Acting Presidency Of Suharto
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The acting presidency of Suharto followed the
transition to the New Order Indonesia's transition to the New Order in the mid-1960s ousted the country's first president, Sukarno, after 22 years in the position. One of the most tumultuous periods in the country's modern history, it was the commencement of Suharto's ...
in which Army General
Suharto Suharto (; ; 8 June 1921 – 27 January 2008) was an Indonesian army officer and politician, who served as the second and the longest serving president of Indonesia. Widely regarded as a military dictator by international observers, Suharto ...
assumed presidential powers to "restore" law and order following the now-disputed attempted coup which led to anti-communist purges. The term lasted from 12 March 1967 until 27 March 1968, when Suharto was officially inaugurated as the definitive
President of Indonesia The President of the Republic of Indonesia ( id, Presiden Republik Indonesia) is both the head of state and the head of government of the Republic of Indonesia. The president leads the executive branch of the Indonesian government and i ...
.


Election to the acting presidency

By February 1967, President Sukarno realized that his political career was at an end and he became concerned at cutting his losses. On 7 February, he sent a letter to Suharto saying that he was willing to hand over the running of the government to the General but also added that he would like to continue on as head of state. In the time between the arrival of that letter and the formulation of the reply, the
People's Representative Council The People's Representative Council of the Republic of Indonesia ( id, Dewan Perwakilan Rakyat Republik Indonesia, DPR-RI), also known as the House of Representatives, is one of two elected chambers of the People's Consultative Assembly (MPR), ...
(DPR) passed a resolution which called for a Special Session of the Provisional
People's Consultative Assembly The People's Consultative Assembly of the Republic of Indonesia ( id, Majelis Permusyawaratan Rakyat Republik Indonesia, MPR-RI) is the legislative branch in Politics of Indonesia, Indonesia's political system. It is composed of the membe ...
(MPRS). Suharto, accompanied by the commanders of the Navy, Air Force, and Police, met with Sukarno on 11 February to reject his offer and to wait instead for the result of the MPRS Special Session. On 20 February 1967, Sukarno chose to relinquish all executive power to Suharto whilst still retaining his position as president. Sukarno's decision did not stop the DPR from insisting that the MPRS Special Session go ahead. Originally calling for an MPRS Special Session to be held for the purpose of reviewing Sukarno's performance as well as reaching a final decision on whether or not he was involved with the 30 September Movement (G30S), the DPR now asked that the MPRS Special Session add Suharto's election as acting president to the agenda. The Special Session was opened on 7 March 1967, located in present-day
Istora Gelora Bung Karno Gelora Bung Karno Sports Palace ( id, Istana Olahraga Gelora Bung Karno, abbreviated as ''Istora''), the formerly name ''Istora Senayan'' is an indoor sporting arena located in Gelora Bung Karno Sports Complex, Jakarta, Indonesia. The capacity of ...
. On that day, Suharto delivered a speech absolving Sukarno of any involvement with the G30S. The Special Session now turned on the matter of the presidency. Such was the intensive debate surrounding this matter that the Special Session did not finish on 11 March 1967 as intended but had to go for another extra day. But when the decision was finally made, it was unanimous. On 12 March 1967, the MPRS agreed to withdrew its mandate from Sukarno and remove him as president. Replacing Sukarno, in the capacity of acting president (''Pejabat Presiden'') would be Suharto.


Cabinet

Suharto retained the
Ampera Cabinet The Ampera Cabinet ( id, Kabinet Ampera) was the Indonesian Cabinet which served under President Sukarno and later on, Acting President Suharto from July 1966 until October 1967. The Cabinet was formed after the Provisional People's Consultativ ...
which had been formed by him in July 1966. He reshuffled this Cabinet in October 1967 and created the
Revised Ampera Cabinet The revised Ampera Cabinet ( id, Kabinet Ampera Yang Disempurnakan) was an Indonesian Cabinet which served under Acting President Suharto from October 1967 until June 1968. In addition to the Acting Presidency, Suharto was also Minister of Defens ...
.


