On The Occasion Of The Presentation Of The Draft Fundamental Law Of The First National Overall Development Plan

SPEECH
ON THE OCCASION OF THE PRESENTATION OF THE
DRAFT FUNDAMENTAL LAW OF THE FIRST
NATIONAL OVERALL DEVELOPMENT PLAN
TO
HIS EXCELLENCY THE PRESIDENT
OF THE REPUBLIC OF INDONESIA
DELIVERED IN A SPECIAL PLENARY SESSION OF THE
NATIONAL PLANNING COUNCIL
ON SATURDAY 13 AUGUST. 1960 IN BANDUNG
BY
THE MINISTER/CHAIRMAN OF THE N.P.C.
PROF. MR. H. MUHAMMAD YAMIN

P e r  p u s t a k a a n
Dewan Perantjang Nasional*
Republik Indonesia

SPEECH DELIVERED ON THE OCCASION OF THE PRESENTATION OF THE DRAFT FUNDAMENTAL LAW OF THE
FIRST NATIONAL OVERALL DEVELOPMENT PLAN
BY THE MINISTER/CHAIRMAN OF THE NATIONAL PLANNING COUNCIL IN SPECIAL

PLENARY SESSION 13 AGUSTUS 1960,
BANDUNG.
Your Excellency the President,
Members of the Cabinet,
Civil and Military Dignitaries,
Chiefs of the Diplomatic Missions,
Members of the Experts Committee of Development, Members
of the National Planning Council, Ladies and Gentlemen :
§ 1. This special plenary session of the National Planning
Council (Depernas) on August 13, 1960, I declare opened, and
I should like to begin by explaining the aim and purpose of this
meeting.
I am grateful that you have been able to attend this special
plenary session. You have come from all over Indonesia, from Sabang
to Merauke, and the members of the diplomatic corps
present represent countries all over world.
As stated in the invitation the purpose of this special plenary
session is to submit to the President of the Republic of Indonesia
the draft fundamental law of the first National Overall Development Plan.
This meeting is of great importance to the National Planning

Council and of even greater importance to the people of Indo nesia.
Such a special session of this kind is the third in the history of
our Council, while, for our members, it is the fourth time since
last year that we are in session in the presence of the President,
Leader of the Indonesian Revolution, and of all the members of
our Cabinet.
First we met on August 15, 1959 when the members of
this Council were sworn in, (in the State Palace in Djakarta).
3

The second meeting was on the 28th of August, 1959, also in
the presidential Palace, when the President read the message
that was to be used as the guiding principle for the National
Planning Council. On that occasion all members of the Coun cil stated to His Excellency the President that the draft funda mental law of the first National Development Plan would be
completed before Proclamation Day, 1960. The third meeting was
on 9 January 1960 in this building when our President gave a
further explanation of his message on development.
In our fourth meeting today, on Saturday August 13th, 1960,
four days before we celebrate the 15th anniversary of our
independence, we are holding another special plenary session,

with the President in our midst, to present our blueprint, thus
keeping the promise given by our Council in the Presidential
Palace on August 28, 1959, mindful of an Indonesian maxim,
which, in translation, says :
We pay what we owe,
We receive what others owe us.
Ladies and Gentlemen.
§ 2. This council was formed under law no. 80, 1958 and byelaw no. 49, 1959, and the Presidential Decree no. 4, 1959,
stipulated the duties and procedures in the Council. Its first duty
is to draw up a plan for the development of Indonesia.
The council consists of representatives of all classes and strata
in our society, and of all regions in Indonesia, in accordance
with the regulations of representation, incorporated in the 1945
constitution. In the past year this composition has proved to be
the best, as it has allowed us to understand the wishes of our nation
and of all regions.
Besides planning, this council has been charged with inves tigating, supervising and evaluating all kinds of development,
whether carried out by the Government or by private enterprise. The decision to make us responsible for all this has proved
to be wise, the implementation program being an essential part
of the plan for development.

4

Ladies and Gentlemen,

§ 3. The history of the development of our country in the past

ten years, i.e. from 1950 to 1960, shows that the greater part of
all development plans has remained plans on paper, as they have
not been practicable, and because there have not been enough
supervision and evaluation. Political and security factors have
also been important for the sake of development.
It has been our duty to coordinate all plans for the development of our country in order to avoid all clashes in ideas and
measures that have been such a drawback for all of us. This task
has not been a light one, not only from the material but also from
the psychological point of view. In the course of our history we
have got accustomed to thinking and acting individually, and in our
own personal interests, often forgetting to think and act as
a group, and to promote the interests of the group.
The change aimed at by setting up this council was welcomed
in different ways. Some saw the National Planning Council as

