PEREKONOMIAN INDONESIA PADA MASA ORDE LAMA, ORDE BARU, TRANSISI, REFORMASI & MASA PANDEMIC COVID-19

Summary

This video script provides an overview of Indonesia's economic history, covering key periods including the Old Order, New Order, Transition, Reform, and the COVID-19 pandemic. The script discusses the challenges faced during the Old Order, such as political instability and the nationalization of foreign companies, as well as the economic turmoil and political crisis of the late 1990s. It also highlights the long-term development strategies during the New Order and the impact of the COVID-19 pandemic on the country's economic stability, illustrating the ongoing struggles of Indonesia's economy through turbulent times.

Takeaways

• 😀 The economic situation of Indonesia during the Old Order (Orde Lama) was marked by instability and challenges, partly due to political instability.
• 😀 In 1951, Indonesia began the nationalization of foreign companies, particularly those owned by the Netherlands, as part of the implementation of Law No. 78 of 1958 on foreign investment.
• 😀 Indonesia's economic programs included short-term economic plans aimed at attracting foreign investment and a long-term five-year development program, known as Pelita, which aimed for sustainable growth.
• 😀 The five-year development program (Pelita) focused on building Indonesia's economy by targeting long-term economic growth and national development.
• 😀 The economic transition period started with the Asian financial crisis of 1997, when Indonesia's currency, the Rupiah, weakened significantly, shaking the national economy.
• 😀 The political and economic environment during the transition period under President Habibie was unstable, with corruption (KKN) and social unrest worsening the situation.
• 😀 The 1997-1998 Asian Financial Crisis (Asian Crisis) severely affected Indonesia's economy, leading to political unrest and calls for President Suharto to step down.
• 😀 The economic crisis of 1998 was caused by the rapid depreciation of the Rupiah, a critical financial event that had global repercussions and affected Indonesia's economy deeply.
• 😀 The economic reforms initiated in the post-Suharto era under the Reformasi movement did not immediately resolve the country's problems, leading many to call it a time of transition rather than true reform.
• 😀 The Covid-19 pandemic had a significant negative impact on Indonesia’s economy, resulting in a period of instability that affected multiple sectors, particularly health and the economy.

Q & A

What was the economic situation in Indonesia during the Old Order (Orde Lama)?

During the Old Order (Orde Lama), which lasted from Indonesia's independence in 1945 to March 10, 1966, Indonesia's economy was not flourishing. This was mainly due to political instability, which negatively affected the national economy. A significant event during this period was the nationalization of foreign companies in 1951, particularly Dutch-owned businesses.

What was the impact of the nationalization of foreign companies on the Indonesian economy?

The nationalization of foreign companies, particularly those owned by the Dutch, in 1951 and 1958 significantly impacted Indonesia's economy. The move was part of a broader anti-foreign investment policy and was aimed at asserting national control over key industries.

What was the 5-year development plan (Pelita) in Indonesia's economic strategy?

The 5-year development plan, known as Pelita, was introduced as part of Indonesia's long-term economic strategy. It aimed to guide the country's economic growth over five-year periods, focusing on substantial economic development. The Pelita program was designed to improve the economic structure and ensure sustainable growth.

How did the economy of Indonesia change during the transitional period of the late 1990s?

During the transitional period in the late 1990s, Indonesia's economy faced significant instability. The 1997 Asian Financial Crisis led to the depreciation of the Indonesian Rupiah, which severely impacted the national economy. This period, characterized by increasing corruption, collusion, and nepotism (KKN), led to political unrest and widespread protests, forcing President Soeharto to step down.

What triggered the 1997-1998 financial crisis in Indonesia?

The 1997-1998 financial crisis in Indonesia was triggered by the sudden collapse of the Thai Baht against the US Dollar, which caused a chain reaction in other Asian economies, including Indonesia. As foreign investors pulled out their investments, the Indonesian Rupiah rapidly depreciated, leading to a national economic crisis.

How did the Indonesian government respond to the 1997-1998 economic crisis?

In response to the 1997-1998 economic crisis, the Indonesian government, under the leadership of President Habibie, struggled to stabilize the economy. However, the government's failure to address the deeper issues of corruption and political instability led to a lack of real change, further exacerbating the crisis.

What role did the IMF and World Bank play during the Indonesian financial crisis?

During the 1997-1998 Indonesian financial crisis, international organizations like the International Monetary Fund (IMF) and the World Bank were heavily involved in attempting to stabilize the economy. However, their intervention was met with mixed reactions, as many Indonesians viewed the conditions imposed by these organizations as detrimental to the country's sovereignty and economic recovery.

What was the political impact of the 1997-1998 financial crisis on Indonesia?

The financial crisis led to significant political turmoil in Indonesia. Widespread protests, driven by economic hardship and growing disillusionment with the government, culminated in the resignation of President Soeharto after 32 years in power. This marked the end of the New Order regime and the beginning of Indonesia's Reformasi era.

What were some of the long-term economic impacts of the financial crisis on Indonesia?

The long-term economic impacts of the 1997-1998 financial crisis included a significant increase in poverty and unemployment rates, a loss of investor confidence, and a shift towards more market-oriented economic policies. The crisis also highlighted the need for comprehensive reforms in the financial sector and government transparency.

How did the COVID-19 pandemic affect Indonesia's economy?

The COVID-19 pandemic severely impacted Indonesia's economy, leading to a downturn in various sectors, particularly health and economic activities. The pandemic caused widespread job losses, economic uncertainty, and a significant strain on public health systems, which further destabilized the already fragile economy.