Home affairs


Legislative elections

The 1966 MPRS General Session passed a resolution calling for legislative elections to be held no later than 5 July 1968 and this became one of the first matters that Suharto attempted to address during his acting presidency. In doing this, he would have to deal with political parties. For the political parties, the main point of contention was whether the Legislative Election would use the district system or
proportional representation Proportional representation (PR) refers to a type of electoral system under which subgroups of an electorate are reflected proportionately in the elected body. The concept applies mainly to geographical (e.g. states, regions) and political divis ...
. In the previous year,
ABRI A rock shelter (also rockhouse, crepuscular cave, bluff shelter, or abri) is a shallow cave-like opening at the base of a bluff or cliff. In contrast to solutional caves ( karst), which are often many miles long, rock shelters are almost alwa ...
had expressed interest in the district system and as such handed to the DPR an election bill which favors the district system. The bill was successfully blocked in the DPR as the list of parties not wanting change to the district system included the
Indonesian National Party The Indonesian National Party ( id, Partai Nasional Indonesia, PNI) was the name used by several nationalist political parties in Indonesia from 1927 until the 2000s. The first PNI was established by future President Sukarno. After independence, th ...
(PNI) and
Nahdlatul Ulama Nahdlatul Ulama (, , NU) is an Islam in Indonesia, Islamic organization in Indonesia. Its membership estimates range from 40 million (2013) to over 95 million (2021), making it the largest Islamic organization in the world. NU also is a charitab ...
(NU). With time running out until the 1968 Legislative Elections, Suharto needed to hammer out a compromise. Suharto held a series of meetings during the first three months of his acting presidency with the leadership of the political parties. To accommodate the political parties, Suharto backed out of the notion of a district system and began supporting proportional representation; the trade-off being that the Government would be able to appoint some of the DPR members. The breakthrough was made on 25 July 1967 when the political parties agreed that the Legislative Elections will be held using proportional representation, that the Government will appoint 100 MPs out of the 460 in the DPR, and that the Government will appoint 1/3 of the deputies of the new People's Consultative Assembly (MPR). Despite the breakthrough it quickly became clear that it would be difficult to meet the deadline set by the MPRS. The bill would have to be rewritten and would have to go through the proper procedures before it could be passed. The bill was resubmitted to the DPR on 16 December 1967 but by January 1968, Suharto reported to the Chairman and Vice-Chairmen of the MPRS that it would be impossible to hold a Legislative Election in 1968.


Dealing with Sukarno

The MPRS Resolution which appointed Suharto to the acting presidency also gave him the power to take legal action against Sukarno. Suharto chose not to take any legal action and instead, Sukarno was still allowed to reside at the Presidential Palace and enjoy his freedom. Suharto also continued to insist that Sukarno was still the Head of State. Speaking on 13 March 1967, Suharto insisted that Sukarno was still President and Head of State, although without the political power that came with the office. This state of affairs did not last long. By May, Suharto decided that Sukarno was no longer allowed to use the title of President of the Republic of Indonesia and placed the former President under house arrest at
Bogor Bogor ( su, , nl, Buitenzorg) is a city in the West Java province, Indonesia. Located around south of the national capital of Jakarta, Bogor is the 6th largest city in the Jakarta metropolitan area and the 14th overall nationwide.West Papua would be given a
plebiscite A referendum (plural: referendums or less commonly referenda) is a direct vote by the electorate on a proposal, law, or political issue. This is in contrast to an issue being voted on by a representative. This may result in the adoption of a ...
concerning the matter of integration with Indonesia. On 12 September 1967, he signed a bill into a law which approved the formation of
Bengkulu Bengkulu is a province of Indonesia. It is located on the southwest coast of Sumatra. It was formed on 18 November 1968 by separating out the former Bencoolen Residency area from the province of South Sumatra under Law No. 9 of 1967 and was fi ...
Province


