3 - Restructuring Indonesian Economic Fundamentals with Economic Principles (1966)

Summary

Introductory Note: Two big events took place at the University of Indonesia in 1966. The first one was the Seminar on Economics and Finance, on 10–20 January 1966 organized and held by KAMI-FEUI (Indonesian Students Action Front of the Faculty of Economics of the University of Indonesia). The second was a Symposium on the Awakening Spirit of '66: Exploring a New Path, organized and held by the University of Indonesia and KASI (Indonesian Scholars Action Front) on 6–9 May. The events of 11 March that led to changes in the governmental structure in Indonesia and the approach to its economic problems took place between these two important academic meetings. Professor Dr Ali Wardhana was the Symposium Chairman, while I acted as the moderator on economic issues.

The section on the economic sector for the Symposium on Awakening Spirit of ’66: Exploring a New Path was titled: Reorganizing the Fundamentals of the Indonesian Economy Based on Economic Principles.

First of all, it is important for us to know that improvements in the economy cannot be achieved solely by making speeches, or holding symposiums or seminars, or other such event; concrete measures are also required for that. Symposiums, seminars, and other discussions are merely a means for exchanging ideas to find a better road map or ways to overcome economic hardship. The outcome of such an exchange of ideas can further be defined into what is called a “concept”. In fact, the number of concepts required to overcome the current economic difficulties has become large indeed. One of the most apt of these concepts came out of the Seminar on Economics and Finance Issues, which was organized by KAMI FE-UI (Indonesian Students Action Front of the Faculty of Economics of the University of Indonesia) on 10–20 January 1966). Thus, the question is how to implement those concepts or ideas that are alive in our society.

Another aspect is that, for most economic scholars especially those who are in universities, circumstances have significantly changed. Before 11 March 1966, the question was how to make top government officials aware that economic problems were important, could not be ignored and should be addressed in a rational and efficient manner. Today the government does not have to be told about the importance of economic problems.