8 - The Basic Framework of the Five-Year Development Plan (REPELITA) (1968)

Summary

Introductory Note: The compilation of the First Five-Year Development Plan (Repelita I) began in 1967 and continued in 1968. The implementation of Repelita I began in the fiscal year of 1969–70. At the time, the fiscal year started on 1 April and ended on 31 March of the following year. When Repelita I was being drafted, exchanges of views were held with various circles concerning the basic guidelines of the entire five-year plan programme. Because Repelita I was already under preparation, its basic framework was utilized as material for the exchanges of views on the basic ideas of the overall five-year plan program.

At present (1968) the compilation and specifications for Repelita are underway. The Basic Framework for Repelita still requires further detailing because at this time it contains only basic guidelines. Input, in the form of thoughts and opinions, would therefore, be very much appreciated toward the improvement of the Basic Framework for the Five-Year Development Plan Programme.

The starting point for formulating the Basic Framework is the long period of time that will be required for the completion of the development process. This period has to be divided into phases that are reflected in the various five-year development plans. Therefore, the first Repelita should be seen as the beginning of a series of five-year development plans. These five-year plans may emphasize different sectors in line with economic growth rates. So if the development of agriculture as the primary concern in the first five-year plan turns out to be really successful, the main priority in the second Repelita will shift toward other sectors.

The five-year development plans will later be segmented into more detailed annual plans. These annual plans will cover: the physical plan, the financing plan and the plan for development policies. All of these plans, as a whole, should be reflected in the State Budget of Income and Expenditure (APBN). In this way the targets to be annually achieved will be clear and the priority of the state budget will be the implementation of the five-year development plan. With the situation ever changing as development proceeds, and with more information becoming available, adjustments and improvements of the five-year development plan can be introduced annually. In this way, the Repelita programme will be flexible in nature.