This thesis discusses and examines Indonesia's industrialisation policies and their impacts on the development of the Indonesian economy from 1970 to 1996. The finding of this thesis indicate that Indonesia's industrialisation policies play an important role in supporting the achievement of high and sustained economic growth. Moreover, the shift in the Indonesia's industrialisation policies, since the mid-1980s, from import substitution to export promotion has succeeded in restructuring the Indonesian economy from a predominantly agrarian to semi-industrial country. Consequently, since the mid-1980s, the role of industrial sector has become increasingly important in the Indonesian economy. However, it must be pointed out that, in comparison with the ASIAN-4, the implementation of export promotion policy in Indonesia has not been as dynamic and as successful as that in the ASIAN-4. The reason is that in implementing this policy, the government of Indonesia has not been sufficiently responsive to anticipate the demand of the increasing competitive environment in the international market. Therefore, it is suggested that the government of Indonesia must be more pro-active and responsive to adapt and adjust to the increasing competitive environment in the international market.