Widjojo Nitisastro (23 September 1927 – 9 March 2012) was an Indonesian economist, who was known as the main architect of the Indonesian economy during the
New Order regime of President
Suharto
Suharto (8 June 1921 – 27 January 2008) was an Indonesian Officer (armed forces), military officer and politician, and dictator, who was the second and longest serving president of Indonesia, serving from 1967 to 1998. His 32 years rule, cha ...
, serving as Minister for National Development (1971–1983) and Coordinating Minister for Economy, Finance and Industry (1973–1983). He was one of Indonesia's best-known and most respected economic policy-makers, both within Indonesia and overseas.
He joined the Indonesian Student Army during the
Indonesian National Revolution
The Indonesian National Revolution (), also known as the Indonesian War of Independence (, ), was an armed conflict and diplomatic struggle between the Republic of Indonesia and the Dutch Empire and an internal social revolution during A ...
and fought in
Surabaya
Surabaya is the capital city of East Java Provinces of Indonesia, province and the List of Indonesian cities by population, second-largest city in Indonesia, after Jakarta. Located on the northeastern corner of Java island, on the Madura Strai ...
. After the end of the revolution, he taught at a
junior high school
Middle school, also known as intermediate school, junior high school, junior secondary school, or lower secondary school, is an educational stage between primary school and secondary school.
Afghanistan
In Afghanistan, middle school includes ...
, before, attending and later graduating from the
University of Indonesia
The University of Indonesia (UI; ) is a public university in Depok, West Java and Salemba, Jakarta, Indonesia. It is one of the oldest tertiary-level educational institutions in Indonesia (known as the Dutch East Indies when UI was established) ...
. He would go on to become a professor at the university.
In the late 1960s, after the
fall
Autumn, also known as fall (especially in US & Canada), is one of the four temperate seasons on Earth. Outside the tropics, autumn marks the transition from summer to winter, in September (Northern Hemisphere) or March ( Southern Hemispher ...
of President
Sukarno
Sukarno (6 June 1901 – 21 June 1970) was an Indonesian statesman, orator, revolutionary, and nationalist who was the first president of Indonesia, serving from 1945 to 1967.
Sukarno was the leader of the Indonesian struggle for independenc ...
, he became one of Indonesia's most important economic policy-makers under the New Order regime of President Suharto. He was generally considered to be the foremost member of the well-known '
Berkeley Mafia' group of economists.
Early life, military service, and education
Early life and military service
Widjojo Nitisastro was born in Malang Residency, on 23 September 1927, and grew up in
Surabaya
Surabaya is the capital city of East Java Provinces of Indonesia, province and the List of Indonesian cities by population, second-largest city in Indonesia, after Jakarta. Located on the northeastern corner of Java island, on the Madura Strai ...
. He came from a retired elementary school superintendent's family. His father was an activist with the
Greater Indonesia Party (Parindra). In 1945, when the
Indonesian National Revolution
The Indonesian National Revolution (), also known as the Indonesian War of Independence (, ), was an armed conflict and diplomatic struggle between the Republic of Indonesia and the Dutch Empire and an internal social revolution during A ...
erupted, Widjojo joined the Indonesian Student Army (TRIP). In the Revolution, he almost died somewhere between the Ngaglik and Gunung Sari areas of
Surabaya
Surabaya is the capital city of East Java Provinces of Indonesia, province and the List of Indonesian cities by population, second-largest city in Indonesia, after Jakarta. Located on the northeastern corner of Java island, on the Madura Strai ...
.
[Arsitek Ekonomi Orba yang Masih Cemerlang](_blank)
Tokoh Indonesia.
Education
University of Indonesia
After the end of the revolution, Widjojo taught at a
junior high school
Middle school, also known as intermediate school, junior high school, junior secondary school, or lower secondary school, is an educational stage between primary school and secondary school.
