JB Sumarlin, Savior of the Economy

Johannes Baptista Sumarlin is remembered as a well-known Indonesian economist during the period of 1970 to 1998 died at the St. Carolus Hospital in Salemba, Jakarta.

KOMPAS/ADITYA DIVERANTA

Former Minister of Finance 1983-1988 Johannes Johannes Baptista Sumarlin, or often called JB Sumarlin, dies on Thursday (6/2/2020).

JAKARTA, KOMPAS — Johannes Baptista or JB Sumarlin, finance minister under the Development Cabinet V (1988-1993), passed away on Thursday at 87 years of age. The deceased, who is remembered as a well-known Indonesian economist during the period of 1970 to 1998 and as the “battering ram” when the economy was disrupted during his time as finance minister, died at the St. Carolus Hospital in Salemba, Jakarta.

After a ceremony at the funeral home of the MRCCC Siloam Hospital in Semanggi, Jakarta, Sumarlin is to be laid to rest in San Diego Hills, Karawang, West Java, on Monday. He will be buried next to his wife\'s grave.

Based on the results of the CT scan, the doctor said he had suffered a stroke.

Antonius Widyatma, Sumarlin\'s third child, said his father had complained of a sudden blurry vision on Saturday (1/2). A little late, he was unable to move his hands or mouth. Sumarlin was then taken to the St. Carolus Hospital in Jakarta.

"Based on the results of the CT scan, the doctor said he had suffered a stroke. It was also discovered that he suffered from other diseases, such as wet lung. My father died on Thursday afternoon," Antonius said at the funeral home.

Best Finance Minister

Sumarlin became one of Indonesia\'s economic development leaders, along with Widjojo Nitisastro, Ali Wardhana, Sadli, Emil Salim and Saleh Afif. Sumarlin, also known as the “battering ram” when the economy was in trouble during his era, was twice named “best finance minister” – by Euromoney in 1989 and by Asia magazine in 1990. He received the Bintang Mahaputra Adiprana III Award from the Indonesian government in 1973 and the Grootkruis in de Order van Leopold II Award from the Belgian government in 1975.

The head of the Indonesian Banking Development Institute, Mirza Adityaswara, said the period when Sumarlin served as finance minister was crucial. It was during that period that Sumarlin launched the Banking, Insurance and Capital Market Deregulation Package," Mirza said.

The economic policy package was issued to overcome the drop in oil exports. At the time, the government began to push the non-oil and gas sector, which required huge funds. "This policy was called the \'Big Bang\' policy for the financial sector," Mirza said.

Kompas

JB Sumarlin book cover

The head of the communication and information services bureau of the Finance Ministry, Nufransa Wira Sakti, said numerous breakthroughs had been initiated by Sumarlin in his capacity as state treasurer. Sumarlin Move I (Gebrakan Sumarlin I) in the form of monetary tightening pushed economic growth up beyond the target in 1988. "The Sumarlin Move II in 1992 significantly reduced inflation," he said.

University of Indonesia rector Ari Kuncoro said Sumarlin\'s policy in 1988 was known as Pakto 88 or the October 1988 Package. The policy was very important, and its consequences are felt to this very day, such as the presence of so many banks.

Research and Technology Minister/Head of the National Research and Innovation Agency Bambang PS Brodjonegoro said Sumarlin was a modest person. As a professor at the University of Indonesia’s School of Economics, Sumarlin had been a role model to his juniors.