The political power of the Republic of Indonesia organized around the executive, legislative, and judicial branches of government. Indonesia declared independence from the Netherlands and Japan on August 17th, 1945.

According to the 1945 Constitution there are six organs of the state :

The President is the Head of State and Head of Government. He/she is also the supreme commander-in-chief of the armed forces. With the help of the Cabinet, he/she executes the duties in compliance with the Guidelines of State Policy as decreed by the Assembly (MPR).

While House of Representative (DPR) previously were dominated by members of the Golkar party, representatives of many parties currently serve in the DPR after the democratic elections held in 1998/1999. The Assembly (MPR) includes the DPR members in addition to 500 indirectly elected and appointed members. The MPR meets every five years to elect the President and Vice President.

During the later part of the "New Order" government, Indonesia recognized only three political organizations/parties: Golkar, PPP, and PDI. Since May 1998, many new political parties have been formed, with 48 parties participating in the May 1999 elections for parliamentary representation.

Ancient Times

Indonesia did not exist as yet during the Paleocene period (70 million years BC), the Eocene period (30 million years BC), the Oligacene period (25 million years BC) and the Miocene period (12 million years BC). It is believed that Indonesia must have existed during the Pleistocene period (12 million years BC). It is believed that Indonesia must have existed during the Pleistocene period (4 million years BC) when it was linked with the present Asian mainland. It was during this period that the Homonids made their first appearance and Java Man inhabited the part of the world now called Indonesia. Java Man, named Pithecanthropus Erectus by Eugence Dubois who found the fossils on the island of Java, must have been the first inhabitant of Indonesia.

When the sea level rose as the result of melting ice north of Europe and the American continent, many islands emerged, including the Indonesian archipelago. It was also during this period (3000-500 BC) that Indonesia was inhabited by Sub-Mongoloid migrants from Asia who later inter-married with the indigenous people. Later still (1000 BC) inter-marriage occurred with Indo-Arian migrants from the south-Asian sub-continent of India. The first Indian migrants came primarily from Gujarat in Southeast India during the first Christian era. The Caka period in Indonesia witnessed the introduction of the Sanskrit language and the Pallawa script by the Indian Prince Aji Caka (78 AD). The Devanagari script of the Sanskrit language was also used, as shown in ancient stone and copper inscriptions (paracasthies) which have been unearthed. The language and script were adapted and called the Kawi language and included words and phrases derived from Javanese.

Early trade relations were established between South India and Indonesia. Sumatra was then named Swarna Dwipa of "the island of gold," Java was called Java Dwipa or "the rice island," and a Hindu kingdom of Crivijaya in Sumatra and Nalanda in South India were not confined to religious and cultural exchange. They later developed diplomatic relations, ad even covered a wide range of trade.

The influx of Indian settlers continued during the period from the first to the seventh century AD. Peacefully and gradually the Hindu religion spread throughout the archipelago. It was adopted by all layers of the people of Java, but limited to the upper classes on the other islands.

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The Period of Hindu Kingdoms

Many well-organized kingdoms with a high degree of civilization were ruled by indigenous kings who had adopted the Hindu or Buddhist religion. This explains why this period in history is called the Period of Hindu Kingdoms. It lasted from ancient times to the 16 th Century AD. Because the culture and civilization, which emanated from the Hindu and Buddhist religions, were syncretized with the local cultural elements, the period was also referred to as the Hindu-Indonesia period. Indian culture and customs were introduced, such as the system of government in a monarchy, the ancestry system, the organization of military troops, literature, music and dances, architecture, religious practices and rituals, and event the division of laborers into castes or varnas. The Hindu literary works known as Vedas and the "Mahabhrata" and "Ramayana" epics were also introduced through the wayang, or shadow-play performance, which is still very popular in many parts of present day Indonesia.

The first Indian arrived in Indonesia between the 1st and 2 nd Centuries AD. They brought with them Buddhism in its two sects, Hinayana and Mahayana. The latter became more advanced in the 8th Century AD.

