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IMPOSSIBLE IS POSSIBLE: R. HARTARTO SASTROSOENARTO AND INDUSTRIALIZATION IN INDONESIA *)

IMPOSSIBLE IS POSSIBLE: R. HARTARTO SASTROSOENARTO AND INDUSTRIALIZATION IN INDONESIA *). Dr. Yuda B. Tangkilisan Faculty of Humanities University of Indonesia -------------------------------------- *) Delivered at The International Graduate Student Conference

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IMPOSSIBLE IS POSSIBLE: R. HARTARTO SASTROSOENARTO AND INDUSTRIALIZATION IN INDONESIA *)

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  1. IMPOSSIBLE IS POSSIBLE:R. HARTARTO SASTROSOENARTO AND INDUSTRIALIZATION IN INDONESIA *) Dr. Yuda B. Tangkilisan Faculty of Humanities University of Indonesia -------------------------------------- *) Delivered at The International Graduate Student Conference on Indonesia (IGSC), Yogyakarta December 2009

  2. BACKGROUNDS • Prior to 1970, Indonesia was characterized as a “chronic economic dropout” and as a one of the poorest countries in the world (Higgins 1968: 678) • No one would believe that Indonesia would be grouped as a member of the most exclusive club of “East Asian Miracle Economies” and with the highest economic group in the world in just 20 years (Wulan Sari 2004: 3) • Few chances for Indonesia to have a rapid economic growth (Myrdal 1969)

  3. BACKGROUNDS (2) • Industrialization and economic growth • New Industrial Country (NIC) in the 1980s as Asia’s ‘dragon’ economies • Industrial sectors (non migas) contribution to GDP (Gross Domestic Products) outnumbered Agricultural sectors • Sectors 1983 1993 • -------------------------------------------------- • Agriculture 24.3 % 11.4 % • Industry 17.8 % 22.3 %

  4. IMPOSSIBLEIS POSSIBLE • A BELIEF OF R. HARTARTO SASTROSOENARTO • THOUGHTS • STRATEGY • SELF ESTEEMED • OPTIMISM • TEAM WORK

  5. PURPOSES • To show industrial progress during 1983—1993 • Sumitro Djojohadikusumo (1991) was impressed by the progress • Anne Booth (2001) has similar impressions • To explain how the progress was achieved • To explore the good side (legacy) of New Order from economic development angle as lessons for today • Cultivating the role and contribution of R. Hartarto Sastrosoenarto in indonesian industrial development

  6. METHODOLOGY • Gathering data • Documentary & Literature Study • Oral history (Interview) • Key persons • Other informants • Structurism/ Structuration (Lloyd/ Giddens) • Structure and Changes • Agency • Reproduction (Failed) • Transformation (When Succeeded)

  7. Biographical Backgrounds • 1983 to 1993 was the terms of Hartarto Sastrosunarto as Minister of Industry • Chemical engineers graduated from Australia • Began his career from the bottom at Department of Industry • Visions for Indonesia in the future as a world player • Still concerns with industrialization of Indonesia

  8. Thoughts and Performance • Industrialization needs a legal ground • Acts of Industry no. 5, 1984 • Priority of Industries (middle technology) • A links to agrarian sectors (fertilizers) • Constructions (cements) • Social needs (pulps) • Production (machines) • 6 Main Policies • 4 Supporting policies

  9. 6 Main Policies: • 1) Developing industrial structure, • 2) Developing machinery and electronics industries, • 3) Developing small industries, • 4) To export industrial wares, • 5) Developing research and technology, • 6) To develop entrepreneurship and professionalism.

  10. 4 Supporting Policies • 1) legal basics, • 2) clustering national industries, • 3) inter-linkage programs and • 4) widening domestic and international markets

  11. Ability & Leadership • Expert in matters by training and experiences • Firm personality—not hesitate to take a decision • To organize the department • Making a new branches • Merit system (right men in the right place) • Corporate Culture

  12. RESULTS • Hartarto played an important role in industrialization during the New Order • Industrialization endured along the law and policies • Industrial sectors (manufacturing) grew outnumbering agrarian sectors to GDP • From the UNIDO (United Nation Industrial Development Organization) criteria, Indonesia has entered a phase of New Industrial Countries (NIC)

  13. CONCLUDARY REMARKS • Industrialization is not only building factories but also more important industrial society • Industrialization implied a team work, not one man show • Government has important roles in industrialization as a regulator and prime mover but not as a main player • Impossible is Possible

  14. THANK YOU

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