Describe briefly about economy system
in soekarno era.
In the years
immediately following the proclamation of Indonesian independence, both the Japanese occupation and conflict between Dutch and Republican forces had crippled the country's production, with exports of
commodities such as rubber and oil being reduced to 12 and 5 percent their
pre-WW2 levels, respectively. The first Republican government-controlled
bank, the Indonesian State Bank (Bank Negara Indonesia, BNI) was founded
on July 5, 1946 and initially acted as the manufacturer and distributor of ORI (Oeang Republik Indonesia/Money of the
Republic of Indonesia), a currency issued by the Republican Government which
was the predecessor of Rupiah. Despite so, currency issued during the
Japanese occupation and by Dutch authorities were still in circulation, and
simplicity of the ORI made its counterfeiting straightforward, worsening
matters. Once the nation's independence has been recognised by the Netherlands on December 1949, the next 10 years saw the devaluation
of Dutch banknotes into half their value (Gunting Sjafruddin), issolution of the United States of Indonesia in 1950, and during the liberal democracy period the nationalization of De Javasche Bank into modern Bank
Indonesia and the
takeover of Dutch corporate assets following the West New Guinea dispute. During the guided democracy era in the 1960s, the economy deteriorated drastically as a
result of political instability. The government was inexperienced in
implementing macro-economic policies, which resulted in severe poverty and
hunger. By the time of Sukarno's downfall in the mid-1960s, the economy was in
chaos with 1,000% annual inflation, shrinking export revenues, crumbling infrastructure,
factories operating at minimal capacity, and negligible investment.
Nevertheless, Indonesia´s post-1960 economic improvement was considered
remarkable when taking consideration of how few indigenous Indonesians in the
1950s had received a formal education under Dutch colonial policies.
OPINION ABOUT THE BEST ECONOMY SYSTEM
FOR INDONESIA
In my opinion a good economic system for
Indonesia is the Pancasila because in Indonesia there are many people who have
businesses that are classified as small and medium enterprises, which still
cannot compete perfectly with big businesses. therefore, the role of the
government is needed to assist in regulating or providing policies so that the
industry can develop.
and in my opinion if Indonesia uses the
economic system of pure capitalism. There are still many Indonesians currently
who are below the poverty line. Because the system only benefits two groups,
namely the owners of capital and banking.People who have capital will get
richer, while the poor will get poorer and eventually will cause inequality.The
role of the government in monitoring the economic development that runs in this
country is also very necessary for the creation of prosperity in people's
lives.
