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The New Order ( id, Orde Baru, abbreviated ''Orba'') is the term coined by the second
Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Gui ...
n President
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 l ...
to characterise his administration as he came to power in
1966 Events January * January 1 – In a coup, Colonel Jean-Bédel Bokassa takes over as military ruler of the Central African Republic, ousting President David Dacko. * January 3 – 1966 Upper Voltan coup d'état: President Maurice Yaméogo ...
until his resignation in 1998. Suharto used this term to contrast his presidency with that of his predecessor
Sukarno Sukarno). (; born Koesno Sosrodihardjo, ; 6 June 1901 – 21 June 1970) was an Indonesian statesman, orator, revolutionary, and nationalist who was the first president of Indonesia, serving from 1945 to 1967. Sukarno was the leader of ...
(retroactively dubbed the "Old Order," or ''Orde Lama''). Immediately following the attempted coup in 1965, the political situation was uncertain, Suharto's New Order found much popular support from groups wanting a separation from Indonesia's problems since its independence. The 'generation of 66' (''
Angkatan 66 Angkatan 66, or the "generation of 66", refers to hopes within Indonesia for a generation of young leaders and a new intellectual life following the Fall of Sukarno and the establishment of Suharto Suharto (; ; 8 June 1921 – 27 January 2008 ...
'') epitomised talk of a new group of young leaders and new intellectual thought. Following Indonesia's communal and political conflicts, and its economic collapse and social breakdown of the late 1950s through to the mid-1960s, the "New Order" was committed to achieving and maintaining political order, economic development, and the removal of mass participation in the political process. The features of the "New Order" established from the late 1960s were thus a strong political role for the military, the bureaucratisation and corporatisation of political and societal organisations, and selective but brutal repression of opponents. Strident
anti-communist Anti-communism is political and ideological opposition to communism. Organized anti-communism developed after the 1917 October Revolution in the Russian Empire, and it reached global dimensions during the Cold War, when the United States and the ...
, anti-socialist, and
anti-Islamist The ideas and practices of the leaders, preachers, and movements of the Islamic revival movement known as Islamism (also referred to as Political Islam) have been criticized by non-Muslims and Muslims (often Islamic modernists and liberals). ...
doctrine remained a hallmark of the presidency for its subsequent 32 years. Within a few years, however, many of its original allies had become indifferent or averse to the New Order, which comprised a military faction supported by a narrow civilian group. Among much of the pro-democracy movement which forced Suharto to resign in the
1998 Indonesian Revolution Suharto resigned as President of Indonesia on 21 May 1998 following the collapse of support for his 32-year long presidency. Vice President B. J. Habibie took over the presidency. Suharto's grip on power weakened following severe economic and p ...
and then gained power, the term "New Order" has come to be used pejoratively. It is frequently employed to describe figures who were either tied to the Suharto period, or who upheld the practises of his authoritarian administration, such as
corruption Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...
, collusion and
nepotism Nepotism is an advantage, privilege, or position that is granted to relatives and friends in an occupation or field. These fields may include but are not limited to, business, politics, academia, entertainment, sports, fitness, religion, an ...
(widely known by the acronym KKN: ''korupsi'', ''kolusi'', ''nepotisme'').


Background

Sukarno Sukarno). (; born Koesno Sosrodihardjo, ; 6 June 1901 – 21 June 1970) was an Indonesian statesman, orator, revolutionary, and nationalist who was the first president of Indonesia, serving from 1945 to 1967. Sukarno was the leader of ...
was Indonesia's founding president, a position he had held since the Republic's formation in 1945. In 1955, the first general parliamentary elections delivered an unstable parliament and from the late 1950s, Sukarno's rule became increasingly autocratic under his "
Guided Democracy Guided democracy, also called managed democracy, is a formally democratic government that functions as a ''de facto'' authoritarian government or in some cases, as an autocratic government. Such hybrid regimes are legitimized by elections that ...
". Described as the great " dalang", Sukarno’s position depended on his concept of
NASAKOM Guided Democracy () was the political system in place in Indonesia from 1959 until the New Order began in 1966. It was the brainchild of President Sukarno, and was an attempt to bring about political stability. Sukarno believed that the parli ...
(Nationalism, Religion, Communism) whereby he sought to balance the competing Indonesian Military, Islamic groups, and the increasingly powerful
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). To the resentment of the Military and Muslim groups, this arrangement became increasingly reliant on the PKI which had become the country’s strongest political party. Sukarno’s anti-imperial ideology saw Indonesia increasingly dependent on the
Soviet Union The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, it was nominally a federal union of fifteen nationa ...
and
China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, slig ...
which was met with indignation from Western countries. The cash-strapped government had to scrap public sector subsidies, annual
inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...
rose to as high as 1,000%, export revenues were shrinking, infrastructure crumbling, and factories were operating at minimal capacity with negligible investment. Sukarno’s administration became increasingly ineffective in providing a viable economic system to lift its citizens out of poverty and hunger. Meanwhile, Sukarno led Indonesia into '' Konfrontasi'', a military confrontation with Malaysia, removed Indonesia from the
United Nations The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmoni ...
, and stepped up revolutionary and anti-Western rhetoric. By 1965 at the height of the
Cold War The Cold War is a term commonly used to refer to a period of geopolitical tension between the United States and the Soviet Union and their respective allies, the Western Bloc and the Eastern Bloc. The term '' cold war'' is used because t ...
, the PKI penetrated all levels of government. With the support of Sukarno and the Air Force, the party gained increasing influence at the expense of the Army, thus ensuring the Army's enmity. Muslim clerics, many of whom were landowners, felt threatened by the PKI's rural land confiscation actions. The army was alarmed at Sukarno’s support for the PKI’s wish to quickly establish a "fifth force" of armed peasants and labourers, which was first announced by the PKI to a
CBS News CBS News is the news division of the American television and radio service CBS. CBS News television programs include the '' CBS Evening News'', '' CBS Mornings'', news magazine programs '' CBS News Sunday Morning'', '' 60 Minutes'', and '' 4 ...
journalist. Adding to this desperate and fractious nature of Indonesia in the 1960s, a split within the military was fostered by Western countries backing a right-wing faction against a left-wing faction backed by the PKI.


Overthrow of Sukarno

On 30 September 1965, six generals were killed by a group calling themselves the 30 September Movement who alleged a right-wing plot to kill the President. General Suharto led the army in suppressing the abortive coup attempt. The PKI were quickly blamed and the army led an anti-communist purge which killed an estimated 500,000 to a million people. Public opinion shifted against Sukarno in part due to his apparent knowledge of, and sympathy for, the events of 30 September, and for his tolerance of leftist and communist elements whom the army blamed for the coup attempt. Student groups, such as
KAMI are the deities, divinities, spirits, phenomena or "holy powers", that are venerated in the Shinto religion. They can be elements of the landscape, forces of nature, or beings and the qualities that these beings express; they can also be the sp ...
, were encouraged by, and sided with, the Army against Sukarno. In March 1966, Suharto secured a presidential decree (known as the Supersemar), which gave him authority to take any action necessary to maintain security.Vickers (2005), page 160 Using the decree, the PKI was banned in March 1966 and the parliament ( MPRS), government and military were purged of pro-Sukarno elements, many of whom were accused of being communist sympathisers, and replaced with Suharto supporters. A June session of the now-purged parliament promulgated a parliamentary resolution irrevocable by Sukarno (''Tap MPRS no. XXV/MPRS/1966''), that confirmed Suharto's ban of the PKI and simultaneously banned "
Communism Communism (from Latin la, communis, lit=common, universal, label=none) is a far-left sociopolitical, philosophical, and economic ideology and current within the socialist movement whose goal is the establishment of a communist society, ...
/ Marxism-Leninism" ('' sic''; explicitly defined in the resolution's corresponding explanatory memorandum to include "the struggle fundaments and tactics taught by ... Stalin, Mao Tse Tung '' et cetera''"), as well as promulgating other resolutions that elevated the Supersemar into a parliamentary resolution also irrevocable by Sukarno, and stripped Sukarno of his title of president for life. In August–September 1966, and against the wishes of Sukarno, the New Order ended Indonesia's confrontation with Malaysia and rejoined the
United Nations The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmoni ...
. Parliament re-convened in March 1967 to impeach the President for his apparent toleration of 30 September Movement and violation of the constitution by promoting PKI's international communist agenda, negligence of the economy, and promotion of national "moral degradation" via his womanising behaviour. In March 1967, the MPRS stripped Sukarno of his remaining power, and Suharto was named Acting President. Sukarno was placed under
house arrest In justice and law, house arrest (also called home confinement, home detention, or, in modern times, electronic monitoring) is a measure by which a person is confined by the authorities to their residence. Travel is usually restricted, if al ...
in
Bogor Palace The Bogor Palace (; ) is one of six presidential palaces of Indonesia, it is located in the city of Bogor, West Java. The palace is noted for its distinctive architectural and historical features, as well as the adjoining botanical gardens. Ista ...
; little more was heard from him, and he died in June 1970.Schwartz (1994), page 2 In March 1968, the MPRS appointed Suharto to the first of his five-year terms as President.


