The Road to Independence (1945–1950)

Sangaralingam Ramesh ()
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Sangaralingam Ramesh: University of Oxford and University College London

Chapter Chapter 8 in The Political Economy of Indonesia’s Economic Development, Volume I, 2025, pp 297-334 from Springer

Abstract: Abstract This chapter explores the early decades of independence under Presidents Sukarno and the emergence of Guided Democracy. It focuses on populist economic nationalism, state-led industrialization, and land reform efforts. The collapse of liberal parliamentary rule led to increased centralization, inflation, and political polarization. Relations with Western powers deteriorated as Indonesia pursued non-alignment and forged ties with the Soviet bloc. The chapter examines the tension between political ideology and economic management, arguing that economic instability and institutional weakness undermined the developmental goals of the early post-colonial period and paved the way for regime change.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-94350-8_8

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DOI: 10.1007/978-3-031-94350-8_8

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