In 144 AD a Chinese Buddhist saint, Fa Hsien, was caught in a storm and landed in Java-Dwipa, or Java Island, where he stayed for five months. The northern part of the island was then ruled by an Indonesian Hindu King named Kudungga. Kutai, on the island of Borneo, was successively ruled by the Hindu kings Devawarman, Aswawarman and Mulawarman. When the Greek explorer and geographer, Ptolemy of Alexandria, wrote on Indonesia, he named either the island of Java or Sumatra "abadiou". His chronicles described Java as a country with a good system of government and advanced agriculture, navigation and astronomy. There was even mention of the "batik" printing process of cloth that the people already knew. They also made metalware, used the metric system and printed coins.
Chinese chronicles of 132 AD described the existence of diplomatic relations between Java-Dwipa and China. Around 502 AC Chinese annals mentioned the existence of the Buddhist Kingdom, Kanto Lim in South Sumatra, presumably in the neighborhood of present day Palembang. It was ruled by king Gautama Subhadra, and later by his son Pyrawarman of Vinyawarman who established diplomatic relations with China. Because of a spelling or pronunciation difficulty, what the Chinese called "Kanto Li" was probably Crivijaya, a mighty Buddhist kingdom. On his way to India, the Chinese Buddhist pilgrim, I Tsing, visited Crivijaya in 671 AD to study the Sanskrit language. He returned 18 years later, in 689 AD Crivijaya was then the center of Buddhist learning and had many well-known philosophy scholars like Sakyakirti, Dharmapala and Vajabudhi.

The kingdom had diplomatic relations with the south Indian kingdom of Nalanda. The Crivijaya mission built a school on its premises where Indians could learn the art of molding bronze statues and broaden their knowledge of the Buddhist philosophy. With the spread of Buddhism, Crivijaya's influence reached out to many a other parts of the archipelago.

Another known Buddhis kingdom was Cailendra in Central Java. It was ruled by the kings of Cailendra Dynasty. During their rule (750-850 AD) the famous Buddhist temple. Borobudur, was built. In 772 AD other Buddhist temple were also built. They include the Mendut, Kalasan and Pawon temples. All of these temples are now preserved as tourist objects near the city of Yogyakarta. The Cailendra kingdom was also known for its commercial and naval power, and its flourishing arts and culture. A guide to learn singing, known as the Chandra Cha-ana, was first written in 778 AD.

The Prambanan temple, which was dedicated to Lord Civa, was started in 856 AD and completed in 900 AD by King Daksa. Earlier Civa temples were built in 675 AD on the Dieng mountain range, southwest of Medang Kamolan, the capital of the Mataram Kingdom.

In West Java were the kingdoms of Galuh, Kanoman, Kuningan and Pajajaran. The later was founded by King Purana with Pakuan as its capital. It replaced the kingdom of Galuh. The kingdoms of Taruma Negara, Kawali and Parahyangan Sunda came later. At the end of the 10th Century (911-1007 AD) the powerful kingdom of Singasari emerged in East Java under King Dharmawangsa, He codified laws and translated into Javanese the "Mahabhrata" epic and its basic philosophy, as exposed in the Bhisma Parva scripture. He also ordered the 12 translation of the Hindu holy book, the Bhagavat Gita.

Meanwhile, the island of Bali was also ruled by King Airlangga, known as a wise and strong ruler. He had water-works built along the Brantas River that are still in use today. Before his death in 971 AD he divided his kingdom into the kingdom of Janggala and Daha or Kediri. These were to be ruled by his two sons.
King Jayabaya of Kediri 1135-1157 wrote a book in which he foretold the
downfall of Indonesia. Subsequently, so he wrote, the country would be ruled by a wite race, to be followed by a yellow race. His prediction turned out to be Dutch colonial rule and the Japanese occupation of the country during World War.

However, Jayabaya also predicted that Indonesia would ultimately regain her independence. During the golden period of the Kediri Kingdom many other literary works were produced, including the Javanese version of the Mahabharata by Mpu (saint) Sedah and his brother Mpu Panuluh. This work was published in 1157.