Afghanistan
In Afghanistan, middle school includes ...
for 3 years. He then continued his higher education at the
Faculty of Economics of the
University of Indonesia
The University of Indonesia (UI; ) is a public university in Depok, West Java and Salemba, Jakarta, Indonesia. It is one of the oldest tertiary-level educational institutions in Indonesia (known as the Dutch East Indies when UI was established) ...
(UI), specializing in the field of
demography
Demography () is the statistical study of human populations: their size, composition (e.g., ethnic group, age), and how they change through the interplay of fertility (births), mortality (deaths), and migration.
Demographic analysis examine ...
. While still a student, he, together with Canadian demographer
Nathan Keyfiz, wrote a book entitled "The Problem of Indonesian Population and Development." The
foreword
A foreword is a (usually short) piece of writing, sometimes placed at the beginning of a book or other piece of literature. Typically written by someone other than the primary author of the work, it often tells of some interaction between th ...
was written by former
Vice President
A vice president or vice-president, also director in British English, is an officer in government or business who is below the president (chief executive officer) in rank. It can also refer to executive vice presidents, signifying that the vi ...
Mohammad Hatta
Mohammad Hatta ( ; 12 August 1902 – 14 March 1980) was an Indonesian statesman, nationalist, and independence activist who served as the country's first Vice President of Indonesia, vice president as well as the third prime minister. Known as ...
, who wrote, "An Indonesian son with his knowledge of the problems of his
homeland
A homeland is a place where a national or ethnic identity has formed. The definition can also mean simply one's country of birth. When used as a proper noun, the Homeland, as well as its equivalents in other languages, often has ethnic natio ...
, has been able to work with Canadian statisticians. Processing his solid thoughts and putting them into a weighty book." Widjojo eventually graduated with the
Cum Laude predicate.
He would later be appointed by the Dean of the Faculty of Economics (and future
Minister of Research),
Sumitro Djojohadikusumo, as the Director of the Institute for Economic and Community Research.
Widjojo Nitisastro later became a full professor of economics at the
University of Indonesia
The University of Indonesia (UI; ) is a public university in Depok, West Java and Salemba, Jakarta, Indonesia. It is one of the oldest tertiary-level educational institutions in Indonesia (known as the Dutch East Indies when UI was established) ...
in
Jakarta
Jakarta (; , Betawi language, Betawi: ''Jakartè''), officially the Special Capital Region of Jakarta (; ''DKI Jakarta'') and formerly known as Batavia, Dutch East Indies, Batavia until 1949, is the capital and largest city of Indonesia and ...
at the age of 34 in 1962.
University of California, Berkeley
Shortly after, Widjojo continued his
doctoral studies
A Doctor of Philosophy (PhD, DPhil; or ) is a terminal degree that usually denotes the highest level of academic achievement in a given discipline and is awarded following a course of graduate study and original research. The name of the deg ...
at the
University of California, Berkeley
The University of California, Berkeley (UC Berkeley, Berkeley, Cal, or California), is a Public university, public Land-grant university, land-grant research university in Berkeley, California, United States. Founded in 1868 and named after t ...
. He worked on a dissertation entitled “Migration, Population Growth, and Economic Development: A Study of the Economic Consequences of Alternative Patterns of Inter-Island Migration.” There, Widjojo met several other economic students, including future ministers
Mohammad Sadli
Mohammad Sadli (10 June 1922 – 8 January 2008) was a leading Indonesian policymaker and economist.
Sadli, as he was widely known, was born in Sumedang, West Java. He first studied in the Hollandsch-Inlandsche School (HIS) in Sumedang and ...
,
Subroto,
Ali Wardhana
Ali Wardhana (6 May 1928 – 14 September 2015), more colloquially known as Bung Ali, was an Indonesians, Indonesian professor and economist, who served as the third Coordinating Ministry for Economic Affairs (Indonesia), Coordinating Minister fo ...
, and
Emil Salim
Emil Salim (born 8 June 1930) is an Indonesian economist and former politician. Born of Minangkabau parents, both from the village of Koto Gadang in West Sumatra. His uncle is Agus Salim, one of the founding fathers of the Republic of Indonesia ...