Consolidation of power

The "New Order" was so called to distinguish and "better" itself from Sukarno's "Old Order". Pancasila was promoted as the national ideology, one that pre-dated introduced religions such as
Hinduism Hinduism () is an Indian religion or '' dharma'', a religious and universal order or way of life by which followers abide. As a religion, it is the world's third-largest, with over 1.2–1.35 billion followers, or 15–16% of the global p ...
or
Islam Islam (; ar, ۘالِإسلَام, , ) is an Abrahamic monotheistic religion centred primarily around the Quran, a religious text considered by Muslims to be the direct word of God (or '' Allah'') as it was revealed to Muhammad, the ...
. Suharto secured a parliamentary resolution in 1978 (''Tap MPR No. II/1978'') which obliged all organisations in Indonesia to adhere to Pancasila as a basic principle; he later secured another parliamentary resolution in 1983 (''Tap MPR No. II/1983'') which prohibited all organizations to adhere to any principles except Pancasila, a policy known as the ''Pancasila single principle'' (). He instituted a Pancasila indoctrination program that must be attended by all Indonesians, from primary school students to office workers. Pancasila, a rather vague and generalist set of principles originally formulated by Sukarno in 1945, was vigorously promoted as a sacrosanct national ideology which represents the ancient wisdom of Indonesian people even before the entry of foreign-based religions such as
Hinduism Hinduism () is an Indian religion or '' dharma'', a religious and universal order or way of life by which followers abide. As a religion, it is the world's third-largest, with over 1.2–1.35 billion followers, or 15–16% of the global p ...
or
Islam Islam (; ar, ۘالِإسلَام, , ) is an Abrahamic monotheistic religion centred primarily around the Quran, a religious text considered by Muslims to be the direct word of God (or '' Allah'') as it was revealed to Muhammad, the ...
. In a July 1982 speech which reflected his deep infatuation with Javanese beliefs, Suharto glorified Pancasila as a key to reach the perfect life (''ilmu kasampurnaning '') of harmony with God and fellow mankind. In practice, however, the vagueness of Pancasila was exploited by Suharto's government to justify their actions and to condemn their opponents as "anti-Pancasila". The '' Dwifungsi'' ("Dual Function") policy allowed the military to have an active role in all levels of Indonesian government, economy, and society.


Neutralisation of internal dissent

Having been appointed president, Suharto still needed to share power with various elements including Indonesian generals who considered Suharto as mere ''
primus inter pares ''Primus inter pares'' is a Latin phrase meaning first among equals. It is typically used as an honorary title for someone who is formally equal to other members of their group but is accorded unofficial respect, traditionally owing to their se ...
'' as well as Islamic and student groups who participated in the anti-communist purge. Suharto, aided by his "Office of Personal Assistants" (''
Aspri Asisten Pribadi (English: Personal assistants), better known by the acronym Aspri, were a team of advisors to Indonesian President Suharto from 1968 until 1974. The group was disbanded in the wake of the Malari incident in January 1974, though al ...
'') clique of military officers from his days as commander of Diponegoro Division, particularly Ali Murtopo, began to systematically cement his hold on power by subtly sidelining potential rivals while rewarding loyalists with political position and monetary incentives. Having successfully stood-down MPRS chairman General Nasution's 1968 attempt to introduce a bill which would have severely curtailed presidential authority, Suharto had him removed from his position as MPRS chairman in 1969 and forced his early retirement from the military in 1972. In 1967, generals HR Dharsono, Kemal Idris, and Sarwo Edhie Wibowo (dubbed "New Order Radicals") opposed Suharto's decision to allow the participation of existing political parties in elections in favour of a non-ideological
two-party system A two-party system is a political party system in which two major political parties consistently dominate the political landscape. At any point in time, one of the two parties typically holds a majority in the legislature and is usually refe ...
somewhat similar to those found in many Western countries. Suharto then proceeded to send Dharsono overseas as ambassador, while Kemal Idris and Sarwo Edhie Wibowo were sent to distant
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 ...
and
South Sulawesi South Sulawesi ( id, Sulawesi Selatan) is a province in the southern peninsula of Sulawesi. The Selayar Islands archipelago to the south of Sulawesi is also part of the province. The capital is Makassar. The province is bordered by Central Sul ...
as regional commanders. While many original leaders of the 1966 student movement (''
Angkatan 66 Angkatan 66, or the "generation of 66", refers to hopes within Indonesia for a generation of young leaders and a new intellectual life following the Fall of Sukarno and the establishment of Suharto Suharto (; ; 8 June 1921 – 27 January 2008 ...
'') were successfully co-opted into the regime, it faced large student demonstrations challenging the legitimacy of the 1971 elections, the ''Golput'' Movement, the costly construction of Taman Mini Indonesia Indah theme park (1972), the domination of foreign capitalists ( Malari Incident of 1974), and the lack of
term limit A term limit is a legal restriction that limits the number of terms an officeholder may serve in a particular elected office. When term limits are found in presidential and semi-presidential systems they act as a method of curbing the potenti ...
s of Suharto's presidency (1978). The New Order responded by imprisoning student activists and sending army units to occupy the campus of the Bandung Institute of Technology in 1978. In April 1978, Suharto ended the campus unrest by issuing a decree on the "Normalization of Campus Life" (NKK) which prohibited political activities on-campus not related to academic pursuits. In 1980, fifty prominent political figures—including Nasution—signed the
Petition of Fifty The Petition of Fifty ( id, Petisi 50) was a document protesting then President Suharto's use of state philosophy Pancasila against political opponents. Issued on 5 May 1980 as an "Expression of Concern", it was signed by fifty prominent Indonesi ...
which criticised Suharto's use of Pancasila to silence his critics. Suharto refused to address the petitioners' concerns, and some of them were imprisoned with others having restrictions imposed on their movements.