Foreign Affairs

The idea of pooling together the nations of
South-East Asia Southeast Asia, also spelled South East Asia and South-East Asia, and also known as Southeastern Asia, South-eastern Asia or SEA, is the geographical south-eastern region of Asia, consisting of the regions that are situated south of mainland ...
into one organization came from
Thanat Khoman Thanat Khoman (also Thanad; th, ถนัด คอมันตร์; , 9 May 1914 – 3 March 2016) was a Thai diplomat and politician. He was foreign minister from 1959 to 1971, leader of the Democrat Party (Thailand), Democrat Party from 197 ...
the
Thai Thai or THAI may refer to: * Of or from Thailand, a country in Southeast Asia ** Thai people, the dominant ethnic group of Thailand ** Thai language, a Tai-Kadai language spoken mainly in and around Thailand *** Thai script *** Thai (Unicode block ...
Minister of Foreign Affairs. He suggested the idea to Indonesia's Minister of Foreign Affairs,
Adam Malik Adam Malik Batubara (22 July 1917 – 5 September 1984), or more commonly referred to simply as Adam Malik, was an Indonesian politician, diplomat, and journalist, who served as the 3rd Vice President of Indonesia from 1978 until 1983, under ...
who promised to bring it up with Suharto. Suharto was interested in the idea and sent Malik to a conference in Thailand in August 1967. The conference was also attended by the Ministers of Foreign Affairs of
Malaysia Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
,
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
, and
Philippines The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no), * bik, Republika kan Filipinas * ceb, Republika sa Pilipinas * cbk, República de Filipinas * hil, Republ ...
. On 8 August 1967, the five Ministers signed the Bangkok Declaration which marked the formation of the
Association of South East Asian Nations ASEAN ( , ), officially the Association of Southeast Asian Nations, is a political and economic union of 10 member states in Southeast Asia, which promotes intergovernmental cooperation and facilitates economic, political, security, military ...
(ASEAN). The declaration called among other things for the cooperation to help accelerate economic growth and promote stability in the region. The reversal of Sukarno's policy of Confrontation with Malaysia was completed with the establishment of diplomatic relations between Indonesia and Malaysia in early September 1967. At the same time, diplomatic relations were also established with Singapore with the opening of an Indonesian Embassy there. Running contrary to these two diplomatic successes was the deterioration of Indonesia's relationship with the
People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
. The perception of the Indonesian Government was that China had backed the
Indonesian Communist Party The Communist Party of Indonesia ( Indonesian: ''Partai Komunis Indonesia'', PKI) was a communist party in Indonesia during the mid-20th century. It was the largest non-ruling communist party in the world before its violent disbandment in 1965 ...
(PKI). The deterioration was not helped by the fact that the response to Indonesia's suspicion was the ideological zeal of China's
Cultural Revolution The Cultural Revolution, formally known as the Great Proletarian Cultural Revolution, was a sociopolitical movement in the People's Republic of China (PRC) launched by Mao Zedong in 1966, and lasting until his death in 1976. Its stated goal ...
. In October 1967, Indonesia announced that it was freezing diplomatic relations with China. The emergence of Suharto as acting president was well received by the
West West or Occident is one of the four cardinal directions or points of the compass. It is the opposite direction from east and is the direction in which the Sunset, Sun sets on the Earth. Etymology The word "west" is a Germanic languages, German ...
, who was keen to not only invest but give aid. Relationship with the Soviet Bloc cooled down but nevertheless, Suharto would work towards repaying the debt incurred during the Sukarno Government. More details can be seen later in this article.


Defense and Security

The first order of business for Suharto was to give official recognition to the non-military mission and roles of the Armed Forces of the Republic of Indonesia (ABRI) as Commander in Chief and Minister of Defense. Measures had been taken to create a doctrinal justification for the ABRI's interference in non-military matters and this had culminated in August 1966 with the formulation of the Four Duties, One Function (Indonesian: ''Catur Dharma Eka Karya'' Acronym: Cadek) Doctrine. The doctrine stated that in addition to its defense and security role, the ABRI will also take part and would serve in other fields outside of the aforementioned functions of defense and security, including politics, culture, education and economy. 31 March 1967, Suharto called on the ABRI to adopt and implement the Cadek Doctrine. The next step was to continue purging the armed forces and police of PKI and Sukarnoist elements. With the Army, most intense purges happened in
Central Java Central Java ( id, Jawa Tengah) is a province of Indonesia, located in the middle of the island of Java. Its administrative capital is Semarang. It is bordered by West Java in the west, the Indian Ocean and the Special Region of Yogyakarta in t ...
,
East Java East Java ( id, Jawa Timur) is a Provinces of Indonesia, province of Indonesia located in the easternmost hemisphere of Java island. It has a land border only with the province of Central Java to the west; the Java Sea and the Indian Ocean bord ...
, and
North Sumatra North Sumatra ( id, Sumatra Utara) is a province of Indonesia located on the northern part of the island of Sumatra. Its capital and largest city is Medan. North Sumatra is Indonesia's fourth most populous province after West Java, East Java and ...
with the Commanders of the 1st, 4th and 5th Regional Military Commands (Kodam) supervising the areas in question leading the purge. Outside of the Army, the Air Force had been weakened enough by its alleged involvement with G30S. The National Police tried to resist but political pressure became too strong for them to overcome. Only the Navy resisted, criticizing the purges as practice reminiscent of the Old Order. Suharto also began reorganizing the Command Structure of the ABRI. The first step was taken by stripping the Commanders of the Army, Navy, Air Force and Police of their Cabinet rank and Ministries (the Army, Navy, Air and Police Ministries, which fused into the Ministry of Defense and Public Security) in August 1967, leaving only the Minister of Defense and Security and the Commander of the Armed Forces of the Republic with Cabinet memberships. Suharto's acting presidency also saw the establishment of the State Intelligence Coordinating Agency (BAKIN), another agency to ensure state security in addition to the Operational Command for the Restoration of Security and Order (
Kopkamtib The Operational Command for the Restoration of Security and Order ( id, Komando Operasi Pemulihan Keamanan dan Ketertiban), or Kopkamtib, was a military body established to deal with the 1965 coup attempt operation in Indonesia, and was subsequen ...
), whose commander was also a part of the cabinet. In addition to all this, Suharto issued a regulation regarding pay for all ABRI active serving personnel. The regulation provided provisions for pay, conditions for pay rise and the various types of allowances for military personnel in active service and their families. Beginning in July, Indonesia faced a security problem in the form of the North Kalimatan People's Forces (Paraku) and the People of Sarawak's Guerilla Forces (PGRS), two guerilla armies consisting of people of Chinese ethnicity, with communist leanings, and backed by
Beijing } Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...
. By the end of 1967, ABRI troops, working together with troops of Malaysia, had made progress but it was unknown as to when the conflict could have been decisively ended.