a means to reduce the competence of certain government depart ment, but on the whole the people of Indonesia were grateful for
the founding of this Council, because they realized the necessity
of thinking and acting as a group in order to serve better our
common interests. It is the opinion of the people of Indonesia
that the independence proclaimed 15 years ago should be followed by an overall development of the country.
Ladies and Gentlemen.
§ 4. During the past eleven mouths the Council has always used
as guiding principles 4 well-known national documents :
1. the 1945 Constitution
2. the Political Manifesto
3. the President's Message on Development
4. the President's further explanation of his message
In all four documents it is stated that the purpose of all
development is to relieve the suffering of the people, to create a
just and prosperous society. In the President's Message it is
also stated that the blueprint for development that we had to
5

draw up should be overall, well-planned and should fulfil na tional requirements, consisting of three patterns.
National, because this pattern should indicate the wishes of all

regions, strata and classes in Indonesia, from Sabang to
Merauke. The execution of a development project should
be national, i.e. Indonesia, so that the economy should
not be based on unprofitable demands.
Overall, because this pattern should affect all fields, of State
and Nation life.
Well planned, because it is impossible to create a just and
prosperous society all of a sudden ; we have to pro ceed step by step, improving all regions and all fields
one by one ; in other words, we have to work systema tically, but on the other hand we have to work fast, in
accordance with the rhythm of the Indonesian Revolution.
Three patterned, because there are to be 3 patterns :
1. the pattern of the project
2. „
„ „ description
3. „
„ „ financing.
Then it was also decided that the plan would be called Draft
Fundamental Law of the National overall Development Plan and
that it was to be the guiding principle for the development of
our country, in accordance with § 3 of the Constitution.

Finally it was stated that this plan would be made a law by
the Temporary People's Council and that afterwards no go vernment authority or department could make any alterations.
§ 5. The Council was given the task of drawing a clear picture,
unhesitatingly, using bold lines that would appeal to the people
of Indonesia ; to make a picture that would give hope to us all ;
a picture that would induce the people of Indonesia to work
hard ; a picture in accordance with the rhythm, the identity and
the outlook on life of the Indonesian people.
This was difficult, the more so if we take into account the
time allotted to us, the lack of experience and the small number
of members in the Council. But our determination to serve the
country lightened our burden. The limited time seemed longer.
6

because the Council worked day and night. The Council worked
as long as there was light.
Ladies and Gentlemen,

§ 6. Before designing our plan, the Council first studied the his tory of the development of our country in the past ten years
from 1950 to the present day.

The evidence of some progress in different fields is as follows :
1.
The production of rice has risen from 5.7 million tons to
7.9 million tons. The production in 1940, when Indonesia
had a population of 70 million, was 4.7 million tons.
2.
Natural rubber went down from 819,000 tons to 704,000
tons. In 1940 the production was 549,000 tons.
3.
The production of tobacco was raised from 55,000 tons to
78,000 tons. In 1940, 97,000 tons were produced.
4. Copra went up from 739,000 tons to 1,110,000 tons. In 1940
the output was 594,000 tons, not including the amount
consumed by the population.
5.
Oil went up from 6.8 million tons to 18.2 million tons. In
1940, 7.9 million tons.
6.
Mineral gas from 1 million tons to 2.8 million tons. In 1940,
1.3 million tons.

7.
Coal from 800,000 tons to 637,000 tons (1940: 1.4 million
tons).
8.
Electricity from 184,000 kwh to 165,000 kwh. (In 1940:
180,000 kwh).
The above survey shows both progress and decline. On the
whole it is by no means a satisfactory picture, considering the
lapse of time and the conditions.
Thanks to the achieved national freedom, the Indonesian
people have certainly long passed the bitter stage of living on
the slogan " 2½ cents a day" of the colonial time, but the general welfare has not yet reached the standard of Justice and Pros perity aimed at, when we proclaimed our independence.
7

When we study carefully the state budget from 1950 to 1959
we will come to the following important conclusions :
1. Expenditure on salaries of officials has gone up 5,5 times,
whereas in fact the standard of living of an official has
gradually gone down.
2. Expenditure on goods has gone up 4 times, whereas the

actual situation reveals a shortage of office equipment
which slows down administration.
3. Expenditure on capital has gone up 48 times, whereas the
results of constructural work are comparatively insignificant.
4. Expenditure has gone up 4 times but income has increased

only 2½ times, so that each year the deficit in the state
bugdet becomes larger.
The deficit has gone up 11 times, causing an increase of
the volume of money in circulation without an additoinal
increase of goods.
6. Only once was there a surplus when the budget has been
implemented.
7. The national debt abroad (1958) has gone down to 64%,
i. e. Rp. 2,421 million or Rp. 26,- per capita in foreign
currency.
8. The internal national debt has doubled, i. e. Rp. 4.670
million or ± Rp. 51 per capita.
9. Short periods liabilities have gone up 8,5 times, i.e.
Rp. 31,195 million or ± Rp. 339 per capita.