Domestic politics and security


Depoliticization

To placate demands from civilian politicians for the holding of elections, as manifested in MPRS resolutions of 1966 and 1967, Suharto government formulated a series of laws regarding elections as well as the structure and duties of parliament which were passed by MPRS in November 1969 after protracted negotiations. The law provided for a parliament (''Madjelis Permusjawaratan Rakjat''/MPR) with the power to elect presidents consisting of a lower house ( ''Dewan Perwakilan Rakjat''/DPR) as well as regional and groups representatives. 100 of the 460 members of DPR were soldiers of the Republic of Indonesia Armed Forces (ABRI)—mostly
Indonesian Army The Indonesian Army ( id, Tentara Nasional Indonesia Angkatan Darat (TNI-AD), ) is the land branch of the Indonesian National Armed Forces. It has an estimated strength of 300,000 active personnel. The history of the Indonesian Army has its ...
soldiers—directly appointed by the government as part of ''Dwifungsi'', while the remaining seats were allocated to political parties based on results of a general election. This mechanism ensures significant government control over legislative affairs, particularly the appointment of presidents. To participate in the elections, Suharto realised the need to align himself with a political party. After initially considering alignment with Sukarno's old party, the PNI, in 1969 Suharto took control of an obscure military-run federation of NGOs called
Golkar ) , foundation = , youth = AMPG (Golkar Party Young Force) , women = KPPG (Golkar Party Women's Corps) , newspaper = ''Suara Karya'' (1971–2016) , headquarters = Jakarta , ideology ...
("Functional Group") and transform it into his electoral vehicle under the co-ordination of his right-hand man Ali Murtopo. The first general election was held on 3 July 1971 with ten participants: Golkar, four Islamic parties, as well as five nationalist and Christian parties. Campaigning on a non-ideological platform of "development", and aided by official government support and subtle intimidation tactics. Golkar secured 62.8% of the popular vote. The March 1973 general session of the MPR promptly appointed Suharto to a second term in office with Sultan
Hamengkubuwono IX Hamengkubuwono IX or HB IX (12 April 1912 – 2 October 1988) was an Indonesian statesman and royal who was the second vice president of Indonesia, the ninth sultan of Yogyakarta, and the first governor of the Special Region of Yogyakarta. Hamen ...
as vice-president. On 5 January 1973, to allow better control, the government forced the four Islamic parties to merge into the PPP (''Partai Persatuan Pembangunan''/United Development Party) while the five non-Islamic parties were fused into PDI (''Partai Demokrasi Indonesia''/Indonesian Democratic Party). The government ensured that these parties never developed effective opposition by controlling their leadership, while establishing the "re-call" system to remove any outspoken legislators from their positions. Using this system dubbed the " Pancasila Democracy", Golkar won the MPR general elections of 1977,
1982 Events January * January 1 – In Malaysia and Singapore, clocks are adjusted to the same time zone, UTC+8 (GMT+8.00). * January 13 – Air Florida Flight 90 crashes shortly after takeoff into the 14th Street Bridge in Washington, D.C ...
, 1987,
1992 File:1992 Events Collage V1.png, From left, clockwise: Riots break out across Los Angeles, California after the police beating of Rodney King; El Al Flight 1862 crashes into a residential apartment building in Amsterdam after two of its engin ...
, and
1997 File:1997 Events Collage.png, From left, clockwise: The movie set of ''Titanic'', the highest-grossing movie in history at the time; '' Harry Potter and the Philosopher's Stone'', is published; Comet Hale-Bopp passes by Earth and becomes one of ...
with massive landslides. The elected MPR then proceeded to unanimously re-elect Suharto as president in 1978, 1983, 1988, 1993, and 1998.


Establishment of corporative groups

Suharto proceeded with social engineering projects designed to transform Indonesian society into a de-politicized "floating mass" supportive of the national mission of "development", a concept similar to
corporatism Corporatism is a collectivist political ideology which advocates the organization of society by corporate groups, such as agricultural, labour, military, business, scientific, or guild associations, on the basis of their common interests. The ...
. The government formed civil society groups to unite the populace in support of government programs. For instance, the government created and required all civil servants and employees of state- and local government-owned enterprises and those of Bank Indonesia to join
KORPRI The Employees' Corps of the Republic of Indonesia ( id, Korps Pegawai Republik Indonesia, KORPRI), also known as the Indonesian Civil Servants Corps, is a state-regulated organisation of civil service employees. Created during the New Order as ...
(the Employees' Corps of the Republic of Indonesia) in November 1971 to ensure their loyalty;KORPRI still exists today and all civil servants are still required to join the corps. organised the FBSI (''Federasi Buruh Seluruh Indonesia'') as the only legal labour union for workers not eligible for KORPRI membership in February 1973 (later renamed as SPSI/''Serikat Pekerja Seluruh Indonesia'' in 1985), established under the pretext of
tripartism Tripartism is an economic system of neo-corporatism based on a mixed economy and tripartite contracts between employers' organizations, trade unions, and the government of a country. Each is to act as a social partner to create economic polic ...
, officially defined as Pancasilaist Industrial Relations ( id, Hubungan Industrial Pancasila) (while in fact it cements only business interests with the state); and established the MUI (''Majelis Ulama Indonesia'') in 1975 to control Islamic clerics. In 1966 to 1967, to promote assimilation of the influential
Chinese Indonesians Chinese Indonesians ( id, Orang Tionghoa Indonesia) and colloquially Chindo or just Tionghoa are Indonesians whose ancestors arrived from China at some stage in the last eight centuries. Chinese people and their Indonesian descendants have ...
, the Suharto government passed several laws as part of the so-called "Basic Policy for the Solution of Chinese Problem", whereby only one Chinese-language publication (controlled by the army) was allowed to continue, all Chinese cultural and religious expressions (including display of Chinese characters) were prohibited from public space, Chinese schools were phased out, and the ethnic Chinese were encouraged to take Indonesian-sounding names. Furthermore, Chinese Indonesians are also subject to the Certificate of Citizenship in order to enter an academy, obtain a passport, register for an election, and to get married. In 1968, Suharto commenced the very successful
family planning Family planning is the consideration of the number of children a person wishes to have, including the choice to have no children, and the age at which they wish to have them. Things that may play a role on family planning decisions include marita ...
program (''Keluarga Berentjana''/KB) to stem the huge population growth rate and hence increase per-capita income. A lasting legacy from this period is the
spelling reform A spelling reform is a deliberate, often authoritatively sanctioned or mandated change to spelling rules. Proposals for such reform are fairly common, and over the years, many languages have undergone such reforms. Recent high-profile examples a ...
of Indonesian language decreed by Suharto on 17 August 1972.


"State Ibuism"

Inspired by
Javanese culture Javanese culture is the culture of the Javanese people. Javanese culture is centered in the provinces of Central Java, Yogyakarta and East Java in Indonesia. Due to various migrations, it can also be found in other parts of the world, such as ...
of priyayi, the New Order, during its consolidation era, was antifeminist and
patriarchic Patriarchy is a social system in which positions of dominance and privilege are primarily held by men. It is used, both as a technical anthropological term for families or clans controlled by the father or eldest male or group of males a ...
, and officially defined as "familyism" ( id, kekeluargaan). In 1974, President Suharto established civil servant wives' corps ''Dharma Wanita'', organized under the doctrine of "Five Women's ''
Dharma Dharma (; sa, धर्म, dharma, ; pi, dhamma, italic=yes) is a key concept with multiple meanings in Indian religions, such as Hinduism, Buddhism, Jainism, Sikhism and others. Although there is no direct single-word translation for '' ...
''" ( id, Pancadharma Wanita, an antifeminist,
patriarchic Patriarchy is a social system in which positions of dominance and privilege are primarily held by men. It is used, both as a technical anthropological term for families or clans controlled by the father or eldest male or group of males a ...
doctrine similar to Nazi Germany's Kinder, Küche, Kirche); a "Family Welfare Training" programme ( id, Pembinaan Kesejahteraan Keluarga, PKK), which was rooted on a 1957 conference on home economics in
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.Kopkamtib (Operation Command for the Restoration of Security and Order) and BAKIN (State Intelligence Coordination Agency). To maintain strict control over the country, Suharto expanded the army's territorial system down to the village level, while military officers were appointed as regional heads under the rubric of the '' Dwifungsi'' ("Dual Function") of the military. By 1969, 70% of Indonesia's provincial governors and more than half of its district chiefs were active military officers. Suharto authorised ''Operasi Trisula'' which destroyed PKI remnants trying to organise a guerrilla base in the Blitar area in 1968 and ordered several military operations which ended the communist PGRS-Paraku insurgency in West Kalimantan (1967–1972). Attacks on oil workers by the first incarnation of Free Aceh Movement separatists under
Hasan di Tiro Hasan Muhammad di Tiro, M.S, M.A, LL.D, Ph.D. (25 September 1925 – 3 June 2010), born Hasan Bin Leube Muhammad, was the founder of the Free Aceh Movement (GAM), an organisation which attempted to separate Aceh from Indonesia from the 1970s ...
in 1977 led to dispatch of small special forces detachments who quickly either killed or forced the movement's members to flee abroad. Notably, in March 1981, Suharto authorised a successful special forces mission to end hijacking of a Garuda Indonesia flight by Islamic extremists at Don Muang Airport in
Bangkok Bangkok, officially known in Thai as Krung Thep Maha Nakhon and colloquially as Krung Thep, is the capital and most populous city of Thailand. The city occupies in the Chao Phraya River delta in central Thailand and has an estimated populati ...
. To comply with the New York Agreement of 1962 which required a plebiscite on integration of West Irian into Indonesia before end of 1969, the Suharto government began organising for a so-called " Act of Free Choice" (PEPERA) scheduled on July–August 1969. The government sent RPKAD special forces under Sarwo Edhie Wibowo which secured the surrender of several bands of the former Dutch-organized militia ( ''Papoea Vrijwilligers Korps''/ PVK) at large in the jungles since the Indonesian takeover in 1963, while sending Catholic volunteers under
Jusuf Wanandi Jusuf Wanandi, a.k.a. Lim Bian Kie () is a Chinese-Indonesian politician and educator. Born in Sawahlunto, West Sumatra, on November 15, 1937, he is an older brother of tycoon Sofjan Wanandi. Education After completing junior high school in Pad ...
to distribute consumer goods to promote pro-Indonesian sentiments. In March 1969, it was agreed that the plebiscite will be channelled via 1,025 tribal chiefs, citing the logistical challenge and political ignorance of the population. Using the above strategy, the plebiscite produced a unanimous decision for integration with Indonesia, which was duly noted by
United Nations General Assembly The United Nations General Assembly (UNGA or GA; french: link=no, Assemblée générale, AG) is one of the six principal organs of the United Nations (UN), serving as the main deliberative, policymaking, and representative organ of the UN. Curr ...
in November 1969.


