Remembering December 16, 1987: A Turning Point in Indonesia's History
The Birth of a New Era
December 16, 1987, is a significant date in Indonesian history, marking a turning point in the country's development. On this day, the Indonesian government, led by President Suharto, implemented a series of economic reforms that would change the course of the nation's economy and politics.
Economic Liberalization
The reforms, known as the "May 27, 1987, Package" (although implemented on December 16), aimed to liberalize the economy by reducing trade barriers, increasing foreign investment, and promoting exports. The package consisted of 12 policies, including the deregulation of the trade sector, the reduction of tariffs, and the relaxation of investment rules.
Impact on the Economy
The reforms had a profound impact on the Indonesian economy. The country experienced rapid economic growth, with GDP increasing by an average of 7.5% per annum from 1988 to 1997. The economy became more open, with foreign investment pouring in, particularly in the manufacturing sector. Exports also grew significantly, with Indonesia becoming one of the leading exporters of textiles, footwear, and electronics in the region.
Politics and Social Changes
The economic reforms also had significant political and social implications. The growth of the economy led to an increase in urbanization, with many Indonesians moving from rural areas to cities in search of better job opportunities. This led to the growth of a new middle class, which would become a significant force in Indonesian politics in the years to come.
The reforms also led to increased pressure for political reform, with many Indonesians calling for greater democratization and human rights. Although President Suharto's government was able to maintain its grip on power, the seeds of democratic reform had been sown, and would eventually lead to the country's transition to democracy in the late 1990s.
Conclusion
December 16, 1987, is a significant date in Indonesian history, marking a turning point in the country's economic and political development. The economic reforms implemented on that day set Indonesia on a path of rapid growth and transformation, which would have a lasting impact on the country's economy, politics, and society.
