Chronology of 1966's crucial events

Chronology of 1966's crucial events

JAKARTA (JP): The year 1966 was very crucial in the history of
Indonesia. Things unfolded in a way that amazed even people like
Widjojo Nitisastro.

Looking back, there are plenty of reasons why many people
considered Indonesia a miracle, especially after Gunnar Myrdal
stated in early 1960s that Indonesia was a lost cause.

For example, only three months after the Sept. 30, 1965,
abortive coup of the now-banned Indonesian Communist Party (PKI),
a group of students of the School of Economics at the University
of Indonesia organized a seminar on Jan. 10 to discuss the state
of the nation's economy.

"Only three months..," Widjojo said, shaking his head in
astonishment.

The seminar was followed by a second symposium, during which
Subroto attacked Sukarno's Guided Democracy.

"It is time," said Subroto, "for Parliament to approve the
government budget before the fiscal year begins; to use
government funds to rehabilitate the economy instead of spending
funds on helicopters, airplanes, and other luxuries, and to
expend every effort to bring into balance the entire array of
monetary and fiscal policy, foreign trade, prices, the salaries
of civil servants, and production."

The following is the chronology of events in 1966 that would
lead to the country's political and economic rebuilding:

* January : Seminar on the state of the economy organized by
the Indonesian Students Action Front of the School of Economics,
University of Indonesia.

* April : Adam Malik went to New York to announce that
Indonesia would resume its seat in the United Nations General
Assembly.

* May: A symposium was held at the University of Indonesia to
which the entire cabinet was invited. Sponsored by the
university's rector and deans, as well as the national Indonesian
Students Action Front, it discussed a wider range of issues:
Economic, political, social and cultural problems. Also in May,
Adam Malik met in Bangkok with Tun Abdul Razak of Malaysia and
announced that Indonesia's "confrontation" would be brought to an
end.

* June: The Provisional People's Consultative Assembly met for
the first time since the political crisis began nine months
earlier. The Assembly confirmed Soeharto's position as chief
executive and supported his outlawing of the Communist party. The
Assembly further instructed Sukarno and Soeharto to jointly form
a new government, the main objectives of which were to be
political stabilization, economic rehabilitation, preservation of
an independent foreign policy and preparations for general
elections.

* July: The Provisional People's Consultative Assembly (MPRS)
issued Decision No. 23 outlining the foundations for the new
economic, financial and development policies.

* August: The Second Army seminar organized by the Staff and
Command School (Seskoad) was held in Bandung.

* September: Indonesian representatives met with the country's
major creditors in Tokyo. Seven creditor nations were
represented, the United States, Japan, Britain, France, West
Germany, Italy and the Netherlands. During the Tokyo meeting, the
Indonesian government explained its economic conditions and its
plans for reform. The meeting agreed to reschedule Indonesia's
debts.

* October: Soeharto announced a sweeping program of economic
policy reforms to decontrol the economy. The decision was later
adopted as a decision of the Provisional People's Consultative
Assembly (MPRS). Among other things, it eliminated the existing
system of multiple exchange rates and import-export licensing
controls from a large portion of the country's international
trade.

* December: Indonesian representatives once again met with
representatives from the creditor nations in Paris. This
encounter came to be known as the Paris Club meeting. This was a
milestone meeting as the creditors agreed to a moratorium, into
1971, on payments of interest and on principal long-term
Indonesian debts incurred before June 1966. The Paris meeting
laid the foundation for the establishment of the Inter-
Governmental Group on Indonesia (IGGI). (lem/rlt)