ECONOMY SYSTEM IN ERA SOEKARNO

the economic system of the Old Order era or the Soekarno regime, at the beginning of this old order the Indonesian economy focused on transforming the colonial economy into a national economy, the aim of which was to advance small industries and reduce imports which were expected to reduce dependence on foreign countries. In 1995 Indonesia's development began with the meramba of large projects, this was strengthened by the eight universe development plan policy in 1961. This policy contained plans for the establishment of large projects as well as several small projects to support the large project. However, it is very dear that this eight universe development failed in that period because, as there was a shortage of foreign exchange for capital and a shortage of experts, the economy in that period experienced a decline or deterioration, and large expenditures aimed not at economic growth but rather for the costs of West Irian confrontation, rice imports, lighthouse projects, and free funds to repay the services of close friends of the ruling regime. So at that time the beginning of Indonesia wanted to develop the economy suddenly the Indonesian economy experienced a decline and even hyperinflation of up to 650%, because of the lack of experts at that time which made the project development in Indonesia fail.