Monetary Aspects Of Indonesia's Economic Reorganization In 1959

Within the last few months, the government has introduced series of measures designed to reactivate the country's economic development. Not only is the pace of development to be speeded up again, but the development is to take a form peculiar to the Indonesian personality. The intention is to break away almost completely from he form of development practiced in countries professing liberal economics and to move in the direction of a type of nationalistic socialism emphasizing government control and/or ownership of all key sectors of the economy. At the same time, the class conflict aspects of traditional socialism are to be de-emphasized in concordance with the Indonesian concept of 'gotong-rojong'. The nationalistic component of this socialism is reflected both in the desire to secure the driving forces of the economy in the hands of Indonesian citizens and in the policy to keep Indonesia independent of the two world power blocks. The latter wish of course modifies its ability to obtain foreign loans — in which direction it is hard to say