Sabtu, 24 Maret 2018

MAKALAH PEREKONOMIAN INDONESIA

ECONOMIC OF INDONESIA
HISTORY AND INDONESIAN ECONOMIC SYSTEM


GROUP V
Author by :
   Ajeng Dina Wulandari             2B216139
   Dwinanda Agung Laksono     2B217025
   Fiatri Annisa                               2B216118
   Fhiona Aprida Hidayah           2B216140
   Hariyanto                                    2B216214
   Rachma Indriyani Pratiwi      2B216117
   Rael Selvy Wibowo                   29213835
   Rezzando Juniarta Sinaga       2B216122
   Yeni Sarah Hardiyanti              2B216166

Class 2EB20

Lecturer : Nicky Handayani


ATA 2017 /2018
FACULTY OF ECONOMY
ACCOUNTING

PREFACE

Thank God the writer prayed to the presence of Almighty God, salawat with the greeting of Allah may remain poured out to the Prophet Muhammad, who has guided us from a time full of darkness to an age of bright light with science as it is today.
The author is well aware that in this paper there are many shortcomings, both intentionally and unintentionally. Thus the author is very pleading for the reader's wisdom for the deficiency, for there is no such thing as perfect as His substance. And what the saying goes "There is no ivory that is not cracked" therefore, positive and constructive criticism and suggestion is very author wish for more perfect this paper. As a courtesy and appreciation, the author would like to thank the parties who support and motivate the compilation of this paper, which provides motivation through prayer, moral and material support, which is very valuable to the author.
Final words hopefully this paper can provide benefits for the reader to provide insight for the author and a motivation to continue to learn and increase knowledge. And hopefully with this brief paper we can better understand how the History of Indonesia's Economic Development.


Depok, March 2018


                                                                                                            Author

TABLE OF CONTENTS

PREFACE.................................................................................................................................. i
TABLE OF CONTENTS.......................................................................................................... ii

CHAPTER I INTRODUCTION........................................................................................... 1
1.1 Background..................................................................................................................... 1
1.2 Problem Formulation....................................................................................................... 1
I.3 Objectives and Benefits Writer....................................................................................... 1

CHAPTER II DISCUSSION.................................................................................................. 2
2.1 History and Indonesian Economic System..................................................................... 2
2.2 History of the Indonesian Economy Before Independence........................................... 2
2.3 The Economy of Old Order............................................................................................ 6
2.4 The Economy of the New Order Period......................................................................... 7
2.5 The Economy of the Transition....................................................................................... 8
2.6 Current Economic System of Indonesia......................................................................... 8
2.7 The History of the Indonesian Economy In The Reform Period.................................... 9

CHAPTER III CLOSING.................................................................................................... 10
3.1 Conclusion..................................................................................................................... 10
3.2 Suggestion..................................................................................................................... 11

BIBLIOGRAPHY.....................................................................................................................12


CHAPTER I

PRELIMINARY
1.1 Background
Economic problems are essentially a matter of transformation or processing of fulfillment / need fulfillment tools, in the form of factors of production ie labor, capital, natural resources and skills (skills) into goods and services.
As we know that which determines the shape of an economic system except the basic philosophy of the state is upheld, then the criteria are the institutions, especially the economic institutions that become the realization or realization of that philosophy.
The struggle of thinking about what economic system should be implemented by Indonesia has started since Indonesia has not reached its independence. Until now the struggle of thought is still ongoing, this is reflected from the development of thinking about SEP's economic system.
Bung Hatta other than as a figure of the Proclaimer of the Indonesian nation, also known as the formulator of Article 33 of the 1945 Constitution. Bung Hatta preparing chapter 33 is based on the bitter experience of the Indonesian nation which for centuries was colonized by foreign nations who embraced the liberal-capitalistic economic system. Implementation of this system in Indonesia has caused misery and poverty, therefore according to Bung Hatta good economic system should be based on kinship.

1.2 Problem Formulation
1.      What is the History of the Indonesian Economy?
2.      What is the economic development before independence?
3.      How is the Economy developing in the Old Order?
4.      How is the Economy developing in the New Order?
5.      How is the transition reconstruction?
6.      How the History of the Indonesian Economy in the Reform Period?