The kingdoms of East Java were later succeeded by the Majapahit Kingdom, first ruled by Prince Wijaya who was also known as King Kartajasa.
Under King Hayam Wuruk the Majapahit Empire became the most powerful kingdom in the history of Indonesia. It had dependencies in territories beyond the borders of the present archipelago, such as Champa in North Vietnam, Kampuchea and the Philippines (1331-1364). King Hayam Wuruk, with his able premier Gajah Mada, succeeded in gradually uniting the whole archipelago under the name of Dwipantara.

During this golden period of Majapahit many literary works were produced. Among them was "Negara Kertagama," by famous author Prapancha (1335-1380). Parts of the book described the diplomatic and economic ties between Majapahit and numerous Southeast Asian countries including Myanmar, Thailand, Tonkin, Annam, Kampuchea and even India and China. Other works in Kawi, the old Javanese language, were "Pararaton," "Arjuna Wiwaha," "Ramayana," and "Sarasa Muschaya," These works were later translated into modern European languages for educational purposes.

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The Portuguese in Indonesia.

In their search for spices, the Portuguese arrived in Indonesia in 1511, after their conquest of the Islamic of Malacca on the Malay Peninsula. They were followed by the Spaniards. Both began to propagate Christianity and were most successful in Minahasa and Maluku, also known as the Moluccas.

The Sultan of Aceh in Sumatra, the Sultan of Demak in Java and the Sultan of Ternate in the Maluku islands joined forces in trying to ward off the Portuguese. At that time the power and sovereignty of Ternate sultanate was recognized by more than 72 island, including the island of Timor. In 1570, the Portuguese succeeded in killing the Sultan of Ternate, Khairun. However, his successor, Sultan Baabullah, besieged the Portuguese fortress at Ternate. Baabullah then allied himself with the Dutch to further confront the Portuguese and Spaniards.
In 1651 the Dutch invaded Kupang in Western Timor. Despite the Dutch presence in Timor, the formal and precise definition of the territories controlled by the two colonial powers did not take place until more than 200 years after the Dutch conquest of Kupang. It was on 20 April 1859, the Dutch concluded a treaty with Portugal to divide Timor into their respective control : The Dutch occupied the Western part and Portugal the eastern part of the island. From that time Portugal could secure a full control over East Timor until it left the region in 1975.

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The Beginning of Dutch Colonialism.

Meanwhile, the Dutch had started their quest for Indonesian spices to sell on the European market at big profit. For the purpose of more efficient and better organized merchant trade they established the Dutch East India Company (VOC) in 1602. To protect the merchant fleet from frequent pirate attacks on the high seas, Dutch warships were ordered to accompany it. After nationalization of the VOC in 1799, the Dutch Government had a firm grip on the vital territories of the country. People in those territories were forced to surrender their agricultural produce to the Dutch merchants. He developed the political power of the state and was a keen patron of the arts and culture. In 1633 he introduces the Islamic Javanese calendar.
Sultan Agung was a fierce enemy of the Dutch. In 1629 he sent his troops to attack Batavia, but they were repulsed by troops of Governor General Jan Pieterszoon Coen.

After the seizure of Ambon in the Moluccas in 1605 and Banda Island in 1623, the Dutch secured the trade monopoly of the spice islands. A policy of ruthless exploitation by "divide and rule" tactics was carried out. In this way indigenous inter-island trade, like that between Makassar, Aceh, Mataram and Banten, as well as overseas trade, was gradually paralyzed. Indonesia was reduced to an agricultural country to supply European markets. At the same time, the Dutch adopted a so-called open-door policy toward the Chinese in order that they could serve as middlemen in their trade with Indonesia.