Justice

In an effort to help the Government form policy in this field, law enforcement agencies (The Supreme Court, the Ministry of Justice, the Office of the Attorney General, and the National Police) held a conference in Cibogo,
West Java West Java ( id, Jawa Barat, su, ᮏᮝ ᮊᮥᮜᮧᮔ᮪, romanized ''Jawa Kulon'') is a province of Indonesia on the western part of the island of Java, with its provincial capital in Bandung. West Java is bordered by the province of Banten ...
. The agencies issued a joint communique which called for: elongating working days for legal procedures, increasing the amount of facilities for legal procedures, maximizing the amount of manpower for legal procedures, improving facilities, and improving coordination between the courts, the attorneys, and the police. In the months leading up to Suharto's assumption of the acting presidency, the trials of Old Order figures revealed that they had been very corrupt. To address this problem and to return any money that belonged to the state, Suharto formed the State Finance Supervision (Pekuneg) in April 1967. However, it would not be long before accusations of corruption were thrown at the new Government. Suharto responded to this by forming the Abolition of Corruption Team (TPK) on 2 December 1967.


Economics and Finance


General Economic Conditions

By the end of 1967, the Suharto Government had been able to reduce inflation from 650% at the end of the previous year to 120%.


Fiscal Policy

With regards to the budget, Suharto undertook a policy of a balanced budget and the Sukarno-era practice of printing extra money to raise funds when the budget runs short was discontinued. Technically speaking, however, Suharto's budgets ran deficits because foreign aid and external borrowing are not supposed to be counted as revenue. The new Government also undertook a reform of the
tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...
system. On 26 August 1967, the DPR passed the Amendment and Revision of Collection Methods for Income, Wealth, and Corporate Taxes Law with Suharto smoothing out the details through a Government Regulation (Peraturan Pemerintah). Under the new tax system, the taxpayer has two methods by which they can pay tax. The first method is the individual tax counting (''menghitung pajak sendiri'') method. Using this method it was up for the individual to count the amount of tax they are to pay and to hand the tax in to tax offices. The second method is the non-individual tax counting (''menghitung pajak orang lain'') method. In this method an individual was appointed by the Head of the Tax Inspection to count and pay the taxes of other individuals. If the individual counting the tax abused their position, they could be subject to a fine of paying 100% tax . Under this system, the roles of a tax officials are reduced to giving information and making sure that the amount of tax that has been paid is accurate.


Monetary Policy

In terms of
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often a ...
,
interest rates An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...
were kept between 6 and 9%. Steps were also taken to reform the exchange rate system by the abolition of the multiple exchange rate of the Sukarno system in July 1967. In May 1967, the liberalization of the banking sector was continued. ten foreign-owned banks and a joint venture bank were allowed to open. For the foreign-owned banks, the catch was that they were only allowed to operate in
Jakarta Jakarta (; , bew, Jakarte), officially the Special Capital Region of Jakarta ( id, Daerah Khusus Ibukota Jakarta) is the capital and largest city of Indonesia. Lying on the northwest coast of Java, the world's most populous island, Jakarta ...
. On 30 December 1967, the DPR passed the Fundamentals of Banking Law. It was a law that categorized banks, their functions, and the guidelines for establishing banks. Further regulations were expounded by Suharto in February 1968.