1.3 Objectives and Benefits Writer
The purpose of writing this paper is to explain and explain the Development of the Indonesian Economy and provide conclusions from the results of the discussion.
The benefits of writing this paper are :
1.      Inform the reader about Economic Development in Indonesia
2.      Explaining about the Economy in Indonesia before independence.
3.      Explaining about the Economy in the Old Order.
4.      Inform the reader about the Economy during the New Order
5.      Explaining the Development of the Economy In the Reformation

CHAPTER II
DISCUSSION

2.1 History and Economic System of Indonesia
Indonesia lies in the geographical position between the Asian and European continents and the Pacific and Indian oceans, a strategic position in the intercontinental trade routes. One of the silk roads, the sea silk path, is from China and Indonesia, via the Malacca Strait to India. From here it is to the Persian Gulf, through Syria to the Mediterranean Sea, some to the Red Sea through Egypt and also to the Mediterranean Sea (Van Leur).
The maritime trade between India, China, and Indonesia began in the first century AD, as well as Indonesia's relations with the regions of the West (the Roman Empire). Trade in the periods of traditional kingdoms referred to by Van Leur has the nature of political capitalism, in which the influence of kings in trade is enormous. For example, during the Sriwijaya period, when international trade from East Asia to Western Asia and Europe, reached its golden age.
Kings and nobles derive their wealth from tributes and taxes. There is no protection against certain types of products, because they are actually benefited by the number of ships that "stop by".
The use of money in the form of gold coins and silver coins was known in those days, but the use of new money began to be known in the period of Islamic empires, such as picis made of lead in Cirebon. But the use of money is still limited, because many barter trade takes place in the International trading system. Therefore, there is no surplus or deficit that must be offset by exports or imports of precious metals.
The glory of a country is judged by the size of the territory, the income per year, and the crowded harbor. That is because, the power and wealth of the kingdoms in Sumatra comes from commerce, while in Java, the two originate from agriculture and commerce. In pre-colonial times, trading voyages were more dominant.
But it can be said that in Indonesia as a whole, agriculture and commerce are very influential in the development of the Indonesian economy, even today. According to the period of the Islamic kingdoms, the economic journey of Indonesia can be divided into four periods, namely the period before independence, the old order, the new order, and the period of reform.

