On the History of the Indonesian Economy

Indonesian economy from the time of the old order to its sebetul now, a lot of ups and downs.
as when Indonesia had experienced independence. Indonesia experienced very high inflation, caused by the release of more than one currency uncontrollably. At that time, the Indonesian government temporarily declared three currencies in force in the territory of the Republic of Indonesia, namely currency De Javasche Bank, the Dutch currency, and the Japanese occupation currency.
The government then took out right ORI, but in my opinion, should his government when it should account for it juamlah ORI which will come out right in with the current economic circumstances lest inflation.

At the time of the New Order Indonesian government has been able to self-sufficiency in rice, reducing poverty, improving people's welfare indicators such as enrollment rates and a decline in infant mortality, and industrialization are increasing rapidly, but the negative impact is the destruction and pollution of the environment and resources natural, economic differences between regions, inter-group and inter-group work in the community felt increasingly sharp, and the accumulation of foreign debt. In addition, the development raises laden conglomerate and business corruption, collusion and nepotism, and Indonesia during the global crisis is one of the countries that affected her.

During the presidential administration that started the reform period BJ.Habibie maneuvering yet sharp enough in the economic field. Preferred policies to control political stability. During the leadership of then president Abdurrahman Wahid, there has been no significant action to save the country from chaos. In fact, there are a variety of economic problems inherited the new order must be faced, among other issues KKN (Corruption, Collusion and Nepotism), economic recovery, the performance of SOEs, controlling inflation and maintaining exchange rate. Even presidential scandal Bruneigate which dropped its credibility in the eyes of society. As a result, his position was replaced by Megawati. The leadership of Megawati Sukarnoputri
Urgent problems to be solved is the economic recovery and enforcement. Policies adopted to address the economic problems, among others:
a) Request postponement of debt repayment of U.S. $ 5.8 billion at the Paris Club meeting on the 3rd and allocate external debt amounting to Rp 116.3 trillion.
b) the privatization policy. Privatization of state enterprises were sold in the period of crisis in order to protect the company from the state 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 the privatized SOEs sold to foreign companies.
In this period also realized the establishment of the KPK (Corruption Eradication Commission), but there is no concrete breakthrough in the fight against corruption. Though the existence of corruption makes many investors think twice about investing in Indonesia, and disrupt national development.

Leadership in Time of Susilo Bambang Yudhoyono
President Yudhoyono's first controversial policy is to reduce fuel subsidies, or in other words to increase fuel prices. This policy is motivated by the rise in world oil prices. Budget subsidies diverted to subsidize education and health sectors, as well as areas that support the improvement of people's welfare.
The first controversial policy raises two controversial policies, which direct cash assistance (BLT) for the poor. Most BLT is not up to the right hand, and the division caused various social problems.
Policies adopted to increase the per capita income is relying on the development of bulk infrastructure 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 local chiefs.
According to Keynes, investment is the main factor to determine employment. This may underlie the government's policy has always aimed to provide convenience for investors, especially foreign investors, which one of them is the revision of labor laws. If more and more foreign investment in Indonesia, the expected number of job opportunities will also increase.
In mid-October 2006, Indonesia settled all remaining debt to the IMF amounted to 3.2 billion U.S. dollars. With this, it is expected that Indonesia no longer following IMF agenda in determining domestic policy. But discourse to owe more on overseas again emerged, after the release of a report that the economic gap between rich and poor narrowed, and the number of poor people increased from 35.10 soul in February 2005 to 39.05 million in March 2006. This is caused by several things, among others, due to banks lending to the real sector is still lacking (banks prefer to deposit funds in SBI), so the performance of the real sector and the lack of impact on the decline in investment. In addition, the government bureaucracy is too thick, causing his State expenditures and absorption, because of budget management inefficiencies. So, on the one hand the government is trying to invite investors from outside the country, but on the other hand, the conditions in the country are still not conducive.