10. The debt to the Bank of Indonesia has gone up 8 times, i.e.
Rp. 24,832 million or. Rp. 270 per capita.
From the above it is clear that the liability for every Indo nesian citizen amounts to
1. Rp. 26 (foreign currency on long term loan).
2. Rp. 51 (short term).
3. Rp. 339 (short term liability).
4. Rp. 270 (debt to the Bank of Indonesia).
Rp. 686
whereas the income is Rp. 2.500 per capita per year.
5.

8

The above figures should be viewed in the light of
1. The number of population, increasing 2,3% every year ;
2. Indonesia being an independent country for not more than
15 years ;
3. The natural resources of the country.
And these factores should be compared with the progress made
by neighbcuring countries who got their independence at about
the same time, but do not have the same potential wealth nor the
same amout of population.
On the other hand, we wish to recognize here the progress
made in other fields, such as education, social welfare and medi cal services.

The following data show the progress made in the field of :
A.

Education
1. Elementary Schools
Pupils
2. Secondary Schools
Pupils
3. Colleges
Students
4. Universities
Faculties
Students
5. Illiteracy
(Age 13-45)

1950
24.775
4.977.304
951
139.213
47
1.164

1960
29.892
6.597.090
2.113
414.780
134
7.636

17
435

46
32,614

B. Social Welfare
1. Centres of cader training
for social work in villages
2. Rural Social insertions up to 1960
3. Cultural Centres for isolated
areas up to 1960
4. Education Centre

+ 90%

+

45%

1950

1960

250

70.000
13.847

157

15
238
9

5. Work Centres
1950
1960
6. Rehabilitation Centres for
Invalids
7. Women's Welfare Centres
4
24
8. Pilot Project for the
Rehabilitation of the homeless
6
up to 1960
9. Reh Centres for prostitutes (1960)
16
10. Buildings for Welfare Centres
established by "Dana Bantuan"
4
343
664
768
C. 1. Hospitals
Beds
63.080
70.624
2. Policlinics
3.020
4.326
3. Tuberculosis
Examined up to 1960
22.2 million
vaccinated
6,5 „
4. Framboesia
Sub-districts which have WorkCentres up to 1960
1.611
Protected sub-districts
1.560
Protected citizens
52 million
This dark picture should be put alongside the brighter one in
order to have an objective evaluation of the development, and if
we balance the assets against the liabilities and consider the
period of 15 year's independence and the potential natural resour ces and manpower, the only conclusion we can come to is : In
the past we could have achieved a better progress.
The unsatisfactory condition shown above should make our
leaders realize their shortcomings and neglect in the past, and
let us hope there will be a general wish to catch up in the
shortest possible time, in order that the standard of living of the
people might be improved, and ultimately that we may contribute to the general welfare of the world.
Ladies and Gentlemen!
§ 7. As a Public Council the National Planning Council did not
exhibit its achievements in the past eleven months. This has its
advantages and disadvantages.
10

The advantage is that the N.P.C. could work quietly like a
worker in a laboratory who is trying to solve a difficult problem
The disadvantage is that questions arise among the public,
even among the officials as to what the N.P.C. might be doing.
In this special plenary session I wish to report on the time
schedule, the method and to give a review of the work done by
the N.P.C.
After the inauguration of the N.P.C. on 15 August 1959 and
the President's message on 28 August. 1959, the N.P.C. started
immediately with its sessions. The greater part of the work
has been done in Bandung with a firm intention of starting
work without delay and we did not postpone our work till there
is a new building in Djakarta.
The period of 11 months may be divided as follows :
1. The plenary sessions in Sept, Oct. and November 1959 ;
2. The Sectional meetings in December 1959, January, February 1960;
3. To Sectional meetings in February and March 1960 ;
4. The sessions of the Committee of the Development Experts
and the special Commitees in March, April, May and
June 1960;
5. The Plenary Sessions in July 1960.
During that period 34 plenary sessions, 196 sectional meetings, 32
meetings of the Experts. Committee of Development and 56
meetings of other Committees were held, without taking into
consideration the number of sub-sectional meetings and the task
allotted to members to collect data or to study certain problems.
During that period 17 sections were formed :
1. The Section of Social Affairs.
2. „ Political Section.
3. „ Economical/Financial Section.
4. „ Food/Clothing Section.
5. „ Textile Manufacture Section.
6. „ Food Manufacture Section.
7. „ Pharmaceutical Industry Section.
11

8. The Industrial Section
9. „ Distribution, Communication and Tourism Section.
10. „ Section of Training of Development Workers.
11. „ Educational Section.
12. „ Cultural Section.
13. „ Research Section.
14. „ People's Welfare Section.
15. „ Security/Defence Section.
16. „ Governmental Section.
17. „ Financial Section.
Then 12 Experts Committees of Development were formed to
collect more material to complete the sectional reports ; viz. :
1. The Experts Committee of Development for clothing.
2. The Experts Committee of Development for Food.
3. The Experts Committee of Development for Pharmaceutic al Industry.
4. The Experts Committee of Development for Industry.

