Editing Economy of Indonesia (section)

===Sukarno era===
In the years immediately following the [[proclamation of Indonesian independence]], both the [[Japanese occupation of the Dutch East Indies|Japanese occupation]] and the [[Indonesian National Revolution|conflict between Dutch and Republican forces]] had crippled the country's production, with exports of commodities such as rubber and oil being reduced to 12 and 5% of their pre-WW2 levels, respectively.<ref name="lindblad06">{{cite journal |last1=Lindblad|first1=J. Thomas|title=Macroeconomic consequences of decolonization in Indonesia|journal=XIVth Conference of the International Economic History Association|date=2006 |url=http://www.helsinki.fi/iehc2006/papers1/Lindblad.pdf |access-date=18 August 2017|location=Helsinki|archive-url=https://web.archive.org/web/20130811000608/http://www.helsinki.fi/iehc2006/papers1/Lindblad.pdf |archive-date=11 August 2013|url-status=dead}}</ref> The first Republican government-controlled bank, the Indonesian State Bank (''[[Bank Negara Indonesia]]'', BNI) was founded on 5 July 1946. It initially acted as the manufacturer and distributor of ORI (''Oeang Republik Indonesia''/Money of the Republic of Indonesia), a currency issued by the Republican Government which was the predecessor of [[Indonesian rupiah|Rupiah]].<ref>{{cite web|title=History – BNI |url=http://www.bni.co.id/en-us/company/about-bni/history|publisher=BNI |access-date=18 August 2017|archive-date=1 July 2018|archive-url=https://web.archive.org/web/20180701222313/http://www.bni.co.id/en-us/company/about-bni/history|url-status=dead}}</ref> Despite this, currency issued during the Japanese occupation and by Dutch authorities was still in circulation, and the simplicity of the ORI made its counterfeiting relatively easy, worsening matters.<ref>{{cite news|last1=Hakiem|first1=Lukman|title=Hatta-Sjafruddin: Kisah Perang Uang di Awal Kemerdekaan|url=http://www.republika.co.id/berita/jurnalisme-warga/wacana/17/08/09/oue9d2385-hattasjafruddin-kisah-perang-uang-di-awal-kemerdekaan|access-date=18 August 2017|agency=Republika|date=9 August 2017|language=id}}</ref> Between 1949 and 1960, Indonesia experienced several economic disruptions. The country's independence [[Dutch-Indonesian Round Table Conference|recognized by the Netherlands]], the dissolution of the [[United States of Indonesia]] in 1950, the subsequent [[Liberal democracy period in Indonesia|liberal democracy period]], the nationalization of ''De Javasche Bank'' into the modern [[Bank Indonesia]],<ref>{{cite journal |last1=Lindblad |first1=J. Thomas |date=2004 | url=http://www.indie-indonesie.nl/content/documents/papers-economic%20side/Makalah-Thomas%20Lindblad.pdf |archive-url=https://web.archive.org/web/20090327003011/http://www.indie-indonesie.nl/content/documents/papers-economic%20side/Makalah-Thomas%20Lindblad.pdf |archive-date=27 March 2009 |url-status=dead | title=Van Javasche Bank naar Bank Indonesia. Voorbeeld uit de praktijk van indonesianisasi | trans-title=From Java Bank to Bank Indonesia: A Case Study of Indonesianisasi in Practice | journal=Tijdschrift voor Sociale en Economische Geschiedenis | volume=1 |pages=28–46 |language=nl}}</ref> and the takeover of Dutch corporate assets following the [[West New Guinea dispute]],<ref>{{cite journal |last1=van de Kerkhof|first1=Jasper |title=Dutch enterprise in independent Indonesia: cooperation and confrontation, 1949–1958 |journal=IIAS Newsletter|date=March 2005 |volume=36 |url=http://iias.asia/sites/default/files/IIAS_NL36_18.pdf |access-date=18 August 2017|archive-date=18 August 2017|archive-url=https://web.archive.org/web/20170818091528/http://iias.asia/sites/default/files/IIAS_NL36_18.pdf|url-status=dead}}</ref> which all resulted in the devaluation of Dutch banknotes into half their value.<ref>{{cite web|title=Period of Recognition of the Republic of Indonesia's Sovereignty up the Nationalization of DJB |url=http://www.bi.go.id/en/tentang-bi/museum/sejarah-bi/pra-bi/Documents/89b8c80249714bce8dc84a9ad1bbb1b5MicrosoftWordPeriodofRecognitionoftheRepublicofInd.pdf |publisher=Special Unit for Bank Indonesia Museum: History Before Bank Indonesia|via=Bank Indonesia |access-date=18 August 2017|archive-date=5 October 2019|archive-url=https://web.archive.org/web/20191005041254/https://www.bi.go.id/en/tentang-bi/museum/sejarah-bi/pra-bi/Documents/89b8c80249714bce8dc84a9ad1bbb1b5MicrosoftWordPeriodofRecognitionoftheRepublicofInd.pdf|url-status=dead}}</ref>

During the [[Guided Democracy in Indonesia|guided democracy era]] in the 1960s, the economy deteriorated drastically as a result of political instability. The government was inexperienced in implementing macroeconomic policies, which resulted in severe poverty and hunger. By the time of Sukarno's downfall in the mid-1960s, the economy was in chaos with 1,000% annual inflation, shrinking export revenues, crumbling infrastructure, factories operating at minimal capacity, and negligible investment.<ref>{{Cite web |title=Sukarno's economic policy left me on the brink of ruin: Mochtar Riady's story (13) |url=https://asia.nikkei.com/Spotlight/My-Personal-History/Sukarno-s-economic-policy-left-me-on-the-brink-of-ruin-Mochtar-Riady-s-story-13 |access-date=2023-03-19 |website=Nikkei Asia |language=en-GB}}</ref> Nevertheless, Indonesia's post-1960 economic improvement was considered remarkable when taking into consideration how few indigenous Indonesians in the 1950s had received a formal education under Dutch colonial policies.<ref>{{cite book|title=A History of the Global Economy. From 1500 to the Present.|author=Baten, Jörg|date=2016|publisher=Cambridge University Press|isbn=9781107507180|page=292}}</ref>