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work? What kind of economic system was Indonesia going to
choose? What kind of institutions? Would it be developed pri-
marily through private enterprise, or would it be on socialist lines
with the government playing a major role? With so many parties
of such widely varying opinions it was difficult in 1952 to get a
clear picture of just what Indonesia was going to be.

"When you've been here longer you will realize what a cauldron
Indonesia is," Sumitro, the Minister of Finance, told me during the
first of our weekly conferences. "We have 464 political parties, with
464 official opinions, not to mention all the party splits. You know
our motto -- Unity in Diversity? We have plenty of diversity," he
said dryly, "and not much unity as yet." Just the same, a few strong
currents of opinion were discernible.

There was a strong inclination towards socialism, although what
form it would take was undecided. Public and private opinions ran
high against the worst aspects of private capitalism, as the Indo-
nesians had experienced it under the Dutch. But many Indonesians
were eager to see their own countrymen have a chance in private
enterprise. "We don't want our socialism to become babuism,"
Sjaffrudin, governor of the Bank of Indonesia told me on one oc-
casion. "A babu is a nursemaid -- you understand?" he added. "Such
socialism would fail to generate in the people a spirit of enterprise."
Sjaffrudin, who seemed to combine in himself the best Indonesia
had to offer, a well-educated Moslem of great good will and com-
prehension, shared with Sumitro the vision of a mixed and managed
economy developing, with a private and a public sector both ex-
panding according to the needs of the country. Within this frame-
work we could make a plan.

-14-

Questia, a part of Gale, Cengage Learning. www.questia.com

Publication Information: Book Title: Indonesia: The Crisis of the Millstones. Contributors: Benjamin Higgins - author, George W. Hoffman - editor, G. Etzel Pearcy - editor. Publisher: Van Nostrand. Place of Publication: Princeton, NJ. Publication Year: 1963. Page Number: 14.
    
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