In the years following Indonesian independence, a university dean named Sumitro Djojohadikusumo recognized that sovereignty without intellectual self-sufficiency was incomplete — and so he sent five young economists to Berkeley, funded by the Ford Foundation, to become the minds a new nation would eventually need. Those students, including Emil Salim and Widjojo Nitisastro, returned not merely as academics but as architects of Indonesia's economic governance during the New Order era. It is a reminder that the deepest transformations in a nation's life are often seeded quietly, in classrooms an
Tempo.co English
· Jun 05, 2026
· governance
· 1 min read
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Sourcing: Verified
How Sumitro Built Indonesia's Economic Elite at Berkeley
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Education
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Bias & Framing
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Geopolitical Impact
🌎
US-backed educational initiative in 1950s Indonesia created technocratic elite who shaped New Order economic policy, establishing American influence over Indonesia's economic governance.
Escalation Risk
low
Confidence
HIGH
Indonesia
United States
Southeast Asia
Soft power projection: Ford Foundation and US educational institutions cultivated Indonesian economic policymakers, creating ideological alignment with Western economic models. This established long-term American influence over Indonesia's development strategy and positioned US-trained technocrats as key decision-makers during Suharto's New Order, strengthening US-Indonesia ties.
Similar to Cold War-era US educational programs (Fulbright, etc.) that cultivated pro-Western elites in developing nations to counter Soviet influence and ensure ideological alignment with American interests.
Economic Lens
📈
Historical investment in human capital development through international education created Indonesia's economic policy leadership, demonstrating long-term returns on educational institution-building and institutional capacity.
Market Signal
neutral
Confidence
MED
Education and Higher Learning
Economic Policy and Governance
International Development
Institutional Capacity Building
Indirect positive impact through improved economic policymaking quality. The Berkeley-trained economists shaped New Order economic policies that affected inflation, growth, and living standards for Indonesian households over decades.
Demonstrates value of targeted human capital investment and international partnerships for institutional development. Relevant for emerging economies considering education funding strategies and brain drain mitigation through capacity building at home institutions.