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Indonesia’s Guided Economy, 1957–1965

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Beyond Political Skin

Abstract

Chapter five examines the final episode in the economic nationalism of the Orde Lama (‘Old Order’) in Indonesia. If the moderate measures of Indonesianisasi failed to produce a satisfactory result in economic nationalism, what alternative measures were resorted to? The chapter describes the takeover and nationalization of Dutch companies in 1957–1959 and the subsequent expropriation of the Chinese, British and American businesses. There is also a discussion of the dynamics of Guided Economy in relationship to the initial aspirations held by the Indonesians to build up a national economy as set out in the 1945 Constitution. The strong involvement of the state in its support of the armed forces in the management of former foreign productive assets receives a special point of interest.

Tahun “Vivere Pericoloso”.

—Soekarno

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Notes

  1. 1.

    Feith, ‘President Soekarno’, pp. 977–978; Feith, ‘Dynamics of Guided Democracy ’, p. 338; Mortimer, Indonesian Communism , p. 79.

  2. 2.

    McVey, ‘The Post-Revolutionary Transformation’, pp. 152–153; Crouch, The Army and Politics, p. 38.

  3. 3.

    Lev, ‘The Political Role’, p. 350; Crouch, The Army and Politics, p. 38.

  4. 4.

    In fact, ever since the transfer of sovereignty various parts of Indonesia had been under the State of War, in Java because of the activities of the Darul Islam and other armed bands, in the Molucas as the result of the continuing resistance encountered from Soumokil’s separatist Republik Maluku Selatan forces, in South Sulawesi on the account of the rebellion of Kahar Muzakar and his followers. In December 1956, dissident officers in Sumatra declared a state of siege in the areas under their command. Soekarno’s declaration of martial law in March 1957 virtually extended the state of war and siege to the entire country.

  5. 5.

    Heeding criticism that the government was working under a colonial law, in December 1957 the Indonesian Parliament passed a new martial law. In actual fact, this new law did not ring many changes as it was still principally based on SOB. A few articles, whose purpose was to rein in the power of the army, were added, but these did little to reduce the waxing influence of the armed forces.

  6. 6.

    SOB distinguished two levels of emergency . In a State of War situation, the military had the authority to issue orders and regulations governing public affairs and internal security. Under the terms of the State of Siege, the military authorities were exempted from public law and were abled to take any measures they considered necessary to deal with the immediate emergency . Under both sets of circumstances, civilian authorities were obliged to obey military orders.

  7. 7.

    For comprehensive provisions and analysis of SOB, see: Basarudin Nasution , S.O.B. Pedoman Pelaksanaan Peraturan tentang Keadaan Perang dan Keadaan Darurat Perang (Jakarta: Penerbit, 1957).

  8. 8.

    Crouch, The Army and Politics, p. 38; Lev, The Transition to Guided Democracy , p. 78.

  9. 9.

    Sundhaussen, The Road to Power, pp. 129–130; Lev, The Transition to Guided Democracy , p. 28.

  10. 10.

    Utrecht, Pengantar dalam Hukum Indonesia, p. 442. The Vice-Chairman was Soeslan Abdulgani, a member of the PNI and trusted associate of the President, who had formerly been Minister of Information and Minister of Foreign Affairs.

  11. 11.

    Reeve, ‘Soekarnoism and Indonesia’s Functional Group State’, pp. 53–116.

  12. 12.

    In 1957, the military was not yet considered a functional group. It was assumed that the army would keep its expanded authority only as long as martial law was in force. Nasution’s demand for functional group status for the military was only acceded to by the National Council and parliament in November 1958.

  13. 13.

    Dewam Nasional, p. 15.

  14. 14.

    However, Sunarjo Kolopaking soon transferred the position of Dean of the Economics Faculty, the University of Indonesia , to Sumitro Djojohadikusumo .

  15. 15.

    Berita Negara Republik Indonesia, 1 July 1958.

  16. 16.

    Higgins, Indonesia’s Stabilization and Development, p. xxii.