Sultan Hasanuddin of Goa waged a war against the Dutch in 1666. But was defeated and Goa became a vassal state of the VOC under the treaty of Bunggaya 1667. Prince Trunojoyo of Madura also fought the Dutch. He was defeated and killed in 1680. To reinforce their spice monopoly in the Moluccas, the Dutch undertook their notorious Hongi expeditions, whereby they burned down the clove gardens of the people in an effort to eliminate overproduction, which brought down the prices of cloves on the European markets. In these outrageous expeditions countless atrocities were committed against people who defended their crops.

In 1740 the Dutch suppressed a rebellion in Jakarta that was sparked by dissatisfied Chinese, who were later joined by Indonesians. Ten thousand Chinese were massacred. The Kingdom of Mataram began to see its downfall after it was divided by the VOC into the Principalities of Yogyakarta and Surakarta. However, mismanagement and corruption forced the VOC into bankruptcy and on December 31, 1799, all its territories in Indonesia were taken over by the Dutch Administration in Batavia.

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British Temporary Rule

In 1814 the British came to Indonesia and built Fort York in Bengkulu on the west coast of Sumatra. It was later renamed Fort Marlborough.
During the Napoleonic wars in Europe when Holland was occupied by France, Indonesia fell under the rule of the British East India Company (1811-1816). Sir Thomas Stanford Raffles was appointed Lieutenant Governor General of Java and dependencies. He was subordinated to the Governor General in Bengal, India.

Raffles introduced partial self-government and abolished the slave trade. In those days slaves were captured and traded by foreigners. He also introduced the land-tenure system, replacing the hated Dutch forced-agricultural system, whereby crops were grown and surrendered to the Government. Borobudur and other temples were restored and research conducted. Raffles wrote his famous book, "The History of Java," in which he described Java's high civilization and culture. During the British stay in Sumatra (1814-1825), William Marsden wrote a similar book on the history of Sumatra, which was published in 1889.

After the fall of Napoleon, and the end of the French occupation of Holland the British and Dutch signed a convention in London on August 13, 1814, in which it was agreed that Dutch colonial possessions dating from 1803 onwards should be returned to the Dutch Administration in Batavia. Thus, the Indonesian archipelago was recovered from the British in 1815.

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Return of Dutch Rule

Soon the Dutch intensified their colonial rule. But this only sparked widespread revolts seize freedom. These revolts, however, were suppressed on after the other.
To mention only a few: Thomas Matulessy, alias Pattimura, staged a revolt against the Dutch in the Moluccas (1816-1818). Prince Diponegoro of Mataram led the Java War from 1825 until 1830. Again, it was a fierce struggle for freedom. Tuanku Imam Bonjol led the Padri War in West Sumatra, while Teuku Umar headed the Aceh War in North Sumatra (1873-1903). King Sisingamangaraja of the Bataks revolved against the Dutch in 1907. An attempt by the Dutch troops to occupy Bali in 1908 was repelled by King Udayana. Revolts were also erupting in Goa, South Sulawesi, and in South Kalimantan.

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Nationalist Movements

When all these regional wars of independence failed, Indonesian nationalists began thinking of a more-organized struggle against Dutch colonialism. The move began with the founding of Boedi Oetomo, literally meaning "noble conduct," on May 20, 1908. This organization of Indonesian intellectuals was initially set up for educational purposes but later turned into politics. It was inspired by Japan's victory over Russia in 1901. Which also gave impetus to nationalist movements in many parts of Indonesia. The founder of Boedi Oetomo was Dr. Soetomo who was, at the time, a student of STOVIA, an institution to train Indonesian medical officers. Dr. Soetomo was greatly influenced by Dr. Wahidin Soedirohoesodo and supported by Gunawan and Suradji.

In 1912 Sarekat Dagang Islam, the Association of Moslem Merchants, was formed by Haji Samanhudi and others. Its objective was at first to stimulate and promote the interest of Indonesian business in the Dutch East Indies. However, in 1912 this organization of middle class businessmen turned into a political party and was renamed Sarekat Islam under the leadership of H.O.S. Tjokroaminoto, Haji Agoes Salim and others.

In 1912 a progressive Moslem organization, Muhammadiyah, was established by K.H. Akhmad Dahlan in Yogyakarta for the purpose of social and economic reforms.

