It was formed after the Indonesian leadership, which had been imprisoned by Dutch forces, returned to the capital, Yogyakarta.

Due to Hatta's departure for the Dutch-Indonesian Round Table Conference, from 6 August 1949, via Presidential Decision No.

He also became acting Foreign Minister while Agus Salim was unable to perform his duties from 21 October.

[1] The cabinet was dissolved after a fundamental change in Indonesia's political system with the establishment of the United States of Indonesia, a result of the Round Table Conference.

With the coming into force of the Federal Constitution on 20 December, the cabinet was automatically dissolved and replaced by the Republic of the United States of Indonesia Cabinet, also led by Hatta.