  17. 17.

    For the activities of the BKSs and FNPIB, see Iskandar Sulayman, Karya Kerdja Sama Sipil-Militer.

  18. 18.

    Chairul Saleh was a strong revolutionary figure who had joined Soekarno in many nationalist movements during the Dutch colonial period and under the Japanese occupation. He was one of the groups of pemuda, who kidnapped Soekarno and Hatta on 16 August 1945. He also joined the Persatuan Perdjuangan Movement held by Tan Malaka , which was opposed to Sjarih’s concessions to the Dutch. After the transfer of sovereignty, the armed band led by Saleh refused to mobilize and cooperate with the National Army. In 1951, Saleh was detained by the army but, owing to interventions by Soekarno, Hatta and Moh. Yamin, he was released shortly afterwards and sent off to Europe. On account of his hostility to the army coupled with his communist sympathies, not to mention he was without party affiliation, Saleh became an ideal recruiting figure when Soekarno initiated his plan to replace the liberal constitutional system. In April 1957, he returned to Indonesia at Soekarno’s invitation and shortly thereafter was appointed State Minister for Veterans’ Affairs. In fact, ever since his appointment as Junior Minister of Basic Industries and Mining, Saleh had unrelentingly fought for government control of the oil sector, which was then under the control of army and foreign oil companies.

  19. 19.

    Lev, The Transition to Guided Democracy , p. 300.

  20. 20.

    The parliament was dissolved as a result of its opposition to the government 1960 budget bill. Representatives of all major parties, which together held 198 out of the total 270 seats in parliament, not only were specifically apposed to the size of the anticipated budget deficit, they also objected to the entire fiscal policy of the government. This parliamentary disagreement was glaringly out of tune with the gotong-royong ethos which Soekarno was trying to build as the legal basis of Indonesian politics.

  21. 21.

    Of the 17 provincial FN branches established by April 1961, 9 were chaired by the local army commander and another one by an army officer in his capacity as provincial governor, Sundhaussen, The Road to Power, p. 152.

  22. 22.

    The banning of Masjoemi , PSI, and other liberally oriented parties was one part of government efforts to retool the political party system. However, the direct cause of their demise was that their leaders had participated in the revolutionary government of the Indonesian Republic (Pemerintah Revolusioner Republik Indonesia—PRRI) in North Sumatra in 1958. By the end of 1960, there were only 10 political parties still legally in existence, including 3 nationalist parties (PNI, Partindo and IPKI), 3 Muslim parties (NU , PSII and Perti), 2 Christian parties (Parkindo and Partai Katholik) and 2 Marxist parties (PKI and Murba). Roeslan Abdulgani, Nationalism Revolution, p. 50.

  23. 23.

    The first command referred to the intensification of the Indonesian revolution and the second one to assistance to the peoples of Malaya , Singapore , and North Borneo in achieving their independence.

  24. 24.

    Finch and Lev, Republic of Indonesia Cabinets, pp. 40–66.

  25. 25.

    BPN was in fact still functioning under the name of Economic and Finance Bureau during the Djuanda cabinet. Former BPN staff member, Mulyatno Sindhudarmoko, was appointed bureau chief. One of the functions of the Bureau was to coordinate foreign aid to Indonesia, including joint venture investment. Pangaribuan, The Indonesia State Secretariat, pp. 15, 26.

  26. 26.

    Yamin, Pemandangan Terhadap Saran-saran, pp. 1–5.

  27. 27.

    Pauker, ‘The Indonesian Eight-Year Overall Development Plan ’, p. 115.

  28. 28.

    Information about the Eight-Year Plan can be found in The United State Economic Survey Team to Indonesia, Perspectives and Proposals for United States Economic Aid; Pauker, ‘The Indonesian Eight-Year Overall Development Plan ’, pp. 115–130; and Humphrey, ‘Indonesia’s National Plan’, pp. 12–21.

  29. 29.