Political Islam

Under Suharto
political Islam Political Islam is any interpretation of Islam as a source of political identity and action. It can refer to a wide range of individuals and/or groups who advocate the formation of state and society according to their understanding of Islamic pri ...
ists were suppressed, and religious Muslims were carefully watched by the Indonesian government. Several
Christian Christians () are people who follow or adhere to Christianity, a monotheistic Abrahamic religion based on the life and teachings of Jesus Christ. The words ''Christ'' and ''Christian'' derive from the Koine Greek title ''Christós'' (Χρι� ...
Generals who served under Suharto like Leonardus Benjamin Moerdani actively persecuted religious Muslims in the Indonesian military, which was described as being "anti-Islamic", denying religious Muslims promotions, and preventing them from praying in the barracks and banning them from even using the Islamic greeting ''
As-salamu alaykum As-salamu alaykum ( ar, ٱلسَّلَامُ عَلَيْكُمْ, , ), also ''Salamun Alaykum'' is a greeting in Arabic that means 'Peace be upon you'. The (, meaning 'peace') has become a religious salutation for Muslims worldwide when gre ...
'', and these anti-Islamic policies were entirely supported by Suharto, despite Suharto being a Muslim himself, since he considered political Islam a threat to his power. The Christian General Theo Syafei, who also served under Suharto, spoke out against political Islam coming to power in Indonesia, and insulted the Qur'an and Islam in remarks which were described as Islamophobic. Furthermore, the
hijab In modern usage, hijab ( ar, حجاب, translit=ḥijāb, ) generally refers to headcoverings worn by Muslim women. Many Muslims believe it is obligatory for every female Muslim who has reached the age of puberty to wear a head covering. While s ...
was also banned briefly (1980–1991) in state schools.


Economy

The new president enlisted a group of mostly American-educated Indonesian
economists An economist is a professional and practitioner in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this field there are ...
, dubbed the " Berkeley Mafia", to formulate government economic policy. By cutting subsidies and government debt, and reforming the exchange rate mechanism, inflation dropped from 660% in 1966 to 19% in 1969. The threat of
famine A famine is a widespread scarcity of food, caused by several factors including war, natural disasters, crop failure, population imbalance, widespread poverty, an economic catastrophe or government policies. This phenomenon is usually accompan ...
was alleviated by influx of
USAID The United States Agency for International Development (USAID) is an independent agency of the U.S. federal government that is primarily responsible for administering civilian foreign aid and development assistance. With a budget of over $27 bi ...
rice aid shipments in 1967 to 1968. Realizing the dearth of domestic capital capable of re-juvenating growth, Suharto reversed Sukarno's economic
autarky Autarky is the characteristic of self-sufficiency, usually applied to societies, communities, states, and their economic systems. Autarky as an ideal or method has been embraced by a wide range of political ideologies and movements, especiall ...
policies by opening selected economic sectors of the country to foreign investment under the new Foreign Investment Law of January 1967 (containing generous tax holidays and free movement of money). Suharto himself travelled to Western Europe and Japan in a series of trips to promote investment into Indonesia, starting in the natural resources sector. Among the first foreign investors to re-enter Indonesia were mining companies
Freeport Sulphur Company Freeport-McMoRan Inc., often called Freeport, is an American mining company based in the Freeport-McMoRan Center, in Phoenix, Arizona. The company is the world's largest producer of molybdenum, is a major copper producer and operates the world's ...
and International Nickel Company, later followed by significant investment from Japanese, South Korean, and Taiwanese companies. British-owned businesses nationalized by the Sukarno administration as part of Konfrontasi (including then-
dual-listed A dual-listed company or DLC is a corporate structure in which two corporations function as a single operating business through a legal equalization agreement, but retain separate legal identities and stock exchange listings. Virtually all DLCs ar ...
Unilever Unilever plc is a British multinational consumer goods company with headquarters in London, England. Unilever products include food, condiments, bottled water, baby food, soft drink, ice cream, instant coffee, cleaning agents, energy dri ...
and the British part of also-then-dual-listed Royal Dutch/Shell) were reprivatized; however, Dutch companies originally nationalized in the late 1950s-early 1960s (including but not limited to Hollandsche Beton Groep, NILLMIJ (by 1969 merged into Ennia, now Aegon), and the Dutch part of Royal Dutch/Shell) were not reprivatized due to nationalist sentiments. From 1967, the government managed to secure low-interest foreign aid from ten countries grouped under the Inter-Governmental Group on Indonesia (IGGI) to cover its budget deficit. Suharto's government issued the Domestic Investment Law of June 1968 to allow development of a domestic
capitalist Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private ...
class capable of motoring economic growth to supplement existing state-owned enterprises. The late 1960s and early 1970s saw emergence of domestic entrepreneurs (mostly Chinese-Indonesians) in the import-substitution light-manufacturing sector such as
Astra Group Astra International is an Indonesian conglomerate controlled by Jardine Matheson. It is founded in 1957 by Tjia Kian Tie, Liem Pen Hong with the name of PT. Astra International Incorporated. It is Southeast Asia's largest independent automotive g ...
and
Salim Group The Salim Group is Indonesia's biggest conglomerate and refers to companies where the Salim family held majority ownership. Its assets include Indofood Sukses Makmur, the world's largest instant noodle producer; Indomobil Group, one of Indone ...
.Robinson (2012), p. 178-203 Flush with IGGI foreign aid and later the jump in oil exports during the
1973 oil crisis The 1973 oil crisis or first oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries (OAPEC), led by Saudi Arabia, proclaimed an oil embargo. The embargo was targeted at nations that had su ...
, the government began a series of large-scale intensive investment in infrastructure under a series of five-year plans (''Rencana Pembangunan Lima Tahun / REPELITA''): * REPELITA I (1969–1974) focusing on agricultural improvements ( Green Revolution) to ensure food security * REPELITA II (1974–1979) focusing on infrastructure on islands outside Java and growth in primary industries * REPELITA III (1979–1984) focusing on achieving food self-sufficiency and growth in export-oriented labour-intensive industry * REPELITA IV (1984–1989) focusing on growth in capital-good manufacturing * REPELITA V (1989–1994) focusing on growth in telecommunications, education, and transportation infrastructure * REPELITA VI (1994–1998, unfinished) focusing on infrastructure to support foreign investment and free trade While establishing a formal economy based on rational and sound macroeconomic policies, Suharto continued his past ''
modus operandi A ''modus operandi'' (often shortened to M.O.) is someone's habits of working, particularly in the context of business or criminal investigations, but also more generally. It is a Latin phrase, approximately translated as "mode (or manner) of o ...
'' of creating a vast network of charitable organisations ("''yayasan''") run by the military and his family members, which extracted "donations" from domestic and foreign enterprises in exchange for necessary government support and permits. While some proceeds of these organisations were used for genuinely charitable purposes (such as building a heart-disease hospital by ''Yayasan Harapan Kita'' run by the first lady), most of the money was recycled as
slush fund A slush fund is a fund or account that is not properly accounted, such as money used for corrupt or illegal purposes, especially in the political sphere. Such funds may be kept hidden and maintained separately from money that is used for legitim ...
s to reward political allies to maintain support for Suharto's presidency. In February 1975, the state oil company
Pertamina PT Pertamina (Persero), formerly abbreviated from ''Perusahaan Pertambangan Minyak dan Gas Bumi Negara'' (lit. 'State Oil and Natural Gas Mining Company'), is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was c ...
was forced to default on its US$15 billion in loans from
American American(s) may refer to: * American, something of, from, or related to the United States of America, commonly known as the "United States" or "America" ** Americans, citizens and nationals of the United States of America ** American ancestry, pe ...
and
Canadian Canadians (french: Canadiens) are people identified with the country of Canada. This connection may be residential, legal, historical or cultural. For most Canadians, many (or all) of these connections exist and are collectively the source of ...
creditor A creditor or lender is a party (e.g., person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property ...
s. The company's director, General
Ibnu Sutowo Ibnu Sutowo (23 September 1914 – 12 January 2001) was an Indonesian army officer, Cabinet Minister and former head of the Indonesian oil and gas producer Pertamina. Early life Ibnu was born near the Yogyakarta Sultan's palace on 23 Sept ...
(a close ally of Suharto), invested the windfall income from rising oil prices into a myriad of other business activities such as shipping, steel, construction, real estate, and hospitals. These businesses were mismanaged and riddled with corruption. The government was forced to bail out the company, in the process nearly doubling the
national debt A country's gross government debt (also called public debt, or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit oc ...
, while Ibnu Sutowo was removed from his position.


