ABSTRACT
This chapter includes the chief sectors of the economy which contributed to national production and employment prior to 1965. This chapter is devoted to the rehabilitation and expansion of what is termed the endogenous economy, with the exception of the manufacturing sector. World commodity prices of several of Indonesia's important exports rose very greatly: between 1965 and 1973 the price of rubber rose 46 per cent, tin 30 per cent, copra 113 per cent, coffee 49 per cent, and palm oil 38 per cent. The lowest effective exchange rate was for goods regarded as strong traditional exports. Recovery was more laborious than expected and the rehabilitation and expansion written into the Five Year Plan was not achieved in those parts regarded as representing the mass endogenous economy. When reviewing the progress of the endogenous, mass-based sector, comparisons of production performance need to be made with the best years of Sukarno’s rule.