2.2 History of the Indonesian Economy Before Independence
Before the independence of Indonesia experienced a period of colonization divided into several periods, there are four countries that once occupied Indonesia namely, Portuguese, Dutch, English and Japanese. The Portuguese did not leave a deep imprint on Indonesia because of the exorcism of the Dutch, but the Dutch who had been in power for 350 years had been applied as a system to analyze the history of the Indonesian economy, it was necessary to divide the occupation of Dutch into periods, based on the policy changes they adopted in the Dutch East Indies (the Indonesian term at the time).
a.       During the Vereenigde Oost-Indische Compagnie (VOC)
The Indonesian economy at the time of the VOC was a company established with the aim of avoiding competition between Dutch merchants as well as to compete with other imperlasis companies such as the EIC (in British companies), at that time the VOC was granted the right by Ooctrooi, which included:
·         The right to print money
·         The right to appoint and dismiss employees
·         Right to declare war peace
·         The right to create its own armed forces
·         Right to make arrangements with the king
These rights seemed to relieve the VOCs as the "rulers" of the Dutch East Indies. However, this does not mean that the entire economy of the archipelago was dominated by the VOC in fact since 1620 the VOC controlled only the export commodities as per the market demand in Europe, that is the spices. municipalities and controlled voyages are to ensure a monopoly on the basis of the commodity, the VOC has not yet established a system of supply of indigenous needs of life, the regulations established by the VOC such as verplichte leverentie (the obligation to surrender crops to the VOC also keeps the spice- spices remain high, among others, with the restriction on the amount of spice plants that can be sold by the population, Hongi shipping and extirpatie rights. All these regulations are generally applied only in Maluku which is already isolated by the VOC from Indian Ocean Commerce shipping pattern
With the spice monopoly it is hoped that the VOC will add to the Dutch treasury cash and thereby increase the prestige of the Netherlands's wealth. The preemption is also applied to preemptive farmers, namely the obligation to plant coffee for the people of priangan.bahkan coffee export at that time reached 85,300 metric tons, which is only 1050 metric tons
However, contrary to the obligation of the french mechanism that prohibited the export of precious metals, the Dutch actually exported Dutch silver for exchange of crops, because before the export of european produce could be offered as a commodity, silver exports were still necessary, silver was used in large quantities as a balance tool in the balance of payments until the 1870s
In 1795 the VOC broke up as perceived as failing in exploiting the wealth of the Dutch East Indies. The failure was apparent in the VOC's cash deficits which, among others, were disrupted by :
·         Continuous wars were perpetrated by the VOC and cost a great deal especially on the war in ponegoro
·         The use of rented army is costly
·         Corruption committed by the VOC's own army
·         Distribution of dividends to stockholders, even if cash deficit
Then the voc was taken over by the republican bataf (Bataafsche republiek) of the Republic of Bataaf faced with a chaotic turmoil, in spite of the fact that battles were raging in Europe (continental stelstel by nepoleon) the monetary corruption had reached its peak due to the dependence on the import of silver from the Netherlands at the time of the VOC which was now too late by the English blockade in Europe, before the republic of bataaf cleaned up, the British took over the Dutch East Indies government.
b.      During the British occupation
Britain in its day trying to change the tax pattern of the earth that has been almost two centuries applied by the Dutch, by applying ladrent (land tax) this system has been successful in India, and Thomas stamfrod raffles thought this system would work also in the Netherlands-Indies besides, with landerent , then the indigenous population will have the money to buy British or imported goods from India, this is modern imperialism that makes the colony not only for the exploration of its natural wealth but also the product marketing area of ​​the colonial state, in accordance with the theories of the classical school which at that time was developing in Europe, among others:
Adam Smith's opinion that the productive workforce is a workforce that produces concrete objects and can be valued the market, while unproductive labor produces jkasa which does not support the achievement of economic growth. In this case, Britain seized its colonies as well as increased its prosperity, in order to buy products in Britain and India that were surplus (exceeding demand)
Adam Smith's opinion that one of the roles of exports is to expand the market for the products produced (by the UK) and the role of the population in absorbing the production
The quantity theory of money that increases or decreases the price level is influenced by the amount of money in circulation
However, this fundamental change in the economy was difficult, and even failed to end the British rule of just corn in the Dutch East Indies, for example:
·         The Dutch Hinda community is generally illiterate and lacks familiarity with money, let alone to account for the extent of taxable land.
·         The UK landowners themselves are too few
·         This policy is lacking in shamans by kings and nobles, as Britain refuses to recognize a tenure-dropped succession 
c.       Cultuurstelstel (forced cultivation system)
The cultuurstelstel (forced cultivation system) came into force in 1836 on the initiative of van de bosch, the aim being to produce the commodity share that demanded in the world market, since then, has been instructed to cultivate products other than coffee and spices, , tilapia, tobacco, the, indigo, quinine, rubber, palm etc., this system clearly suppresses the indigenous population, but very profitable for Belnda let alone combined with the system of kosiyansi (export monopoly), after the application of these two systems, all losses due to war with Napoleon in the Netherlands directly replaced many fold. This system is a replacement for the landrent system in order to introduce the use of money to indigenous communities. The community is planted to plant export crops and sell the proceeds of the warehouses and then paid at a price set by the government.cultuurstelstel involves the nobles in its collection, among others by exploiting the political order of the people's obligations to share the tasks with no reward - and to motivate the official belandadengan cultuurprocenten (the reward will be accepted sesuain the production of entry into the warehouse). For indigenous people, of course, cultuurstelstel is very racking their sweat and blood, but the rules of corvee labor are still in force, but the positive aspect is that they are beginning to recognize the ways in which crops of export commodities are generally not native to Indonesia, while the influx of money economy in rural areas triggers the rise their standard of living, to the Dutch government, meant that the society absorbed the imported goods they came to the Dutch East Indies and this also changed the way of life of rural people to become more commercial, reflected in the increasing number of people who undertook non-commercial economic activities. Obviously, by applying the cultuurstelstel, the Dutch government proves the theory of land lease from the school of calculus, namely that the lease of land arises from the limitations of soil fertility, but here the Dutch government has not received the rent alone, without the need to pay for tanharap increasingly long tanong increasing aggression people, according to the value of more value (karl max) bahwanilai increase the prosperity of Beland Capsitas.
d.      Open economy system
When there was an urgency from the Dutch humanists who wished to change the fate of the indigenous people in a better direction, encouraged the Dutch East Indies government to change its economic policy, new agrarian regulations were created which, inter alia, governed the lease of land to private parties for a period of 75 years , and the rules of land that may be rented and should not be, it also seems to be not separated from the theories of the school of kalsik, among others seen in:
The existence of the Dutch East Indies government as landlord, the private sector cultivate private plantation as a group of capacasiatas and indigenous peoples as land-cultivators.
The principle of absolute advantage: if one place a price above the required labor cost, then the entrepreneur earns a huge profit flowing factors of production to the place.
Laissez faire laissez passer, the economy is left to the private sector, although it is clear that the Dutch government still holds a big role as the colonizer truth.
Ultimately this system does not improve the welfare of the indigenous people but instead adds to the suffering, especially for contract coolies who are generally not treated properly.
The Japanese population (1942-1945) of the Japanese government applied a policy of directing economic resources to advance the advance of Japanese forces in the Pacific war, as a result of the massive overhaul of the economic structure of society, the welfare of the people declined sharply and the catastrophic shortage of food, to include foodstuffs to supply military forces and jatropha oil production for fighter aircraft is a top priority. Imports and exports are stalled, resulting in textile scarcity previously acquired by import roads.
Such is the socialist system of the army of Dai Nippon, all things governed by the center in order to achieve the mutual prosperity that is expected to achieve as winning the Pacific war.