. This group would later become known as the
Berkeley Mafia, a group of technocrats who are considered to have instilled
neoliberalism
Neoliberalism is a political and economic ideology that advocates for free-market capitalism, which became dominant in policy-making from the late 20th century onward. The term has multiple, competing definitions, and is most often used pe ...
in economics for the sake of American interests in Indonesia.
After completing his studies, Widjojo returned to Indonesia.
Career
Professor at the University of Indonesia
When he returned, Indonesia was under the
guided democracy
Guided democracy, also called directed democracy and managed democracy, is a formally democratic government that functions as a ''de facto'' authoritarian government or, in some cases, as an autocratic government. Such hybrid regimes are legit ...
period of President
Sukarno
Sukarno (6 June 1901 – 21 June 1970) was an Indonesian statesman, orator, revolutionary, and nationalist who was the first president of Indonesia, serving from 1945 to 1967.
Sukarno was the leader of the Indonesian struggle for independenc ...
. Under this policy, the Indonesian economy leaned towards economic
socialism
Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...
/
communism
Communism () is a political sociology, sociopolitical, political philosophy, philosophical, and economic ideology, economic ideology within the history of socialism, socialist movement, whose goal is the creation of a communist society, a ...
. The economic situation in Indonesia at that time was chaotic, with high inflation rates and high prices. Widjojo expressed his opinion to the government to change the paradigm of the Indonesian economy. During his inauguration as a professor of economics at the University of Indonesia on August 10, 1963, Widjojo read a speech entitled "Economic Analysis and Development Planning." He suggested that economic analysis should be included in government policymaking, as well as a combination of market mechanisms and government intervention instead of allowing the market to be too free or otherwise making the government too powerful. However, his suggestions were not heard by the government.
"Berkeley Mafia"
In 1966, General
Suharto
Suharto (8 June 1921 – 27 January 2008) was an Indonesian Officer (armed forces), military officer and politician, and dictator, who was the second and longest serving president of Indonesia, serving from 1967 to 1998. His 32 years rule, cha ...
took over power in Indonesia from President
Sukarno
Sukarno (6 June 1901 – 21 June 1970) was an Indonesian statesman, orator, revolutionary, and nationalist who was the first president of Indonesia, serving from 1945 to 1967.
Sukarno was the leader of the Indonesian struggle for independenc ...
through the
Supersemar order. Although he did not become president for the next two years, Suharto began to build the foundations of the government that would later be referred to as the New Order regime. In August 1966, Suharto held a military
seminar
A seminar is a form of academic instruction, either at an academic institution or offered by a commercial or professional organization. It has the function of bringing together small groups for recurring meetings, focusing each time on some part ...
, which was attended by Widjojo and a number of his colleagues.
In the seminar, the economists presented their ideas and policy recommendations to Suharto. Suharto was impressed by their idea and asked them to work as a Team of Experts in Economics and Finance. This appointment marked the beginning of Widjojo's career. Other members of the group, all senior Indonesian economists, were generally regarded to include Professor
Ali Wardhana
Ali Wardhana (6 May 1928 – 14 September 2015), more colloquially known as Bung Ali, was an Indonesians, Indonesian professor and economist, who served as the third Coordinating Ministry for Economic Affairs (Indonesia), Coordinating Minister fo ...
,
Professor Moh. Sadli, Professor
Emil Salim
Emil Salim (born 8 June 1930) is an Indonesian economist and former politician. Born of Minangkabau parents, both from the village of Koto Gadang in West Sumatra. His uncle is Agus Salim, one of the founding fathers of the Republic of Indonesia ...
, and Professor
Subroto. Later, in 1970, he and several other economists who graduated from the
University of California, Berkeley
The University of California, Berkeley (UC Berkeley, Berkeley, Cal, or California), is a Public university, public Land-grant university, land-grant research university in Berkeley, California, United States. Founded in 1868 and named after t ...
were accused of being the
Berkeley Mafia formed by the
CIA
The Central Intelligence Agency (CIA; ) is a civilian foreign intelligence service of the federal government of the United States tasked with advancing national security through collecting and analyzing intelligence from around the world and ...
to instill
economic liberalism
Economic liberalism is a political and economic ideology that supports a market economy based on individualism and private property in the means of production. Adam Smith is considered one of the primary initial writers on economic liberalism ...
in Indonesia.
