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The 1950s saw increased political pressure to nationalize Dutch private companies that still existed in Indonesia at the conclusion of the Indonesian National Revolution. However, Indonesia still needed significant foreign funding and skills in order to develop the foundation of an economy that can support its population. In February 1950 President Sukarno announced to foreign companies in Indonesia that the recovery of the economy of Indonesia following the revolution requires all available funds, foreign and domestic. In 1953 the Minister of Finance Ong Eng Die stated that the role of foreign companies in the economy of Indonesia needs to be formally clarified in future national development plans.
The program was devised as a means to nurture the role of Indonesian nationals in the economic development while avoiding conflict of interest with foreign companies, especially those from the Netherlands.
Executionedit
The Benteng program was executed in several steps, with significant changes in each step in terms of economic opportunities and access. Its main program covered imports, as the required funds were the least. Further, the role of Dutch companies were seen to be most significant in this area, especially through large trading companies.
The program started by earmarking the importation of certain goods to pribumi businesses. Requirements for obtaining general import licenses were then changed. In 1950 it was decreed importing trading companies have to have at least 70% of its shares owned by native Indonesians. In May and June 1953, increasing this percentage was considered in debate, which brought up allegations of discrimination against the Tionghoa, resulting in the dissolution of Wilopo's Cabinet.
The program was reviewed in September 1955 by the Burnahuddin Harahap Cabinet and Secretary of Finance Sumitro Djojohadikusumo. Its ethnic-based requirements were scrapped and replaced by downpayment requirements.
The formation of the Karya Cabinet led by Djuanda Kartawidjaja in March and April 1957 signaled the transition to a directed economy under the auspices of Guided Democracy; Benteng program was then officially stopped.
Referencesedit
Lindblad, J. Thomas, The Importance of Indonesianisasi during the Transition from the 1930s to the 1960s
November 23, 2023
benteng, program, this, article, multiple, issues, please, help, improve, discuss, these, issues, talk, page, learn, when, remove, these, template, messages, this, article, includes, list, references, related, reading, external, links, sources, remain, unclear. This article has multiple issues Please help improve it or discuss these issues on the talk page Learn how and when to remove these template messages This article includes a list of references related reading or external links but its sources remain unclear because it lacks inline citations Please help to improve this article by introducing more precise citations April 2012 template removal help This article relies largely or entirely on a single source Relevant discussion may be found on the talk page Please help improve this article by introducing citations to additional sources Find sources Benteng program news newspapers books scholar JSTOR April 2012 template removal help The Benteng program also known as the Benteng policy was an Indonesian economic policy which consisted of measures to provide pribumi entrepreneurs with import licenses in order to hasten the development of an indigenous business class The program was initiated by Industry Minister Sumitro Djojohadikusumo in 1950 and lasted up until Prime Minister Djuanda Kartawidjaja abolished it in 1957 Official portrait of Sumitro Djojohadikusumo c 1970s who initiated the Benteng programBackground editThe 1950s saw increased political pressure to nationalize Dutch private companies that still existed in Indonesia at the conclusion of the Indonesian National Revolution However Indonesia still needed significant foreign funding and skills in order to develop the foundation of an economy that can support its population In February 1950 President Sukarno announced to foreign companies in Indonesia that the recovery of the economy of Indonesia following the revolution requires all available funds foreign and domestic In 1953 the Minister of Finance Ong Eng Die stated that the role of foreign companies in the economy of Indonesia needs to be formally clarified in future national development plans The program was devised as a means to nurture the role of Indonesian nationals in the economic development while avoiding conflict of interest with foreign companies especially those from the Netherlands Execution editThe Benteng program was executed in several steps with significant changes in each step in terms of economic opportunities and access Its main program covered imports as the required funds were the least Further the role of Dutch companies were seen to be most significant in this area especially through large trading companies The program started by earmarking the importation of certain goods to pribumi businesses Requirements for obtaining general import licenses were then changed In 1950 it was decreed importing trading companies have to have at least 70 of its shares owned by native Indonesians In May and June 1953 increasing this percentage was considered in debate which brought up allegations of discrimination against the Tionghoa resulting in the dissolution of Wilopo s Cabinet The program was reviewed in September 1955 by the Burnahuddin Harahap Cabinet and Secretary of Finance Sumitro Djojohadikusumo Its ethnic based requirements were scrapped and replaced by downpayment requirements The formation of the Karya Cabinet led by Djuanda Kartawidjaja in March and April 1957 signaled the transition to a directed economy under the auspices of Guided Democracy Benteng program was then officially stopped References editLindblad J Thomas The Importance of Indonesianisasi during the Transition from the 1930s to the 1960s Retrieved from https en wikipedia org w index php title Benteng program amp oldid 1166661325, wikipedia, wiki, book, books, library,