5. The Experts Committee of Development for Distribution,
Communication and Tourism.

6. The Experts Committee of Development for Education and
Training of Development workers.
7. The Experts Committee of Development for Cultural affairs.
8. The Experts Committee of Development for Research.
9. The Experts Committee of Development for People's welfare.
10. The Experts Committee of Development for Governmental
affairs.
11. The Experts Committee of Development for Financial affairs.
12. The Experts Committee of Development for Mobilization
of Man Power.
In addition to the Experts Committee of Development above
mentioned, three special committees were set up :
1. The Census Committee (Johannes Comm.)
2. The National Income Committee (Kertonegoro Comm.)
3. The Committee "Sosialisme Indonesia" (Djokosutono
Comm.)
12

§ 8. The National Planning Council works in sections and in
plenary sessions. All members are included in one or other section provided with written instructions with regard to their task
and time schedule. When the sections' work has been reviewed
by the plenary body, it is adopted as the plenary Council's
opinion. The sections have worked under very high pressure as
everything had to be completed in due time.
In the course of time the preparatory committees of several
sections worked day and night for two to three weeks at a stretch Saturdays and Sundays included - in order not to be behind
schedule.
Both State institutions and private ones have shown the greatest activity and willingness in aiding the sections.
The average attendance at the meetings was 73%.
The Experts Committees have given valuable aid to the N.P.C
The N.P.C. succeeded in finding 270 Indonesian experts in 12
fields of development. Those experts have given a great contribution not only to the planning but their advice will be of great
value in carrying out the plan in the future. The Indonesian experts have convinced the N.P.C. that Indonesian experts are of a
very high standard and of high qualification. What we have to
consider together is what steps to take to increase the number of
experts in the shortest time and to grant them the positions, for
which they are fit and to show them our appreciation .
9. may I now summarize the working methods applied by the
N.P.C. so far, as follows :
1. For the last eleven months the N.P.C., both its members and
the Secretariat have worked hard day and night without
regarding the financial aspects.
2. The carrying out of such a heavy task in the shortest possible
time has been accomplished only because all members feel
themselves fully responsible for the task of the N.P.C. in
promoting the future prosperity of our nation.
3.

In the past a team-work of high standard amongst members
of the sections and between sections and the presiding board
of the N.P.C. was evident.
13

In my experience as Chairman of the N.P.C., and as a member
for many years, of a Council during three periods, from 1939 to
1957, namely three times as a member of the House of Represen tatives of the Republic of Indonesia, once as a member of the
Constituent Assembly, I can confidently state that the sphere and
the way in which the N.P.C. worked has opened a new and wider
field. The discipline shown by the members in their attendance
at the meetings and during the meetings may be set as a good
example to other bodies in the Republic.
§ 10. The work completed by the N.Y.C. in the period of eleven
months cover the following documents :
1. Three messages on development by
the President
139 pages
2. Accounts given by the Ministers of the
Inner Cabinet and replies
375 „
3. Documents submitted by the plenary body
175 ,,
4. Summaries by the plenary body
825 ,,
5. Reports made by the Sections
5,381 ,,
6. Summaries submitted by the Committee of
Development experts
1 247 ,,
7. Reports made by the special committee
233 ,,
8. Memoranda and the public opinion
2,010 ,,
9. Material submitted by the last plenary session
789 ,,
10. Basic principles and fundamental field program
66 ,,
Total:
11,246 pages
A total number of 11,246 pages has been produced and con densed into 5,100 pages.
To arrange this work the Secretariat has worked at very high
pressure. On this occasion I should like to express my thanks
for the aid given in the last two months by the following teams :
1. The team from the Bandung Institute Centre.
2. The team from the Teacher's Training Centre.
3. The teams from the Faculty of Agriculture at Bogor and
the University of Indonesia.
4. The team from Gadjah Mada University.
14

5. The team from Padjadjaran Unversity.
6. The heads of offices and printing-offices in Bandung, whose
facilities have always been available and have printed and
edited 5,100 pages within 48 hours.
Ladies and Gentlemen,
§ 11. The N.P.C. calls your attention to two items, which are
essential to planning : namely the population and the national
income.
When carrying out its task, the N.P.C. was often confused
by dissimilar figures of population which have been used as a
basis of calculations by various Governments bodies. The N.P.C. is
unable to work on these dissimilar figures. The N.P.C. is
convinced that the population problem is a most important item
in the program, because all the efforts are made to help the
population itself and the population varies out the development
scheme. Precise details on population are urgently needed for
the setting up of every plan and for the carrying out and evalua tion of the development program.
Urged by this need, the N.P.C. has formed an Indonesian
Census Committee, more popularly known as the Johannes Committee, which has used all materials available in the country and
abroad, and according to its inquiries the population in Indonesia
in 1960 is 97,7 million and in 1970 will be 116,4 million.
The percentage of the population increase for the period 1960 —
1970, is 2.3.
The N.P.C. is of the opinion that a census should be held as
soon as possible to collect complete details concerning our po pulation. The N.P.C. is prepared to lead the coming census
organization.
§ 12. The National Income.
The N.P.C. is of the opinion that it is justifiable to make use
of national income figures at present. The figures used by several
bodies are 206 billion for 1959. The N.P.C. has reviewed these
figures and based its calculations on the production sector,
especially the agriculture sector, which gives almost complete
15

