Assoc. Prof. Muhammad Findi-Gambaran Umum Perekonomian Indonesia dari Orde Lama - Orde Reformasi

Summary

The video highlights the evolution of Indonesia's economy from the Old Order era under President Sukarno, marked by internal conflicts and hyperinflation, to the New Order under President Suharto, which saw economic growth through oil exports and industrialization, but ended in a financial crisis. The Reformasi era introduced by President B.J. Habibie brought crucial economic and regulatory reforms aimed at fostering entrepreneurship, reducing monopolies, and promoting democracy. Despite progress, challenges like corruption and political unity remain as key factors for Indonesia's ongoing economic development.

Takeaways

• 😀 The Old Order era in Indonesia (under Sukarno) faced significant political instability, internal conflicts, and economic challenges like hyperinflation.
• 😀 Despite early economic growth, the Old Order's economy struggled with communism and separatist movements, leading to a major political crisis in 1965.
• 😀 The rise of the Indonesian Communist Party (PKI) and the G30S movement in 1965 were key events that contributed to the fall of the Old Order.
• 😀 The New Order under General Soeharto focused on stabilizing the economy and achieving rapid development, particularly through oil exports.
• 😀 During the New Order, Indonesia experienced consistent economic growth, with annual rates of 7-8%, driven by oil exports and favorable market conditions.
• 😀 The 1997-1998 Asian financial crisis led to a severe economic downturn, with a significant depreciation of the Indonesian Rupiah and a deep recession.
• 😀 The economic crisis in 1997-1998 was exacerbated by external factors like the OPEC oil crisis and Indonesia’s role in the global oil market.
• 😀 After the fall of Soeharto, B.J. Habibie led the Reformasi era, focusing on economic and political reforms, including the introduction of anti-monopoly laws.
• 😀 Habibie’s reforms dismantled restrictive regulations, encouraging the growth of new businesses and entrepreneurs in Indonesia.
• 😀 Despite significant progress in democracy and economic recovery, Indonesia continues to face challenges related to corruption, collusion, and nepotism (KKN).

Q & A

What was the main economic issue in Indonesia during the Old Order era?

The main economic issue during the Old Order era was internal conflict, political instability, and hyperinflation. The economy suffered, especially towards the end of President Sukarno's leadership, as the country faced various challenges like the communist threat and separatist movements.

How did the New Order government under Suharto attempt to stabilize the economy?

Under Suharto, the New Order government focused on stabilizing the economy through strategic economic planning, including the introduction of the Repelita (Five-Year Development Plans). The government also leveraged oil exports to boost national income and maintain steady economic growth.

What was the economic growth rate like during the New Order era?

During the New Order era, Indonesia experienced average economic growth rates of 7-8% per year. This growth was mainly supported by oil exports and the overall economic policies implemented by Suharto's administration.

What were the key challenges faced by Indonesia's economy during the late New Order period?

The key challenges during the late New Order period included the 1997 Asian financial crisis, which caused a dramatic depreciation of the rupiah, inflation, and a severe economic downturn. This crisis severely impacted Indonesia's economy, leading to Suharto's resignation.

What reforms did B.J. Habibie introduce after the fall of Suharto?

B.J. Habibie introduced significant economic reforms, including laws to prevent monopolies and promote competition. His administration also focused on reducing bureaucratic barriers, encouraging new businesses, and creating a more equitable economy.

How did the export of oil impact Indonesia's economy during the New Order era?

The export of oil played a crucial role in Indonesia's economy during the New Order era. With the support of the Organization of Petroleum Exporting Countries (OPEC) and Indonesia's involvement in oil exports, the country was able to generate substantial foreign exchange, which helped stabilize and grow the economy.

What led to the downfall of President Sukarno's Old Order government?

The downfall of Sukarno's Old Order government was primarily due to economic mismanagement, hyperinflation, internal conflicts, and the rise of the communist threat. The failed coup by the PKI in 1965 and the resulting political instability led to Sukarno's ousting.

What was the impact of the 1997 Asian financial crisis on Indonesia?

The 1997 Asian financial crisis severely impacted Indonesia's economy, leading to a sharp depreciation of the rupiah, high inflation, and widespread economic hardship. The crisis contributed to President Suharto's resignation and a shift towards the Reformasi era.

What are the long-standing challenges Indonesia continues to face, according to the speaker?

According to the speaker, Indonesia continues to face long-standing challenges like corruption, collusion, and nepotism (KKN). These issues hinder the country's economic progress and the full implementation of reforms.

How does the speaker view Indonesia's progress since the Reformasi era?

The speaker views Indonesia's progress since the Reformasi era positively, noting that the country has made strides in democratization, political transparency, and economic reforms. However, the speaker emphasizes that there is still work to be done, especially in addressing corruption and ensuring national unity for economic growth.