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
1.2 Problem Formulation
1.3 Objectives and Benefits Writer
2.2 History of the Indonesian Economy Before Independence
2.3 The Economy of the Old Order
2.4 The Economy of the New Order
2.5 The Economy in Transition
2.6 Current Economic System of Indonesia
2.7 The History of the Indonesian Economy In The Reform Period
3.2 Suggestions
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
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