2.3 The Economy of the Old Order
On August 17, 1945, Indonesia proclaimed its independence. However, it does not mean that Indonesia is free from the Netherlands. But after the Dutch government finally officially recognized Indonesia's independence. Until 1965, Indonesia political turmoil in the country and some uprisings in a number of areas. As a result, during the old order government, the Indonesian economy was very bad.
As economic growth has declined since 1958 and the budget deficit of government revenues and expenditures continues to grow from year to year. It can be concluded that the poor economy of Indonesia during the Old Order government was mainly due to the destruction of economic, physical, and nonphysical infrastructure during the Japanese occupation. Viewed from the political aspect during the period of the old order, it can be said that Indonesia has experienced a very democratic political system that caused the destruction of politics and the national economy.
The Post-Independence Period (1945-1950) the state of the financial economy in the early days of independence was very bad because inflation caused by the circulation of more than one currency in an uncontrolled manner. In October 1946 the Indonesian government issued ORI (Oeang Republik Indonesia) as a substitute for Japanese money. However, the economic blockade by the Dutch by closing the door of foreign trade resulted in a vacuum of state treasury.
In the face of the economic-financial crisis, the government took various activities, including :
·         National Loan, Minister of Finance Ir. Soerachman with the approval of the Working Committee of the Central Indonesian National Committee (BPKNIP) to hold a national loan that will be returned within 40 years.
·         Relations with the United States, Banking and Trade Corporation (BTC) succeeded in bringing Martin Behrman Ship at Ciberon harbor which carries people's needs, but all cargo is seized by the Dutch navy.
·         Economic Conference, Conference on Food Income Improvement, Food Distribution, Clothes, and the status and administration of foreign plantations.
·         The Five-Year Plan (Kasimo Plan), provides advice on multiplying nurseries and grains, preventing slaughter of animals that assist in agriculture, planting abandoned land in Sumatra, and transmigration.
·         Private Participation in National Economic Development, activating and inviting private participation in efforts to uphold the economy early in independence.
·         Nationalization de Javasche Bank becomes Bank Negara Indonesia.
·         Economic System Movement of the Citadel (Benteng Group).
·         Ali-Baba Economic System.

