Economy System In Soekarno Era

The reign of Soekarno a period is a period of recovery after the occupation, the reign of President Soekarno using liberal economic system. This system turns into a social system after the presidential decree of July 5, 1959. The circulation of more than one type of currency led to high inflation rates that can not be controlled. So that the Indonesian economy at the time of great upheaval and at that moment Soekarno generate some economic policies are: scissors Syafruddin, alibaba system, cooperative and economic declaration. But these policies have not been able to handle the economic upheaval because at that time he lebh focus on maintaining the stability of political conditions and conflict in the country so that the control system becomes weak economy. As the hero of independence, proclaimed at the same time the first President of Indonesia, the Indonesian economy can not be separated from the figure Ir. Soekarno. As the first lead Indonesia Soekarno arguably is the foundation stone of the economy of Indonesia. Some of the measures taken under the Soekarno government such as:Bank Nationalization Java to Bank Indonesia, an efforts to secure concerning the dignity of life of many people, and trying to decide control of the Netherlands in the field of import-export trade. In addition, because of pressure from leftists and nationalists, Wilopo cabinet finally did the nationalization of the electricity companies and airlines. This nationalization policies increasingly widespread due to the push by the mobilization of the workers led SOBSI. Some successful nationalized Dutch company then managed by Self-Management system. The next step is to secure the government's efforts concerning the dignity of many people, such as pawn hall, some important agricultural region, postal, telephone, electricity, ports, coal mines and railroads. Furthermore, the state government through the BIN finance company in the sector of the production of cement, textiles, car assembly, glasses and bottles. The final step the government is trying to decide control of the Netherlands in the field of import-export trade to establish the Center for Trade Company in 1948 for exporting agricultural products of Indonesia. The government also established USINDO in 1956 to export manufacturing industry -which was financed by BIN- and importing raw materials for industrial use them. All steps of government intervention in the economy is aimed at building the infrastructure for the development of the capitalist class in the country. Djojohadikusomo Sumitro program clearly illustrates the intent of this plan. Beginning in 1951, BIN disbursed USD 160 million to finance industrial projects. A wide variety of industries including rubber processing, cement, textiles established. Government ownership and control of its management. But the owners of capital in the country are not able to mobilize their capital to be partners in these industries and also unable to find other, more profitable businesses.