Mengapa Orde Lama Runtuh & Orde Baru Berkuasa? | Sejarah Krisis Indonesia #3

Inspect History

24 Apr 202113:07

Summary

TLDRThe video discusses Indonesia's economic struggles post-independence, leading to hyperinflation and crisis in 1965. It explores how political instability and large budget deficits contributed to this situation. The script then delves into the radical changes under President Suharto, including economic reforms that ended hyperinflation and shifted Indonesia from a command to a liberal economy. It also touches on the rise and fall of the PKI, the G30S coup, and the international response to Indonesia's economic recovery efforts.

Takeaways

📉 Indonesia faced a severe economic crisis in the 1960s, including hyperinflation and a large budget deficit.
🏛 The political instability in Indonesia, particularly the rise and fall of the PKI (Partai Komunis Indonesia), contributed to the economic turmoil.
🚩 The failed Madiun rebellion in 1948 and the subsequent rise of PKI until the 1960s showed the persistent communist threat to Indonesia.
🌐 PKI's popularity grew due to its perceived cleanliness from corruption and its alignment with President Soekarno's policies.
🔄 The economic crisis led to experiments by the Old Order government, but these efforts were unsuccessful or complexified the situation.
🛑 The G30S coup in 1965 and the subsequent New Order under Suharto marked a radical shift in Indonesia's political and economic landscape.
🚫 The New Order banned the PKI, declared communism illegal, and arrested its leaders, effectively ending the communist threat.
💼 Economic recovery began with the New Order implementing policies to stabilize the economy, including stopping the printing of money to finance the budget deficit.
🌐 Indonesia opened up to global trade, easing foreign exchange and import-export regulations to attract foreign investment.
📈 Inflation was significantly reduced from 1136% in 1966 to around 15% by 1969, indicating the success of the New Order's economic policies.

Q & A

What was the economic condition of Indonesia in 1965?
-In 1965, Indonesia was experiencing hyperinflation and was in the midst of one of the worst economic crises in its history.
What was the main cause of the economic crisis in Indonesia during the 1960s?
-The main cause of the economic crisis was a large budget deficit which led to severe inflation.
How did political instability contribute to Indonesia's economic problems?
-Political instability led to a large budget deficit and failed policies, which in turn contributed to severe inflation.
What was the role of the PKI (Partai Komunis Indonesia) in the political landscape during the 1960s?
-The PKI was a popular and influential party during the 1960s, gaining support through its alignment with President Soekarno and its opposition to corruption and failed policies of other parties.
What was the significance of the Madiun Uprising in 1948 for the PKI?
-The Madiun Uprising was a significant event that demonstrated the threat of communism to Indonesia and led to the PKI being stigmatized as a rebellious force despite its later success in gaining followers.
How did the PKI's approach to politics change under its new leadership?
-Under new leadership, the PKI made drastic changes by aligning with the PNI and defending Soekarno as a great national leader, which helped them gain popularity despite the stigma from the Madiun Uprising.
What was the impact of the G30S coup attempt in 1965 on Indonesia's political and economic landscape?
-The G30S coup attempt led to the death of several generals, controversy, and a shift in power that eventually resulted in the decline of Soekarno's authority and the rise of Suharto's New Order.
What economic policies did the New Order under Suharto implement to combat hyperinflation?
-The New Order implemented policies such as stopping the printing of money to finance budget deficits, reducing regulations and subsidies, and increasing taxes to achieve a balanced budget.
How did the New Order's economic policies change Indonesia's economic direction?
-The New Order shifted Indonesia's economic direction from a guided economy to a more liberal one, opening up to global trade and encouraging private enterprise.
What was the role of international aid and investment in Indonesia's economic recovery during the New Order?
-International aid and investment played a crucial role in Indonesia's economic recovery by providing financial support, restructuring debt, and encouraging foreign investment in a more business-friendly climate.
What were some of the key economic indicators that showed improvement after the implementation of the New Order's policies?
-Key economic indicators that showed improvement included a significant reduction in inflation rates, an increase in private sector tax revenue, and the inflow of foreign capital.

Outlines

00:00

🌐 Economic Crisis and Political Shifts in Indonesia

The video discusses the economic challenges faced by Indonesia post-independence, leading to a severe hyperinflation crisis in 1965. It highlights the political instability and large budget deficits that contributed to this crisis. The script also explores the rise of the Indonesian Communist Party (PKI) and its influence on President Sukarno's policies, which were aimed at opposing Western ideologies and creating enemies to rally support. The PKI's popularity grew due to its perceived lack of corruption and its alignment with Sukarno's vision, which included the concept of 'Nasakom' and the struggle against perceived Western puppet states like Malaysia.

05:00

🔄 Transition from Old Order to New Order in Indonesia

The script details the political and economic transition in Indonesia following the failed coup attempt known as G30S in 1965, which led to a significant shift in power. It discusses President Sukarno's declining health and the negative economic situation that persisted under hyperinflation. The video explains how General Suharto emerged as a leader, taking control and implementing policies to stabilize the economy. This included ending military confrontations, banning the PKI, and embracing economic liberalization. The New Order regime under Suharto focused on achieving a balanced budget, reducing regulations, and encouraging private enterprise, which eventually helped to curb hyperinflation.

