ECONOMIC DEVELOPMENTS OF THE NEW ORDER PERIOD AND ITS INFLUENCE ON INDUSTRIALIZATION IN INDONESIA

Abstract

The development of the New Order era, or what is usually called the New Order Era, is the term for the reign of General Soeharto, which replaced the Old Order, which refers to the era of Soekarno's reign. The New Order lasted from 1966 to 1998 and was marked by rapid economic development but also by practices of corruption, nepotism, and suppression of human rights. The New Order emerged as a result of the political and economic instability experienced by Indonesia during the Old Order. After the military coup that overthrew Sukarno's government, During the New Order era, there were several significant changes in the Indonesian economy. Political Stability. One aspect that was considered positive during the New Order period was the political stability that was created after a period of political and economic crisis at the end of Sukarno's reign, marked by transformation. significant economy, with a primary focus on industrial development as a pillar of economic growth. The policy of opening up to foreign investment became a characteristic of this era, influencing the structure of industrial ownership and having an impact on the industrialization process. This article discusses economic changes during the New Order era and their impact on the industrial sector in Indonesia. The New Order government pursued industrial infrastructure development, encouraged modernization, and prioritized export-oriented industrial sectors. Despite positive achievements, criticism of the unequal distribution of wealth and environmental impacts is highlighted. Dependence on foreign investment and foreign technology also creates its own challenges. In this context, this research outlines the economic dynamics and role of industrialization during the New Order period, highlighting its positive and negative consequences for industrial development in Indonesia.