    For the organization of BAPPENAS and its task see Suharto , Badan Perentjanaan Pembangunan Nasional.

  30. 30.

    For the organization of the MUPPENAS and its Three-Year Plan, see Suharto , Kesimpulan-Kesimpulan.

  31. 31.

    Pauker, ‘The Indonesian Eight-Year Overall Development Plan ’, p. 116.

  32. 32.

    Quoted from Feith, The Decline of Constitutional Democracy, p. 542.

  33. 33.

    In July 1962, BTI claimed 5.7 million members, one-quarter of all Indonesian adult peasants. Later in the same year, SOBSI claimed nearly 3.3 million members. PKI itself had over 2 million members by the end of 1962, making it the largest Communist party in any non-Communist nation. Ricklefs, A History of Modern Indonesia, p. 327.

  34. 34.

    Van der Kroef, ‘Indonesian Communism ’, pp. 369–370.

  35. 35.

    Mortimer, Indonesian Communism , p. 80; Sundhaussen, The Road to Power, p. 427.

  36. 36.

    Van der Kroef, The Communist Party of Indonesia, pp. 185–198.

  37. 37.

    ‘Djawaban Presiden Soekarno atas Pertanjaan2 para Anggota tentang ‘Demokrasi Terpimpin’’.

  38. 38.

    See Indonesian intellectual discussion on Guided Economy in Djambek, Doktrin Ekonomi Terpimpin dan Pembangunan; Hatta , Ekonomi Terpimpin.

  39. 39.

    ‘Pidato Presiden Soekarno tentang ‘Demokrasi Terpimpin’’.

  40. 40.

    Tan, ‘Soekarnian Economics’, p. 34.

  41. 41.

    Roeslan Abdulgani, Pantjawarsa Manipol, p. 22.

  42. 42.

    In colonial times, foreigners were not legally allowed to own land. All land without certified eigendom (‘ownership’) remained ‘free domain of the state’ or state land. The colonial government granted a title of long-lease (eftpacht) of up to 75 years to foreign planters. Nevertheless, an Indonesian national with dual nationality could acquire a right of ownership. Like many other colonial laws, this land law, promulgated in 1870, continued to be in force in post-independent Indonesia, until September 1960.

  43. 43.

    For more information about the Basic Agrarian Law of September 1960 and its implementation in Daryono, ‘Transformation of Land Rights’, pp. 418–457; Wallace, ‘Indonesian Land Law’, pp. 191–223.

  44. 44.

    Political Manifesto Republic of Indonesia of 17th August 1959.

  45. 45.

    Under pressure from the United States, on 15 August 1962 the Netherlands and Indonesia signed the New York Agreement on West Irian which was put under a temporary trusteeship of the United States before being transferred to Indonesia in May 1963. Under the Act of Free Choice, in 1969, the leaders of West Irian, now New Guinea, decided to join the Republic of Indonesia. For more information about the negotiations over the West Irian, see Drooglever, An Act of Free Choice.

  46. 46.

    ‘The Year of Triumph’, p. 28. For Indonesian version see Roeslan Abdulgani, Pantjawarsa Manipol, pp. 305–350.

  47. 47.

    Soekarno, Deklarasi Ekonomi .

  48. 48.

    His speech was titled ‘Genta Suara Revolusi Indonesia’ (The Resounding Voice of the Indonesian Revolution ). See the speech in Roeslan Abdulgani, Pantjawarsa Manipol, pp. 353–398.

  49. 49.

    Roeslan Abdulgani, Pantjawarsa Manipol, p. 443.

  50. 50.

    Soekarno, Berdiri Diatas Kaki Sendiri, pp. 18–25.

  51. 51.

    Soekarno, Berdiri Diatas Kaki Sendiri (Berdikari ), p. 34.

  52. 52.

    The report was issued in mid-1962, recommending US assistance of $200–235 million and multilateral finance of $125–155 million. D. D. Humphrey, Indonesia, Perspective and Proposal for United States Aid.

  53. 53.

    Mahajani, Soviet and American Aid, pp. 22, 24.

