Bagaimana Krisis Ekonomi pada zaman Orde Lama? hingga Inflasi tembus 600%

Summary

This video delves into Indonesia's economic crisis during the Old Order era under President Soekarno, spanning from the 1960s. It highlights the severe economic decline marked by hyperinflation, political instability, and rising foreign debt. Despite ambitious policies like the 5-Year Development Plan and the economic declaration (DEKON), Soekarno's strategies failed to stabilize the economy, leading to widespread poverty. The crisis culminated in the fall of Soekarno's regime in 1966. The subsequent government, led by President Soeharto, initiated successful economic reforms, including international cooperation and new policies that restored economic stability.

Takeaways

• 😀 Indonesia experienced severe economic crises during the Old Order era (1963-1965), marked by hyperinflation and political instability.
• 😀 The economy during this period hit its lowest point in the 1960s, with inflation reaching 600% in 1965.
• 😀 Hyperinflation was caused by the government printing excessive money to fund ambitious projects and cover debts.
• 😀 The lower classes were the most affected, with skyrocketing prices and widespread poverty.
• 😀 A key factor in the crisis was the government's overambitious policies, including the nationalization of foreign companies and the central planning approach.
• 😀 Soekarno’s government implemented the economic declaration (DEKON) to achieve economic independence, but it failed due to lack of infrastructure and skilled labor.
• 😀 DEKON worsened relations with Western countries, which were critical sources of capital and technology.
• 😀 The economic challenges were exacerbated by domestic political conflicts, including rebellions and tensions within the government.
• 😀 Indonesia's economic decline during the Old Order era was partially caused by the government's unrealistic goals and economic mismanagement.
• 😀 After Soekarno's fall in 1966, President Soeharto's government launched a successful economic recovery program, stabilizing inflation and rebuilding international relations.

Q & A

What caused the economic crisis in Indonesia during the Old Order era?

The economic crisis in Indonesia during the Old Order era was caused by a combination of factors, including hyperinflation, a decline in export goods prices (especially rubber and mining), ballooning foreign debt, and domestic political instability. These issues were exacerbated by complicated foreign relations and government policies under President Soekarno.

How did hyperinflation affect everyday life in Indonesia during the economic crisis?

Hyperinflation had a devastating effect on the daily lives of Indonesians. The value of the currency sharply declined, causing prices to skyrocket. For example, the price of noodles increased from 5 rupiah per portion in 1962 to around 1,500 rupiah per portion in 1965, pushing many families into extreme poverty.

What was the role of Bank Indonesia in the economic crisis?

Bank Indonesia played a crucial role in the economic crisis by printing excessive amounts of money to finance government spending on projects, including nationalistic and military ventures. This led to an increased money supply, which further devalued the currency and contributed to inflation.

What was the impact of the government's policy of printing money?

The policy of printing money led to severe inflation, as the circulation of money increased rapidly without corresponding economic growth. This devaluation of the currency resulted in the rise of goods prices, particularly essentials, exacerbating the economic crisis.

What were the main objectives of the Economic Declaration (DEKON) initiated by Soekarno in 1963?

The main objectives of DEKON were to achieve economic independence, promote industrial development, and reduce foreign influence by limiting foreign capital. The policy aimed to make Indonesia's economy more nationally focused and free from the remnants of imperialism.

Why did the DEKON policy fail to improve Indonesia's economic conditions?

DEKON failed because it was not supported by adequate infrastructure, skilled labor, or sufficient investment. Additionally, it worsened relations with Western countries that had previously been sources of capital and technology, and the policy's lack of support from the international community, especially in securing loans, contributed to its failure.

How did political instability contribute to the economic crisis in Indonesia during the Old Order era?

Political instability, including rebellions and the mix of economic and political goals, played a major role in the economic crisis. President Soekarno's centralized political control and emphasis on nationalistic policies, combined with conflicts between political groups, disrupted the country's economic growth and stability.

What was the impact of the 1965 hyperinflation on the Indonesian population?

The 1965 hyperinflation, where inflation peaked at 600%, severely affected the Indonesian population, particularly the lower classes. The rising cost of goods, such as food and basic necessities, led many families to sell their possessions to survive, and widespread poverty and social instability ensued.

How did Soekarno's policies on foreign trade and capital affect the Indonesian economy?

Soekarno's policies of strict control over foreign trade and restrictions on foreign capital were aimed at achieving economic independence. However, these measures led to a lack of investment, strained relations with Western countries, and contributed to Indonesia's economic stagnation during the Old Order era.

What steps did the new government under President Soeharto take to address the economic crisis?

After the fall of Soekarno, President Soeharto's government launched an economic recovery program that included stabilization measures, such as controlling inflation, rebuilding international relations to attract foreign aid, and implementing major economic reforms with the help of international organizations like the IMF and World Bank.