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The SMERU Research Institute is pleased to publish its first Annual Report since becoming an independent and autonomous research institution in 2001. From 1998 to 2000, SMERU was an ad hoc research unit set up to examine the social impact of the Indonesian economic crisis.


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Over the past two years the SMERU Research Institute has been striving to deliver quality research. The challenge goes on, directed at alleviating poverty and ultimately benefiting the lives of the Indonesian people. The year 2002 was an important one for SMERU. We completed another year of accomplishments, challenges and hard work, yet there remains much more to be done.


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SMERU's performance in 2003 was marked by a significant increase in research output. We even managed to exceed our annual targets. It was also a year of recognition for SMERU. In addition to other achievements, one of our research teams won the 2003 H.W. Arndt Prize, an annual award from the Australian National University for the best article published in the Bulletin of Indonesian Economic Studies (BIES).


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The SMERU Research Institute is pleased to publish its fourth Annual Report to present an account of the wide range of activities carried out by the Institute in 2004 as well as its future direction. The year 2004 has been a significant milestone in SMERU's progress towards establishing itself as an independent research institute in Indonesia.


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It is our pleasure to deliver to you the Annual Report of the SMERU Research Institute for 2005. We had a challenging year, but we have been able to accomplish our mission effectively with a strong impact on policy making.


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