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JCR. 2020; 7(8): 2037-2042

Nationalization of Foreign Companies

Zaini Munawir, Mirsa Umiyati, Feri Hendi Jaya, Apri Wahyudi, Rita Irviani.

The sovereignty of a country to determine economic activity in the jurisdiction has long been accepted in international law. A country has a goal to realize the welfare of the people. By the sovereignty, the country absolutely can act in accordance with the needs of the State in achieving economic growth. Each of Indonesia's government eras has its own mechanism and characteristics in the economic policies that are imposed, this situation will refer to the economic system that will be applied in the implementation of country's government. The nationalization of Dutch companies and other foreign companies was a policy that was imposed during Sukarno's leadership, this policy applies when Indonesia is in an unstable economic condition, while public expectation toward the government is so high. The problem that accured at the time (the case of West Irian and the Round Table Confirmation) also did not get the meeting point as expected. Thus, the policy to nationalize Dutch companies and foreign companies was a policy that was considered appropriate by President Sukarno and was wrapped up by the guided democratic system he espoused.

Key words: nationalization, foreign companies, economic system, Pancasila, government

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