Five-Year Development Plans of Indonesia

The Five-Year Development Plans (Rencana Pembangunan Lima Tahun or Repelita in Indonesian) were a series of planned development projects during the New Order government in Indonesia for 30 years of Suharto presidency. This program implemnted centralized development for macroeconomics and agricultural sector in Indonesia. The roadmap of the plan was designed under the guidance of Widjojo Nitisastro in 1967 who was back then the head of National Development Planning Agency (Bappenas) and the draft was finished in just one year.[1]

The Five Year Development Plan was aimed to improve the standard of living of the people by increasing production and income and changing the colonial economic structure into a national economic structure by opening up business opportunities in all economic and social fields, in accordance with the principle of family. (2) This Five Year Development Plan is aimed at three sectors: a. the government sector; b. the private sector and c. the village community sector. (3) These sectors will also include regional national development.

Background

After Suharto rose to presidency, he was faced with numerous problems regarding Indonesian sociopolitical landscape such as poverty and hyperinflation after national turmoil and economic mismanagement since 1965. After the situation started to stabilise, Suharto's government begin introduction the Five-Year Development Plans dubbed as Repelita.[2] The plan itself was divided into 5 phases:

  • Repelita I (1969–1974) aimed to meet basic needs and infrastructure with an emphasis on agriculture.
  • Repelita II (1974–1979) aimed to increase development in islands other than Java, Bali and Madura, including through transmigration.
  • Repelita III (1979–1984) emphasized labor-intensive industries to increase exports.
  • Repelita IV (1984–1989) aimed to create new jobs and industries.
  • Repelita V (1989–1994) emphasized transportation, communications and education.
  • Repelita VI (1994–incomplete) aimed to increase the development of the foreign investment climate in order to improve the national economy and industry.

In order to accomplish his plan, Suharto contacted a group of economic advisors who were mostly educated in University of California, Berkeley that was commonly known as the Berkeley Mafia to draft the development plan. The first phase of the development plan was started in 1 April 1969 after the national budget bill for the 1969-1970 was passed on 30 March 1969.[3]

The Five-year Development Plans

Repelita I (1969–1974)

The first phase of development plan ran from 1969 until 1974. The priority of this phase were basic needs such as education, healthcare, food and clothing security, infrastructure, and economic recovery.[4][5] During its first phase, Indonesian government relied on foreign aid from Inter-Governmental Group on Indonesia (IGGI).[6] Even though the first Repelita ended up successfully improved the health, education, food security, and job creation sector in Indonesia, it increased the national debt of Indonesia due to its dependent on foreign aid and investment.[7]

Repelita II (1974–1979)

The second phase of development plan ran from 1974 until 1979. The priority of this phase were food security, housings, infrastructures, and job creations. During this phase, the agricultural sector were targeted to increase production to 4.6% annually. For the other sectors, industries were expected to contribute 13%, mining for 10.1%, transport for 9.2%, and the rest for 7.2%. Aside from industrial focus, the government also campaigned the transmigration program which most of its participants were Javanese and Madurese to move to remote areas such as Sumatra and Irian Jaya in order to achieve equal development for every islands.[8]

The second phase successfully increased the average economy to 7% annually. On the industrial sector, the production saw increase. New infrastructures such as roads, bridges, and schools were built during this phase. However the progress of the phase was marred with Malari incident in 1974 and period of inflation.[9]

Repelita III (1979–1984)

The third phase of development plan ran from 1979 until 1984.

References

  1. ^ Ardanareswari, Indira (1 April 2020). "Repelita ala Orba: Pembangunanisme yang Mengandalkan Modal Asing". tirto.id (in Indonesian). Retrieved 16 November 2021.
  2. ^ Sheridan, Greg (28 January 2008). "Farewell to Jakarta's Man of Steel". The Australian. Archived from the original on 25 February 2012. Retrieved 14 April 2010.
  3. ^ Fitria, Dona (1 April 2020). "Repelita 1 April 1969". kebudayaan.kemdikbud.go.id (in Indonesian). Retrieved 16 November 2021.
  4. ^ Arief, dkk. 1999, p. 116.
  5. ^ Arief, dkk. 1999, p. 168-169.
  6. ^ Cribb, Audrey. 2004, p. 192.
  7. ^ "Repelita I Diresmikan Presiden Soeharto dalam Sejarah Indonesia Hari Ini, 1 April 1969". voi.id. 1 April 2022. Retrieved 4 July 2025.
  8. ^ Max Sijabat, Ridwan (23 March 2007). "Unemployment still blighting the Indonesian landscape". The Jakarta Post. Archived from the original on 1 May 2007.
  9. ^ "Rencana Pembangunan Lima Tahun (Repelita)". kompas.com. 29 September 2021. Retrieved 4 July 2025.

Sources

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