developments, several competitors emerged to conquer world markets, increasing the competitive pressure on Indonesian industries.