Foreign policy

Upon assuming power, Suharto government adopted a policy of neutrality in the
Cold War The Cold War is a term commonly used to refer to a period of geopolitical tension between the United States and the Soviet Union and their respective allies, the Western Bloc and the Eastern Bloc. The term '' cold war'' is used because t ...
with quiet alignment with the Western bloc (including Japan and South Korea) with the objective of securing support for Indonesia's economic recovery. Western countries, impressed by Suharto's strong anti-communist credentials, were quick to offer their support. Diplomatic relations with China were suspended in October 1967 due to suspicion of Chinese involvement in 30 September Movement (diplomatic relations were only restored in 1990). Due to Suharto's destruction of PKI the
Soviet Union The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, it was nominally a federal union of fifteen nationa ...
embargoed military sales to Indonesia. However, from 1967 to 1970 foreign minister
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 P ...
managed to secure several agreements to restructure massive debts incurred by Sukarno from the Soviet Union and other Eastern European communist states. Regionally, having ended confrontation with Malaysia in August 1966, Indonesia became a founding member of the
Association of Southeast 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, mi ...
(ASEAN) in August 1967. This organisation is designed to establish a peaceful relationship between Southeast Asian countries free from conflicts such as the ongoing
Vietnam War The Vietnam War (also known by #Names, other names) was a conflict in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. It was the second of the Indochina Wars and was officially fought between North Vie ...
. In 1974, the neighbouring colony of
Portuguese Timor Portuguese Timor ( pt, Timor Português) was a colonial possession of Portugal that existed between 1702 and 1975. During most of this period, Portugal shared the island of Timor with the Dutch East Indies. The first Europeans to arrive in th ...
descended into
civil war A civil war or intrastate war is a war between organized groups within the same state (or country). The aim of one side may be to take control of the country or a region, to achieve independence for a region, or to change government polici ...
after the withdrawal of Portuguese authority following the
Carnation Revolution The Carnation Revolution ( pt, Revolução dos Cravos), also known as the 25 April ( pt, 25 de Abril, links=no), was a military coup by left-leaning military officers that overthrew the authoritarian Estado Novo regime on 25 April 1974 in Lisbo ...
, whereby the leftist-leaning Fretilin (''Frente Revolucionária de Timor-Leste Independente'') emerged triumphant. After persuasion from Western countries (including from US president Gerald R. Ford and Australian
prime minister A prime minister, premier or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. Under those systems, a prime minister is ...
Gough Whitlam Edward Gough Whitlam (11 July 191621 October 2014) was the 21st prime minister of Australia, serving from 1972 to 1975. The longest-serving federal leader of the Australian Labor Party (ALP) from 1967 to 1977, he was notable for being the h ...
during their visits to Indonesia), Suharto decided to intervene to prevent establishment of a communist state. After an unsuccessful attempt of covert support to Timorese anti-communist groups UDT and
APODETI The Timorese Popular Democratic Association ( pt, Associação Popular Democrática Timorense, APODETI; id, Asosiasi Demokratik Rakyat Timor) was a political party in East Timor established in 1974, which advocated for integration into Indonesia. ...
, Suharto authorised a full-scale
invasion An invasion is a military offensive in which large numbers of combatants of one geopolitical entity aggressively enter territory owned by another such entity, generally with the objective of either: conquering; liberating or re-establishing ...
of the colony on 7 December 1975 followed with its official annexation as Indonesia's 27th province of
East Timor East Timor (), also known as Timor-Leste (), officially the Democratic Republic of Timor-Leste, is an island country in Southeast Asia. It comprises the eastern half of the island of Timor, the exclave of Oecusse on the island's north-w ...
in July 1976. The "encirclement and annihilation" campaigns of 1977–1979 broke the back of Fretilin control over the hinterlands, although continuing
guerilla Guerrilla warfare is a form of irregular warfare in which small groups of combatants, such as paramilitary personnel, armed civilians, or irregulars, use military tactics including ambushes, sabotage, raids, petty warfare, hit-and-run ...
resistance forced the government to maintain strong military presence in the half-island until 1999. An estimated minimum of 90,800 and maximum of 213,600 conflict-related deaths occurred in East Timor during Indonesian rule (1974–1999); namely, 17,600–19,600 killings and 73,200 to 194,000 'excess' deaths from hunger and illness. Indonesian forces were responsible for about 70% of the violent killings.