2.4 The Economy of the New Order
March 1966, Indonesia in the New Order era government attention is more aimed at improving the welfare of society through the economic and social development of the country. The government effort is coupled with the preparation of a gradual 5-year development plan with targets that are clearly highly appreciated by western countries. The long-term goal of economic development in Indonesia during the New Order period was to improve the welfare of the people through a process of industrialization on a large scale. Structural economic changes were also very evident during the New Order period in which the manufacturing sector increased every year. And the main conditions that must be met first in order for an effort to build the economy can run well, as follows: strong political ability, economic and political stability, better human resources, Western-oriented open economic political system, and and economic conditions and better world politics.
At the beginning of the new order, economic and political stability was a top priority. Government programs are tied to inflation control, saving state finances and securing the basic needs of the people. After looking at the past experience, where in the liberal economic system the indigenous entrepreneurs are unable to compete with non-indigenous entrepreneurs and the system of etatism does not improve the situation, a mixed economic system is chosen within the framework of the Pancasila democratic economic system. This is the practice of one of Keynes's theories of government intervention in a limited economy.
Its economic policies are directed to development in all areas, reflected in the eight channels of equity: basic needs, education and health, revenue sharing, employment opportunities, employment opportunities, women's and youth participation, development and judicial dissemination. All this is done by the implementation of a five-year periodic long-term (25-30 years) general development pattern called Pelita.
As a result, in 1984 Indonesia succeeded in rice self-sufficiency, poverty reduction, improvement of welfare indicators such as education participation rate and declining infant mortality rate, and rapid industrialization. The government also managed to promote preventive checks to reduce the number of births through KB.
But the negative impact is the damage and pollution of the environment and natural resources, economic differences between regions, between groups of work and between groups in the community was getting sharper, and the accumulation of foreign debt. In addition, development leads to a conglomeration and business that is full of corruption, collusion and nepotism. Development only prioritizes economic growth without balanced equitable political, economic and social life.
So although it has succeeded in increasing economic growth, but fundamentally national development is very fragile. As a result, when a crisis is the impact of the global economy, Indonesia feels the worst impact. Prices rose drastically, the rupiah weakened rapidly, causing various turmoil in all areas, especially the economy.

2.5 The Economy in Transition
On May 14 and 15, 1997, the Thai baht exchange rate against the US dollar experienced a severe shock as foreign investors made a 'sell' decision. What happened in Thailand finally spread to Indonesia and some other Asian countries, the beginning of the financial crisis in Asia. Since then, the position of the Indonesian currency began to be unstable. In response to this development, in July 1997 BI conducted four interventions namely widening the intervention.
Around September 1997, the weakening rupiah exchange rate began to shake the national economy. To prevent the deterioration of the situation, the New Order government took several concrete steps, including delaying projects worth Rp 39 trillion in an effort to offset the limitations of the state budget largely affected by the change in the rupiah.
The state of Indonesia's economic system during the transitional government has the following characteristics:
The shock to the rupiah occurred in mid-1997, at that time from Rop 2500 to Rp 2650 per US dollar. Since that time the rupiah became unstable.
The crisis of the rupiah eventually became more severe and became the economic crisis which then became the biggest political crisis in Indonesia's history.
At the beginning of the government led by habibie called the reform government. However, it turns out that this new government is not much different from before, so people prefer to call it a transition period because KKN is becoming more and more riots.
May 1997, Thai exchange rate of exchange to US dollar experienced a great shock, until finally spread to Indonesia and some other Asian countries. The Indonesian rupiah began to shake in July 1997. Around September 1997, the rupiah exchange rate continued to weaken, until the New Order government took some concrete steps, delaying projects and limiting the state budget. At the end of October 1997, international financial institutions provided a package of financial assistance to Indonesia.