Agriculture

With agricultural production still not functioning at maximum capacity, Suharto had to make do with ensuring that the supply of
rice Rice is the seed of the grass species ''Oryza sativa'' (Asian rice) or less commonly ''Oryza glaberrima ''Oryza glaberrima'', commonly known as African rice, is one of the two domesticated rice species. It was first domesticated and grown i ...
and the stability of price was guaranteed. On 10 May 1967, Suharto formed the Logistics Affairs Agency (Bulog), to look after these matters. Its position was further strengthened when Suharto named it as the single purchasing agency for rice with Bank Indonesia as the single financing agency. Bulog immediately set a target of purchasing 597,000 tonnes of rice for the year but would delay when it comes to purchasing rice, preferring instead to wait until harvest season to make their purchase. However the year's harvest was bad and from September 1967 onwards there was a shortage of rice. Although the bad harvest meant that Bulog was unable to fulfill its target purchase, it had 280,000 tonnes of rice under its control. Nevertheless, instead of sending its supply of rice to the market, Bulog focused instead on distributing rice to members of ABRI and the
civil service The civil service is a collective term for a sector of government composed mainly of career civil servants hired on professional merit rather than appointed or elected, whose institutional tenure typically survives transitions of political leaders ...
. With high demand and no step being taken on the supply side, the price of rice had nowhere to go but up, its high price causing discontent within the population towards the end of the year. On 8 July 1967, the DPR passed the Guidelines for
Animal Husbandry Animal husbandry is the branch of agriculture concerned with animals that are raised for meat, fibre, milk, or other products. It includes day-to-day care, selective breeding, and the raising of livestock. Husbandry has a long history, starti ...
and Health Law. The law called for setting aside land to grow animal food and for vaccination against animal diseases as well as categorizing the different kinds of Farming Enterprises and calling on the Government to invest capital in animal husbandry.


Trade

In July 1967, the Government simplified
export An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an ...
import An import is the receiving country in an export from the sending country. Importation and exportation are the defining financial transactions of international trade. In international trade, the importation and exportation of goods are limited ...
procedures in addition to taking a step back and giving as well as assisting the private sector an opportunity to conduct trade. For the year 1967, Indonesia was able to earn $770 million from its exports although it would spend $805 million from its imports and thus, running a trade deficit. In earning $770 million from exports, $244 million was earned from exporting
petroleum Petroleum, also known as crude oil, or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name ''petroleum'' covers both naturally occurring unprocessed crud ...
whilst $526 million was earned from non-petroleum exports. These non-petroleum exports included
timber Lumber is wood that has been processed into dimensional lumber, including beams and planks or boards, a stage in the process of wood production. Lumber is mainly used for construction framing, as well as finishing (floors, wall panels, wi ...
,
rubber Rubber, also called India rubber, latex, Amazonian rubber, ''caucho'', or ''caoutchouc'', as initially produced, consists of polymers of the organic compound isoprene, with minor impurities of other organic compounds. Thailand, Malaysia, and ...
,
coffee Coffee is a drink prepared from roasted coffee beans. Darkly colored, bitter, and slightly acidic, coffee has a stimulant, stimulating effect on humans, primarily due to its caffeine content. It is the most popular hot drink in the world. S ...
,
tin Tin is a chemical element with the symbol Sn (from la, stannum) and atomic number 50. Tin is a silvery-coloured metal. Tin is soft enough to be cut with little force and a bar of tin can be bent by hand with little effort. When bent, t ...
,
palm oil Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 33% of global oils produced from ...
,
tea Tea is an aromatic beverage prepared by pouring hot or boiling water over cured or fresh leaves of ''Camellia sinensis'', an evergreen shrub native to East Asia which probably originated in the borderlands of southwestern China and north ...
,
tobacco Tobacco is the common name of several plants in the genus '' Nicotiana'' of the family Solanaceae, and the general term for any product prepared from the cured leaves of these plants. More than 70 species of tobacco are known, but the ...
,
pepper Pepper or peppers may refer to: Food and spice * Piperaceae or the pepper family, a large family of flowering plant ** Black pepper * ''Capsicum'' or pepper, a genus of flowering plants in the nightshade family Solanaceae ** Bell pepper ** Chili ...
,
copra Copra (from ) is the dried, white flesh of the coconut from which coconut oil is extracted. Traditionally, the coconuts are sun-dried, especially for export, before the oil, also known as copra oil, is pressed out. The oil extracted from copr ...
, and palm seeds. Timber was the highest non-petroleum export, raking in $227.8 million. In spending $805 million on imports, $68 million was spent on petroleum whilst $737 million was spent on non-petroleum imports. Some of the non-petroleum imports included rice,
flour Flour is a powder made by grinding raw grains, roots, beans, nuts, or seeds. Flours are used to make many different foods. Cereal flour, particularly wheat flour, is the main ingredient of bread, which is a staple food for many culture ...
,
fertilizers A fertilizer (American English) or fertiliser (British English; see spelling differences) is any material of natural or synthetic origin that is applied to soil or to plant tissues to supply plant nutrients. Fertilizers may be distinct from ...
,
cement A cement is a binder, a chemical substance used for construction that sets, hardens, and adheres to other materials to bind them together. Cement is seldom used on its own, but rather to bind sand and gravel ( aggregate) together. Cement mix ...
,
paper Paper is a thin sheet material produced by mechanically or chemically processing cellulose fibres derived from wood, rags, grasses or other vegetable sources in water, draining the water through fine mesh leaving the fibre evenly distributed ...
,
iron Iron () is a chemical element with symbol Fe (from la, ferrum) and atomic number 26. It is a metal that belongs to the first transition series and group 8 of the periodic table. It is, by mass, the most common element on Earth, right in f ...
,
steel Steel is an alloy made up of iron with added carbon to improve its strength and fracture resistance compared to other forms of iron. Many other elements may be present or added. Stainless steels that are corrosion- and oxidation-resistant ty ...
,
tractors A tractor is an engineering vehicle specifically designed to deliver a high tractive effort (or torque) at slow speeds, for the purposes of hauling a trailer or machinery such as that used in agriculture, mining or construction. Most common ...
, and
aircraft An aircraft is a vehicle that is able to fly by gaining support from the air. It counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines ...
. For the most part, the imports were raw materials which constituted 36.6% of the imports followed by consumption goods on 35.8% and capital goods on 27.6%.


