Sumitro Djojohadikusumo: A Childhood Witness to Poverty Shaped His Economic Thought

Sumitro Djojohadikusumo, son of a banker during the Dutch colonial era, experienced a childhood marked by both privilege and the stark realities of poverty among native Indonesian communities. He often accompanied his father on tours of villages, witnessing firsthand the struggles of people seeking loans to survive during the economic depression of the mid-1930s.

His father, Margono Djojohadikusumo, served as an Inspector of People’s Tax and Customs Administration, an institution that later evolved into the People’s Credit Bank. Margono's routine inspection trips across Java and Madura were intended to address mounting bad loans caused by the economic crisis.

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He saw and experienced it because he often accompanied his father on tournee trips to the villages.

Sumitro's experiences and observations from this period formed the basis of his 1943 dissertation, "Het Volkscredietwezen in de Depressie" (People’s Credit During the Depression), while he was studying at Erasmus University Rotterdam. This work is considered one of his most significant contributions, with his colleague Ismid Hadad noting that the dissertation's primary sources stemmed directly from his father's fieldwork.

Related articles suggest a connection between Sumitro's economic philosophy and that of his son, President Prabowo Subianto. While Prabowo has stated his economic views were shaped by his father, one article posits that Prabowo's current economic approach is reckless and lacks fiscal discipline, contrasting with Sumitro's vision.

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The primary source of Sumitro’s dissertation really came from his father’s experiences.