2.6 Current Economic System of Indonesia
Some people argue that the system used today is more western or so-called liberal / capitalist economic system, a system that liberates all forms of economic activity. The government has nothing to do with the economy of the people. They all get the same right to creativity no restrictions. The point is that these systems are all free to do anything, so it is not surprising that investors or capital become superpowers in the economic system that makes the poor poorer, massive exploitation of natural resources, social inequality, that's what happens to the Indonesian economy. The liberal or capitalist economic system will soon be neo-liberal. Indications of Indonesia's economic system are directed to follow market mechanisms in addition to the dominance of the strength of private corporations that are getting stronger. This neo-liberal system is more and more fertile when the snow globes of globalization are increasingly entering the various joints of life. Initially globalization is still related to the field of information and communication, but the snow globally of globalization is growing and rolling other fields including economic sector, politics. For example, fuel prices have been urged to gradually follow international prices. In Indonesia alone can be counted the conglomerates who control the economy, it's only a handful of people alone. This condition occurs as a consequence we embrace the capitalist system. Actually, this system is run in Indonesia even though the government does not admit it openly.
Entry of the System can be seen from some Indicators are:
a.       The gradual elimination of subsidies for the community, so that the price of strategic goods is determined fully by the market mechanism.
b.      The value of the rupiah exchange rate should not be pegged at a fixed exchange rate, so the size of the rupiah will be determined by the market mechanism.
c.       SOE firms are turning to the private sector, so the role of the government is diminishing.
d.      The participation of the nation of Indonesia in the WTO arena and the GATT agreement which shows the commitment of the Indonesian nation in the world liberalism.
The positive impact of capitalist system is the capital aspect, we can easily get the capital quickly from foreign investors while the negative impact of this system many problems occur such as unemployment, poverty, economic crisis and high foreign debt.
But even so, for me personally the Indonesian economy can be said enough to increase the boost to be proud of. Seen in times of global crisis, where many countries in the world experience crisis but not so in Indonesia. Indonesia can still survive the economic crisis. Although it can still survive, it is necessary that the government and all the people of Indonesia are aware to improve the Indonesian economy better by eradicating KKN, cutting government expenditure, opening employment, and more concern for the people to create the welfare of Indonesian society. In essence, cooperation is needed by this nation to realize that goal.

2.7 The History of the Indonesian Economy In The Reform Period
The reformation order began with the leadership of BJ.Habibie's presidency, but there has not been a significant increase in the economy due to the fundamental problems left in the New Order. The policy of concern is how to control political stability. Until the presidency of President Abdurrahman Wahit, Megawati Soekarnoputri, until now the presidency of President Susilo Bambang Yudhoyono also the problems inherited from the New Order period still can not be solved completely. Can be seen with the existence of KKN, inflation, economic recovery, performance of SOEs, and weakening of the rupiah exchange rate that became a problem of polemics for the Indonesian economy.
Then the reformasi government led by President Wahid, the general public put great expectations on the ability of Gusdur. In terms of economy, the Indonesian economy began to show improvement. However, during the reign of Gusdur, practically none of the problems in the country could be resolved properly. In addition, the relationship of the Indonesian government under the leadership of Gusdur with the IMF is also not good. The political and social instability that did not diminish during Abdurrahman Wahid's administration raised Indonesia's country risk level. The more complicated the economic problem is indicated by some economic indicators. Such as movement of Composite Stock Price Index which shows negative economic growth and low trust of business to movement of rupiah exchange rate to US dollar.
a.       The Leadership Period of Megawati Soekarnoputri
The urgent problem to solve is economic recovery and law enforcement. Policies undertaken to overcome economic problems include:
1.      Asked for a US $ 5.8 billion debt deferral at the 3rd Club Paris meeting and allocated 116.3 trillion foreign debt servicing.
2.      BUMN privatization policy. The privatization of selling state enterprises in a period of crisis with the aim of protecting state enterprises from intervening political forces and reducing the burden of the state. The success of the sponsorship increased Indonesia's economic growth to 4.1%. However, this policy incurred the controversy of state-owned enterprises that are privatized to be sold to foreign companies.
b.      The period of leadership of Mr. Susilo Bambang Yudhoyono
President Yudhoyono's first controversial policy was to reduce fuel subsidies, driven by rising world oil prices. Fuel subsidy budgets are transferred to health and education sector subsidies, as well as areas that support the improvement of people's welfare. Then came the second controversial policy of direct cash aid BLT for the poor. But most BLTs do not get to the right hands, and their pembagaiannya also cause many social problems. The policy aimed at increasing per capita income is to rely on the construction of a summit infrastructure in 2006, which brought together investors with regional heads. With more and more foreign investment in Indonesia, it is expected that the number of job opportunities will also increase. In mid-October 2006 Indonesia paid off the remaining debt to the IMF of 3.2 billion US dollars. Future hope is that Indonesia is no longer following IMF agenda in determining domestic policy.

