User:The man from Gianyar/Ali Wardhana

Ali Wardhana
Portrait, date unknown
3rd Coordinating Minister for Economics, Finance, Industry, and Development of Indonesia
In office 19 March 1983 – 21 March 1988
President	Suharto
Preceded by	Widjojo Nitisastro
Succeeded by	Radius Prawiro
21st Minister of Finance of Indonesia
In office 6 June 1968 – 19 March 1983
President	Suharto
Preceded by	Frans Seda
Succeeded by	Radius Prawiro
Personal details
Born	(1928-05-06)6 May 1928 Surakarta, Central Java, Dutch East Indies
Died	14 September 2015(2015-09-14) (aged 87) Jakarta, Indonesia
Resting place	Tanah Kusir Cemetery
Citizenship	Indonesian
Political party	Golkar (Golongan Karya)
Spouse	Rendasih
Children	4
Parent	Aliman (father)
Relatives	Ali Sastroamidjojo (Uncle)
Alma mater	University of Indonesia University of California, Berkeley
Occupation	Economist professor

Ali Wardhana (6 May 1928 – 14 September 2015), more colloquially known as Bung Ali, was an Indonesian professor and economist, who served as the 3rd Coordinating Minister for Economics, Finance, Industry, and Development of Indonesia, from 1983 until 1988, and the 21st Minister of Finance of Indonesia, from 1968 until 1983. He was one of Indonesia's most senior economic policy-makers during the New Order regime of president Suharto, being a member of the influential Berkeley Mafia, a group of American educated Indonesian economists who shaped the Indonesian economy during the New Order. He was the longest serving Minister of Finance, as well as the fifth longest serving minister in Indonesian history.

He was born on 6 May 1928, in the city of Surakarta. He studied economics at the Faculty of Economics of the University of Indonesia (UI) in 1958. Subsequently earned a Master of Arts in 1961 and doctorate in economics from the University of California, Berkeley. He returned to Indonesia in 1967, and was appointed as the Dean of the Faculty of Economics of UI, replacing Widjojo Nitisastro. Less than one year later, he became Minister of Finance in the First Development Cabinet of Indonesian president Suharto. As finance minister, he tackled rising inflation, reducing it to 10% in 1969, from a high 650% in 1966. He also liked to conduct unannounced inspections and managed to apprehend corrupt officials and smugglers. Under his leadership, there were two devaluations of the Rupiah, which occurred in 1977 and 1978.

In 1983, he was transferred to the position of Coordinating Minister for Economics, Finance, Industry, and Development of Indonesia in the Fourth Development Cabinet, replacing Radius Prawiro, who took over as finance minister. After leaving government in 1988, Ali continued to advise the government on its economic and financial policies. Ali died at Medistra Hospital, Jakarta on September 14, 2015. Before he died, Ali had been hospitalized for three weeks. His body was interred at the Tanah Kusir Public Cemetery, instead of the Kalibata Heroes Cemetery.

Early life and education

His hometown of Surakarta, more commonly known as Solo

Ali Wardhana was born on 6 May 1928, in the city of Surakarta, more commonly known as Solo. His mother died when he was almost five years old. His father, Aliman, would remarry to a woman named Bulik, Ali's aunt. Ali's childhood was mainly spent in Surakarta. Ali moved around several times. Around this time, he reportedly resided in the house of his uncle, Ali Sastroamidjojo, an Indonesian nationalist and statesman, who would go on the become Prime Minister of Indonesia. His childhood home has now become a shop.

Growing up, Ali did not receive a formal education. Instead, he was homeschooled by his stepmother, Bulik. Though, he eventually entered formal schooling in 1930, and was immediately placed in the fifth grade of the People's School (now the equivalent of elementary school). He went to the University of Indonesia (UI), and initially studied medicine for a year. However, he withdrew from the faculty, after being cut off by his parents. He continued to study at UI, but changed faculties. Choosing the Faculty of Economics, as it provided scholarships. Despite receiving a scholarship, he worked a couple odd jobs on the side, working at a travel service provider's office.

During his time in UI, he was taught by foreign lecturers from the Netherlands about economics, as the only native economist with a economics doctorate, was Sumitro Djojohadikusumo. However, as tensions grew between Indonesia and the Dutch Government over the West New Guinea dispute, Dutch lecturers began to leave the country. Resulting in UI turning to the Ford Foundation for assistance. The Ford Foundation then began a process where students from UI were chosen to undertake overseas studies at the University of California, Berkeley. After finishing his studies at UI in 1958, and having a short stint as a lecturer at UI, where he was known to be an expert in the fields of macroeconomics and monetary policy, and was able to explain the material briefly and clearly, he was then sent abroad to continue his studies at the University of California, Berkeley.

