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

Summary

The 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.