Apex of power


Socio-economic progress and growing corruption

By 1996, Indonesia's
poverty Poverty is the state of having few material possessions or little income. Poverty can have diverse
rate had dropped to around 11% compared with 45% in 1970 according to some studies, though this claim of poverty reduction is debatable and many studies indicate poverty is much higher than claimed, with as many as 50% of Indonesians living on a dollar PPP a day or less. From 1966 to 1997, Indonesia recorded real GDP growth of 5.03% per year, pushing real GDP per capita upwards from US$806 to US$4,114. In 1966, the manufacturing sector made up less than 10% of GDP (mostly industries related to oil and agriculture). By 1997, manufacturing had risen to 25% of GDP, and 53% of exports consisted of manufactured products. The government invested into massive infrastructure development (notably the launch of the Palapa telecommunication satellites); consequently Indonesian infrastructure in the mid-1990s was considered on par with China's. Suharto was keen to capitalise on such achievements to justify his presidency, and an MPR resolution in 1983 granted him the title of "Father of Development". Suharto's health-care programs (such as the ''
Puskesmas Puskesmas ( id, Pusat Kesehatan Masyarakat, ) are government-mandated community health clinics located across Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian an ...
'' program) increased life expectancy from 47 years (1966) to 67 years (1997) and cut the
infant mortality Infant mortality is the death of young children under the age of 1. This death toll is measured by the infant mortality rate (IMR), which is the probability of deaths of children under one year of age per 1000 live births. The under-five morta ...
rate by more than 60%. The government's ''Inpres'' program, launched in 1973, resulted in the primary-school enrollment ratio reaching 90% by 1983 while almost eliminating education gap between boys and girls. Sustained support for agriculture resulted in Indonesia reaching rice self-sufficiency by 1984, an unprecedented achievement which earned Suharto a gold medal from the FAO in November 1985. In the early 1980s, Suharto responded to the fall in oil exports due to the 1980s oil glut by successfully shifting the main pillar of the economy into
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 a ...
-oriented labour-intensive manufacturing, made globally competitive by Indonesia's low wages and a series of currency devaluations.
Industrialization Industrialisation ( alternatively spelled industrialization) is the period of social and economic change that transforms a human group from an agrarian society into an industrial society. This involves an extensive re-organisation of an econo ...
was mostly undertaken by ethnic-Chinese companies, which evolved into immense conglomerates, dominating the nation's economy. The largest conglomerates are the
Salim Group The Salim Group is Indonesia's biggest conglomerate and refers to companies where the Salim family held majority ownership. Its assets include Indofood Sukses Makmur, the world's largest instant noodle producer; Indomobil Group, one of Indone ...
, led by Liem Sioe Liong (Sudono Salim), the Sinar Mas Group, led by Oei Ek Tjong (Eka Tjipta Widjaja), the
Astra Group Astra International is an Indonesian conglomerate controlled by Jardine Matheson. It is founded in 1957 by Tjia Kian Tie, Liem Pen Hong with the name of PT. Astra International Incorporated. It is Southeast Asia's largest independent automotive g ...
, led by Tjia Han Poen (William Soeryadjaya), the Lippo Group, led by Lie Mo Tie (Mochtar Riady), the Barito Pacific Group, led by Pang Djun Phen (Prajogo Pangestu), and the Nusamba Group, led by Bob Hasan. Suharto decided to support the growth of a small number of Chinese-Indonesian conglomerates since they could not challenge his rule due to their ethnic-minority status, and, based on past experience, he thought that they possessed the skills and capital needed to create real growth for the country. In exchange for Suharto's patronage, the conglomerates provided vital financing for his "regime maintenance" activities. In the late 1980s, the Suharto government decided to de-regulate the
banking A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...
sector to encourage savings and providing domestic source of financing required for growth. Suharto decreed the "October Package of 1988" (''PAKTO 88''), which eased requirements for establishing banks and extending credit, resulting in a 50% increase in number of banks from 1989 to 1991. To promote savings, the government introduced the ''TABANAS'' (, National Development Savings) program to the populace. The Jakarta Stock Exchange, originally opened in 1912 as the Batavia (later Jakarta) branch of the Amsterdam Stock Exchange (now
Euronext Amsterdam Euronext Amsterdam is a stock exchange based in Amsterdam, the Netherlands. Formerly known as the Amsterdam Stock Exchange, it merged on 22 September 2000 with the Brussels Stock Exchange and the Paris Stock Exchange to form Euronext. The ...
) and re-opened in 1977, performed strongly due to spree of domestic IPOs and an influx of foreign funds after deregulation in 1990. The sudden availability of credit fuelled strong economic growth in the early 1990s, but weak regulation of the financial sector sowed the seeds of the catastrophic crisis in 1997 which eventually lead to Suharto's resignation. The growth of the economy was coincided by rapid expansion in corruption, collusion, and nepotism (''Korupsi, Kolusi, dan Nepotisme / KKN''). In the early 1980s, Suharto's children, particularly
Siti Hardiyanti Rukmana Siti Hardiyanti Rukmana (born 23 January 1949), known as Tutut Suharto, is an Indonesian politician who is the eldest daughter of former Indonesian president Suharto and the wife of Global Mediacom (then known as Bimantara Citra) co-founder and fo ...
("Tutut"), Hutomo Mandala Putra ("Tommy"), and Bambang Trihatmodjo, grew increasingly venal and corrupt. Their companies were given lucrative government contracts and protected from market competition by monopolies. Examples include the
Jakarta Inner Ring Road Jakarta Inner Ring Road ( id, Jalan Tol Lingkar Dalam Jakarta), also known as the Jakarta Inner-City Toll Road ( id, Jalan Tol Dalam Kota Jakarta) is a toll road circling the city of Jakarta, Indonesia. On northern and the eastern section, the tol ...
, which Tutut had a majority (75% at one time) stake through her PT Citra Lamtoro Gung Persada subsidiary PT Citra Marga Nusaphala Persada; the national car project, monopolized by Bambang and Tommy (through the Bimantara Group (now
MNC Group PT Media Nusantara Citra Tbk (commonly known as MNC Media or MNC) is an Indonesian media company founded on 17 June 1997 as PT Panca Andika Mandiri, it was renamed to the present name on 12 September 2002. It is owned by ''PT Global Mediacom Tbk ...
)'s joint venture with the
Hyundai Motor Company Hyundai Motor Company, often abbreviated to Hyundai Motors ( ) and commonly known as Hyundai (, ; ), is a South Korean multinational automotive manufacturer headquartered in Seoul, South Korea, and founded in 1967. Currently, the company o ...
, and
Timor Putra Nasional PT Timor Putra Nasional (TPN), commonly known as Timor, was an Indonesian automobile manufacturer operating between 1996 and 2000 originally formed by businessman Tommy Soeharto, Tommy Suharto. The company was created as a response to a Law of Ind ...
's joint venture with Kia Motors, respectively); the clove industry, monopolized by a Tommy-linked governmental body called the Clove Buffering and Marketing Administration ( id, Badan Penyangga dan Pemasaran Cengkeh, BPPC); and even the cinema market (and furthermore, all imports of films distributed by the American major film studios), monopolised by 21 Cineplex, owned by Suharto's cousin Sudwikatmono's Subentra Group (now Indika Group). The family is said to control about 36,000 km² of real estate in Indonesia, including 100,000 m² of prime office space in Jakarta and nearly 40% of the land in East Timor. Additionally, Suharto's family members received free shares in 1,251 of Indonesia's most lucrative domestic companies (mostly run by Suharto's ethnic-Chinese cronies), while foreign-owned companies were encouraged to establish "strategic partnerships" with Suharto family's companies. Meanwhile, the myriad ''yayasan''s run by Suharto family grew even larger, levying millions of dollars in "donations" from the public and private sectors each year.