  54. 54.

    NA, Notes on Repayment Obligations of Indonesia, MEZ, Inventory number 123.

  55. 55.

    Mahajani, Soviet and American Aid, 15; Pauker, ‘The Soviet Challenge in Indonesia’, p. 3.

  56. 56.

    Mozingo, Chinese Policy toward Indonesia, p. 189.

  57. 57.

    NA, Notes on Repayment Obligations of Indonesia, MEZ, Inventory number 123.

  58. 58.

    Mozingo, Chinese Policy toward Indonesia, pp. 217–218.

  59. 59.

    Mahajani, Soviet and American Aid to Indonesia, pp. 26–27.

  60. 60.

    Weatherbee, Ideology in Indonesia, p. 33.

  61. 61.

    Roeslan Abdulgani, Nationalism Revolution and Guided Democracy , p. 57.

  62. 62.

    See Aidit ’s analysis of the Dekon in Aidit , Dekon (Economic Declaration).

  63. 63.

    Soekarno, Berdiri diatas Kaki Sendiri, p. 18. This quotation had been mentioned (in English) in his speech ‘Year of Living Dangerously’ on 17 August 1964, see Roeslan Abdulgani, Pantjawarsa Manipol, p. 444.

  64. 64.

    Tan, ‘Soekarnian Economics’, p. 31.

  65. 65.

    Roeslan Abdulgani, ‘MANIPOL & USDEK’, pp. 127–129.

  66. 66.

    Meijer, Den Haag-Djakarta , p. 251.

  67. 67.

    Lindblad, Bridges to New Business, p. 182.

  68. 68.

    Lindblad, Bridges to New Business, p. 182.

  69. 69.

    Meijer, Den Haag-Djakarta , p. 583.

  70. 70.

    Meijer, Den Haag-Djakarta , p. 584; Berita Negara Republik Indonesia, 1 January 1958; Lindblad, Bridges to New Business, pp. 182–183; Bondan Kanumoyoso, Nasionalisasi Perusahaan Belanda, pp. 61–63.

  71. 71.

    van der Kerkhof, ‘Indonesianisasi of Dutch Economic Interests’, p. 201; Meijer, Den Haag-Djakarta , p. 584.

  72. 72.

    Aden, Oil and Politics in Indonesia, p. 177.

  73. 73.

    This measure supposedly affected about 50,000 individuals, many of mixed European and Indonesian descent. Between December 1957 and August 1958, a total of 33,600 Dutch people left the country. In mid-1959, there were only about 6,000 Dutch people in Indonesia, most of whom (3,500) were under contract to international companies; another 1,600 were working on commission. The rest were Indonesian Dutch. Meijer, Den Haag-Djakarta , p. 584; Lindblad, Bridges to New Business, p. 183; Palmer, Indonesia and the Dutch, p. 108.

  74. 74.

    Sundhaussen, The Road to Power, p. 327; Lindblad, Bridges to New Business, p. 184.

  75. 75.

    Nederlands Tijdschrift voor Internationaal Recht 6 (1959), pp. 291–295.

  76. 76.

    Nederlands Tijdschrift voor Internationaal Recht 6 (1959), p. 221.

  77. 77.

    ‘Government Ordinance No.4 year 1959 (Statutes 1959 No.7) concerning nationalization of Dutch-owned tobacco agricultural enterprises’, Nederlands Tijdschrift voor Internationaal Recht 6 (1959), pp. 304–306.

  78. 78.

    Mackie, ‘Indonesia’s Government Estates’, p. 342.

  79. 79.

    Lindblad, Bridges to New Business, pp. 197–198.

  80. 80.

    R. M. Sarwoko and R. Hendro Koosman, Kumpulan Ketentuan-ketentuan dan Pengumuman-Pengumuman BANAS, (Jakarta: Badan Nasionalisasi (BANAS), 1961), II, p. 348.

  81. 81.

    It seems that the SOBSI made a mistake since the ‘Big Five ’ had already been nationalized in June 1959.

