The Nineteen Sixties Development

The seven year development plan, which was initiated in 1961 and intended to run until 1968, was largely political in motivation and, in the increasingly disturbed conditions of the early 1960s, little attempt was made to implement it. After the successful stabilization plan of 1966-69 when, with foreign assistance, inflation was reduced to single figures and the supply of basic needs increased, the government embarked plans or Repelitas (standing for Rencana Pembangunan Lima Tahun). These were and continue to be, exercise in top-down planning. The plan documents are drawn up at the National Planning Bureau in Jakarta, and production targets are set for different sectors of the economy. Although provincial governments are consulted, and increasingly provincial and sub-provincial levels of government are involved in plan implementation, the key decisions are made in Jakarta. This reflect the highly centralized nature of the financial system, with almost all the important taxes accruing directly to the central government. Provincial and sub-provincial level government have little financial autonomy, and little scope for implementing projects funded from their own revenue sources. This is particularly true for the resource-rich areas outside Java. In provinces such as Aceh, Riau, East Kalimantan and Irian Jaya, much of the revenue generated from the exploitation of oil and gas, other minerals and forest products accrues directly to the central government and the producing provinces have little control over their use.

This condition possible becomes the trigger of security trouble in some areas, a lot of group which wish to secede from this totalitarian state some years ago. On the currently have many changes on government system until born new system like area autonomy, that hope can make a new expectation for develop their region.