details ; based upon figures in the past, which are only estimations, it concluded that the total national income is not 206
billion a year or Rp. 2,200 per capita, but 236 billion of Rp. 2,500
per capita, on a population of 92,7 million.
It must be stated once again that the N.P.C., does not want to
use figures based on estimations. These figures are used only to
lead our thoughts. We cannot rely on any figure concerning the
national income if we do not know for certain what the total
population is.
The N.P.C. is of the opinion that for the time being and until a
reliable census is held and until a reliable account of activities
is recorded, it is better to make use of established facts as a
measurement of the welfare of the Indonesian nation.
§ 13. I should like to give an account of what the N.P.C. has
used as basis for its ideas in carrying out the work entrusted to
it by the Presdent.
The aim of the overall plan of national development is Indo nesian Socialism, i.e. a just and prosperous society which is founded on the basis of „Pantja Sila.”
Indonesian Socialism is neither the kind of Socialism commonly thought of by the west, nor that whch is genarally accepted
throughout the Communist countries.
It is Socialism, which contains well-balanced factors of social
justice and those of pure Indonesian origin, as discribed by
the principles of "Mutual Help" and "Family life", that consti tute the main charactisistics of Indonesians.
The aim and purpose of Social Justice which is based on.
"Mutual Help" and "Family life" is common prosperity in which
there is a surplus of material as well as spiritual property equally
distributed among individuals according to their characteristic
differences.
In polities, Indonesian Socialism aims at the highly respected
and the long-lived fame of Indonesia, in which both the government and its people cooperate to achieve common prosperity.

16

Economcally, its goal is the achievement of an economic structure based on common effort, in which the government and
its people or the state-controlled and private firms are teammates in achieving production and distribution for the realization
of the surplus of common prosperty, equally shared by all people.
With social, not individual, wealth as the primary aim, in the
domestic economic structure of Indonesian Socialism, individual
property is still recognized in so far as it performs a social
function in the state-controlled cooperation.
The economic structure of Indonesian Socialism aims at
promoting economic and financial effort to achieve justice and
to eliminate any kind of colonialisation, and to abolish slavery,
that thinks of man as a means for private purposes.
Socially, it is for a peaceful and wealthy society whose
members can always cooperate peacefully. It guarantees a
sufficiency of food, clothing, housing, medicine and education
to everyone and social care to the aged.
The socialistic Indonesian community must see to it that each
of its members can enjoy and develop culture and can fulfill
his spiritual life so as to make material and spiritual wealth
real.
Indonesian Socialism that is derived from the suffering of the
people, has been constructed since the Proclamation of Indepen dence, which is the source of inspiration and wisdom for running
the Indonesian Revolution.
§ 14. The plan will he an eight year plan:
The National Planning Council has come to the decision that
Plan I will take a period of 8 years (1961 to 1969), a conclusion
based on these facts:
a.
b.
c.

The projects of Plan I need time to get administrative preparation and approval.
Many of the subjects are entirely new so that they need
surveying and research.
The choice of suitable equipment and machinery and their
construction will take time.
17

d.
e.
f.

Means of transporations are extremely slow in Indonesia.
To provide labour for the projects.
Significant products from most of the big projects can be
expected in the fourth year.

The span of 8 years covers the whole planning: In that period
of time there are plans which take 3, 4 and five years. Within
these periods of time they are supposed to be self-generating
without the need for lavish investment.
At this very moment the two subsequent plans following
Plan I must be thought over.
They are :
The short-term plan, that requires a period of five to eight
years, and the long-term one with a period of 15 to 20 years.
The former involves matters of ardinary construction, and the
latter involves those that play a very important part in the state
affairs, e.g. steel industry, electric power, roads and navigation.
§ 15. The amount of investment for Plan I is estimated at
Rp 240 billion or Rp. 30 billion a year.
As a percentage, the amount of annual investment mentioned
above is about 13% of the National income for the fiscal year
1960.
The percentage is reached by considering the following facts :
1. The living standard of Indonesians today is so low, that burdening them with big financial strain sseems impossible.
Therefore, if possible, the overall development must be
financed without overspending and the raising of taxes.
2. Plan I must be considered as leading to experimental de velopment in a general sense of as many workers and
experts as possible, and it is the basis for Plan II and the
following plans.
3. In almost any field of construction research is still needed
in order to have a guarantee of success in doing subsequent
jobs.

