The Berkeley Mafia was the term given to a group of U.S.-educated Indonesian economists whose efforts brought Indonesia back from dire economic conditions and the brink of famine in the mid-1960s. They were appointed in the early stages of the 'New Order' administration. Almost three decades of economic growth followed. Their efforts also began long-term U.S.-Indonesian strategic cooperation, which was important during the Cold War.
The group included Widjojo Nitisastro, Mohammad Sadli, Emil Salim, Subroto, and Ali Wardhana.
In the mid-1950s, the economists who would become the Berkeley Mafia were students at the Faculty of Economics at the University of Indonesia (FEUI). The faculty was headed by Sumitro Djojohadikusumo, an economist who had served as Minister of Trade and Industry and Minister of Finance for the Government. Sumitro, being the only teacher with an economics doctorate, had to turn to foreign lecturers from the Netherlands and lecturers from other faculties to assist in educating the students at FEUI.
As tensions grew between Indonesia and the Dutch Government over West Irian (now known as West Papua), Dutch lecturers began to leave the country. Sumitro turned to the Ford Foundation for assistance. The Ford Foundation then began a process where students from the FEUI were chosen to undertake overseas studies at the University of California, Berkeley. After the Ford Foundation conducted some preliminary preparations, the overseas studies program began in 1957. By the early 1960s, all of the students who had been sent abroad had returned from Berkeley and had begun taking up positions as lecturers at the Army Staff and Command College (SESKOAD).