Overcoming Economic Instability in

Indonesia
Juna 8-9 M
Introduction (Background):
Economics has a lot of history to tell then just the money.
On Monday, August 24, 1959, Chaos started to happen in all
cities of Indonesia right after a meeting in Bogor that was held
by President Soekarno Hatta.
It was because of the Government that decreases the
Salary & Money Value that was announced by the Republic
Radio Indonesia by 2:30 PM which causes Shopkeepers and
Business Company to shut down their company. For somehow
they decrease the score by 10%.
That time there was a money amount of Rp500 with the
picture of a tiger that become Rp50 and Rp1000 with the
picture of an Elephant that become Rp100. It doesnt seem
funny but the worst part is that the cut didnt happen, but the
payment from around the world payed for about Rp150-Rp400
per month in the cashier.
Based on the BI History Book, it is based on the Rules (UU)
No 2. Year 1959 which explain that the government is about to
cut the money by August 25th of 1959 while decreasing the half
money by Rp500 and Rp1000 which like we said previously
turned into Rp50 & Rp100. So by that, they will be doing a fast
inflation that will be planned to move forward until the 1960s
You know what cause all this, well the Economic Instability
does! You know what it means? It means a term used to
describe the financial system of a nation that displays only
minor fluctuations in output growth and exhibits a consistently
low inflation rate. And heres how it happens

It all started when the shopkeepers feels happy when

theyre about to sell their items, but then they realized, why the
money they got is a picture of a tiger and an elephant? Where
did the other money go? After hearing the events by other
people, every shop owners have to close their shop. Thats how
it all started; now lets get to the problem shall we?

Problem:
Back in 1959, the government made everyone panic after
decreasing their population of money. Which cause every shop
owners to close their own shop after the events of money
where Rp500 turned Rp50 with a picture of a Tiger, and Rp1000
turned Rp100 with a picture of an elephant.
Another thing that sound interesting is that today and
right now, 1 Dollar in Indonesia becomes Rp.14.000 which
previously was Rp.10.000 but now 14 Thousand Rupiah.

Heres a picture of the Money back in 1959, with Rp.1000

turned Rp100 with the picture of an elephant, and Rp500
turned Rp50 with the picture of a Tiger:

Rp.1000 Rp100 (with the picture of an Elephant):

Rp.500 Rp50 (With the picture of a Tiger):

Cause and
Effect:
Cause:
- In 1959, the Government decrease the amounts of
money
- Rp 500 becomes Rp 50 with a picture of a Tiger
- Rp 1000 becomes Rp 100 with a picture of an
Elephant
- In 2015, 1 Dollar in Indonesia is equal to 14
Thousand Rupiah

Effect:
- Everyone In Indonesia panic after hearing about
the information that the Government decrease the
amount of money
- Shopkeepers are forced to close their own shop
after reacting to the events that was caused by the
government
- Dollars become more expensive in Indonesia

*Pictures of 500 Rupiah (With a picture of a Tiger) and

1000 Rupiah (With a picture of an Elephant) back in
1959

Solution:
So the plan is that we will open a working field for all
workers to work. That also includes people who not yet get a
job but willing to get a job. So that means we can hire them to
work at our working field to get productive.
In that way, we get to have more workers working in the
business which makes the head of office happy. But what about
the economics?
Some say there are 5 ways to stop the economics in
Indonesia from Increasing. Such as stopping Corruption,
Increase the education that is suitable to all the people,
Opening our own company, making people go to work, and
raise NPM by ourselves

So when people do not have a job, suggest hiring them so that

Economics will not increase! Maybe thats the reason why
Economics increase when people did not get job. People in
Indonesia these days does not have a job because their poor,
but if we help them by giving them a job, that would help them
out!

And what about the Economic Triangles? Does that help?

Maybe if were dealing with them and have a discussion with
them, it depends whether they would be there among to help
us or not. If they want to, then they will.
We might thought that the solution we give for the
problem would work, because without the economic fixed,
prices will be higher, and it would cause more chaos to other
people. And in order to make that happen, we decided to talk
with the government whether we can handle the citizens or not.
Our choice is stop corruption from happening, because
now heist happens everywhere. So its useless if the
government increase the amount of money which causes
citizens to panic. And in that way, well talk with the
government whether they can afford to agree with us or not.
Thats our choices we have.

Summary:
Recently back in 1959, the government decreases the
amount of money which causes everyone in all the states of
Indonesia to Panic.
Ever since they heard that Rp500 become Rp50 with a
picture of a Tiger, and Rp1000 become Rp100 with a picture of
an Elephant. Shop Keepers are forced to shut down their
company.
What the problem of the cause of the event was that the
Government decrease the amount of money, Rp500 becomes
Rp50 with a picture of a Tiger and Rp1000 with a picture of an
Elephant.
While the effect was that everyone panicked once they
hear about the news by 2:30 PM on the Republic Radio
Indonesia Station back in August 25, 1959.

Another thing is that usually 1 Dollar in Indonesia is equal

to 10 Thousand Rupiah, now it becomes 14 Thousand Rupiah
which is a little bit higher and expensive.
This all goes to Economic Instability, Economic Instability
is where
So the plan is that we wanted to open a company, actually
a working field so that everyone gets to work. Those who did
not have a job will have a job once we hire them.
There other ways to stop Economics from Increasing such
as stopping corruption, get people to work, increase education
for other people, and more!