18

The investment which amounts to 13% of the annual National income is not an absolute figure, because these are
still investments of various Ministries, local authorities and
private firms, that are yet to be included in Plan I.
§ 16. The investment of Rp. 240 billion will be made in the
following fields :

No

fields

Total
Number of
Percentage subsequen1 projects
project

I
II
III
IV
V
VI

VII
VIII

Total

Mental and Spiritual
1. Education
2. Culture
Research
Social care
Government
Spesific development
Production
1. Industry
3. Food
2. Clothing
4. Medical care
Distribution
(Distribution and
Communication)
Finance
(including tourism)

7,42
43
9
16
11
6
1

1,11
2,58
1,51
12,50
45,02

1

-

25,16

81
8
7
6
144

4,70

3

100,00

335

14
5
3
8

3
‫ـ‬

33

§ 17. The bases for of the additional thoughts are as follows:
1. The N.P.C.'s development is based on the following ideas.
a) that if possible, funds should not be overspent
19

b) that if possible, taxes should not be increased.
c)
that if possible, the allocation of money by the
State budget should not be increased.
2. To pay the expenses of the development scheme, we should
make use of natural resources.
3. The way to exploit these resources is stated by Art 3 of the
Constitution and the President's message on development,
which suggests economical and technical co-operation in the
shortest possible time.
4. Economiccal and technical co-operation is based on the
following ideas :
a)Indonesia needs foreign countries and foreign countries
need Indonesia.
b) The country aided has to become stronger to support
itself and afterwards to support other countries.
5. The development projects are of two kinds :
a) Projects undertaken to promote the national welfare are
called A projects.
b) Projects undertaken to cover the costs for carrying out the
A projects, are called B projects.
6. The relation between the yearly budget and the budget
for development should be considered along the following line of thoughts :
a) The pressure of the yearly budget will diminish, because
a large portion of the expenditure capital is moved to the
development budget.
b) The yearly budget will be increased by taxes and duties,
and taxes as a result of development activities.
c) By economizing seriously, the yearly budget is cut down,
which will raise the value of the rupiah. This we hope
to attain within three or four years.
7. The evaluation of the development for this first plan had bet-ter
be based on clearly established facts and not on the increase
of national income.
§ 18. I can further inform you, that the assignments of the
National Planning Council do not end with the construction of
the plans themselves. Expressing people's needs and wishes will
not be sufficient.
20

The N.P.C. must be ready to carry out the wishes of the
people. It must help change the plans on paper into factories,
ships, docks, schools hospitals, and so on.
It does nto wish to have plans as such.
After obtaining the approvel of the temporary People's Council, the N.P.C.'s assignments are :
1. Helping inform people throughout the country about the
meaning of planned development.
2. Encouraging people to cooperate in order to realize these
plans.
The National Revolution of Indonesia must become the Indonesian Revolution of Develpoment. The N.P.C. realizes that we
are aiming at a very complicated goal. It is impossible to carry
out a plan of development only by means of encouragment. It
has to be realized by hard work.
The N.P.C. realizes that speeches will not be able to change
plans into factories, and doctrines will not be able to construct
dams.
A just and prosperous Indonesia can only be achieved through
hard work.
A socialist community can only be accomplished by working
hard.
The task we face is much bigger than the task of making plans.
But the National Planning Council wants to stress that a leader's
character, and a nation's character, are able to realize this vast
project.
Ladies and Gentlemen !
§ 19. The National Planning Council has been able to carry
out its task in the midst of all kinds of difficulties. Its main
driving force is the idea of development, suggested by our
leader Sukarno. The National Planning Council has tried to
outline within the allotted time and material given for this
purpose and in spite of our inadequate experiences, the project
aiming at a just and prosperous community in the future.
This project possibly is the first of its kind. It has the Pre sident's best wishes and encouragement, the support of the
Prime Minister, the co-operation of the Ministers, the mental
21

contribution of the Members of the Experts Committees for
development, and finally the valuable support of all the Members
of the National Planning Council and its Secretariat all given in the
conviction that it is necessary to make a project on a big
scale and in a very short time.
On behalf of the members of the National Planning Council
I wish to express ous sincerest gratitude to all who have helped
in the carrying out of the project, and especially to the I.C.A.
who has helped us with type-writers.
Permit us for getting sentimental.
Comparing ourselves to a young architect, who is very happy
to be able to have finished his first plan of building a small brick
house.
The National Planning Council desires, that this small brick
house be built in a shirt period of time which will give a great
satisfaction to the young architect. But the desire of the young
architect goes beyond satisfaction. The N.P.C. sees behind the
project of a small brick house the occupants still living in a
dilapidated hut, the roof of which leaks and which can collapse
at ally moment.
From a politic-economical point of view the N.P.C. sees in this
project the only right and quick way of building up a socialistic
community which is the strongest wish of our long-suffering
people. The Revolution has created a political organization, the
Republic of Indonesia. In the time to come the Indonesian community will be a socialistic community.
§ 20. The National Planning Council knows that it has to assist
in the carrying out of this project. This was decided in a previous
plenary meeting.
1. The N.P.C. knows very well that the number of workers
to carry out the day by day work is not sufficient. With the
existence of so many projects, this shortage will be felt much
more. That is why the N.P.C. is going to start in October
with an emegency training of people for development,
especially of those who are needed to make plans, in order
to contribute to the overall development. The N.P.C. has
decided to train 150 people at a time during a period of
six months ; there will be four groups, so that within two
22

