INFLATION CONTINUES UNDER THE COUNTERREVOLUTION IN INDONESIA
The counterrevolutionary generals in Indonesia who unleashed one of the worst blood baths in history under guise of stamping out "Communism" in the archipelago, have little to boast about in their professed objective of stabilizing the Indonesian econ-
omy, particularly their promises to bring
inflation to a halt.
A special correspondent of The New
York Times, in a dispatch from Djakarta,
published in the January 20 issue of the
daily, writes that the Indonesians "have
seen their costs of living increase from
a base of 100 in 1957-58 to 200,615 by the
end of the third quarter of 1966, based on
the prices of 62 items in Jakarta."
From June 1965 -- that is, three
months before the coup d'état that put the
generals in power ~- to June of 1966,
prices had risen 1, 320%.
It was expected that by the end of
December, costs would be 15 times what
they were as of December 31, 1965, despite
some slowing down in the rate of growth of
the inflation that has been ravaging the
country.
The correspondent of the Times cites
some examples of how rapidly prices are in-
creasing in Indonesia. A housewife began
hoarding light bulbs. Her neighbors laughed
at her. Within a week, however, the price
had tripled.
"Even such a homely item as a coco-
nut may increase from one day to the next,
SUKARNO from 5 to 8 cents. A few days after the
withdrawal of Government subsidies from inefficient state enterprises in November, sugar prices went from 4 to 30 cents a kilogram (2.2 pounds), and the cost of a half quart of cooking oil rose from 3 to 10 cents."
The pace of economic deterioration in Indonesia signifies but a relatively short time may be permitted the generals despite the terror marked by the slaughter of as many as 500,000 persons in the "anti-Communist" witch-hunt which began in October of 1965 and which has not yet come to an end. In view of the worsening economic situation, the regime, under the leadership of General Suharto, is stepping up efforts to consolidate its rule.
One of the obstacles in this path is President Sukarno. Although he is reported to be in uncertain health and virtually isolated politically (he played a key role in enabling the reactionary generals to seize power), Sukarno remains a possible preliminary rallying point for political opposition. In any case, the strategists of American imperialism prefer to have him removed from the scene.
Thus the generals have been inching toward eliminating Sukarno, testing the ground as they proceeded. On February 13 the Indonesian Supreme Court demanded that Sukarno be placed on trial for "treason," the charge being that he stole large sums of money for his personal bank accounts and was involved in the abortive coup engineered by a group of young officers who have since been accused of taking orders from the Conmunist party although the evidence would seem to indicate that the Communist party leaders were not aware of their plans, or, if they had learned of the projected coup, opposed it.
Washington envisages Indonesia becoming, under a fascist-like military regime, a central piece in a Southeastern colonial empire. The formation of the ASA [Association of Southeast Asia] was a step in this direction.
Discussing the many problems standing in the way of realizing this scheme, Tom Wicker, a columnist of the New York Times, wrote from Bangkok February 8:
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"But the likelihood that Indonesia, with its hundred million people and its wealth of, resources, now is ready to remove the intractable and unpredictable President Sukarno pekmanently from power has brightened the outlook for the A.S.A. nations. Among Indonesiia's neighbors, it is believed that only with Sukarno out of the way can his country achieve political stability, tackle its shattered economy and regain the confidence of other nations."
It remains to be seen whether Washington's strong-arm policy and strong-arm men can withstand the corrosive work of the inflation and corruption now raging in Indonesia.
DETROIT CITY