Grip on power

By the 1980s, Suharto's grip on power was very strong, maintained by strict control over civil society, engineered elections, liberal use of military's coercive powers, and a strong economy. Upon his retirement from the military in June 1976, Suharto undertook a re-organization of the armed forces that concentrated power away from commanders to the president. In March 1983, he appointed General Leonardus Benjamin Moerdani as head of the armed forces. A tough and capable soldier, Moerdani was also a Roman Catholic, which precluded him from posing a political threat to Suharto. Suharto ruthlessly suppressed elements that disturbed the tranquility of the New Order society. From 1983 to 1985, army death squads murdered up to 10,000 suspected criminals in response to a spike in crime rate (dubbed " Petrus Killings"). Suharto's imposition of Pancasila as sole ideology caused protests from conservative Islamic groups which considered Islamic law (''
sharia Sharia (; ar, شريعة, sharīʿa ) is a body of religious law that forms a part of the Islamic tradition. It is derived from the religious precepts of Islam and is based on the sacred scriptures of Islam, particularly the Quran and the H ...
'') to be above any human conceptions. In September 1984, a violent demonstration in the Tanjung Priok area of Jakarta by conservative Muslims led to soldiers opening fire, massacring up to 100 protesters. A retaliatory series of small bombings (notably the bombing of Borobudur Temple in January 1985) led to arrests of hundreds of conservative Islamic activists, ranging from future parliamentary leader A. M. Fatwa to radical cleric Abu Bakar Bashir (future founder of terrorist group Jemaah Islamiyah). Attacks on police by the resurgent
Libya Libya (; ar, ليبيا, Lībiyā), officially the State of Libya ( ar, دولة ليبيا, Dawlat Lībiyā), is a country in the Maghreb region in North Africa. It is bordered by the Mediterranean Sea to the north, Egypt to the east, Suda ...
n-aided Free Aceh Movement in 1989 led to a brutal military operation ("'' Operasi Jaring Merah''") that killed up to 12,000 people, mostly civilians, by the time ended the insurgency ended in 1992. More subtly, the Suharto government sought to better control the press by issuing a 1984 law requiring all media to possess a press operating licence (''SIUPP'') which could be revoked at any time by the Ministry of Information. In the international arena, Western concern over Communism waned with the end of the
Cold War The Cold War is a term commonly used to refer to a period of geopolitical tension between the United States and the Soviet Union and their respective allies, the Western Bloc and the Eastern Bloc. The term '' cold war'' is used because t ...
, and Suharto's human-rights record came under greater international scrutiny. The November 1991 Santa Cruz Massacre in
Dili Dili ( Portuguese/ Tetum: ''Díli'') is the capital, largest city of East Timor and the second largest city in Timor islands after Kupang (Indonesia). It lies on the northern coast of the island of Timor, in a small area of flat land hemmed i ...
, East Timor, resulted in the
United States Congress The United States Congress is the legislature of the federal government of the United States. It is Bicameralism, bicameral, composed of a lower body, the United States House of Representatives, House of Representatives, and an upper body, ...
passing limitations on IMET assistance to the Indonesian Military. Suharto retaliated by cancelling purchase orders for American
F-16 The General Dynamics F-16 Fighting Falcon is a single-engine multirole fighter aircraft originally developed by General Dynamics for the United States Air Force (USAF). Designed as an air superiority day fighter, it evolved into a successf ...
fighter jets in 1997. When Netherlands condemned the Santa Cruz Massacre, Suharto retaliated by expelling the Dutch from IGGI in March 1992 and renaming it the
Consultative Group on Indonesia The Consultative Group on Indonesia (CGI) gathered Indonesia's international donors from 1992 to 2007 to coordinate the flow of foreign aid to Indonesia. It was set up by the Indonesian government and the World Bank. History During the 1990 ...
(CGI) which continued increasing aid to Indonesia. Realizing this trend, Suharto sought wider alliances under the rubric of economic development, away from over-reliance to United States support. Suharto was elected as head of the
Non-Aligned Movement The Non-Aligned Movement (NAM) is a forum of 120 countries that are not formally aligned with or against any major power bloc. After the United Nations, it is the largest grouping of states worldwide. The movement originated in the aftermath ...
in 1992, while Indonesia became a founding member of
APEC The Asia-Pacific Economic Cooperation (APEC ) is an inter-governmental forum for 21 member economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region.
, in 1989, and hosted the
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.rent-seeking Rent-seeking is the act of growing one's existing wealth without creating new wealth by manipulating the social or political environment. Rent-seeking activities have negative effects on the rest of society. They result in reduced economic effic ...
opportunities. In the March 1988 MPR session, military legislators attempted to pressure Suharto by unsuccessfully seeking to block the nomination of
Sudharmono Sudharmono (EVO: Soedharmono; 12 March 1927 – 25 January 2006), also known by his nickname, Pak Dar, was an Indonesian politician and army officer, who served as the 5th Vice President of Indonesia, under the New Order regime of president Suh ...
, a Suharto-loyalist, as vice-president. After General Moerdani voiced his objections on the Suharto family's corruption, the president dismissed him from the position of military chief. Suharto proceeded to slowly "de-militarize" his regime; he dissolved the powerful Kopkamtib in September 1988 and ensured key military positions were held by loyalists. In an attempt to diversify his power base away from the military, Suharto began courting support from Islamic elements. He undertook a much-publicized
hajj The Hajj (; ar, حَجّ '; sometimes also spelled Hadj, Hadji or Haj in English) is an annual Islamic pilgrimage to Mecca, Saudi Arabia, the holiest city for Muslims. Hajj is a mandatory religious duty for Muslims that must be carried o ...
pilgrimage in 1991, took up name of Haji Mohammad Suharto, started promoting Islamic values into society, and promoted the careers of Islamic-oriented generals (dubbed the "green generals"). To win support from the nascent Muslim business community, which resented dominance of Chinese-Indonesian conglomerates, Suharto formed the Indonesian Association of Muslim Intellectuals (ICMI) in November 1990, and appointed his protégé B. J. Habibie, Minister for Research and Technology since 1978, as its leader. During this period of Suharto's cozying with Islamists, race riots against ethnic-Chinese began to occur quite regularly, beginning with the April 1994 riot in
Medan Medan (; English: ) is the capital and largest city of the Indonesian province of North Sumatra, as well as a regional hub and financial centre of Sumatra. According to the National Development Planning Agency, Medan is one of the four mai ...
.Elson (2001), p.211-214 By the 1990s, Suharto's government came to be dominated by sycophantic civilian politicians such as Habibie, Harmoko, Ginandjar Kartasasmita, and Akbar Tanjung, who owed their position solely to Suharto. As a sign of Habibie's growing clout, when three prominent Indonesian magazines—''
Tempo In musical terminology, tempo ( Italian, 'time'; plural ''tempos'', or ''tempi'' from the Italian plural) is the speed or pace of a given piece. In classical music, tempo is typically indicated with an instruction at the start of a piece (ofte ...
'', ''DeTIK'', and ''Editor''—criticised Habibie's purchase of almost the entire fleet of the disbanded East German Navy in 1993, despite most of the vessels having little value other than scrap, Suharto ordered the offending publications to be closed down on 21 June 1994 on the pretext that these critiques could "incite conflicts within the cabinet". This would lead to several of the closed publications' journalists to form the
Alliance of Independent Journalists The Alliance of Independent Journalists ( id, Aliansi Jurnalis Independen, abbreviated as AJI) is an Indonesian organization that promotes press freedom in the country. The AJI was founded in 1994 by Satrio Arismunandar, Ahmad Taufik, Goenawan M ...
shortly thereafter; ''Tempo'' would later move to the then-largely-uncensored internet as ''Tempointeraktif'' (which still exists today as ''tempo.co'') for the rest of the New Order, and the owner of ''DeTIK'' would launch another magazine called ''DeTAK''. By the 1990s, elements of the growing Indonesian
middle class The middle class refers to a class of people in the middle of a social hierarchy, often defined by occupation, income, education, or social status. The term has historically been associated with modernity, capitalism and political debate. C ...
, created by Suharto's economic development, were becoming restless with his autocracy and his family's brazen corruption, fuelling demands for " Reformasi" (reform) of the 30-year-old New Order system. By 1996,
Megawati Sukarnoputri Diah Permata Megawati Setiawati Sukarnoputri (; born 23 January 1947) is an Indonesian politician who served as the fifth president of Indonesia from 2001 to 2004. She previously served as the eighth vice president from 1999 to 2001. Megawati i ...
, the daughter of
Sukarno Sukarno). (; born Koesno Sosrodihardjo, ; 6 June 1901 – 21 June 1970) was an Indonesian statesman, orator, revolutionary, and nationalist who was the first president of Indonesia, serving from 1945 to 1967. Sukarno was the leader of ...
and chairwoman of the normally compliant PDI, was becoming a rallying point for this growing discontent. In response, Suharto backed a co-opted faction of the PDI led by Suryadi, which removed Megawati from the chair. On 27 July 1996, an attack by soldiers and hired thugs led by Lieutenant-General Sutiyoso on demonstrating Megawati supporters in Jakarta resulted in fatal riots and looting. This incident was followed by waves of arrests on 200 democracy activists, 23 of whom were kidnapped (some were murdered) by army squads called ''Tim Mawar'' ("Rose Team") led by Suharto's son-in-law, Major-General
Prabowo Subianto Prabowo Subianto Djojohadikusumo (born 17 October 1951) is an Indonesian politician, businessman and former army lieutenant general who is the currently-appointed Minister of Defense of the Republic of Indonesia. He is the son of Sumitro Djojo ...
. Regardless of these incidents, as late as mid-1997, Suharto's grip on power seemed as secure as ever with the military led by his loyalists, all opposition groups suppressed, and the economy in good shape.