  82. 82.

    ANRI, Resolution of the SOBSI, 14 August 1959, KP, Inventory number 1528.

  83. 83.

    ANRI, Declaration of the SOBSI, 30 September 1959, KP, Inventory number 1528.

  84. 84.

    ANRI, Resolution of the PKI, 4 December 1959, KP, Inventory number 1528.

  85. 85.

    ANRI, Proposal of the Technicians’ Association of Yogyakarta to the President of the Republic of Indonesia, 20 April 1959, KP, Inventory number 1528.

  86. 86.

    ANRI, Proposal of the Technicians’ Association of Yogyakarta to the Minister of Health, 6 February 1959, KP, Inventory number 1528.

  87. 87.

    NA, Internationaal advies inzake Indonesische nationalisaties, EZ, Inventory number 60.

  88. 88.

    Lindblad, Bridges to new business, 184.

  89. 89.

    In early 1958, the Indonesian government cooperated with four Bremen tobacco-importing firms to establish the German-Indonesian Tobacco Trading Company (Deutsch-Indonesische Tabak-Handelsgesellsehaft—MBH) in Bremen . Most of the 1958 tobacco harvest on the Dutch tobacco plantations was shipped to Bremen by this company.

  90. 90.

    Martin Domke, ‘Indonesian Nationalization before Foreign Courts’, pp. 305–322.

  91. 91.

    NA, Report of the N.V. HandelsvereenigingAmsterdam ”, November 1958, EZ, Inventory number 123.

  92. 92.

    NA, Netherlands Delegation in the Joint Netherlands Indonesian Committee on Outstanding Financial Problems, EZ, Inventory number 128.

  93. 93.

    NA, Economisch-financiele Betrekking met Indonesie, EZ, Inventory number 127.

  94. 94.

    Lindblad, Bridges to New Business, 185.

  95. 95.

    NA, Trade Relation with Indonesia, 8 April 1965, EZ, Inventory number 128.

  96. 96.

    ANRI, Sumatra Norsk-Sumatra Plantage Kompagni, Medan , 11 May 1959, KP, Inventory number 259.

  97. 97.

    NA. Letter of J. M. Devers to the Minister of Foreign Economic Affairs, Brussels, 19 January 1959, EZ, Inventory number 123.

  98. 98.

    Indonesia’s struggle, p. 56.

  99. 99.

    Indonesia’s struggle, pp. 58–59.

  100. 100.

    Berita Negara Republik Indonesia, 15 November 1959.

  101. 101.

    Berita Negara Republik Indonesia, 15 January 1960.

  102. 102.

    Berita Negara Republik Indonesia, 15 August 1959; Thee Kian Wie, ‘Indonesianization’, p. 35.

  103. 103.

    See the Chinese reactions against the Indonesian measure to expel the Chinese from the rural areas in Mozingo, Chinese Policy toward Indonesia, pp. 164–171; Indonesian Observer, 1 April 1961. But Chinese relations with Indonesia soon recovered because the Chinese government was keen to increase its influence in Indonesia for fear that Indonesia would incline towards the US or the Soviet Union .

  104. 104.

    Mozingo, Chinese Policy toward Indonesia, p. 175; Ricklefs, A History of Modern Indonesia, p. 324.

  105. 105.

    Berita Negara Republik Indonesia, 15 January 1960.

  106. 106.

    Nevertheless, one of the nine sons, Oei Tjong Swan, sold his share to other brothers and left for Europe. Since 1930, there had been only 8 shareholders. Oei Tjong Hauw, Oei Tjong Tjiat, Oei Tjong Yan, Oei Tjong Ik, Oei Tjong Ie, Oei Tjong Bo, Oei Tjong Hiong, and Oei Tjong Tjay. In 1950, Oei Tjong Hauw died and his share was transferred to his son, Oei Ing Swie.

  107. 107.

    KKA, New Nation, 24–25 August 1971, OTHC, Inventory number 10.