years the number of trained people will have increased to
600. The curriculum will be arranged in such a way that
it will be a solid and practical project with the aim of
carrying out the over-all development.
In the meantime, a plan will be suggested to open a faculty
of Science in Planning, so that in the long run this emergency training will be changed into an ordinary education programme which will be more satisfying. This task has been
allotted to the first Vice Chairman of the N.P.C.
2. a. The N.P.C. is going to make a list of people who will fix
a system of working, and equipment, that can guarantee
the fulfilment of the project within the allotted time.
b. The skilled people now living abroad have to be listed
with great care in order that they can be of use in the
fulfilment of the project for development.
c. The N.Y.C. is going to make a plan for sending people
abroad in order that they may be trained in making plans
in the future.
d. There also will be a project for obtaining instructors
from abroad.
e. As a consequence, a plan of education in the country as
well as abroad should be made which will provide five
groups of skilled people.
Those groups are :
1. A minimum of 100 geologists,

,,
,, 50 specialists on marine science

,,
,, 50 experts in forestry,

,,
,, 50 specialists in agriculture.
5. A minimum of 20 statisticians, to be distributed to all
parts of the country with the purpose of making an inventory of our natural resources. This task is allotted to Vice
Chairman II of the N.P.C.
3. a. The N.P.C. met with difficulties concerning the population and statistical material in the past. These conditions
are not to be allowed for ever. That is why the N.P.C. is
going to establish an Institution for the study of Population problems .
23

b. The N.P.C. needs statistics for development. It would be
better and more economical, if the Central Bureau for
Statistics is a part of the N.P.C. and adjusted to the needs
of the N.P.C. instead of constituting a new section.
c. The N.P.C. will plan in a short time a system of controlling and evaluating the development in order that the
task of controlling and evaluating can be fulfilled.
This task is allotted to Vice Chairman III of the N.P.C.
4. To support the N.P.C. in the fulfilment of the Project the
N.P.C. has decided to request the Government to consider :
1. to delegate to the N.P.C. the responsibility of coordinating on behalf of the Government.
2. to delegate to the N.P.C. the responsibility of adjusting
the project to the changes of time and conditions.
5. Indonesian Development Bank.
Right from the start, since September last, the N.P.C. has been of
the opinion that the first condition to smoothen the develop-ment
is the existence of a bank to finance this Development.
The N.P.C. is of the opinion that it would be better if members
of the N.P.C. were on the Committee of Verification of the
afore mentioned bank to enable the N.P.C. to assist in the use of
funds and that of personnel that will guarantee the success of
a project.
§ 21. The N.P.C. has not wasted time in carrying out the task
assigned to it by the President. The N.P.C. hopes that the Gov ernment and the M.P.R. will not waste time either in finishing
the Draft Fundamental Law of the First National Overall Develop
ment Plan.
§ 22. At this plenary meeting, the N.P.C. takes the opportunity
to express its hopes to all those present and to the readers of this
publication who play an important role in the life of the state
and the people of Indonesia.
This Overall Project of Development makes the N.P.C. to be
in touch with the People spiritually. In the carrying out of
the Project, sub-organisations should be formed in the interests
of the people ; they should work in collaboration with the N.P.C.
24

Furthermore, the N.P.C. expresses its wish that this project
may be carried out in a shorter time and with a smaller budget,
as a result of the high national spirits and pride. Such an attitude
can be obtained if the Indonesian Leaders are willing to give
guidance to the people with sincerity of mind and of action.
Beside that, great devotion is required from all executors of
the plan. To work for the development with sincerity will find
God's approval.
The N.P.C. desires that the Overall Development may start
at the beginning of the year 1961, sixteen years after the birth
of the Republic of Indonesia. I express the hope that this Project
will lead to the attainment of a just and prosperous community,
wich is the goal of all of us.
Furthermore, we hope that the preparation of this first Project
will be a good one for a second project covering a national overall
development, which should be more extensive and more perfect.
Ladies and Gentlemen !
23. In the course of the last few years, on the occasion of the
celebration of our Independance Day, the President has used
characteristic words :
1957 is called the Year of challenge,
1958 is called the Decisive Year.
1959 is called the year of the Rediscovery of the Revolution.
The N.P.C. sincerely hopes, that the President may call the
coining year "the Year of Overall Development."
We hope, with the blessings of God Almighty, that a just and
prosperous society under the banner of the Republic of Indonesia may come into existence as a result of the Indonesian National
Revolution, based on the Proclamation of Independance
of Indonesia on August 17, 1945.
Your Excellency the President,
§ 24. May I have your permission to read to you the Document
regarding the presentation of the Draft Fundamental Law of the
First National Overall Development Plan on behalf of the N.P.C.,
which consists of 77 members and 131 officials and employees.
25

