Sjafruddin Prawiranegara

Sjafruddin Prawiranegara (EYD: Syafruddin Prawiranegara; 28 February 1911 – 15 February 1989) was an Indonesian statesman and economist.

He served in various roles during his career, including as head of government in the Emergency Government of the Republic of Indonesia, as Minister of Finance in several cabinets, and as the first Governor of Bank Indonesia.

Sjafruddin later became the prime minister of the Revolutionary Government of the Republic of Indonesia, a shadow government set up in opposition to the country's central government.

Originating from Banten with Minangkabau ancestry, Sjafruddin became active in politics after his education in law.

Sjafruddin was born in Anyer Kidul to an aristocratic santri family, in what is present day Serang Regency, Banten, on 28 February 1911.

He was the son of a Bantenese father and a Bantenese-Minangkabau mother.

His father, R. Arsyad Prawiraatmadja, was a district chief from a family of officials in Banten and was a member of the Sarekat Islam and Budi Utomo organizations.

His maternal great-grandfather was a descendant of royalty in the Pagaruyung Kingdom, who had been exiled to Banten after the end of the Padri War.

Sjafruddin began his education at a Europeesche Lagere School in Serang, before continuing to a Meer Uitgebreid Lager Onderwijs in Madiun.

In 1931, he graduated from an Algemene Middelbare School in Bandung.

Sjafruddin, who had developed strong nationalist sentiments, rejected the moderate demands presented by the 1936 Soetardjo Petition (made by Soetardjo Kartohadikusumo, the sponsor of Soeara Timur), and in 1940 refused to join the Stadswacht, the Dutch colonial militia.

He wished to continue his studies in Leiden in the Netherlands, but his family could not afford it, so he instead studied at law at the Rechtshoogeschool te Batavia, in Batavia (now Jakarta), earning a Meester in de Rechten (Mr.) degree in September 1939.

During his studies in Batavia, Sjafruddin founded the Unitas Studiosorum Indonesiensis, a student organization which was sponsored by the Dutch authorities and tended to avoid engaging in politics, unlike the more radical Perhimpoenan Peladjar-Peladjar Indonesia (Indonesian Students' Association).

By 1940, he was working at a tax office, and joined the nationalist movements during the Japanese occupation period (1942–1945).

After graduating, he became an editor for the newspaper Soeara Timur ("Eastern Voice"), and from 1940 until 1941 he was the chairman of the Perserikatan Perkumpulan Radio Ketimuran ("Eastern Radio Association").

He also founded a war relief effort organization, where he served as secretary until the Japanese occupation of the Dutch East Indies began in 1942.

Despite his education in law and his general interest in literature, he took a job at the colonial finance department as a tax inspector's adjutant in Kediri, after a one-year job training.

He retained this job during the Japanese occupation of 1942–1945, during which he was initially promoted to head of the Kediri tax office, and then relocated to Bandung.

During the occupation, Sjafruddin became convinced that immediate Indonesian independence was necessary, and became active in the underground independence movement.

He often visited Sutan Sjahrir, a key leader in the resistance against Japanese occupation, and according to Sjafruddin, he was often wrongly regarded as a member of Sjahrir's movement.

Along with Mohammad Natsir, he discreetly organized a number of educational courses directed against the Japanese occupation.

Due to his closeness to the revolutionary leader Sutan Sjahrir, he was appointed finance minister in the Republican government during the Indonesian National Revolution (1945–1949).

In this capacity, he lobbied for and distributed the Oeang Republik Indonesia, a predecessor currency to the Indonesian rupiah.

Despite his socialist views, he joined the Islamic Masyumi party.

Indonesian independence was proclaimed on 17 August 1945, with Sukarno being elected as President.

On 24 August Sjafruddin became a member of the Indonesian National Committee of the Priangan region, before joining the Central Indonesian National Committee (KNIP) and becoming one of the members of its Working Committee.

In December 1948, a Dutch offensive captured the Indonesian revolutionary leaders including President Sukarno, resulting in Sjafruddin activating contingency plans and forming the Emergency Government of the Republic of Indonesia on 22 December.

For seven months in West Sumatra, he became the head of government of Indonesia, allowing the government to continue functioning and ensuring continued resistance.

Following the Roem–Van Roijen Agreement – which he had opposed – Sjafruddin returned his governing mandate to Sukarno in July 1949.

With Indonesia now independent, he was first appointed deputy prime minister, then reappointed as finance minister until 1951.

One of the party's leaders and its most prominent economic policymaker, he maintained a conservative approach to government budgets and established a foreign exchange certificate system.

In order to reduce the money supply and curb inflation, he formulated the "Sjafruddin Cut" policy which involves physically cutting Dutch-issued banknotes in half.

He then became the first governor of Bank Indonesia, where his general accommodative approach to foreign capital and opposition to nationalization caused tensions with the Sukarno government and economists such as Sumitro Djojohadikusumo.

A pragmatic policymaker, he espoused religious socialism and based his views on a liberal Islamic interpretation and was a staunch opponent of communism.

His opposition to Sukarno's Guided Democracy along with Dutch–Indonesian tensions caused a significant split between Sjafruddin and the Sukarno government.

Escaping to Sumatra, he made contacts with dissident army officers and began openly criticizing the government.

While initially reluctant to spark a civil war, in February 1958 he became leader of the Revolutionary Government of the Republic of Indonesia in West Sumatra.

The rebellion was soon defeated, and after three years of guerilla warfare Sjafruddin surrendered to the government in 1961.

Imprisoned until 1966, once released he became a vocal critic of the New Order government for its corruption and imposition of the principle of Pancasila to religious and social organizations until his death in 1989.

Despite opposition from the armed forces, he was declared a National Hero of Indonesia in 2011.