INDUSTRIALIZATION OF NEW ORDER FROM HISTORICAL PERSPECTIVES: A Preliminary Study BY: YUDA B. TANGKILISAN DEPARTMENT OF HISTORY (A Paper for Seminar Hasil Penelitian FIB UI, Depok, 2 Juni 2009)

2 BACKGROUNDS INDUSTRIALIZATION AND ECONOMIC DEVELOPMENT INDUSTRIALIZATION AND ECONOMIC DEVELOPMENT INDUSTRIALIZATION IN INDONESIAN HISTORY INDUSTRIALIZATION IN INDONESIAN HISTORY –Colonial Times: No industrialization: Missed Opportunity ? –1945 to 1966: “Nasionalisasi” disturbed by Political Turbulances

3 WHY NEW ORDER ? IMAGES OF NEW ORDER: Paint it black? IMAGES OF NEW ORDER: Paint it black? LESSONS FROM THE PAST LESSONS FROM THE PAST TIMES OF REAL INDUSTRIALIZATION TIMES OF REAL INDUSTRIALIZATION HISTORIOGRAPHICAL REVIEW HISTORIOGRAPHICAL REVIEW Pesimistic point of view Pesimistic point of view Optimistic point of view Optimistic point of view

4 PROBLEMS ► THE MAKING OF INDUSTRIAL POLICIES FROM IMPORT SUBSTITUTION TO EXPORT PROMOTION ► CHALLENGES AND RESPONSES ► VESTED INTERESTS OF POLICY MAKERS ► POLITICAL AND ECONOMIC CONTEXT ► INDUSTRIAL POLICIES CHANGES

5 METHODOLOGY  HISTORICAL METHODS  Primary & Secondary Resources  Criticism (External & Internal)  Interpretation  Legal Approaches (Pelita)  Periodization  Writings  SOCIAL AND ECONOMIC APPROACHES

6 PERIODIZATION FROM H.R. HARTARTO SASTROSUNARTO FROM H.R. HARTARTO SASTROSUNARTO (Industrialisasi serta Pembangunan Sektor Pertanian dan Jasa Menuju Visi Indonesia Jakarta, 2006) (Industrialisasi serta Pembangunan Sektor Pertanian dan Jasa Menuju Visi Indonesia Jakarta, 2006) 1. Stabilization and Recovery ( ) 1. Stabilization and Recovery ( ) 2. Supporting Agriculture & Import Substitution ( ) 2. Supporting Agriculture & Import Substitution ( ) 3. Growth of Industries ( ) 3. Growth of Industries ( ) 4. Birth of Industrial Policies ( ) 4. Birth of Industrial Policies ( )

7 SUPPORTING OPINIONS THE YEARS OF 1984 TO 1993: THE GROWTH OF MANUFACTURE ANNE BOOTH (2001) SUMITRO DJOJOHADIKUSUMO (1991) THE KIAN WIE (1994) MARI E. PANGESTU (1994)

8 THE INDUSTRIAL POLICIES INDUSTRY ACTS OF 1984 NO. 5 INDUSTRY ACTS OF 1984 NO. 5 MAIN STRATEGIC POLICIES (6 Points) MAIN STRATEGIC POLICIES (6 Points) 1. Developing the Structure of Industries 1. Developing the Structure of Industries 2. Machines and Electronics 2. Machines and Electronics 3. Small-scale Industries 3. Small-scale Industries 4. Export of Industrial products 4. Export of Industrial products 5. Research and Applied Sciences 5. Research and Applied Sciences 6. Entrepreneurship & Professionals 6. Entrepreneurship & Professionals

9 THE INDUSTRIAL POLICIES (2)  SUPPORTING STRATEGIC POLICIES (4 Points)  1. Legal Grounds  2. Clusters of Industries  3. Linkage Programs  4. Domestic and Foreign Markets  PERFORMANCES AND ACHIEVEMENTS

10 CONCLUDARY REMARKS THE IMPORTANCE OF HISTORICAL ANALYSIS THE SIGNIFICANCE OF INDUSTRIAL POLICIES (RELATED WITH VISIONS) THE ROLE OF GOVERNMENT IN INDUSTRIALIZATION NOT ONE MAN SHOW CULTIVATING INDUSTRIAL HISTORY

11 THANK YOU