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
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