Natural Resources


Mining

Mining, both for oil and mineral resources alike, received legal recognition under the Guidelines of Mining Law. It gave guidelines for mining processes as well as giving private enterprise the opportunity to do business in the mining sector. Under this law, the private enterprises are to pay fees for the contract, exploration, and exploitation to the Government who in turn will hand it over to the Provincial and Regency Governments to be used for development. The importance of petroleum quickly become apparent by the fact that it was Indonesia's top export earner for the year 1967, bringing in $770 million's worth of revenue.


Forestry

In the field of forestry, the DPR passed the Guidelines of Forestry Law on 24 May 1967. The law outlines the categories of
forests A forest is an area of land dominated by trees. Hundreds of definitions of forest are used throughout the world, incorporating factors such as tree density, tree height, land use, legal standing, and ecological function. The United Nations' ...
, from protected forests, which exists for the purpose of preventing floods and erosions to production forests, from which timber are cut down to be exported. It also set provision for
nature reserves A nature reserve (also known as a wildlife refuge, wildlife sanctuary, biosphere reserve or bioreserve, natural or nature preserve, or nature conservation area) is a protected area of importance for flora, fauna, or features of geological or ...
and forests set aside for the purpose of
tourism Tourism is travel for pleasure or business; also the theory and practice of touring (disambiguation), touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tour (disambiguation), tours. Th ...
. In December 1967, Suharto issued regulations for private enterprises wishing to exploit Indonesian forests. Suharto set down the conditions for the private enterprises; first was that they would have to pay license fees and secondly, they would have to pay royalties to the Government based on the amount of forest that they intended to make a profit from. As part of the policy, Suharto regulated that the region from which the forest was exploited will have first priority in receiving the money made from the two fees for the purpose of regional development.


