Standard demographic transition theory holds that transition takes place concurrently with socioeconomic development. Oshima has generalized that the pace of demographic transition in Indonesia has been slow and in keeping with standard theory. This article, however, challenges Oshima's contentions and points out that Indonesia has been able to attain a level of demographic transition with a lower level of economic development than that experienced by present-day developed countries during their transitions from high fertility and mortality to low fertility and mortality. Sections consider the theory of demographic transition, population and economic change in Indonesia, and the likely impact of demographic changes on the future of Indonesia's economy. The more rapid demographic transition experienced in Indonesia may be used to stimulate even faster economic progress in the country.