Indonesia’s Guided Economy, 1957–1965

  • Van Thuy Pham


Chapter five examines the final episode in the economic nationalism of the Orde Lama (‘Old Order’) in Indonesia. If the moderate measures of Indonesianisasi failed to produce a satisfactory result in economic nationalism, what alternative measures were resorted to? The chapter describes the takeover and nationalization of Dutch companies in 1957–1959 and the subsequent expropriation of the Chinese, British and American businesses. There is also a discussion of the dynamics of Guided Economy in relationship to the initial aspirations held by the Indonesians to build up a national economy as set out in the 1945 Constitution. The strong involvement of the state in its support of the armed forces in the management of former foreign productive assets receives a special point of interest.


Guided democracy Guided economy Nationalization Indonesian communism Martial law Cold war 


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Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  1. 1.College of Social Sciences and HumanitiesVietnam National University, HanoiHanoiVietnam

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