Political career
Minister for National Development Planning
In 1971, Widjojo was appointed
State Minister for National Development Planning, a position he held until the early 1980s. As minister, he and his colleagues in the 'Berkeley mafia' used a neo-
Keynesian
Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output an ...
approach to balance the state budget, control the money supply, re-establish the position of financial institutions, and open the door as wide as possible for
foreign investors.
While leading the ministry, Widjojo made an economic plan that was contained in the Five-Year Development Plan. Economist
Mudrajad Kuncoro, who is a professor of Economics at
Gadjah Mada University
Gadjah Mada University (; , abbreviated as UGM) is a public research university located in Sleman, Special Region of Yogyakarta, Indonesia. Officially founded on 19 December 1949, Gadjah Mada University is one of the oldest and largest institut ...
, in his column in the ''
Gatra
Gatra or GATRA may refer to:
*Gatra (magazine), ''Gatra'' (magazine), weekly news magazine in Indonesia published from 1994 to 2024
*Gatra (music), in Indonesian gamelan music
*Greater Attleboro Taunton Regional Transit Authority, Massachusetts, US ...
'' magazine, said that the focus of the Five-Year Development Plan was macroeconomics. In the New Order, the Minister for National Development Planning became a crucial institution because it held the key to development at both the central and regional levels. The system worked as it adheres to centralized planning, both in terms of policy and funding. With this flow, regional development is more prominent because both planning and implementation are “centralized.”
Other positions
During his career in government, Widjojo was the head of many Indonesian delegations to numerous international meetings such as the
Inter-Governmental Group on Indonesia (IGGI), the
Paris Club
Paris Club () is a group of major creditor countries aiming to provide a sustainable way to tackle debt problems in debtor countries. Its creation, which is the first informal meeting, dates back to 1956, when Argentina agreed to hold a meeting ...
, and
World Bank
The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...
and
International Monetary Fund
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of las ...
(IMF) meetings. He was also a member of the South Commission (headed by President
Julius Nyerere
Julius Kambarage Nyerere (; 13 April 1922 – 14 October 1999) was a Tanzanian politician, anti-colonial activist, and political theorist. He governed Tanganyika (1961–1964), Tanganyika as prime minister from 1961 to 1962 and then as presid ...
) as well as numerous other international committees). Widjojo also served as Coordinating Minister for Economy, Finance, and Industry from 1973 until 1983. In 2008, the Faculty of Economics at the University of Indonesia awarded Widjojo its most prestigious award, the Wirakarya Adhitama, for a lifetime of dedication and extraordinary achievements.
Post-New Order
After the
fall
Autumn, also known as fall (especially in US & Canada), is one of the four temperate seasons on Earth. Outside the tropics, autumn marks the transition from summer to winter, in September (Northern Hemisphere) or March ( Southern Hemispher ...
of
Suharto
Suharto (8 June 1921 – 27 January 2008) was an Indonesian Officer (armed forces), military officer and politician, and dictator, who was the second and longest serving president of Indonesia, serving from 1967 to 1998. His 32 years rule, cha ...
in 1998, Vice President
B. J. Habibie
Bacharuddin Jusuf Habibie (; 25 June 1936 – 11 September 2019) was an Indonesian politician, engineer and scientist who served as the third president of Indonesia from 1998 to 1999. Less than three months after his inauguration as the seventh ...
became president. Habibie and Widjojo had two conflicting views on economics, and Widjojo's role in the Indonesian economy was not as strong as it used to be under Habibie. However, during the
Abdurrahman Wahid
Abdurrahman Wahid ( ; né ad-Dakhil, 7 September 1940 – 30 December 2009), more colloquially known as Gus Dur (), was an Indonesian politician and Islam in Indonesia, Islamic Kyai, religious leader who served as the fourth president of Indone ...
administration, he was trusted to lead the Indonesian Economic Team at the
Paris Club
Paris Club () is a group of major creditor countries aiming to provide a sustainable way to tackle debt problems in debtor countries. Its creation, which is the first informal meeting, dates back to 1956, when Argentina agreed to hold a meeting ...
meeting in mid-April 2000 to discuss rescheduling the repayment of Indonesia's debt for the period April 2000 – March 2002 amounting to
US$
The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...
