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In the past, during The Graet  Depression, when Sukarno was put in jail for agitation against the administration of Dutch East Indies, Hatta and  Sutan Syahrir continue [reorganize] National Party. They give a new formulation of the "Party" - namely "Education" - thus giving new dimensions and directions for politics. It's alter characteristics of the Party from mass mobilization into an institution of Education [prepare future leadership]. I find this is the correct attitude and perception for anyone NOW to  join a political party, defining current national issues [corruption, unemployment] and to search grounds for provide solution. As for 2014, SRI will become the first party founded on that awareness. The presence in election is expected by new generation of voters, namely the present People of Indonesia. Hopefully! Thx.

In a letter to Suharto, Hatta said that he was disappointed that Sukarno was put under house arrest instead of being put on trial. Hatta's reason for this was not malicious however: he just wanted matters relating to 30 September Movement coup attempt of 1965 to be cleared up, and for Sukarno to be given a chance to defend his actions as many believed that he was not guilty.

By August 1945, Japan was on the eve of defeat. This month, the Japanese Government finally approved Indonesian Independence and formed the Committee to Prepare for Indonesian Independence (PPKI) to supervise it.  On 8 August 1945, Hatta and Sukarno were summoned to Saigon, to meet with Marshal Terauchi, the Commander-in-Chief of the Japanese forces in South East Asia. Terauchi told Hatta and Sukarno that the PPKI would be formed on 18 August and that Indonesia would be independent with Japanese supervision.

Hatta and Sukarno returned to Indonesia on 14 August. In Hatta's case, Syahrir was waiting for him with news of the atomic bombs in Hiroshima and Nagasaki. Syahrir told Hatta that they would have to encourage Sukarno to proclaim Indonesia's independence immediately, because in a couple of days the Japanese might not be there to provide supervision. Syahrir told Hatta not to worry about the Japanese authorities because the people would be on their side.

Syahrir and Hatta then went to see Sukarno, with Syahrir repeating his argument in front of Sukarno. Hatta then spoke out, saying that he was worried the Allies would see them as Japanese collaborators. Sukarno shared this sentiment and Syahrir left the meeting out of frustration.

The next day, on 15 August 1945, Japan surrendered to the Allies. In Indonesia, the news was only a rumor and had not been confirmed. Hatta and Sukarno went to the office of the Japanese Occupational Government in Jakarta, only to find it empty. Hatta and Sukarno then went to Maeda who confirmed that Japan had surrendered to the Allies. Hatta and Sukarno seemed shocked that Japan had surrendered. During the afternoon, Hatta and Sukarno were confronted by Indonesian youths who wanted independence to be proclaimed as soon as possible. A heated exchange followed, with Sukarno telling the youths to have more patience. Hatta, who was aware of his and Sukarno's superiority in the exchange, sarcastically commented on the youths' inability to proclaim independence without Sukarno.

On the morning of 16 August 1945, the Indonesian youths kidnapped both Hatta and Sukarno and took them to the town of Rengasdengklok where they continued trying to force Hatta and Sukarno to declare independence, but without success. In Jakarta, there was panic as PPKI was due to start meeting that day and had planned to elect Sukarno as Chairman and Hatta as Vice-Chairman. When knowledge of Hatta and Sukarno's whereabouts became available and the Japanese surrender was confirmed, Achmad Subardjo, a PPKI representative, went to Rengasdengklok to break the news to Hatta and Sukarno. That night, Hatta and Sukarno returned to Jakarta where, at Maeda's house, they worked on the Proclamation of Independence.

Finally, on 17 August 1945, at Sukarno's residence, Indonesia's Independence was finally proclaimed in a short statement on paper signed by both Sukarno and Hatta.

On 18 August 1945, Hatta was selected as Indonesia's first Vice President by the PPKI to accompany Sukarno, who had been elected as the nation's first president.

As Vice President, Hatta quickly established himself as the day-to-day administrator of the government, with Sukarno setting government policy and then trying to win support for it. Although they had different styles of governing, many agree that the style difference complimented both men's talents perfectly. They were nicknamed the Duumvirate (Dwitunggal) and until today are hailed by many as the best President and Vice President partnership in Indonesia's history.

Hatta would make three important decisions in the republic's early days. In October, Hatta gave the Central National Committee of Indonesia (KNIP) legislative powers in addition to its advisory role to the president. In the same month, Hatta also authorized the formation of political parties in Indonesia. The next month, in November, Hatta also made the decision which took away the president's role as Head of Government and transferred it to a prime minister. Hatta was able to make these crucial decisions because Sukarno was unable to attend the meetings in question, leaving Hatta in charge. For his part, Sukarno did not seem to have to problem with Hatta's decisions, at least not during the War of Independence
When the Dutch began sending their troops back to Indonesia, Hatta, together with Syahrir and Sukarno, all agreed that a diplomatic solution should be worked for. This caused tensions with more radical elements within the government such as youth leaders Chaerul Saleh and Adam Malik.

