Thread
1/ #Bitcoin is what Indonesian 🇮🇩 people need. If they learn about their money history then they will understand why they need Bitcoin
A 🧵 (1/15)
A 🧵 (1/15)
2/ Money has become a tool to control Indonesian people since the colonial era
The Dutch established a central bank in Indonesia called De Javanesche Bank, printed and controlled the money supply to finance the forced plantation that enslaved many Indonesian
The Dutch established a central bank in Indonesia called De Javanesche Bank, printed and controlled the money supply to finance the forced plantation that enslaved many Indonesian
3/ Soon after Indonesia proclaimed its independence, the Indonesian government created its first fiat money called Rupiah. They tried to make a fixed rate Rp 2 = 1 gram of gold. But within 3 year the money lose its value. 
4/ There were at least 4 different currencies that circulated in Indonesia between 1945-1949. The Dutch Gulden, Indonesia Rupiah, Japan Gulden, and local Rupiah. Created destabilized economy
Accepting Dutch Gulden, that was more stable, was seen as an act of treason
Accepting Dutch Gulden, that was more stable, was seen as an act of treason
5/ But the Dutch saw this as an opportunity to destabilize Rupiah even more by flooding Indonesia with fake Rupiah that devalued Rupiah even more.
6/ In 1949, Indonesia's independence was recognized by the Dutch through The Round Table Conference agreement, but Indonesia need to pay a high cost for this. They have to pay the Dutch war debt that cost 5.9 Trillion Gulden.
7/ The Indonesian government paid this debt through
* Money printing
* Redominated their currency and cut the value by 90%
* Cut physical Gulden into half and devalued the Gulden that was still circulated in the country
* Money printing
* Redominated their currency and cut the value by 90%
* Cut physical Gulden into half and devalued the Gulden that was still circulated in the country
8/ Inflation rose to 600%
The government froze any bank accounts with an amount of more than Rp 25,000.
Prices soared, people lose all of their savings. Massive starvations.
Indonesia went into chaos especially with the growth of communist influence in the country.
The government froze any bank accounts with an amount of more than Rp 25,000.
Prices soared, people lose all of their savings. Massive starvations.
Indonesia went into chaos especially with the growth of communist influence in the country.
9/ After the 2nd President took power, he cut subsidies and government debt and reformed the exchange rate mechanism. The inflation dropped from 660% in 1966 to 13% in 1969
10/Indonesia enjoyed the oil boom, the loans & the cheap dollar. With the cheap dollar available because of the low-interest rate, many companies would like to borrow cheap US dollars while their liabilities are in the Indonesian Rupiah. This resulted in a huge dollar influx.
11/ The US decided to weaken the dollar through the Plaza Accord and it cascaded into Asia Financial Crisis that hit Thailand and then the South East Asia countries including Indonesia
12/ The stock market in Indonesia fell to 93%
GDP plummeted down to -13%
Companies went bankrupt
Rupiah weakened
Before the crisis $1 = Rp 2,600 and after the crisis $1 = Rp 14,000
Another mass hysteria and chaos
GDP plummeted down to -13%
Companies went bankrupt
Rupiah weakened
Before the crisis $1 = Rp 2,600 and after the crisis $1 = Rp 14,000
Another mass hysteria and chaos
13/ Indonesia was able to stabilize its inflation rate by increasing interest rates and cutting subsidies.
14/ Even though the inflation rate has been quite steady around 1.7% on average. Up until now, Indonesia has printed more than 2 Quadrillion Rupiah with an average of 12% supply increase year over year. 
15/ In conclusion, People in Indonesia had suffered from government policies and also global crises. Their savings are not secured & can easily be devalued.
#bitcoin offers something that Indonesian never have, a fixed money supply that is censorship-resistant.
#bitcoin offers something that Indonesian never have, a fixed money supply that is censorship-resistant.
16/ If you want to read more in-depth you can find it here
dearezkitha.com/indonesia-money-history/
dearezkitha.com/indonesia-money-history/
