Describe Briefly About Economy System In Soekarno Era

         Since the establishment of the Republic of Indonesia, there have been many national figures who have now formulated the right economic form for the Indonesian nation, both individuals and discussion groups. But in the old order government it was still unable to improve the deteriorating economic condition of the Republic of Indonesia. 

- Old Order (Guided Democracy) 

The condition of the financial economy in the early days of independence was very bad, among others caused by: 

• Inflation is very high, affecting because the circulation of more than one currency is uncontrolled. At that time, for the time being the Indonesian government determined three currencies that were applicable in the Republic of Indonesia, namely the De Javasche Bank currency, the Dutch East Indies government currency, and the Japanese occupation currency.
• The existence of an economic blockade by the Netherlands since November 1945 to close the door of the Indonesian foreign trade.
• Blank state cash.
• Massive exploitation in the colonial period. 

Efforts made to overcome economic difficulties include:

• The National Loan Program implemented by the finance minister Ir. Surachman, with BP-KNIP's approval, was conducted in July 1946.
• Efforts to penetrate the blockade with rice diplomacy to India, held contacts with private American companies, and penetrated the Dutch blockade in Sumatra with the aim of Singapore and Malaysia.
• Economic Conference in February 1946 with the aim of reaching a unanimous agreement on tackling urgent economic problems, namely: the problem of food production and distribution, clothing problems, and the status and administration of plantations.
• Economic Formation Planning Agency (1961) January 19, 1947
• Reconstruction and Rationalization of the 1948 Armed Forces (Rera)
• The Kasimo Plan is essentially about food self-sufficiency efforts with some practical implementation guidelines. With food self-sufficiency, it is expected to improve (Following the School of Physiocrats: the agricultural sector is a source of wealth).