A Historical Analysis on Banking Sector in Sukarno Era: Colonial Banks and Nationalization Policy

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This study was made to investigate how modern banking system and state-owned banks in Indonesia had been shaped in an age of Sukarno administration. We found the fact of interest that there was the managerial and organizational continuity between state-owned banks and its predecessor branch of Western banks. Therefore, state-owned banks had maintained the character of colonial finance (an emphasis on commercial finance) , in 1970s, they had moved to the stance of industrial finance. The Japanese bank founded in 1950s Indonesia emphasized on industrial finance for small and medium enterprises.