Investment and Foreign Aid

At the beginning of 1967, the Government passed the Foreign Investment Law. By the end of 1967, 23 projects with the backing of foreign capital was approved: 14 direct investments, 8 joint ventures, and 1 working contract. Another investment law, this time directed towards domestic investors, was also in the process of being formulated. Starting from February 1967, the Government began receiving aid from a group of donor nations and or organizations called the
Inter-Governmental Group on Indonesia The Inter-Governmental Group on Indonesia (IGGI) was established in 1967 as an international consortium of official donors to coordinate the provision of foreign assistance to Indonesia. IGGI was the lead official grouping of donors to Indonesia fr ...
(IGGI). IGGI consisted of
Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
,
Belgium Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...
,
Britain Britain most often refers to: * The United Kingdom, a sovereign state in Europe comprising the island of Great Britain, the north-eastern part of the island of Ireland and many smaller islands * Great Britain, the largest island in the United King ...
,
Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
,
France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
,
Japan Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...
,
New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
,
Switzerland ). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...
, the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
,
Asian Development Bank The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966, which is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines. The bank also maintains 31 field office ...
(ADB), the
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster globa ...
(IMF), the
United Nations Development Program The United Nations Development Programme (UNDP)french: Programme des Nations unies pour le développement, PNUD is a United Nations agency tasked with helping countries eliminate poverty and achieve sustainable economic growth and human dev ...
, and the
World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Interna ...
. In 1967, the Government received $675.4 million in aid; comprising credit, food aid, infrastructural aid, and technical aid. With regards to the Communist Bloc, the nations from which Sukarno had already borrowed heavily during his presidency, Suharto wanted Indonesia to settle all of its debts plus interest although debts would still be rescheduled. Starting from mid September to early October 1967, protocols on debt rescheduling were agreed upon and signed between Indonesia and the Governments of East Germany, Czechoslovakia, and Hungary. In November 1967 it was the Soviet Union's turn to sign a similar protocol with Indonesia.


Infrastructure

In July 1967, the Government completed the
Jatiluhur Dam The Jatiluhur Dam is a multi-purpose embankment dam on the Citarum River in West Java, Indonesia. It is located east of Jakarta, close to the medium-size town of Purwakarta. Jatiluhur Dam was designed by Coyne et Bellier and was constructed betw ...
in West Java. The Government saw the dam as a multipurpose
infrastructure Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...
; expecting it to supply water to Jakarta and West Java, generate electricity, stop floods at Citarum, increase fishing production, and as a place for tourists to recreate.


State-owned enterprises

Throughout the course of the acting presidency, the Suharto government did some work with regards to state-owned enterprises. The government established new state-owned enterprises in the fields of the
textile Textile is an umbrella term that includes various fiber-based materials, including fibers, yarns, filaments, threads, different fabric types, etc. At first, the word "textiles" only referred to woven fabrics. However, weaving is not the ...
industry and
urban planning Urban planning, also known as town planning, city planning, regional planning, or rural planning, is a technical and political process that is focused on the development and design of land use and the built environment, including air, water, ...
. Similar to parallel regulations regarding the ABRI and the
bureaucracy The term bureaucracy () refers to a body of non-elected governing officials as well as to an administrative policy-making group. Historically, a bureaucracy was a government administration managed by departments staffed with non-elected offi ...
, the government also issued regulations regarding pay and allowances regarding those who work in state-owned enterprises.


Cooperatives

On 18 December 1967, the DPR passed the Basics of
Cooperatives A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-control ...
Law. Although the previous Government already had its own Cooperatives Law which was passed in 1965, the Suharto Government viewed it as a law that politicized cooperatives. By requirement of the Sukarno-era legislation, a cooperative had to represent nationalist, religious, and communist elements in the adoption of Sukarno's Nationalism, Religion, and Communism (
Nasakom Guided Democracy () was the political system in place in Indonesia from 1959 until the New Order (Indonesia), New Order began in 1966. It was the brainchild of President Sukarno, and was an attempt to bring about political stability. Sukarno b ...
) concept and cooperatives was required to view itself as an equipment of the revolution. The new law placed cooperatives back as a purely economic institution and to undo the previous cooperatives law, does not approve of discrimination based on political beliefs amongst its leadership. The new law also called for the Government to guide, assist, supervise and protect cooperatives in its policies. This in effect, gives the Government authority over cooperatives although considerable autonomy was still given to the cooperatives.


Social issues


Health

As acting president, Suharto had already begun to take steps to show that he wanted to adopt family planning as Government policy on a national scale. In 1967, he signed the UN Declaration on Population and had already taken steps to implement family planning. By the end of 1967, 6,456 people had participated in the family planning program (KB) with the infrastructural backing of 116 KB clinics.


Social Security

The Ministry of Manpower experimented with a
social security Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
system in 1967. Through a Ministerial Regulation, a Social Security Fund was established by the Department of Manpower. Under this fund, all costs for illnesses, pregnancy, giving birth, and deaths were covered by the Ministry. Only employees of private enterprises are eligible for this entitlement and it was not compulsory.