Your Excellency the President,
§ 25. We, the N.P.C., feel very honored to submit at this
Special, Plenary Meeting, being held on this Saturday, the thir teenth day of August of the year 1960, that is two days prior
to the installment of the members of the N.P.C. last year, and
four days prior to the celebration of the Day of the Proclamation
of Independence, this year, the proposals concerning a Draft
Fundamental Law of the First National Overall Development Plan,
covering a period of eight years (1961-1969) to Your Excellency, in
accordance with the firm intention, that we expressed as a
whole on August 28, 1959, at a Special Plenary Meeting, held
at the State Palace in Djakarta.
1. The Draft Fundamental Law of the First National Overall
Development Plan, as mentioned previously, consists of 5100
pages.
2. The concerning contents are organized in accordance with
the numbers that are related to our Proclamation, i.e.:
seventeen parts, eight books, and nineteen hundred and
fourty five paragraphs.
3. For the purpose of obtaining a clear picture of the total
content, above draft has been organized as follows
a. The total content has been divided into eight books.
These are :

The
First
Boo
k

:

The
Seco
nd
Boo
k
The
Thir
d
Boo
k

:

The
Four
th
Boo
k
Th
e
Fift
h
Bo
ok
Th
e
Six
th
Bo
ok
26

:

:

Principl
es for a
Planned
,
Overall
Nationa
l
Develo
pment.
Draft
related
to the
Basic
Field
in the
Project
of
a
Planned
,
Overall
Nationa
l
Plannin
g.
The
Mental/
Spiritua
l Field
and
Researc
h.
The
Fields
of
Social
Welfare
,
Admini
stration,
and

:

:

Security
/
Defence
.
The
Field of
Producti
on,
The
Field of
Distribu
tion.

The Seventh Book
: The Field of Finance.
The Eighth Book
: Ministerial Notes.
.........................................: Appendices ................................
b. Furthermore, afore-mentioned eight books are divided
into seventeen parts:
Part One
: Introduction.
Part Two
: Indonesian Socialism
The Three Patterns in Development
The Projecct Pattern.
Part Three
: Outlines of Development
The Pattern of Finance
Implementation and Conclusion.
Part Four

Part Five
Part Six
Part Seven

Part Eight
Part Nine

: The Pattern of Description concerning
Society, Civics, Economics/Finance, Clothing/Food, Fundamentals for a Development Project.
: The Pattern of Description conCerning.
Culture and Education.
: The Pattern of Description concerning
Education.
: The Pattern of Description concerning:
The Education of Skilled Workers for Development purposes.
: The Pattern of Description concering :
Research.
: The Pattern of Description concerning :
Research.
27

Part Ten

:

Part Eleven

:

Part Twelve

:

Part Thirteen

:

Part Fifteen

:

Part Fourteen

:

Part Sixteen

:

Part Seventeen

:

The Pattern of Description concerning :
Research.
The Pattern of Description concerning :
The Social Welfare of the People.
The Pattern of Description concerning : Administration and Security/Defence.
The Pattern of Description concerning : Food and Clothing.
The Pattern of Description concerning : Industry, including
Pharmaceutical industry.
The Pattern of Description concerning : Distribution, Communication and Tourism.
The Pattern of Description concerning: Finance.
Ministerial Notes.

c. Finally, the toal content has been divided into 1945
paragraphs.
4. We, members of the N.P.C., would like to express our hope,
that these materials may be of use for constructing a Draft
Fundamental Law of the First National Overall Develop ment Plan, which is to be submitted within a short time
to the People's Council for legalization.
5. We, members of the N.P.C., would like to express our hope,
that the first period of eight years of Development may
immediately begin as of the year 1961 with a first action to
be undertaken by Your Excellency at the place, where our
Independence has been proclaimed, i.e. Pegangsaan Timur 56,
Djakarta.
6. We, members of the N.P.C., express the hope, that the
Planned, Overall National Development may prove to be a
28

contribution of the Indonesian Generation 1961 in the proper
atmosphere, that is the spirit of the Indonesian Revolution,
that will give meaning to the holy and glorious Proclamation of the Independence of Indonesia.
Bandung : August 13, 1960
National Planning Council
Minister/Chairman.
Prof. Mr. H. Muhammad Yamin.

29

SPEECH AT THE CLOSING OF THE SPECIAL PLENARY
METTING OF THE NATIONAL PLANNING COUNCIL HELD
IN THE CITY OF BANDUNG ON AUGUST 13, 1960.
Ladies and Gentlemen,
§ 26. His Excellency the President has delivered his address
of Counsel. We have paid attention. carefully, to all details.
On behalf of all members of the N.P.C., I would like to express
gratitude for above address.
The program has ended. I, therefore, close this special plenary
session, while conveying my high appreciation for your attendance.
I, hereby, close this Special Plenary Session.

30