PERKEMBANGAN EKONOMI MASA DEMOKRASI TERPIMPIN | SEJARAH INDONESIA KELAS 12

Summary

This video script delves into Indonesia's state-controlled economy from 1959 to 1965, marked by irrational policies leading to significant fiscal deficits and inflation. It highlights political economy policies, such as efforts to eliminate neocolonialism and the impact of political events like the West Irian takeover and the Indonesia-Malaysia confrontation. The script also discusses the extreme monetary measures taken in 1959, the establishment of the National Planning Board, and the economic crisis's escalation by 1965. The video concludes with the political ambitions of President Soekarno, including the Asian Games and the formation of the Games of the New Emerging Forces (GANEFO), reflecting the complex interplay of politics and economy during this period.

Takeaways

• 😀 The Indonesian state-controlled economy from 1959 to 1965 resulted in full state control over economic development, characterized by irrational policies and a significant budget deficit.
• 🏛️ Economic policies during this period were heavily influenced by political motives, such as the revolution and confrontation with Malaysia, diverting funds from economic development to political interests.
• 📉 Inflation was a persistent problem in Indonesia's economy, reaching a peak of 22.2% in 1959, and was exacerbated by uncontrolled money printing and a lack of domestic production.
• 💹 The government attempted to address economic issues with extreme monetary policies, including credit limits and currency devaluation, which had widespread social and economic impacts.
• 📉 The extreme measures taken by the government, such as the 100% currency devaluation in 1959, led to a significant drop in purchasing power and a liquidity crisis.
• 📈 Despite attempts to control the money supply, inflation and deficit rates soared to 592% and 63.4% respectively by 1965, causing a dramatic increase in commodity prices.
• 🛑 President Soekarno's 'Dekon' economic declaration aimed to build a democratic and people-oriented economy but was hindered by political confrontations and delays.
• 🏗️ The establishment of the National Planning Council (Depnas) was an effort to coordinate national development plans, but it faced challenges due to不成熟的 planning and political interference.
• 🌐 Soekarno's vision of Indonesia as a leader in the anti-colonial and anti-imperialist movement led to the pursuit of large-scale development projects to assert national pride and identity.
• 🏅 The hosting of the Asian Games in 1962 and the subsequent Games of the New Emerging Forces (GANEFO) were part of Soekarno's political strategy to showcase Indonesia's prominence on the international stage.
• 🏢 The construction of iconic buildings like Monas and Istiqlal Mosque was part of the political effort to demonstrate Indonesia's status as a great nation, but these projects diverted resources from essential economic development.

Q & A

What type of economic system was in place in Indonesia from 1959 to 1965?

An etatist economic system was in place, characterized by full state control over economic development.

What were the visible signs of the state's economic control during this period?

The signs included irrational economic policies, a situation where state revenue was inversely proportional to the large state expenditures on mega-projects, resulting in deficits and inflationary budgets.

How did political policies influence the economy during the era of guided democracy?

Political policies often took precedence over economic rationality, with funds intended for economic development being diverted to political interests, such as the West Irian takeover and the Indonesia-Malaysia confrontation.

What was the impact of the economic policies on inflation in 1959?

Inflation reached 22.2%, which was a significant issue due to uncontrolled macroeconomic management, low domestic production, and uncontrolled money printing.

What extreme monetary policy was implemented in response to the worsening economic situation in 1959?

The government implemented the Pagu Credit policy, which limited the maximum amount of credit banks could give to customers, and the sandering policy, which involved cutting the value of the rupiah by 100%.

What was the consequence of the extreme sandering policy on the value of the rupiah?

The sandering policy drastically reduced the value of the rupiah, with banknotes of Rp500 being reduced to Rp50 and Rp1,000 to Rp1.

How did the economic crisis manifest in the society after the implementation of extreme economic policies?

The crisis led to a significant decrease in people's purchasing power and affected all social strata, including the rich, bureaucrats, and entrepreneurs.

What was the 'Dekon' economic declaration aimed at achieving?

The 'Dekon' aimed to build a democratic economy oriented towards the people, capable of increasing national income, but it ended quickly due to President Soekarno's delaying attitude amidst the Indonesia-Malaysia confrontation.

What were the major projects included in the national development plan initiated by President Soekarno?

The plan included various projects spread across Indonesia, focusing on heavy industry and basic chemical industries, such as the construction of a superfosphate factory in Cilacap, a steel smelting plant in Cilegon, and cement, sugar, and paper factories in various locations.

What was the impact of President Soekarno's political ambitions on the national development plan?

Soekarno's ambitions led to a deviation from the original economic development goals, with funds being allocated for political interests, such as the confrontation with Malaysia, instead of economic development.

How did the political situation affect Indonesia's stance towards international monetary organizations like the IMF and the World Bank?

The government took a hostile stance towards these organizations, which further complicated the economic crisis and limited potential support from international financial institutions.

What was the 'Ganevo' and why was it established?

The 'Ganevo' or the Games of the New Emerging Forces was established by Soekarno as a response to Indonesia's blacklisting from the Olympics.