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Revisiting Indonesia's 'Worst' Economic Memories

It started during post- independence era and climax was largely felt in the 1998. What should be done to prevent economic instability?

Liputan6.com, Jakarta Economic crisis is not unpopular in a large country such as Indonesia which houses a vast majority of middle to lower class society. Though the crisis occurring in the year of 1998 comes as a harsh reminder of the nation’s worst political and economic upheavals, it has been viewed as an important experience underpinning the successes of the nation’s economy in the future to come in battling against likeliness of volatility other forms of economic subjugation as a repercussion to external factors at the global scale.

Indonesian Minister of Finance, Bambang Brodjonegoro confirms the fact that Indonesia’s long protracted history of economic crisis should be marked as an important lesson to anticipate future economic problems.

Minister Bambang went to share a story as to the preliminary timeframe of which Indonesia was initially badgered by the economic crisis. Indonesia post- independence in the period between 1945 through to 1949 experienced an acute economic breakdown as the repercussion of a lengthy war that led to its ultimate independence. It was acceptable at that time as the nation was still at its commencing stage of solidifying its economic structure and therefore it was seen as largely natural for the nation to go through such experience.

Another crisis hit the nation hard in 1963 where the nation comes with an appalling inflation record amidst slow economic growth.

“In the year of 1963, Indonesia experienced what seems to be a hyper inflation whereas its growth was showing a movement towards negative trend. Such condition led to the implementation of ‘strong policy’ in the 1970s,” Minister Bambang said.

Crisis continued as price of oil fell in the 1980s. Crises continue to become a virus that is inevitable for the nation and as the problem continues to grow, government willingness to address it equally grows.

“We had to deregulate in mid 1980s due to the fall of oil price and such policy was needed in order to make our economy a successful one. It was until the 1990s we were able to finally experience economic growth by 7% and earned ourselves a status of being one of middle income countries and played crucial role in the Asian region throughout that period hitherto,” he continued.

1997 crisis marked the beginning of a fatal one which was concluded in the 1998 large- scale coup de tat. That was when Rupiah experienced depreciation, inflation and caused for the beginning of massive unemployed generation.

“It was a dark period of our economy which has affected our political system to its core. We have to reform our economy to prevent reliving such awful memory and to prevent our economy from experiencing any kind of instability,” he concluded. (Akp/Ein)

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