1. The Old Order ( Ir. Soekarno)
In the old order government that led by indonesia's first president Ir. Soekarno, he wanted indonesia to be independent without relying on other countries. he was so strict. but that also became one of many factors that made our economic growth so low.
there are 4 reasons why Indonesian economic collapse in the old order:
1. high inflantion because the circulation of currency can't be controlled.
2. there were economic blockade by netherlands since novermber 1945
3. empty state coffers
4. exploitation on a large scale
But there were some efforts to overcome the economic troubles.
1. National Loan Program
2. Efforts to went through the blockade by did rice diplomacy to India.
3. Economic Conference in February 1946 with the aim of getting deal to overcome economic troubles that were so urgent.
4. reconstruction and rationalization the forces.
2. The New Order (Soeharto)
In 1966 indonesia got into new order that led by Indonesia's second president, Soeharto. The government payed more attention to the public welfare and also economic growth that based on open economic system so the good result made the west side believed in Indonesian economic prospect. moreover, the gorvernment composed five-year plan graudually with clear target. The effect of five-year plan towards Indonesian Economic was awesome enough especially in macro level. the growth went so fast with an average growth rate per year that relatively high. Because the increase in people's income, the technology transformation and industrialization policy since 1980, Indonesia Economic have changed the structure from the agricultural country to semi-industrial state.
From too long in power and surrounded by sycophants, Suharto was no longer sensitive to the needs of the people. Food and energy prices, which for three decades in control, jumped. In this situation, it is easy in a rocking by students, activists, and political elites.
Five-star general and even then finally stepped down Keprabon, May 21, 1998, accompanied blasphemy students and activists. He is reviled as a dictator-military security and political stability with the 'violence' by the power of reform. He abused as a fertile source of corruption.
but worsening economic performance and the proliferation of corruption for 10 years of reform forcing people back turned to Suharto. Good is not good, Soeharto was better. Suharto managed to build agriculture and manufacturing. He was able to reverse the position of Indonesia as the world's largest rice importer to an exporter of rice. Directed through the systematic construction of a lamp-by-lamp managed to reduce poverty, illiteracy, mortality, and population growth rate.
3. Transition Period (B.J Habibie)
when the authoritarian president Suharto resigned during an economic crisis in 1998, automatically the vice president B.J Habibie sabtituted his position.
to overcome the monetary crisis and economic improvement, B.J Habibie took some steps:
1. Restructuring and banking recapitulation through the establishment of IBRA and the State Asset Management unit
2. Liquidating some troubled banks
3. Raising the value of the rupiah against the dollar to below RP. 10.000,00
4. Forming the monitoring agency and the foreign debt problem resolution
5. Implementing economic reforms required by the IMF
6. Passed Law. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Competition
7. Passed Law. 8 of 1999 on Consumer Protection.
In the economic recovery, the government succeeded in significantly reducing the rate of inflation and monetary fluctuations than at the beginning of the crisis. However, the economic policy measures have not been fully considered mjempunyai encouraging as concrete and systematic policies like the real sector has not recovered.
4. Reformation Era (K.H Abdurrahman Wahid)
Occurs there is a lot of weirdness and economic policy. In the past Wahid, Indonesia's credit rating has fluctuated, from CCC ratings fell to DDD and climbed back to the CCC. One of the main causes is the impact of the financial crisis in 1998 which was brought up to reign.
5. Megawati Era
In fact, Megawati government privatization policy run by the insistence from outside, in particular the IMF and the World Bank. The difference, if Megawati just made a deal to continue the previous government, Habibie, through stuctrual adjustment program (SAP). In addition, consideration of privatizing megawati era is to find funding to cover the state budget deficit. As is known, Megawati inherited an economy in tatters due to the economic crisis in 1997.
Based on our records, the period 1991-2001, the Indonesian government 14 times privatize SOEs. Privatized 12 SOEs.In the reign of Megawati, economic and political co-operation was also conducted outside the U.S. and its allies blocks, such as the purchase of Sukhoi cooperation with Russia and trade cooperation with China. in addition, the Megawati administration tried hard to get out of the trap of the IMF. However, the effort was refracted by Boediono, finance minister at the time, to sign a post-program monitoring (PPM) which means continuing the IMF intervened clandestinely. For the protection of women and migrant workers abroad, megawati government never filed three bills, namely the Draft Bill (Bill) on the Protection of Victims of Violence in the Workplace and Domestic, Overseas Workers Bill, and the Crime of Trafficking in Persons Bill.
6. Susilo Bambang Yudhoyono Era
The Indonesian economy is on the SBY government has developed very well . Indonesia's economy grew rapidly in 2010 as the world economic recovery after the global crisis from 2008 to 2009 . Evidently , the Indonesian economy is able to withstand the effects of the threat of economic and financial crisis that occurred in the European zone . The Indonesian economy will continue to grow well , but must be adapted to the global conditions are volatile . Indonesian economy will continue to grow , especially financial markets , although the crisis had affected , but it has proven able to survive . Meanwhile , the global economic recovery had a positive impact on the development of the external sector of the Indonesian economy . The administration of President Susilo Bambang Yudhoyono ( SBY ) managed to break the deadlock and became the catharsis . Corruption and poverty remains a problem in Indonesia . But after a few years in a national leadership is erratic , SBY has managed to create a political and economic stability in Indonesia .
the president's step to embrace the political parties which lost the 2009 elections are part of a policy of Soft Power, or policies to work together in building the nation and the state. This is similar to the Cabinet Mutual-Aid in the past. The state of the economic system of Indonesia during the rule of mutual aid has the following characteristics:
1. low economic growth due to the development of investment is still lacking mainly due to the still unstable political and social conditions in the country.
2. In terms of exports, since 2000, the value of Indonesia's non-oil exports continued to decline from 62.1 billion dollars to 56.3 billion U.S. dollars in 2001, and in 2002 to 42.56 billion U.S. dollars.
