Peran Hukum dalam Mengatasi Krisis Ekonomi pada Masa Orde Baru
The Indonesian economy experienced a period of significant growth and stability during the New Order era, marked by a strong emphasis on economic development and a centralized approach to governance. However, this period was not without its challenges, including the Asian financial crisis of 1997-1998, which exposed vulnerabilities in the Indonesian economy and led to a severe economic downturn. In navigating this crisis, the role of law played a crucial role in shaping the government's response and mitigating the impact on the Indonesian people. This article examines the role of law in addressing the economic crisis during the New Order era, highlighting the legal frameworks, policies, and interventions that were implemented to stabilize the economy and promote recovery.
Legal Frameworks and Policy Responses
The Indonesian government's response to the economic crisis was guided by a combination of legal frameworks and policy interventions. The government implemented a series of measures aimed at stabilizing the financial system, controlling inflation, and stimulating economic growth. These measures included the establishment of the Indonesian Bank Restructuring Agency (IBRA) to handle the restructuring of troubled banks, the introduction of a new currency, the rupiah, to replace the old currency, and the implementation of a tight monetary policy to control inflation. The legal framework for these measures was provided by the Financial Institutions Law of 1992, which gave the government broad powers to intervene in the financial sector.
The Role of Law in Restructuring the Banking Sector
The banking sector was at the heart of the economic crisis, with many banks facing insolvency due to bad loans and speculative investments. The government's response was to establish the IBRA, which was tasked with restructuring the banking sector and resolving the non-performing loans. The IBRA's actions were guided by the Financial Institutions Law, which provided the legal basis for the government to intervene in the banking sector and take control of troubled banks. The IBRA's role was crucial in stabilizing the financial system and preventing a systemic collapse of the banking sector.
Legal Measures to Control Inflation
The economic crisis led to a sharp increase in inflation, which eroded the purchasing power of the Indonesian people and further destabilized the economy. The government implemented a series of legal measures to control inflation, including the introduction of a new currency, the rupiah, to replace the old currency, which was seen as being too weak and prone to speculation. The government also implemented a tight monetary policy, raising interest rates and limiting credit growth, to curb inflation. These measures were supported by the Bank Indonesia Law of 1999, which gave the central bank greater autonomy and control over monetary policy.
Legal Interventions to Stimulate Economic Growth
In addition to stabilizing the financial system and controlling inflation, the government also implemented legal measures to stimulate economic growth. These measures included tax incentives for businesses, investment promotion programs, and infrastructure development projects. The government also introduced a number of legal reforms to improve the business environment and attract foreign investment. These reforms were aimed at creating a more conducive environment for businesses to operate and invest in Indonesia.
Conclusion
The economic crisis of 1997-1998 presented a significant challenge to the Indonesian economy and the New Order government. The government's response was guided by a combination of legal frameworks and policy interventions, which were aimed at stabilizing the financial system, controlling inflation, and stimulating economic growth. The role of law was crucial in shaping the government's response and mitigating the impact of the crisis on the Indonesian people. The legal frameworks and policies implemented during this period provided the foundation for the Indonesian economy to recover and achieve sustained growth in the years that followed.