1958-59 Bank Indonesia Annual Report.Pdf
B A N K I N D O N E S I A REPORT FOR THE YEAR 1958-1959 * G. KOLFF & Co. INDONESIA R E P O R T OF THE GOVERNOR OF BANK INDONESIA FOR THE FINANCIAL YEAR 1958 - 1959 ii B A N K I N D O N E S I A Head Office: DJAKARTA Branch Office: AMSTERDAM Representatives: LONDON NEW YORK Agencies: AMBON, AMPENAN, BANDJARMASIN, BANDUNG, DJEMBER, JOGJAKARTA, KEDIRI, MAKASAR, MALANG, MEDAN, MENADO, PADANG, PALEMBANG, PONTIANAK, SEMARANG, SOLO, SURABAJA, TJIREBON. Report of the Governor I. GENERAL REVIEW Inflation, the always threatening danger to economic development both in highly developed and in underdeveloped countries, in so-called capitalistic as well as in socialist countries, grew rampant in Indonesia during the report year 1958/ l959. The volume of money circulation increased from Rp 18.9 billion at the end of 1957 and Rp 19.6 billion per March 31, 1958 to Rp 29.3 billion at the end of 1958 and about Rp 29.9 billion per March 31, l959. The above figures show a rise by 50%. This meant an increase of purchasing power by the same proportion which, employed to the full, was bound to generate rising prices, unless it would have been possible to increase production, stock of goods and services by 50%. Obviously this could not be realized in Indonesia as it would have been impossi- ble anywhere, because inflation generally rises at a faster rate than production can be stepped up, in the end even hampering production. On account of heavy pres- sures on the balance of payments, increasing stocks of goods and/or services through imports could not be done either.
[Show full text]