Eduscovery : Sejarah (Ekonomi Indonesia Di Masa Demokrasi Terpimpin)

Summary

This video explores Indonesia's economy during the Guided Democracy era (1959-1965). It contrasts the economic policies with those of the previous Liberal Democracy period, highlighting the government's shift toward state-controlled economics. Key policies included the establishment of the National Planning Board (Depernas) and significant currency devaluations aimed at reducing inflation. However, large-scale infrastructure projects, known as 'Mercusuar' projects, led to further economic strain, culminating in a high inflation rate and a negative balance of payments by 1965. Despite efforts, the economy struggled, and inflation surged to 600% by the end of the era.

Takeaways

• 😀 Indonesia underwent two major periods of governance: the Liberal Democracy era and the Guided Democracy era, each influencing the economy differently.
• 😀 During the Liberal Democracy period, the Indonesian economy leaned towards private sectors, with a focus on non-government involvement.
• 😀 In contrast, the Guided Democracy period shifted the focus to state-led, government-driven economic efforts.
• 😀 The government introduced the Depernas (National Development Planning Council) in 1950 to draft national development laws, but it was later disbanded due to failure in industrial development.
• 😀 Depernas was replaced by Bappenas (National Development Planning Agency), which was directly headed by President Sukarno.
• 😀 A significant economic policy during Guided Democracy was the devaluation of the currency in 1959, reducing the value of the Rupiah from Rp1,000 to Rp100.
• 😀 The devaluation aimed to curb inflation and the amount of money circulating in the economy, but it didn't solve underlying economic issues.
• 😀 The government also froze large bank deposits exceeding Rp25,000 in a bid to control inflation.
• 😀 Despite these policies, the Indonesian economy continued to struggle, partly due to expensive and unsustainable 'mercurial projects,' such as the Monas (National Monument) and Gelora Bung Karno Stadium.
• 😀 These large-scale projects, while symbolizing national pride, worsened inflation and led to a payment balance deficit as imports outpaced exports.
• 😀 In 1965, a more drastic devaluation took place, reducing the currency further and rendering it almost worthless, causing an extreme inflation rate of 600% by the end of the year.

Q & A

What was the focus of Indonesia's economy during the Guided Democracy period?

During the Guided Democracy period, Indonesia's economy was primarily focused on the public sector, with the government playing a dominant role. This was a shift from the previous era, where the economy was more inclined towards the private sector.

What was the role of the National Development Planning Agency (Bappenas) during this time?

Bappenas, or the National Development Planning Agency, was established after the dissolution of Depernas. It was directly headed by President Soekarno and tasked with planning and overseeing the national development projects.

What was the purpose of the establishment of the National Development Planning Council (Depernas)?

The National Development Planning Council (Depernas) was established to draft national development laws and evaluate the progress of national development projects. It aimed to guide Indonesia's economic growth, though it was eventually dissolved due to its failure to effectively execute industrial projects.

Why was the devaluation policy introduced in Indonesia during this period?

The devaluation policy was introduced to combat high inflation and reduce the money supply in the economy. By decreasing the value of the currency, the government hoped to stabilize the economy.

What specific devaluation measures were implemented in 1959?

In 1959, the Indonesian government devalued its currency by reducing the value of the Rupiah. For example, the value of Rp1,000 was reduced to Rp100, and the value of Rp500 was reduced to Rp50. This was part of an effort to curb inflation and control the money supply.

What were some of the large-scale projects introduced during the Guided Democracy period?

Some of the large-scale or 'mega-projects' introduced during this period included the construction of the National Monument (Monas), Gelora Bung Karno Stadium (GBK), Istora Senayan, and hosting the Fourth Asian Games in 1962.

How did the 'mega-projects' impact Indonesia's economy?

The focus on 'mega-projects' led to further inflation and a worsening trade balance, as imports exceeded exports. Despite efforts to fund these projects, Indonesia's economic situation deteriorated, resulting in a deficit in the balance of payments.

What happened to Indonesia's foreign reserves and gold reserves by 1965?

By 1965, Indonesia had significantly depleted its gold and foreign reserves. The government had used these reserves to fund international trade, but eventually, these reserves ran out, contributing to economic instability.

What was the second devaluation policy implemented in 1965?

In 1965, a second devaluation took place, which further reduced the value of the Rupiah. The exchange rate was changed to 1 new Rupiah for every 1,000 old Rupiah. However, this led to the new Rupiah being unable to buy goods or services at the expected value, exacerbating inflation.

How severe was the inflation rate by the end of 1965?

By the end of 1965, Indonesia's inflation rate had reached a peak of 600%, significantly damaging the purchasing power of the currency and exacerbating the economic crisis.