Introductory Note: At the beginning of the 1960, the Indonesian economy was in a tragic state. The standards of living in society were very low and were undergoing setbacks from year to year. One of the main sources of this situation was the strong government opinion at the time that economic affairs were unimportant. There was also the firm notion in government circles at the time that economics was completely useless; it was even considered a cause of social degradation. There was a strong view among the public at that time that the science of economics was totally useless textbook thinking. Some even viewed this science as something that could harm the way of life of the people.

In 1962, I was appointed professor of economics at the School of Economics, University of Indonesia. As normally practiced by colleges in Indonesia, a new professor is expected to deliver an inaugural speech in the relevant discipline. The core of my inaugural lecture in 1963 was that the economy was important to public welfare and had to be built through planning. For this development planning, economic analysis was required. This statement was a stark contrast to the prevailing and dominant view among government officials and a certain section of the society.