Sri Mulyani Tells Indonesia To Be Debt-derived From Dutch Colonials In Today's Memory, October 12, 2020

JAKARTA Memories of today, five years ago, October 12, 2020, the Minister of Finance (Menkeu), Sri Mulyani revealed that Indonesia's economy in the early era of independence was not fine. Indonesia is not only inherited from a damaged economy, but also foreign debt.

Previously, Indonesia's independence was completely determined at the diplomatic table. At that time, the Round Table Conference (KMB) became the determinant. The Dutch colonialists finally melted to recognize Indonesia's sovereignty. As long as Indonesia wants to pay their debts.

Indonesia has been independent since August 17, 1945. However, this incident did not mean that the invaders then left. The Dutch still consider Indonesia to be their colony: the Dutch East Indies.

This desire made the Dutch who were carrying British sukutu come to Indonesia. They tried to terrorize the Indonesian leader. The goal is for Indonesia to return to the arms of the invaders. Far from fire. The Dutch's desire is far from reality.

Independence fighters continue to choose to take up arms. However, recently the option to take up arms was considered ineffective. The nation's figure, Sutan Sjahrir, has begun to bring about maintaining Indonesia's independence through diplomatic channels.

At first, many underestimated the path of diplomacy. The path was not heroic like taking up arms. However, the results said otherwise. Diplomacy is actually effective. Many countries in the world are starting to recognize Indonesia's independence.

Indonesia has also started to negotiate from one conference to another with the Netherlands. At its peak, the KMB negotiations were held in the Netherlands on August 23 - November 2, 1949. Long discussions were presented. The Dutch wanted to win a lot. Even so, the Dutch finally agreed to recognize Indonesia's sovereignty.

The condition is that Indonesia must be willing to inherit the Dutch debt. A debt that the Dutch used to carry out military operations to Indonesia. Sovereignty is indeed obtained. However, the share of Dutch debt heritage made it increasingly difficult for the government to run.

Regarding the debt problem, the Dutch demanded that Indonesia bear the debt of the Dutch East Indies until the transfer of sovereignty, while the Indonesian side was only willing to bear part until March 1942 because if the repayment of the debt was borne until 1949, it means that Indonesia must pay for the Dutch attacks carried out on Indonesia itself.

Both parties are again deadlocked. Through a committee consisting of Ir. Djuanda (representatives of the Republic of Indonesia), Mr. Indrakusuma (deputy BFO) and Hirschfeld (deputy representatives), on October 24, 1949, made a agreement that RIS would take over the loans of the Dutch East Indies, all of which amounted to 4.3 billion guilders," explained Iin Nur Insaniwati in the book Mohamad Roem: Political Career and Struggle 1924-1968(2002).

The results of the KMB are embedded in the memory of many people. Take Sri Mulyani for example. The Minister of Finance during the Jokowi administration acknowledged that there was no economic heritage of the Dutch colonialists which had great benefits on October 12, 2020. He gave an example of Indonesia's economic condition. The beginning of independence is not doing well.

Indonesia is not only inherited from a damaged economy. However, Indonesia was forced to pay off the Dutch foreign debt. This means that this is the first debt that must be paid by the nation's leaders.

Sri also told the fact that the general public got a picture of the collapse of the nation's leader at the beginning of independence. A long effort to build Indonesia.

"So when we started from the government to become an independent Indonesian country, we were financially not with a balance sheet which was 0. With our balance sheet then 'oh we have all our wealth', no. First, the existing assets were damaged by war.

"All the previous investments recorded by the Dutch government became the investment of the Indonesian government, namely the debt being the debt of the Indonesian republic. The legacy was 1.13 billion US dollars at a time when perhaps Indonesia's GDP was still very small," Sri said at the opening of the 2020 Financial Profession Expo as quoted on the website.com, October 12, 2020.