- Shift in the Power of Government Role in the Economy Indonesian started the new Order until Now
A neccesity that newess a country's economy will be influenced by direction of its leader's policy. the difference between the leader's style and interests is one thing that is very influental on the direction of policy. another thing that is very influential on the leader's policy is closeness to other countries are able to influence internal policies in a country.
Political interest also cannot be denied in a policy making in the economy and sometimes even political interests are dominant in the economy in all countries including Indonesia. the long history of the indonesian economy experienced very volatile dynamics after independence. the old order regime hasn't yet fully focused on reforming the economic sector because it's still struggling with the problem of remnants of colonization such maintaining independence. the new order regime became a moment of indonesian's economic development marked by several program in the economic field. the fall of the new order regime in 1998 marked a new chapter.
In the Indonesian economy was more open, although basically there was no ideologically significant difference between economic policies during the new order and the reformation.
The new order regime was designed by a very conspirative political upheal. it started when the publication of supersemar n 1966, which became soeharto's legitimacy, be a president. Suharto's rise was suspected of being result of the cold war between the USA and Union Sovyet which competed to plant their idelogies in third world countries and suharto became president as proof that the USA had won the battle of ideologi in Indonesia. this is illustrated in the days to come with a very clear picture that the direction of indonesia's leadership turns to the USA, not least in the economic sphere even in 1995, Indonesia caught in IMF traps wth burden some assistance even today until the new order economy marked by opening of the foreign investment tap with the issuance of law and no. 1 of 1967 concerning foreign investment which attracted investors freely in investing their capital in indonesia although with the exception of several business sectors that were closed to investment.
The new orde regime became very strict on all aspects of the life of nation, as well as in the field of economics. Suharto built the foundation of his dynasty since taking the power. the new order economy was designed by the Berkeley mafia. among the dedengkot are Widjojo Nitisasto, Emil Salim, Ali Wardhana, and a series of alumni economists of Berkeley University. these economists are very pro topolicies liberalization. the role of government of the new order era was mortgaged with US interests that were too strong.
Widjojo was also the initiator of Repelita, who was very identical during development the new order economic. the magnitude of his role in making economic policy led to the birth of the concept of Widjojomics, namely the view that in facing the economic strength of developed countries which is can only produce superior goods comparatively, for instance textiles and other products that lack content advanced technological. the ilustration is very clear that the new order regime was too inclined toward liberal economic system oriented toward the USA.
After the reformation, Indonesia's political struggle is very dynamic. BJ Habibie rose to replace suharto and one of his successes was to strengthen the rupiah exchange rate which was previously at Rp. 16.650 dollars in june 1998 to Rp. 7.000 dollars as of November 1998 by issuing law no. 1999 concerning protection concumerand law no. 5 of 1999 concerning the prohibition of monopolistic practices and unfair competition.
Gus Dur then took the reins of leadership which only lasted 2 years from 1999 to 2001in his short period of government. Gusdur was known not to compromise on the policies to be decided, including policies implemented in the economic field including amending the bank indonesia law, fiscal decentralization and implementing region autonomy so that the role of each government region can apply for foreign debt. Gus Dur was unable to do much because of the lack of political support from the Asembly.
the fall of Gus Dur was replaced by Megawati, who was only in power for 3 years. however one of the crucial policies is to privatize SOE,s including selling Indosat to Singapore Technologies Telemedia (STT) for economic growth. in addition, there was no significant policiy in Megawati's time that could bring the indonesia's economy to a better condition.
During SBY regime which lasted for 10 years, the role of the government in the process of economic development didnt experience changes significant compared to the previous regime. SBY's policies including rises fluel prices at the started of the government providing direct cash assistance (BLT) to the public and which doesn't differentiate from other regimes, namely the holding of indonesi infrastructure summit in november 2006.
Political interest also cannot be denied in a policy making in the economy and sometimes even political interests are dominant in the economy in all countries including Indonesia. the long history of the indonesian economy experienced very volatile dynamics after independence. the old order regime hasn't yet fully focused on reforming the economic sector because it's still struggling with the problem of remnants of colonization such maintaining independence. the new order regime became a moment of indonesian's economic development marked by several program in the economic field. the fall of the new order regime in 1998 marked a new chapter.
In the Indonesian economy was more open, although basically there was no ideologically significant difference between economic policies during the new order and the reformation.
The new order regime was designed by a very conspirative political upheal. it started when the publication of supersemar n 1966, which became soeharto's legitimacy, be a president. Suharto's rise was suspected of being result of the cold war between the USA and Union Sovyet which competed to plant their idelogies in third world countries and suharto became president as proof that the USA had won the battle of ideologi in Indonesia. this is illustrated in the days to come with a very clear picture that the direction of indonesia's leadership turns to the USA, not least in the economic sphere even in 1995, Indonesia caught in IMF traps wth burden some assistance even today until the new order economy marked by opening of the foreign investment tap with the issuance of law and no. 1 of 1967 concerning foreign investment which attracted investors freely in investing their capital in indonesia although with the exception of several business sectors that were closed to investment.
The new orde regime became very strict on all aspects of the life of nation, as well as in the field of economics. Suharto built the foundation of his dynasty since taking the power. the new order economy was designed by the Berkeley mafia. among the dedengkot are Widjojo Nitisasto, Emil Salim, Ali Wardhana, and a series of alumni economists of Berkeley University. these economists are very pro topolicies liberalization. the role of government of the new order era was mortgaged with US interests that were too strong.
Widjojo was also the initiator of Repelita, who was very identical during development the new order economic. the magnitude of his role in making economic policy led to the birth of the concept of Widjojomics, namely the view that in facing the economic strength of developed countries which is can only produce superior goods comparatively, for instance textiles and other products that lack content advanced technological. the ilustration is very clear that the new order regime was too inclined toward liberal economic system oriented toward the USA.
After the reformation, Indonesia's political struggle is very dynamic. BJ Habibie rose to replace suharto and one of his successes was to strengthen the rupiah exchange rate which was previously at Rp. 16.650 dollars in june 1998 to Rp. 7.000 dollars as of November 1998 by issuing law no. 1999 concerning protection concumerand law no. 5 of 1999 concerning the prohibition of monopolistic practices and unfair competition.
Gus Dur then took the reins of leadership which only lasted 2 years from 1999 to 2001in his short period of government. Gusdur was known not to compromise on the policies to be decided, including policies implemented in the economic field including amending the bank indonesia law, fiscal decentralization and implementing region autonomy so that the role of each government region can apply for foreign debt. Gus Dur was unable to do much because of the lack of political support from the Asembly.
the fall of Gus Dur was replaced by Megawati, who was only in power for 3 years. however one of the crucial policies is to privatize SOE,s including selling Indosat to Singapore Technologies Telemedia (STT) for economic growth. in addition, there was no significant policiy in Megawati's time that could bring the indonesia's economy to a better condition.
During SBY regime which lasted for 10 years, the role of the government in the process of economic development didnt experience changes significant compared to the previous regime. SBY's policies including rises fluel prices at the started of the government providing direct cash assistance (BLT) to the public and which doesn't differentiate from other regimes, namely the holding of indonesi infrastructure summit in november 2006.
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