Ali continued his master's education at the University of California, Berkeley, United States. With the costs of his education being fully funded through the scholarship he received from the Ford Foundation. While in the United States, Ali was particularly interested in fiscal and monetary studies. He managed to complete not only his master's program, but also his doctoral program and Master of Arts degree, while in Berkeley. A year later, Ali received a Doctor of Philosophy in 1962, with the dissertation title "Monetary Policy in an Underdeveloped Economy with Special Reference to Indonesia" (1962). During his time in Berkeley, he was supported by a number of friends, including J.B. Sumarlin and Emil Salim, both fellow future ministers in the New Order.

Finance Minister

Appointment

Portrait as Finance Minister, 1968

He returned to Indonesia in 1967, and was appointed as the Dean of the Faculty of Economics of UI, replacing his senior and close friend Widjojo Nitisastro. After serving as a dean for less than a year, Ali was appointed Minister of Finance, becoming the youngest Minister of Finance in Indonesian history. This resulted in the media giving him the title of "menteri ingusan" Although he was initially nervous, president Suharto was able to convince Ali to take the position.

Energy policy

Following...

Foreign assistance

Ali Wardhana (left), with Eegje Schoo (center), and Widjojo Nitisastro (right)

Coordinating Minister

Later life and death

Ali Wardhana died at Medistra Hospital, Jakarta, on 14 September 2015. Before he died, he had previously been hospitalized for three weeks. He requested to not be buried in the Kalibata Heroes Cemetery, instead, he wished to be buried at the Tanah Kusir Public Cemetery.

Legacy

Honors and awards

National honors

Foreign honors

Works and writings

Several scientific papers both nationally and internationally that he have been published by Ali throughout his career, including :

• “Foreign Exchange and its Implications in Indonesia” (1962)
• "Ekonomi dan Keuangan Indonesia" (1957)
• “Some aspects of Spontaneous Transmigration in Indonesia” (1957)
• “Inflation and Structural Tensions” (1965)

• “Some Notes on Government Actions in Monetary Economics” (1966)
• “Monetary Budget: A Tool for Stabilization or Inflation” (1966)
• “Economic Development and the Availability of Special Funds” (1969)
• “Concessional Loans and Technical Assistance” (1970).

Personal life

See also

• Berkeley Mafia

References

Bibliography

• Media Keuangan (2019). Widiana, Rahmat; Kurnia, Yani; Gunawan, Ferry; Suliastuti, Dianita; Sulistyo, Budi (eds.). Edisi khusus : Ali Wardhana (PDF) (Special edition) (in Indonesian). Vol. XIV. Media Keuangan (Secretariat General of the Ministry of Finance). ISSN 1907-6320. Retrieved 26 October 2021.{{cite book}}: CS1 maint: url-status (link)
• Elson, Robert Edward (2001). Suharto: A Political Biography. Cambridge University Press. ISBN 9780521773263. Retrieved 3 November 2021.{{cite book}}: CS1 maint: url-status (link)
• Qonita, Diena (2016). Ali Wardhana: Pemikiran ekonomi terbuka untuk bangsa (in Indonesian). Retrieved 3 November 2021.{{cite book}}: CS1 maint: url-status (link)
• McCawley, Peter (2011). Widjojo Nitisastro and Indonesian Development. Bulletin of Indonesian Economic Studies, Australian National University. pp. 87–103. Retrieved 3 November 2021.87-103&rft.pub=Bulletin of Indonesian Economic Studies, Australian National University&rft.date=2011&rft.aulast=McCawley&rft.aufirst=Peter&rft_id=https://www.tandfonline.com/doi/abs/10.1080/00074918.2011.556061&rfr_id=info:sid/en.wikipedia.org:User:The man from Gianyar/Ali Wardhana" class="Z3988">{{cite book}}: CS1 maint: url-status (link)
• University of Indonesia (2015). Ali Wardhana, the architect of economic development (PDF) (in Indonesian). University of Indonesia. Retrieved 3 November 2021.{{cite book}}: CS1 maint: url-status (link)
• Pramisti, Nurul Qomariyah (2020). "Ali Wardhana, Pelopor Disiplin Fiskal & Cegah RI dari Dutch Disease". tirto.id (Website) (in Indonesian). Retrieved 4 November 2021.{{cite web}}: CS1 maint: url-status (link)