  108. 108.

    KKA, Letter of Oei Tjong Tjay to Oei Tjong Ie, Oei Tjong Bo and Oei Tjong Hiong, Amsterdam , 9 April 1959, OTHC, Inventory number 12.

  109. 109.

    KKA, Suara Merdeka , 27 June 1961, Sinar Indonesia, 27 June 1961, OTHC, Inventory number 12.

  110. 110.

    In their defence, the Oei family argued that there was ‘no obligation existed at all, requiring non-residents to report their assets located in Indonesia to LAAPLN’. Furthermore, in 1952, Oei Ing Swie and Oei Tjong Yan still had Indonesian citizenship. Therefore, they were not obliged to report their transactions to LAAPLN. Letter from Oei Tjong Tjay to the Ambassador of the United Kingdom to the Republic of Indonesia, dated 14 October 1961, and Letter from Tan Swan Bing to Oei Tjong Tjay, dated 29 October 1996, OTHC, Inventory number 3.

  111. 111.

    NEFO-OLDEFO was Soekarno’s simplified concept of world order, first introduced by him in 1961 at a conference of non-aligned states held in Belgrade, Yugoslavia. Soekarno argued that the world was divided into two conflicting and irreconcilable camps, the New Emerging Forces (NEFO) consisting of the Socialist countries, the newly independent countries and the progressive peoples in the capitalist countries against the Old Established Forces (OLDEFO), consisting of the imperialists, the capitalists and the colonially minded people. Soekarno aligned Indonesia with the NEFO by organizing the Games of the New Emerging Forces (GANEFO) in Jakarta in November 1963.

  112. 112.

    Mackie, Confrontasi, p. 182.

  113. 113.

    Mackie, Confrontasi, pp. 182–187.

  114. 114.

    Besides the main refinery at Plaju, Shell had five smaller refineries: one near Balikpapan (East Kalimantan ), one in Tarakan (Northeast Kalimantan ), one in Pangkalan Brandan (North Sumatra), one in Cepu (East/Central Java) and one in Wonokromo (East Java). See Redfern, Soekarno’s Guided Democracy , pp. 165–166.

  115. 115.

    Redfern, Soekarno’s Guided Democracy , pp. 215–216.

  116. 116.

    Redfern, Soekarno’s Guided Democracy , p. 282.

  117. 117.

    Redfern, Soekarno’s Guided Democracy , pp. 283–300.

  118. 118.

    Oey Hong Lee, Indonesian Government, p. 332.

  119. 119.

    ‘Semua Perusahaan Inggris Dikuasai’, p. 33.

  120. 120.

    Redfern, Soekarno’s Guided Democracy , p. 492.

  121. 121.

    Quoted from Pelzer, Planters against Peasants, p. 160.

  122. 122.

    ANRI, Instruction of Ministry of Defence, KP, Inventory number 1267.

  123. 123.

    Sundhaussen, The Road to Power, p. 328.

  124. 124.

    Sarwoko and Hendro Koosman, Kumpulan Ketentuan-ketentuan, pp. 352–356.

  125. 125.

    Nederlands Tijdschrift voor Internationaal Recht 6 (1959), pp. 301–302.

  126. 126.

    Sarwoko and Koosman, Kumpulan Ketentuan-ketentuan, pp. 234, 238.

  127. 127.

    Report for the Year, 19571958, p. 95; Government Statement on the Struggle for West Irian, pp. 16–17, 48.

  128. 128.

    Lindblad, Bridges to New Business, p. 198.

  129. 129.

    Mozingo, Chinese Policy toward Indonesia, pp. 209–210.

  130. 130.

    These 7 state banks were Bank Indonesia (Central Bank ), BKTN, Bank Negara Indonesia , BUGNEG, Bapindo, BDN, and Savings Bank Indonesia (Bank Tabungan Negara—BTN).

  131. 131.

    Report for the Year, 19601965, pp. 58–62.

  132. 132.

