Indonesian economy during the Soekarno-SBY

INDONESIAN ECONOMY ON THE OLD ORDER AND THE NEW ORDER

The Indonesian economy during the old order (1945-1966)
At the beginning of independence , Indonesia's economic development leads to changes in the structure of the colonial economy into the national economy , which aims to promote small industries to produce substitute goods imports , which in turn is expected to reduce the level of foreign dependence .
The monetary system of banking in particular central bank is still running like a fair . This was evidenced by the exclusive right to print money and banking holds responsibility for maintaining national stability . Bank Indonesia is able to maintain the level of freedom of political decision-making .
The period of the old order starting from August 17, 1945 when Indonesia became independent . At that time , the state of the Indonesian economy experienced stagflation ( stagnation means of production or activity halted production at a high rate of inflation ) . Indonesia has experienced a democratic political system that is in the period 1949 to 1956. In that year , there was a political conflict in which the average age of the cabinet is only two years old so it is not the focus of the government in power think about social problems and economic yangterjadi at that time . During the period 1950 Indonesia's economic structure is a relic of the colonial era , the structure is called a dual society where menerapkandiskriminasi duality structure in each policy either directly or indirectly langsung.Keadaan Indonesian economy be worse than during the penjajahanBelanda .
Since 1955 , economic development began meramba to major projects . This is confirmed by the release policy Universe Eight-Year Development Plan (1961 ) . This policy contains the plan to build major projects and several smaller projects to support such a large project . This plan includes important sectors and using modern calculation . But unfortunately Eight-Year Development Plan of the Universe is not running or has failed due to some reasons such as the shortage of foreign exchange for the supply of capital and lack of expertise .
The Indonesian economy during this period decreased or worsened . The occurrence of massive spending that was not intended for development and economic pertumnbuhan but in the form of military spending to the cost of confrontation West Irian , Imported rice , lighthouse projects , and free funds ( funds revolution ) to reward close friends of the regime . The economy is also exacerbated by the hyperinflation that reached 650 % . In addition, Indonesia began isolated in the international arena and start close to the communist countries .

 The Indonesian economy is the new order (1966-1998)
Inflation in 1966 reached 650 % , and the budget deficit is greater than the entire amount of revenue. The balance of payments with foreign large deficit , the exchange rate is not stable " ( Gilarso , 1986:221 ) a brief description of how the destruction of the economy at that time to be built up again by the new order , or also can be said as a turning point .
The beginning of the new order receives the brunt of the poor economy of the old order . Year 1966-1968 was a year of economic rehabilitation . New Order Government trying hard to bring down inflation and stabilize prices . With controlled inflation , political stability is achieved ayng effect on foreign aid began to be guaranteed by the IGGI . So since 1969 , Indonesia could start up a draft development called Five-Year Development Plan ( Repelita ) . Here's a brief explanation of some Repelita :
A. Repelita I (1967-1974)
came into force on April 1, 1969. objectives are economic growth of 5% per year with the preferred target is enough food , enough clothing , especially infrastructure improvements to support agriculture . Surely it would be followed by the expansion of employment and improvement of people's welfare .
B. REPALITA II (1974-1979)
The target is economic growth of 7.5 % per year . The main priority is the agricultural sector which is the basis to meet domestic food needs and is the basis for the growth of industries that process raw materials into raw materials .
C. REPALITA III (1979-1984)
Tetaap priority on economic development focused on sectorpertanian toward self-sufficiency , as well as increased industrial process raw materials into finished material .
D. REPALITA IV (1984-1989)
Is an increase of Repelita III . Increased efforts to improve people's welfare , encouraging a more equitable distribution of income and equitable , expand employment opportunities . Priorotasnya to continue strengthening efforts and increase self-sufficiency in food industry to produce machines .
1. Mr. BJ Habibie (May 21, 1998-20 Oktober 1999)
At the time of presdiden BJ Habibie, who started the reform period has not made enough changes mean in economics . Preferred policies to stabilize the political situation in Indonesia . President BJ Habibie fall of his government for releasing the territory of Timor - Indonesia region polled .

2 . Mr. Abdurrahman Wahid (October 20, 1999-23 July 2001 )
During the leadership of president Abdurrahman Wahid has been no means sufficient action to save Indonesia from adversity . Leadership Abdurraman Wahid ended because of his administration to confront the problem of conflict between ethnic and inter-religious .

3 . Mrs. Megawati ( 23 July 2001-20 October 2004 )
The leadership of Megawati experiencing urgent problems to be solved , namely economic recovery and law enforcement . The policies adopted for handling his economic problems , among others :
• Ask delay debt payments of U.S. $ 5.8 billion in Paris Club meetings 3rd and allocate foreign debt amounting to Rp 116.3 trillion
• privatization policy . Privatization is selling companies in the country in the period of crisis with the aim of protecting the company's state of the intervention of political forces and reduce the burden on the state . Proceeds successfully raised Indonesia's economic growth to 4.1 % . However, this policy sparked a lot of controversy , because SOEs are privatized sold to foreign companies . Megawati intend to take the middle ground by selling some state assets to pay the foreign debt . However , the national debt ballooned anyway because state revenues from a variety of assets have been lost and state revenues to be greatly reduced .

4 . Mr. Susilo Bambang Yudhoyono ( October 20, 2004 - present )
The leadership there SBY controversial policy stance is
• reducing fuel subsidies , or in other words to increase fuel prices . This policy is motivated by the rise in world oil prices . Budget subsidies transferred to the education and health sectors , as well as areas that support the well-being of society .
• The first controversial policy raises two controversial policies , which direct cash assistance ( BLT ) for the poor . Most BLT did not get to have the right hand , and the division caused various social problems .
• Rely on bulk infrastructure development to encourage economic growth as well as inviting foreign investors with the promise of improving the investment climate . One of them is holding Indonesian Infrastructure Summit in November 2006 , which brought together investors with head - kepaladaerah . Investment is a key factor to determine employment . This may underlie the government's policy has always aimed to provide convenience for investors , especially foreign investors , one of which is a revision of labor laws . If more and more foreign investment in Indonesia , the expected number of employment opportunities will also increase .