Sejarah Perekonomian Indonesia. Materi Mata Kuliah Perekonomian Indonesia Pertemuan 1

Summary

This transcript provides an overview of Indonesia's economic history, spanning from the Old Order (Soekarno's era) to the New Order (Soeharto's rule), the Reform Era, and the presidency of Joko Widodo. It discusses key economic policies, challenges, and phases in Indonesian economic development. Highlights include the early post-independence struggles, the introduction of economic stabilization and infrastructure development during Soeharto's era, and the reform period under BJ Habibie and SBY, which focused on economic liberalization and improvement. Finally, it outlines Joko Widodo’s economic policies aimed at boosting investments, improving public welfare, and stabilizing the economy.

Takeaways

• 😀 The lecture discusses the economic history of Indonesia, focusing on different periods under various presidents, from Soekarno to Jokowi.
• 😀 The Old Order (Orde Lama) period was marked by economic instability, including multiple currencies and inflation during the early years of independence.
• 😀 In 1946, the Indonesian government introduced the first national currency, the ORI, to replace Japanese-issued money, amid a blockade by the Netherlands.
• 😀 The 1950s and 1960s under Soekarno's leadership saw a shift to a state-controlled economy, which hindered the growth of private sectors and led to stagnation.
• 😀 The New Order (Orde Baru) under President Soeharto focused on stabilizing the economy by controlling inflation, improving infrastructure, and promoting social equity.
• 😀 A key strategy of the New Order was a 25-30 year long-term development plan, complemented by shorter five-year phases (Pelita).
• 😀 The Reformation period (Reformasi) followed the 1998 economic crisis, leading to political and economic reforms that aimed at liberalizing markets and improving foreign investment.
• 😀 Key policies during the Reformation included reducing subsidies and encouraging private sector growth and international trade relationships.
• 😀 President Jokowi's administration focuses on improving infrastructure, attracting foreign investment, and fostering industrial growth with policies such as deregulation and tax incentives.
• 😀 The lecture concludes with the acknowledgment that Indonesia's economic journey reflects the balance between state intervention and market-driven reforms, adapting over time to both domestic and global challenges.

Q & A

What was the main challenge faced by Indonesia's economy during the early independence period (1945-1950)?

The main challenge was the inflation caused by the circulation of multiple currencies, including three foreign currencies, which led to an unstable economy.

How did Indonesia's government respond to the economic difficulties during the early independence period?

The government issued the 'ORI' (Republic of Indonesia Money) to replace Japanese currency, and implemented policies like national loans, meeting public needs, and hosting an economic conference.

What characterizes the 'Liberal Democracy' era in Indonesia's economic history?

The era was characterized by frequent changes in government cabinets due to the large number of political parties, none of which had a clear majority. The economy was largely left to the market forces.

What was the impact of the 'Guided Democracy' era on Indonesia's economy?

Guided Democracy led to a state-dominated economy through etatism, where the government controlled most economic activities, limiting private sector initiatives.

What economic challenges did Indonesia face during the New Order (Orde Baru) period under President Soeharto?

Indonesia faced a critical economy during 1965-1967, with high inflation, reaching around 650% annually, and economic mismanagement that led to the government's emergency economic policies.

What were the main goals of the New Order's economic policies?

The main goals were to stabilize the economy by controlling inflation, rehabilitate the economy by improving infrastructure, and secure the basic needs of the population.

How did Indonesia's government cooperate with foreign countries during the New Order period?

The government pursued foreign cooperation to bring in international investment, stabilize the economy, and foster economic growth.

What was the goal of the national development programs during the New Order, and how were they structured?

The goal was to create a just and prosperous society through material and spiritual equality. The development programs were structured in both long-term (25-30 years) and short-term (5-year periods, known as 'Pelita').

What economic policies did President Joko Widodo (Jokowi) implement during his presidency?

President Jokowi implemented several economic policies aimed at boosting national growth, such as maintaining public purchasing power, attracting foreign investments, and improving infrastructure.

How did Jokowi's administration address the issue of investment and business regulation?

Jokowi's government aimed to attract foreign investors by cutting bureaucratic red tape, offering incentives to exporters, and simplifying business licensing processes.