    At the time of incorporation, the ‘old’ PPN was in charge of 35 estates. Its director, Saksono, continued to head the PPN-Baru. Mackie, ‘Indonesia’s Government Estates’, p. 338.

  133. 133.

    Mackie, ‘Indonesia’s government estates’, p. 338; Pelzer, Planters against Peasants, p. 163.

  134. 134.

    Pelzer, Planters against Peasants, p. 163.

  135. 135.

    Mackie, ‘Indonesia’s Government Estates’, pp. 340, 344.

  136. 136.

    Lim Kim Liat, ‘The prospects for the Deli Tobacco Industry’, in Douglas S. Paauw and Lim Kim Liat, Prospects for East Sumatran Plantation Industries; a symposium (New Haven: Yale University, 1962), p. 5.

  137. 137.

    Dahlan Thalib, ‘The Estate Rubber Industry in the East Coast of Sumatra’, in Prospects for East Sumatran Plantation Industries; A Symposium, ed. by Douglas S. Paauw and Lim Kim Liat (New Haven: Yale University, 1962), p. 53.

  138. 138.

    Mackie, ‘Indonesia’s Government Estates’, p. 343.

  139. 139.

    Mackie, ‘Indonesia’s Government Estates’, p. 343.

  140. 140.

    Lindblad, Bridges to New Business, p. 204.

  141. 141.

    KKA, Letter of Moch Soejoedi to Bill (Oei Tjong Bo), dated 12 May 1962, OTHC, Inventory number 12.

  142. 142.

    Redfern, Soekarno’s Guided Democracy , pp. 342–347.

  143. 143.

    Redfern, Soekarno’s Guided Democracy , pp. 507, 558.

  144. 144.

    Panglaykim, Ingrid Palmer, State Trading Corporations in Developing Countries, pp. 69, 35; Lindblad, Bridges to New Business, p. 197.

  145. 145.

    Panglaykim, State Trading Corporations in Indonesia, p. 55.

  146. 146.

    Panglaykim, State Trading Corporations in Indonesia, p. 100.

  147. 147.

    Panglaykim, State Trading Corporations in Indonesia, p. 102.

  148. 148.

    Achmad Sanusi, The Dynamics of the Nationalization, pp. 438–444.

  149. 149.

    Panglaykim, State Trading Corporations in Indonesia, p. 23; Sanusi, The Dynamics of the Nationalization, pp. 438–444.

  150. 150.

    Bisuk Siahaan, Industrialisasi di Indonesia, p. 323.

  151. 151.

    At the time of the takeover, the Indonesian owned 62 ½ of the company’s shares. Kabinet Karya, p. 208.

  152. 152.

    Report for the Year, 19581959, p. 255.

  153. 153.

    Report for the Year, 19581959, p. 258; Report for the Year, 19601965, p. 226.

  154. 154.

    Aden, Oil and Politics in Indonesia, pp. 159–217.

  155. 155.

    Dick, The Indonesian Interisland Shipping , pp. 23–24; Marks, ‘The Lost Decades?’, pp. 80–83.

  156. 156.

    Government Statement on the Struggle for West Irian, p. 48.

  157. 157.

    Berita Negara Republik Indonesia, 15 January 1958.

  158. 158.

    Runturambi, Problim Management Ekonomi, p. 33.

  159. 159.

    Earnst Utrecht, Indonesian Army, I, p. 100.

  160. 160.

    Ricklefs, A History of Modern Indonesia, p. 328; Dick, Houben, Lindblad, and Thee, The Emergence of a National Economy, p. 192.

  161. 161.

    Oey Hoong Lee, Indonesian Government, p. 106; Eric Chetwynd, ‘The Indonesian Stabilization Attempt,’ pp. 84–85.

  162. 162.

    Ricklefs, A History of Modern Indonesia, p. 338.

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Pham, V.T. (2019). Indonesia’s Guided Economy, 1957–1965. In: Beyond Political Skin. Springer, Singapore. https://doi.org/10.1007/978-981-13-3711-6_5

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