The last two decades have seen unprecedented changes in the economic, political, and social fabric of most of Southeast Asia. While urban centers have been the subject of much attention, the rural areas in Asia are equally critical. These rural situations continue to be transformed as a result of processes of urbanization, industrialization, trade, and technological change.As the forces of globalization continue to expand, new opportunities and forms of employment have become more and more accessible to rural populations. Despite a growing literature on the non-farm economy and its associated employment, there is much we do not know about its characteristics and potential. In Indonesia, with a human capital resource of nearly 140 million people residing in rural areas and nearly 3 million persons entering the labor force annually, there is both a tremendous potential for developmental change and an urgency to better understand the non-farm aspects of rural areas.The Indonesian Rural Economy is the most up-to-date and authoritative work on Indonesia’s non-farm development characteristics and potential. These original essays by experts and well-known specialists in the field emphasize the changing importance of off-farm income and the employment contributions of small enterprises. Case studies provide unique insights. The book is both a summary of current knowledge and a call for new inquiries on this critical theme.