CHAPTER III
CLOSING

3.1 Conclusions
Indonesia lies in the geographical position between the Asian and European continents and the Pacific and Indian oceans, a strategic position in the intercontinental trade routes. One of the silk roads, the sea silk path, is from China and Indonesia, via the Malacca Strait to India. From here it is to the Persian Gulf, through Syria to the Mediterranean Sea, some to the Red Sea through Egypt and also to the Mediterranean Sea (Van Leur).
The maritime trade between India, China, and Indonesia began in the first century AD, as well as Indonesia's relations with the regions of the West (the Roman Empire). Trade in the periods of traditional kingdoms referred to by Van Leur has the nature of political capitalism, in which the influence of kings in trade is enormous. For example, during the Sriwijaya period, when international trade from East Asia to Western Asia and Europe, reached its golden age.
Before independence, Indonesia experienced a period of colonization which is divided into several periods. There are four countries that once occupied Indonesia, namely Portuguese, Dutch, English, and Japanese. The Portuguese did not leave a deep imprint on Indonesia because of the exorcism of the Dutch, but the Dutch, who had ruled for about 350 years, have implemented various systems that remain to this day.
Very high inflation, caused by the circulation of more than one currency in an uncontrolled manner. At that time, for the time being the government of Indonesia declared three currencies in the territory of Indonesia, namely De Javasche Bank currency, Dutch Indies government currency, and Japanese occupation currency. Then on 6 March 1946, the AFNEI Commander (Allied Forces for Netherlands East Indies) announced the entry into force of the NICA money in the allied areas. In October 1946, the Indonesian government also issued a new banknote, ORI (Oeang Republik Indonesia) in exchange for Japanese money. Based on monetary theory, the large amount of money in circulation influences the rate increase. price. The existence of an economic blockade by the Dutch since November 1945 to close the door of foreign trade of RI. Empty state coffers, massive exploitation in colonial times.
At the beginning of the new order, economic stabilization and political stabilization were the top priorities. Government programs are oriented towards inflation control, saving the state finances and securing the basic needs of the people. Inflation control is absolutely necessary, because in early 1966 the rate of inflation was approximately 650% per year.
The reign of BJ.Habibie's president who started the reform era has not maneuvered quite sharply in the economic field. His policies are primarily for controlling political stability. During the leadership of President Abdurrahman Wahid too, there has been no significant action to save the country from the downturn. In fact, there are various economic problems inherited from the new order must be faced, among others the problem of corruption, collusion and nepotism), economic recovery, SOE performance, inflation control, and maintaining the rupiah exchange rate. In fact, the president was involved in a Bruneigate scandal that dropped his credibility with the public. As a result, his position was replaced by president Megawati.

3.2 Suggestions
Hopefully with this paper can motivate us all to learn about Indonesia Economic History. And with this paper also, the authors hope may be useful for all of us so that it can broaden our horizons and knowledge about the Economy in Indonesia.

BIBLIOGRAPHY

Hendrojogi, 2004, Koperasi: Asas-asas, Teori dan Praktik. Jakarta: PT Raja Grasindo Persada
Winkel, W.S, 1983. “Psikologi Pengajaran”. Lembaga Penerbit Gramedia Pustaka Utama : Jakarta
Hegenhahn, B.R, 2009. “Theory Of Learning”. Jakarta : Kencana