The Indonesian Nation has Experienced Many Changes Both in the Constitution And in the Government System
In its journey, the Indonesian nation has experienced many changes both in the constitution and in the government system. Where, after independence in 1945, Indonesia is still looking for a government system that is deemed appropriate to the life of the nation and state. One of the government systems that have been implemented in Indonesia is the Liberal Democracy system. Liberal democracy itself is a political system that constitutes constitutional protection of individual rights from government power.
Starting from the recognition of sovereignty, the Indonesian nation began to organize political and economic life. The period of liberal democracy is a time when the Indonesian parliamentary system is still imitating the western parliamentary system which was formed after the dissolution of the Republic of the United States of Indonesia (RIS) in 1950.
This period of liberal democracy coincided with the flourishing of political parties and the enactment of a parliamentary cabinet. Where, at that time, Indonesia as a “new country” had to learn a lot in various ways, so that the country was getting stronger. One of them is in the economic sector, which occurred as a result of cabinet changes that hurt Indonesia’s economic life.
To improve these conditions, several economic policies were issued by the government. The programs during the liberal democracy era included the Starifudi Scissors, the Banteng Program, the De Javasche Bank Nationalization, and the Ali-Baba Economic Policy.,
• Syarifudin’s scissors
Syarifudin’s scissors are a money valuation policy or sneering taken from the Minister of Finance Syafruddin Prawiranegara. On March 20, 1950, all money was valued at Rp. 2.50 and above was cut in value by half. This aims to overcome a budget deficit of Rp. 5.1 billion and can reduce the amount of money spent.
• Fortress program
The Benteng Program is an economic system that aims to transform the colonial economic structure into the national economic structure by growing Indonesian entrepreneurs through credit. Unfortunately, this program failed because employers were unable to compete and instead hurt the budget deficit which swelled to 3 billion in 1952.
• Nationalization of De Javasche Bank
In 1951, the government nationalized De Javasche Bank to become Bank Indonesia. This is done to increase revenues, export costs, and drastically. With the nationalization of the bank which belonged to the Netherlands, the government would be more flexible in carrying out economic and monetary policies.
• Ali-Baba Economic Policy
Ali Baba’s economic system involved indigenous businessmen (Ali) and businessmen of Chinese descent (Baba). Through this program, ethnic Chinese entrepreneurs are required to train indigenous workers, and the imbalance they will receive credit and license assistance from the government.
First General Election
During this liberal democracy era in 1955, the government conducted national elections for the first time. In September people elect representatives to the DPR and in December voters elect representatives who will work in an institution known as the constituency.
Also, there have been several political crises where many cabinet changes have been caused by an unstable political situation. There were 7 cabinets recorded at that time, namely, the Natsir Cabinet (6 September 1950-21 March 1951), the Sukiman-Suwirjo Cabinet (26 April 1951-3 April 1952), the Wilopo Cabinet (3 April 1952-3 June 1953), the Ali Sastroamidjojo Cabinet (31 July 1953-12 August 1955), Burhanuddin Harahap Cabinet (12 August 1955-3 March 1956), Ali Sastroamidjojo II Cabinet (20 March 1956-4 March 1957), Djuanda Cabinet (9 April 1957-5 July 1959).
Guided Democracy Period
Based on the Presidential Decree on July 5, 1959, the Indonesian nation returned to the 1945 Constitution and Indonesia entered a new phase called the guided phase. There were several political developments during the guided democracy era as well as economic development.
Economic developments during the guided democracy era included the planning of national development agencies, devaluation of money, economic declarations, and the printing of new money