November 1967, Suharto sent this team to Switzerland meeting the Jewish international CEO, and they generated Foreign Capital Investment Law 1967 which gave many benefits to Western Imperialism. The on-our-own principles deadly kept by President Sukarno were wiped out by General Suharto and Indonesia turned to be defended country to Western as the world capital power.
More pro-capitalism “New Indonesia” was actually designed since 1950’s. david Ransom in his popular article titled “Berkeley Mafia and Mass Murder in Indonesia; New Troy Horse from US Universities came to Indonesia” (Ramparts, 1970) stated that US used two strategies to overcome Indonesia. Firstly, forming an intellectual Western-minded group, and secondly, building a part in Indonesian Army which could corporate with US.
The first group was steered by any scholarship foundation as Ford Foundation and Rockeffeler Foundation, and also some other admired US universities as Berkeley, Harvard Cornell, and also MIT. David Ransom mention two Indonesian Socialist Party figures—a little wing-socialist party—i.e. Soedjatmoko and Sumitro Djojohadikusumo became the front men of Indonesian pro-Western intellectual group forming. They—according to Ransom, were trained by US since the last of 1949’s.
While the second task was assigned to CIA. One of its agents Guy Pauker joined RAND Corporation and approached some elite military officers via successfully-recruited by CIA man, i.e. Deputy Dan Seskoad Kol. Soewarto. Dan Intel Achmad Soekendro was also known in CIA approaching. Through these men, Ransom stated, US group moved forward to Indonesian military. Suharto was the trainee of Soewarto in Seskoad.
In Seskoad, the US-intellectual-trainees were given chance to teach soldiers. There were a mutual corporation between pro-US civil-military. After tragedy 1965 and Indonesian people massacre—on the sue of communist—this team began to develop “New Indonesia”. The Economy Doctor trained by Ford came back to Indonesia and immediately joined this group, and one of them was Emil Salim.
General Suharto formed Trium-Virat (three-legs governing) with Adam Malik and Sultan Hamengkubuwono IX. Ransom wrote, “On 12 April 1967, Sultan announced an important political statement. It was the new regime economic program syllabus which defined that they were about to bring Indonesia to Imperialism Policy written by Widjoyo and Sadly.”
Ransom continued, “in detailing the above Sultan stated economic programs, the technocrats were trained by US. When Widjojo was confused in planning economy stabilization program, AID invited David Cole, a Harvard economist who just designed banking regulation in South Korea. The invitation of David Cole due to the inability of Sadli to make a foreign capital investment regulation. He needed a lot of helps from US Embassy in Indonesia.
This was the beginning phase of Five Year Developing Plan program phase (in Indonesian language: Rancangan Pembangunan Lima Tahunan or abbreviated Repelita). This program was devised by US-trainee-economist who were directly tutored by US, corporate with the existed foundations.
June 1968, General Suharto wordlessly and suddenly held reunion with Ford trainees—known as “Mafia Berkeley” (to design the Developing Cabinet Structure and other elite level institutions). The Economics Faculty Dean of Indonesian University Sumitro Djojohadikusumo (Doctor of Philosophy from Rotterdam) was pointed as Commerce Minister, Widjojo Nitisastro (Doctor of Philosophy Berkeley, 1961) was pointed as BBPN Director, Emil Salim (Doctor of Philosophy, Berkeley, 1964 ) was pointed as Vice President of BPN, Subroto (Doctor of Philosophy from Harvard, 1964) was pointed as Marketing and Business General Director, Ali Wardhana (Doctor of Philosophy, Berkeley, 1962), was pointed as Chancellor of Exchequer, Moh.Sadli (Master of Science, MIT, 1956) was pointed as PMA Chairman, Barli Halim (MBA Berkeley, 1959) was pointed as General Secretary of Industry Department, and Sudjatmoko (Adam Malik counselor) was pointed as Indonesian Ambassador in Washington, the main key of Jakarta-Washington.
“New Indonesia” economic team worked under the direct instruction of Development Advisory Service (DAS), Harvard supported by Ford Foundation. “We work behind the screen” said Lister Gordon, the Vice President of DAS. US soon propped up the new ruler with all they had so that Indonesia economy—intentionally destructed by US in 1965—slowly recovered.
The team was behind the Repelita program which firstly started in 1969, by foreign capital investment and agricultural products as in order of priority. In many cases, central bureaucrats counted on military elites in regions to control this Ford Program. They cooperated with regional figures as land lords and administrative officers. The impact, there formed new groups who enriched themselves and their own family. Central and regional groups gave benefits each other, and they pressed the farmers who really worked at the field. (continued)