Veterans affairs

On 7 August 1967, the DPR passed the Veterans of the Republic of Indonesia Law. The law outlines not only the criteria for being a veteran but also their privileges; including receiving preference should a veteran apply to be a civil servant in government, being allowed to go back to their old civilian jobs after they finished their service, and to receive skills education from the Government before they return to full civilian life. The law also called on the Government to ensure the veterans’ social security through grants. The law granted the
Veterans’ Legion of Indonesia The Veterans' Legion of Indonesia ( id, Legiun Veteran Republik Indonesia), established on 1 January 1957, is the national ex-service organisation of Indonesia, serving men and women veterans and veterans' families who previously served in the Indo ...
, the national organization for veterans' affairs established in 1957, its own charter and a revised organization and leadership.


Religion

In religious affairs, Suharto adopted a stance of supporting religious tolerance and was against forced religious conversion. As will be seen however, this tolerance does not extend to
Confucianism Confucianism, also known as Ruism or Ru classicism, is a system of thought and behavior originating in ancient China. Variously described as tradition, a philosophy, a religion, a humanistic or rationalistic religion, a way of governing, or ...
.


Chinese Indonesians

By the end of the acting presidency, the Suharto Government had taken measures to suppress the cultural life of its Chinese Indonesian citizens. The policies that were adopted include the non-recognition of Confucianism as a religion, banning Chinese holidays such as the Chinese New Year, banning Chinese newspapers, banning Chinese schools, and banning the usage and teaching of
Mandarin Mandarin or The Mandarin may refer to: Language * Mandarin Chinese, branch of Chinese originally spoken in northern parts of the country ** Standard Chinese or Modern Standard Mandarin, the official language of China ** Taiwanese Mandarin, Stand ...
.


Information and telecommunication

In accordance with the Basic Points of the Press Law, which was passed in late 1966, the Government formed the Press Council in July 1967. The Press Council was an institution designed to assist the Government in developing and fostering the Indonesian media. The Press Council was to be chaired by the Minister of Information. Towards the end of 1967, the Government also moved to regulate amateur radio broadcasting. Although the Telecommunication Law of 1964 had promised punishment to anyone who was illegally owning radio transmitters, amateur radio stations had begun forming after G30S as a form of political dissent against the then Sukarno Government and had become quite popular as a hobby. The Government regulated that amateur radio stations would be allowed to continue provided that the broadcasters get a permit from the Government (through the Ministry of Information) before broadcasting and that they join a national amateur radio organization.


Bureaucracy

As acting president, Suharto began taking steps to reform the bureaucracy by forming a taskforce called the Team Assisting the President for the Ordering of Government Apparatus and Administration. In December 1967, the Government executed two policies with regards to the bureaucracy. The first one was a regulation parallel to the ones that he made with regards to the pay, pay rise, and allowances to ABRI personnel and employees and staff from State Owned Enterprises. The second one was an announcement that the Government was raising the pensions of retired civil servants as well as allowances for the widows and children of retired civil servants.


Election to the presidency

The failure to hold a legislative election by 5 July 1968 meant that a new People's Consultative Assembly (MPR) would not be able to form which also meant that a new President and Vice President could not be elected through an MPR General Session. For Suharto, this meant that the length of his term as acting president was in doubt. Wishing to solidify his position, Suharto used the DPR to lobby the MPRS to hold a General Session. The MPRS Leadership agreed and scheduled a General Session to be held in late March. The General Session was opened on 21 March 1968 and the first matter that it turned to was the Legislative Election. The MPRS quickly passed a resolution, setting 5 July 1971 as the new deadline for the Legislative Election. When the MPRS turned its attention to the presidency, Suharto faced an obstacle in the form of MPRS Chairman General Abdul Haris Nasution. Nasution was of the opinion that Suharto should deliver an accountability speech before going on to run for president. This notion did not gain momentum and Nasution was forced to let the matter go. On 27 March 1968, Suharto was officially elected to a full five-year term; in the process officially becoming President of Indonesia. Nasution's advice, however, would only be materialized almost at the end of his first term, when he gave such an address on the 1971 General Session of the MPR.


Notes

{{Indonesia's New Order New Order (Indonesia) Suharto
Suharto Suharto (; ; 8 June 1921 – 27 January 2008) was an Indonesian army officer and politician, who served as the second and the longest serving president of Indonesia. Widely regarded as a military dictator by international observers, Suharto ...