The Economic Situation

During the New Order Era

GROUP 1
Alya Ramadhani Ziam Atika Laudri Anggun Retno U
(01) (24) (02)

Ida Putri Rahayu Juwita Maghfiranti

(09) (10)

Nida' Mujahidah Noorida Shafa I

(17) (18)

XII Mahiroh
 NEW ORDER
1965-1998

The term coined by the second Indonesian

01 President Suharto to characterise his
regime as he came to power in 1966.

Suharto used this term to contrast his rule

02 with that of his predecessor, Sukarno
(dubbed the "Old Order," or Orde Lama).

"New Order" was committed to achieving

and maintaining political order, economic
03 development, and the removal of mass
participation in the political process.
What is New Order
?
 Economic policies issued during
the New Order era :
The New Order government has a slogan that
Economic
shows their main focus in implementing economic Stabilization and Rehabilitation

policies, namely the “Development Trilogy”.

The Development Trilogy was created because
Indonesia experienced very high inflation in early
1966, approximately 650% a year.
Working together abroad
National Development
1) Long term period of 25-30 years
2) Short-term covers a period of 5 years
(Pelita / Five-Year Development)

Economic Situation?
Five-Year Development Plan (Repelita)
In April 1969, the government prepared a Five-Year Development Plan
(Repelita) aimed at increasing economic facilities, economic activities and
clothing and food needs. Repelita will be evaluated every five years.

Repelita I (1 April 1969-31 March 1974)

The main targets to be achieved are food, clothing, shelter, employment
expansion, and spiritual welfare. Successful economic growth rose 3 to 5.
7% while the inflation rate decreased to 47.8%..

Repelita II (1 April 1974 - 31 March 1979)

Focused on the agricultural and industrial sectors.
Repelita III (1 April 1979-31 March 1984)
Pelita III emphasizes the Development Trilogy by emphasizing the
principle of equity.

Repelita IV (1 April 1984 - 31 March 1989)

Focused on the agricultural sector towards food self-sufficiency by inc
reasing industries that could produce their own machines.

Repelita V (1 April 1989-31 March 1994)

Focused on the agricultural sector to strengthen food self-sufficiency,
increase agricultural production, absorb labor, and be able to produce
it.

Repelita VI (1994)
Focused on the economic, industrial, agricultural and human resource sec
tor.
 Green Revolution
is basically a change in the way of farming from the traditional way (peasant) to the modern way (farmers).
To increase agricultural production generally four main businesses are carried out, consisting of:

Intensification Extentification
Namely research, development, and application Namely the expansion of agricultural
of agricultural technology to utilize existing land land to obtain more optimal agricultu
in order to obtain optimal results ral products
This change was made through the Farmer Five
Farmers Program

Rehabilitation Diversification

Restoring critical agricultural product Diversity of farming

ivity resources
The • Occurred in Indonesia began with the financial crisis in Thailand in mid-1997.
• The Rupiah began to be strongly attacked in August. On August 14, 1997

1997/1998 • Floating exchanges were regularly exchanged with free floating exchanges.

Monetary
Economic • In Indonesia in the 1990s poverty increased due to the 1997/1998 economic crisis,
and the increase was greater in cities than in rural areas

Crisis
• The 1997/1998 Monetary Crisis was not merely a monetary crisis in the narrow
sense - the decline of the rupiah against the US dollar - but it has led to market
distortions, unreasonable price increases, food staples disappearing,
unemployment is increasing and leading to a crisis of confidence in government.
 Positive Impacts
of New Order Economic Policy

1. Government development 3. Indonesia changed the status of

programs are well planned and the the largest rice importing country
results can be seen concretely. into a nation that meets its own
rice needs (rice self-sufficiency).

2. Reduction in poverty rates

 Negative Impacts
of New Order economic policies:

1. Damage and pollution of the

environment and natural resources

4. Gives rise to conglomerates and

2. Economic differences between
regions, between classes of work,
between groups in society are
increasingly sharp.
3. Created marginalized groups
(social marginalization)
businesses that are close to KKN
(Corruption, Collusion and Nepotism)
6. Development only prioritizes
economic growth without a
balanced and democratic political,
economic and social life.
Thank You