During the "Liberal Democracy" period (1950–1957), Indonesia aspired to renew its global status and achieve modernity as a newly independent country. In line with this vision, it sought to establish a democratic parliamentary system, bringing forth a "multi-party system, cabinet government under a prime minister, and a ceremonial president". However, the economic instability inherited from colonial rule significantly hindered their democratic nation-building vision: the Indonesian economy struggled to recover from the hardships of colonial occupation, with economic growth being stagnant and inflation reaching over 600% between the 1950s-1960s. Indonesia's economy heavily relied on the agricultural sector, but without diversification and industrialization, the government became vulnerable to polarization and instability.
During the "Liberal Democracy" period (1950–1957) Indonesia aspired to renew its global status and achieve modernity as a newly independent country In line with this vision it sought to establish a democratic parliamentary system bringing forth a "multi-party system cabinet government under a prime minister and a ceremonial president" However the economic instability inherited from colonial rule significantly hindered their democratic nation-building vision the Indonesian economy struggled to recover from the hardships of colonial occupation with economic growth being stagnant and inflation reaching over 600% between the 1950s-1960s Indonesia's economy heavily relied on the agricultural sector but without diversification and industrialization the government became vulnerable to polarization and instability