In January 1946, Hatta and Sukarno moved to Yogyakarta, leaving Syahrir (who was by then prime minister) to head negotiations in Jakarta.

By the end of 1946, the diplomatic solution which Hatta and Sukarno had been looking for seemed to have been found. The Linggadjati Agreement, signed in November 1946 called for Dutch recognition of the Republic of Indonesia. However, territorial recognition would only be over Java, Sumatra, and Madura. In addition, this republic would be part of a United States of Indonesia with the Queen of the Netherlands acting as the Head of State. However, before the agreement was finally ratified by the Dutch House of Representatives, some compromises were made without the consent of the republic. In turn, Indonesia refused to implement its part of the deal, resulting in the first "Police Action" in July 1947.

During this time, Hatta was sent out of the country to look for support for Indonesia. One country that he went to was India, the homeland of his old friend, Nehru. Disguised as an airplane co-pilot, Hatta sneaked out of the country to ask for assistance. There he asked Nehru and Mahatma Gandhi for help. Nehru assured him that India would support Indonesia and would make the support known at international forums such as the United Nations (UN).

In December 1947, negotiations were held aboard USS Renville and an agreement was signed in January 1948. This agreement was more favorable towards the Dutch and called for the republic to recognize the territories which the Dutch had taken during the first "Police Action". The agreement caused outrage and caused Amir Syarifuddin to resign from his position as prime minister.

To replace Syarifuddin, Sukarno appointed Hatta as Prime Minister and declared that the cabinet would be an emergency one and would be answerable to the President instead of the KNIP. Hatta also took on the position of minister of defense.

As Prime Minister, Hatta had to make an unpopular decision. In August 1948, with the Republic struggling to pay its troops, Hatta was forced to demobilize some soldiers.

In December 1948, the Dutch launched their second "Police Action" and focused their attack on Yogyakarta. Hatta and Sukarno, instead of running away to fight guerilla warfare chose to remain in the city and were arrested. Sukarno transferred authority to the Emergency Government of the Republic of Indonesia (PDRI), before going into exile with all the other Republican leaders. Hatta was sent to Bangka.

Resistance continued under General Sudirman and TNI troops who fought a guerrilla war against the Dutch. In March, Sultan Hamengkubuwono IX organized 1 March General Offensive, in which the city of Yogyakarta was held by Indonesia forces for six hours. This played an important role in causing international pressure to be put on the Netherlands. In May 1949, the Roem-Royen agreement was signed and the Netherlands promised to return the leaders of the Republican Government. In July 1949, Hatta and Sukarno made their return to Yogyakarta.

In August 1949, Hatta headed a delegation to the Hague for a Round Table conference. In November 1949, the formation of the United States of Indonesia was finally agreed. It was to be a federation consisting of the Republic and 15 States which the Dutch had created during the National Revolution. The Queen of the Netherlands would continue to become the symbolic Head of State while Sukarno and Hatta would continue as President and Vice President. On 27 December 1949, the Dutch authorities finally recognized Indonesian sovereignty.

Indonesian Vice-president Hatta and Dutch
Queen Juliana signing the recognition of sovereignty of the Republic of Indonesia Hatta continued on as the Prime Minister of the United States of Indonesia and presided over the transition of the federal state to the unitary state, which was made official on 17 August 1950.

Indonesia soon adopted a constitution which advocated parliamentary democracy and reduced the president to the role of a ceremonial head of state. That left Hatta with little to do as vice president, especially since his term as prime minister was not renewed. For his remaining time as vice president, Hatta was regularly invited to deliver lectures in universities. He also engaged in intellectual pursuits, writing essays and books about topics such as the economy and cooperatives.

The idea of cooperatives being an integral part of economy would become a pet project for Hatta and he would become an enthusiastic promoter of the idea. In July 1951, on the occasion of Cooperatives Day, Hatta went on the radio to deliver a speech on cooperatives. In 1953, Hatta's contribution towards promoting cooperatives was recognized and he was given the title "Father of Indonesian Cooperatives" at the Indonesian Cooperative Congress.

Aside from cooperatives, Hatta's other main contribution to Indonesia governance was the setting of the nation's foreign policy doctrine. In 1948, Hatta delivered a speech called "Rowing Between Two Rocks". In it, he referred to the Cold War and the conflict between the United States and the Soviet Union. Hatta said that Indonesian foreign policy has to look after its own interest first, not that of the US and the USSR. In saying this, Hatta wanted Indonesia to be independent in deciding its stance during the Cold War. Hatta also added that Indonesia should be an active participant in world politics so that once again it would be Indonesia's interests that came first. This doctrine, which would become known as the "Independent and Active" doctrine, continues to be the basis of Indonesian foreign policy.

Hatta announced that when the new People's Representative Council (DPR) as well as the Constitutional Assembly, a body commissioned to create a new constitution, were formed as a result of the year's legislative and assembly elections, he would retire from the vice presidency. He announced this intention in a letter to Sukarno. On 1 December 1956, Hatta resigned from the Vice Presidency.