10:02

📈 Economic Recovery and International Relations

The video script outlines the steps taken by the Indonesian government under Suharto to recover from the economic downturn, including new tax policies, subsidy reductions, and currency devaluation. It also discusses Indonesia's reintegration into international organizations like the World Bank and IMF, and the efforts to improve the investment climate by returning nationalized properties to foreign owners. The government's approach to economic management shifted from a state-led to a liberal economy, which helped to stabilize the economy and reduce inflation significantly by 1969. The script concludes by inviting viewers to share their perspectives on the transition from the Old Order to the New Order and to consider the broader historical context beyond the economic successes and failures.

Mindmap

Keywords

💡Deficit

A deficit refers to a shortfall, especially in relation to finance where it indicates that expenditures exceed income. In the video's context, Indonesia's budget deficit is highlighted as a significant economic issue leading to severe inflation. The script mentions 'defisit anggaran besar' which translates to 'large budget deficit,' illustrating the government's inability to manage its finances effectively, resulting in economic instability.

💡Hyperinflation

Hyperinflation is an extreme rate of inflation, typically characterized by a rapidly depreciating currency. The video discusses how Indonesia experienced hyperinflation in 1965, which is a key economic disaster that the country faced. The term is used to describe the period of uncontrollable inflation that led to a severe economic crisis, affecting the value of money and overall economic stability.

💡PKI

PKI stands for Partai Komunis Indonesia, which translates to the Indonesian Communist Party. The script discusses the rise of PKI and its influence on Indonesian politics, particularly during the 1960s. The party's popularity and its alignment with President Soekarno's policies are highlighted, showing how it became a significant political force before the events of 1965.

💡G30S

G30S refers to Gerakan 30 September, which was a failed coup attempt in Indonesia in 1965. The script mentions the G30S as a pivotal event that led to the death of several generals and marked a turning point in Indonesian politics. The aftermath of G30S is discussed as it relates to the decline of President Soekarno's power and the rise of Suharto.

💡Supersemar

Supersemar is an abbreviation for 'Surat Perintah Sebelas Maret,' which translates to 'Eleven March Command Letter.' It was a document issued by President Soekarno that effectively transferred authority to Major General Suharto. The video script discusses how Supersemar marked the beginning of the end for Soekarno's rule and the start of Suharto's era.

💡Orde Baru

Orde Baru translates to 'New Order' and refers to the authoritarian regime in Indonesia that lasted from 1967 to 1998, under President Suharto. The script describes how the New Order implemented economic and political reforms to stabilize the country after the crisis of the previous era, including measures to control hyperinflation and restructure the economy.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. The video discusses how the Indonesian government's economic policies, including stopping the printing of money to finance the budget deficit, helped to reduce inflation from extreme levels to more manageable rates.

💡Economic Liberalization

Economic liberalization refers to the reduction or elimination of government controls and regulations on the economy, allowing market forces to operate freely. The script describes how the New Order shifted Indonesia's economic policy from a state-led command economy to a more liberal, market-oriented one, opening up to international trade and investment.

💡IMF

IMF stands for the International Monetary Fund. The video mentions the IMF in the context of Indonesia seeking financial assistance and restructuring its foreign debt to improve its international investment reputation. The IMF's involvement is highlighted as part of the economic recovery strategy to address the budget deficit and stabilize the currency.

💡Reformasi

Reformasi translates to 'Reformation' and refers to the political and economic reforms that took place in Indonesia in 1998, leading to the end of the New Order and the beginning of a more democratic era. The script briefly mentions Reformasi in relation to the legacy of Suharto's rule and the eventual transition to a new political system.

💡Confrontation

Confrontation refers to a hostile situation or action, often used in the context of international relations. The video discusses how Indonesia under Suharto's leadership ended the Confrontation with Malaysia, a policy of military and political opposition to the formation of Malaysia, and normalized trade relations with Singapore.

Highlights

Indonesia's economy experienced a significant deficit leading to hyperinflation post-independence.

The political instability in Indonesia created various issues, including a large budget deficit.

Efforts by the Old Order government to control hyperinflation were unsuccessful.

The rise of the PKI (Indonesian Communist Party) from the 1950s to 1965 was a significant political shift.

PKI's approach to align with PNI and support Sukarno as a national leader was successful despite past failures.

The PKI's clean image from corruption and internal political conflicts boosted its popularity.

Sukarno's concept of 'Nasakom' was heavily influenced by the PKI.

Sukarno's anti-Western stance and the PKI's support for it led to increased tensions with non-communist nations.

The G30S coup in 1965 marked a turning point, leading to the death of six generals and significant political upheaval.

Sukarno's power was officially revoked with the emergence of 'Supersemar' on March 11, 1966.

The New Order under Suharto focused on restoring security and the economy.

The New Order implemented economic policies to achieve a balanced budget and reduce inflation.

High interest rates were used as an incentive for people to save, reducing the money supply and inflation.

Trade and currency reforms were introduced to open up Indonesia's economy to global trade.

The New Order marked a shift from a guided economy to a liberal economy.

Inflation was significantly reduced from 1136% in 1966 to around 15% by 1969.

Suharto's early economic policies successfully addressed the economic crisis inherited from the 1960s.

The New Order's economic liberalization attracted foreign investment and improved Indonesia's international reputation.

Despite controversies and corruption during Suharto's 32-year rule, his early policies had a significant positive economic impact.

The transition from the Old Order to the New Order involved complex political and economic changes.