ABSTRACT
Federation model is a governance model that aims at developing economic sovereignty and national integration. If the decline of the Majapahit Kingdom was due to the weak economic power in the periphery that facilitated invasion of Muslim traders, then how can national integration be achieved in Indonesia through economic empowerment from the periphery? In this study, we will discuss the economic sovereignty in eastern Indonesia after its independence. The State of East Indonesia (Negara Indonesia Timur/NIT),which was established in 1946, implemented a comprehensive system of economic openness and a two-way cooperation in all fields, thereby providing financial support to the government of the Republic of the United States of Indonesia (Republik Indonesia Serikat/RIS). The emergence of the regional economic power in East Indonesia was influenced by the presence of foreign and local companies, including Mandeers, Seeman & Co, Company Insulinde Makassar, Moreoux & Co., Coprafonds and South Pacific Trading Company, and Manado, which flourished the economy in eastern Indonesia. Commodities available at that time were being sought for by the world. Through the disclosure system, the State of East Indonesia revived its glory in the kingdom of Makassar as the pivot of the world maritime economy until 1950. Here, we apply historical methods using archival sources and contemporary newspapers.