5.9 billion.
Retirement
After retirement, Widjojo lived quietly in Jakarta. He did not publish widely during his period in government preferring to work directly with his colleagues and President Suharto. In 2010 a collection of some of his main reports and speeches during his period as an adviser was published as ''Pengalaman Pembangunan Indonesia'' (The Indonesian Development Experience). In the collection, he discussed a wide range of issues relating to economic policy in Indonesia during the period 1965-1997 as well as providing details of the way the government responded to several key economic crises in the 1970s. This book was published in English in 2011 as ''The Indonesian Development Experience: A Collection of Writings and Speeches''. The English-language version was launched at the Faculty of Economics, University of Indonesia, on 23 September 2011.
Death
Widjojo died on 9 March 2012 in Jakarta. His funeral service was held the same day at the Sunda Kelapa mosque in
Menteng
Menteng is a district () in the administrative city of Central Jakarta, Indonesia. Menteng is surrounded by the districts of Senen and Matraman to the east, Tebet and Setiabudi to the south, Tanah Abang to the west, and Gambir to the north. ...
, Jakarta. His role as a major policy-maker in Indonesia was recognised at an official ceremony in the Planning Bureau (''Bappenas'') following the service. In paying tribute to Widjojo's legacy, President
Susilo Bambang Yudhoyono
Susilo Bambang Yudhoyono (born 9 September 1949), commonly referred to as SBY, is an Indonesian politician and retired Indonesian Army, army general who served as the sixth president of Indonesia from 2004 to 2014 and the second president of Ind ...
said that Widjojo had been a leading architect of '
New Order' economic policies and that many of his ideas had formed the cornerstone of economic policy in Indonesia. After lying in state for a few hours in Bappenas to provide an opportunity for mourners, including President Susilo Bambang Yudhoyono, to pay their respects, Widjojo was buried at
Kalibata Heroes' Cemetery in South Jakarta at a ceremony led by Vice President
Boediono
Boediono (Perfected Spelling System, EYD: Budiono, pronounced ; born 25 February 1943) is an Indonesian politician and economist who served as the 11th Vice President of Indonesia, vice president of Indonesia from 2009 to 2014. He became vice pr ...
.
Later recognition
In October 2012, Widjojo was recognised as the "father of Indonesian demography" during a seminar at the 62nd anniversary of the Economics Faculty, University of Indonesia. Professor
Subroto, an economics professor and a colleague of Widjojo in government, said that through his work Widjojo had placed the Indonesian people at the heart of development policy in Indonesia. The seminar was organised by the Institute of Demography within the Economics Faculty at the university.
[Elly Burhaini,]
New Order economist Widjojo lauded'
''The Jakarta Post'', 15 October 2012.
See also
*
Berkeley Mafia
*
Ali Wardhana
Ali Wardhana (6 May 1928 – 14 September 2015), more colloquially known as Bung Ali, was an Indonesians, Indonesian professor and economist, who served as the third Coordinating Ministry for Economic Affairs (Indonesia), Coordinating Minister fo ...
*
New Order
References
*
*
*
*
{{DEFAULTSORT:Nitisastro, Widjojo
1927 births
People from Malang
University of Indonesia alumni
University of California, Berkeley alumni
2012 deaths
Government ministers of Indonesia
Indonesian economists
Academic staff of the University of Indonesia
Inter-Governmental Group on Indonesia
Winners of the Nikkei Asia Prize