IMPOSSIBLE IS
POSSIBLE:
R. HARTARTO SASTROSOENARTO
AND INDUSTRIALIZATION IN
INDONESIA *)
Dr. Yuda B. Tangkilisan
Faculty of Humanities
University of Indonesia
-------------------------------------*) Delivered at The International
Graduate Student Conference
on Indonesia (IGSC), Yogyakarta
1
BACKGROUNDS
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Prior to 1970, Indonesia was characterized as a
“chronic economic dropout” and as a one of the
poorest countries in the world (Higgins 1968:
678)
No one would believe that Indonesia would be
grouped as a member of the most exclusive club
of “East Asian Miracle Economies” and with the
highest economic group in the world in just 20
years (Wulan Sari 2004: 3)
Few chances for Indonesia to have a rapid
economic growth (Myrdal 1969)
2
BACKGROUNDS (2)
 Industrialization and economic growth
 New Industrial Country (NIC) in the 1980s
as Asia’s ‘dragon’ economies
 Industrial sectors (non migas)
contribution to GDP (Gross Domestic
Products) outnumbered Agricultural
sectors




Sectors
1983
1993
-------------------------------------------------Agriculture
24.3 %
11.4 %
Industry
17.8 %
22.3 %
3
IMPOSSIBLE IS POSSIBLE
• A BELIEF OF R. HARTARTO
•
•
•
•
•
SASTROSOENARTO
THOUGHTS
STRATEGY
SELF ESTEEMED
OPTIMISM
TEAM WORK
4
PURPOSES

To show industrial progress
during 1983—1993
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

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Sumitro Djojohadikusumo
(1991) was impressed by the
progress
Anne Booth (2001) has similar
impressions
To explain how the progress was
achieved
To explore the good side
(legacy) of New Order from
economic development angle as
lessons for today
Cultivating the role and
contribution of R. Hartarto
Sastrosoenarto in indonesian
industrial development
5
METHODOLOGY

Gathering data
• Documentary &
Literature Study
• Oral history (Interview)



Key persons
Other informants
Structurism/
Structuration (Lloyd/
Giddens)
•
•
•
•
Structure and Changes
Agency
Reproduction (Failed)
Transformation (When
Succeeded)
6
Biographical Backgrounds
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1983 to 1993 was the terms of Hartarto
Sastrosunarto as Minister of Industry
Chemical engineers graduated from Australia
Began his career from the bottom at Department
of Industry
Visions for Indonesia in the future as a world
player
Still concerns with industrialization of Indonesia
7
Thoughts and Performance

Industrialization needs a
legal ground

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Priority of Industries
(middle technology)
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Acts of Industry no. 5, 1984
A links to agrarian sectors
(fertilizers)
Constructions (cements)
Social needs (pulps)
Production (machines)
6 Main Policies
4 Supporting policies
8
6 Main Policies:
1) Developing industrial structure,
2) Developing machinery and
electronics industries,
3) Developing small industries,
4) To export industrial wares,
5) Developing research and
technology,
6) To develop entrepreneurship and
professionalism.
9
4 Supporting Policies
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1) legal basics,
2) clustering
national industries,
3) inter-linkage
programs and
4) widening
domestic and
international
markets
10
Ability & Leadership
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Expert in matters by
training and
experiences
Firm personality—not
hesitate to take a
decision
To organize the
department



Making a new branches
Merit system (right men
in the right place)
Corporate Culture
11
RESULTS
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Hartarto played an important
role in industrialization during
the New Order
Industrialization endured along
the law and policies
Industrial sectors
(manufacturing) grew
outnumbering agrarian sectors
to GDP
From the UNIDO (United
Nation Industrial Development
Organization) criteria,
Indonesia has entered a phase
of New Industrial Countries
(NIC)
12
CONCLUDARY REMARKS
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Industrialization is not
only building factories
but also more important
industrial society
Industrialization implied
a team work, not one
man show
Government has
important roles in
industrialization as a
regulator and prime
mover but not as a main
player
Impossible is Possible
13
THANK YOU
14