Downfall

The
1997 Asian financial crisis The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion. However, the recovery in 1998– ...
began in July 1997, in
Thailand Thailand ( ), historically known as Siam () and officially the Kingdom of Thailand, is a country in Southeast Asia, located at the centre of the Indochinese Peninsula, spanning , with a population of almost 70 million. The country is b ...
, and spread into Indonesia as foreign speculative investors pulled out their investments, sucking U.S. dollar liquidity in Indonesia and causing severe depreciation of the
Indonesian rupiah The rupiah ( symbol: Rp; currency code: IDR) is the official currency of Indonesia. It is issued and controlled by Bank Indonesia. The name " rupiah" is derived from the Sanskrit word for silver, (). Sometimes, Indonesians also informally us ...
. In the private sector, many Indonesian corporations had been borrowing heavily in lower-interest U.S. dollars, while their revenues were mostly in rupiah; their debt rapidly increased as the US dollar appreciated, leaving many companies virtually bankrupt. These companies desperately sold rupiah and bought U.S. dollars, causing the rupiah's value to drop from Rp 2,600 per dollar in August 1997 to over Rp 14,800 per dollar by January 1998. Efforts by the
central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a centra ...
to defend its managed float regime by selling dollars had little impact and instead drained Indonesia's foreign exchange reserves, forcing the government to free-float the currency and seek liquidity aid from the
IMF 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 glob ...
(International Monetary Fund). In exchange for US$43 billion in liquidity aid, Suharto was forced to sign three letters of intent from October 1997 to April 1998 with the IMF. The letters of intent promised reforms, which included closing banks owned by Suharto's family and cronies starting in November 1997. Plans to close unhealthy banks resulted in a
bank run A bank run or run on the bank occurs when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future. In other words, it is when, in a fractional-reserve banking system (where banks no ...
that drained liquidity; depositors knew of the poor regulations and risky related-party credit extensions of Indonesian banks. In January 1998, the government was forced to provide emergency liquidity assistance (BLBI), issue a blanket guarantee for bank deposits, and set up the Indonesian Bank Restructuring Agency to take over management of troubled banks to prevent the collapse of the financial system. Based on IMF recommendations, the government increased interest rates to 70% in February 1998 to control spiralling inflation caused by the higher price of imports, but this action killed availability of credit to the corporate sector. Suharto's foot-dragging in undertaking reforms demanded by IMF in relation to his children's business further weakened public confidence.Vickers (2005), pp. 203–207. According to American economist Steve Hanke, invited by Suharto in February 1998 to plan a currency board system, President
Bill Clinton William Jefferson Clinton (né Blythe III; born August 19, 1946) is an American politician who served as the 42nd president of the United States from 1993 to 2001. He previously served as governor of Arkansas from 1979 to 1981 and again ...
and IMF managing director Michel Camdessus deliberately worsened the Indonesian crisis to force Suharto to resign. Economic meltdown was accompanied by increasing political tension. Anti-Chinese riots occurred in Situbondo (1996),
Tasikmalaya en, Neaty City , nickname = nl, Delhi Van Java en, Delhi of Java , image_skyline = , imagesize = , image_caption = Clockwise from the top: Great Mosque of Tas ...
(1996), Banjarmasin (1997), and
Makassar Makassar (, mak, ᨆᨀᨔᨑ, Mangkasara’, ) is the capital of the Indonesian province of South Sulawesi. It is the largest city in the region of Eastern Indonesia and the country's fifth-largest urban center after Jakarta, Surabaya, Meda ...
(1997); while bloody ethnic clashes broke out between the Dayak and Madurese settlers in Central Kalimantan in 1997. After violent campaign season,
Golkar ) , foundation = , youth = AMPG (Golkar Party Young Force) , women = KPPG (Golkar Party Women's Corps) , newspaper = ''Suara Karya'' (1971–2016) , headquarters = Jakarta , ideology ...
won the heavily rigged May 1997 MPR elections. The new MPR voted unanimously to re-elect Suharto to another five-year term in office in March 1998, upon which he proceeded to appoint his protege
BJ Habibie Bacharuddin Jusuf Habibie (; 25 June 1936 – 11 September 2019) was an Indonesian engineer and politician who was the third president of Indonesia from 1998 to 1999. Less than three months after his inauguration as the seventh vice preside ...
as vice-president while stacking the cabinet with his own family and business associates (his daughter Tutut became Minister of Social Affairs). The government's decision to increase fuel prices by 70% on 4 May triggered anti-Chinese rioting in
Medan Medan (; English: ) is the capital and largest city of the Indonesian province of North Sumatra, as well as a regional hub and financial centre of Sumatra. According to the National Development Planning Agency, Medan is one of the four mai ...
. With Suharto increasingly seen as the source of the country's mounting economic and political crises, prominent political figures spoke out against his presidency (notably Muslim politician
Amien Rais Muhammad Amien Rais (born 26 April 1944) is an Indonesian politician. He was one of the leaders of the reform movement that forced the resignation of President Suharto in 1998. Amien Rais was the leader of Muhammadiyah, one of the two biggest Mus ...
), and in January 1998 university students began organising nationwide demonstrations. In West Kalimantan there was communal violence between Dayaks and Madurese in 1996, in the Sambas conflict of 1999, and the Sampit conflict of 2001, all of which resulted in large-scale massacres of the Madurese. In the Sambas conflict, both Malays and Dayaks massacred Madurese. The crisis climaxed when Suharto was on a state visit to
Egypt Egypt ( ar, مصر , ), officially the Arab Republic of Egypt, is a List of transcontinental countries, transcontinental country spanning the North Africa, northeast corner of Africa and Western Asia, southwest corner of Asia via a land bridg ...
in May 1998. Security forces killed four student demonstrators from Jakarta's
Trisakti University Trisakti University (Usakti) is Indonesia's largest private university located in Jakarta, Indonesia. Trisakti University, is the only private university in Indonesia which was established by the Government of the Republic of Indonesia. Founde ...
on 12 May 1998, which was followed by anti-Chinese rioting and looting across Jakarta and some other cities on 13–15 May that destroyed thousands of buildings and killed over 1,000 people. Various theories exist on the origins of the racial pogrom against the ethnic-Chinese. One theory suggested rivalry between military chief General
Wiranto Wiranto (born 4 April 1947) is an Indonesian politician and former army general, who is serving as the chairman of the Presidential Advisory Council, since December 2019. Previously, he was the Commander of the Indonesian Armed Forces from Feb ...
and
Prabowo Subianto Prabowo Subianto Djojohadikusumo (born 17 October 1951) is an Indonesian politician, businessman and former army lieutenant general who is the currently-appointed Minister of Defense of the Republic of Indonesia. He is the son of Sumitro Djojo ...
, while another theory suggested deliberate provocation by Suharto to divert blame for the crisis to the ethnic-Chinese and discredit the student movement. On 16 May, tens of thousands of university students occupied the parliament building, demanding Suharto's resignation. Upon Suharto's return to Jakarta, he tried to defend his presidency by offering to resign in 2003 and to reshuffle his cabinet. These efforts failed when his political allies deserted him by refusing to join the proposed new cabinet. According to military chief
Wiranto Wiranto (born 4 April 1947) is an Indonesian politician and former army general, who is serving as the chairman of the Presidential Advisory Council, since December 2019. Previously, he was the Commander of the Indonesian Armed Forces from Feb ...
, on 18 May, Suharto issued a decree which provided authority to him to take any measures to restore security (similar to the 1966 Supersemar), however Wiranto decided not to enforce the decree to prevent conflict with the population. On 21 May 1998, Suharto announced his resignation, upon which vice-president B. J. Habibie assumed the presidency in accordance with the constitution.E. Aspinall, H. Feith, and G. Van Klinken (eds) The Last Days of President Suharto, Monash Asia Institute, pp.iv-vii.


Notes


References

* *
Camdessus Commends Indonesian Actions
'. Press Release.
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 glo ...
. (31 October 1997) * * Hill, Hal (1994) in ''Indonesia's New Order: The Dynamics of Socio-economic Transformation'' (Ed, Hal Hill), Allen & Unwin, Australia, pp56–57 * Booth, Anne and Peter McCawley (eds) 1981. ''The Indonesian economy during the Soeharto Era'', Oxford University Press, Kuala Lumpur. * * * * * ` * * *


Further reading

* Watson, C.W. (Bill), ''Of Self and Injustice. Autobiography and Repression in Modern Indonesia'', Leiden 2006, KITLV, * McGregor, Katharine E., ''History in Uniform. Military Ideology and the Construction of Indonesia’s Past'', Leiden 2007, KITLV,


External links


''Oral History Collection In Search of Silenced Voices''
at the
International Institute of Social History The International Institute of Social History (IISH/IISG) is one of the largest archives of labor and social history in the world. Located in Amsterdam, its one million volumes and 2,300 archival collections include the papers of major figu ...
— Collection of interviews with Indonesian exiles, on political roles and personal experiences before and after 30 September 1965. {{Authority control Military dictatorships Anti-communism in Indonesia