In December of the same year Partai Indonesia was founded by Douwes Dekker, later named Setiabudi, with Dr. Tjipto Mangunkusumo and Ki Hajar Dewantoro. The objective of the party was to strive for complete independence of Indonesia. All three leaders of the party were exiled by the colonial government in 1913.
In 1914 communism was introduced in the East Indies by tree Dutch nationals-Sneevliet, Baars and Brandsteder.

In May 1920 Sarikat Islam split into a right and a left wing, the latter was to become the Partai Komunis Indonesia (PKI, the Indonesian Communist Party) under the leadership of Semaun, Darsono, Alimin, Muso and others.
The Powerless People's Council or Volksraad
In 1916 Sarikat Islam held its first convention in Bandung and resolved the demand for self-government for Indonesia in cooperation with the Dutch. When Sarikat Islam demanded a share in the legislative power in the colony, the Dutch responded by setting up the Volksraad in 1918 which was virtually a powerless people's council with an advisory status.

Indonesian representatives on the council were indirectly elected through regional councils, but some of the other members were appointed colonial officials.

The Volksraad later developed into a semi-legislative assembly. Among the members of this body were prominent nationalist leaders like Dr. Tjipto Mangunkusumo, H.O.S. Tjokroaminoto, Abdul Muis, Dr. G.S.S.J. Ratulangi, M.H. Thamrin, Wiwoho, Sutardjo Kartohadikusumo, Dr. Radjiman, and Soekardjo Wiryopranoto.

Under the pressure of the social unrest in the Netherlands at the end of World War I, the Dutch promised to grant self-government to Indonesians. This was known as the "November promise." It was a promise that was never met. Besides the Volksraad, there was another body called Raad van Indie,"the Council of the Indies," whose the members were appointed by the Government Achmad Djajadiningrat and Sujono were among the very few Indonesian members of this council.

In 1923 deteriorating economic conditions and increasing labor strikes prompted the colonial government to put severe restrictions on Indonesia civil liberties and make amendments to the colonial laws and penal codes. Freedom of assembly, speech and expression in writing was restricted.

Despite the political restrictions, on July 3, 1922 Ki Hajar Dewantoro founded Taman Siswa, an organization to promote national education.
In 1924 the Indonesian Students Association, "Perhimpunan Mahasiswa Indonesia," was formed by Drs. Mohammad Hatta, Dr. Sukiman and others. This organization became a driving force of the nationalist movement to gain independence. The Indonesian Communist Party (PKI) staged revolts against the colonial government in November 1926 in West Java, and in January 1927 in West Sumatra. After their suppression the Government exiled many non-communist nationalist leaders to Tanah Merah, which the Dutch called "Bove Digul" in Irian Jaya. Dr. Tjipto Mangunkusumo was exiled to Bandaneira.
In February 1927 Mohammad Hatta, Achmad Soebardjo and other members of Indonesia's Movements attended the first international convention of the "League Against Imperialism and Colonial Oppression" in Brullses, together with Jawaharlal Nehru and many other prominent nationalist leaders from Asia and Africa.

In July 1927, Soekarno, Sartono and others formed the Indonesian Nationalist Party (PNI), which adopted Bahasa Indonesia as the official language. This party adopted a militan policy of non-cooperation with the Government as the result of a fundamental conflict of interest between Indonesian nationalism and Dutch colonialism.

In the same year, an all-Indonesia nationalist movement was organized by Indonesian youth to replace earlier organizations, which had been based on regionalism, such as "Young Java," "Young Sumatra" and "Young Ambon."
On October 28, 1929, delegates to the second Indonesia Youth Congress in Jakarta pledged allegiance to "one country, one nation and one language, Indonesia."

Concerned about the growing national awareness of freedom, the colonial authorities arrested the PNI leader, Soekarno, in December 1929. This touched off widespread protests by Indonesians.
In 1930 the world was in the grip of an economic and monetary crisis. The severe impact of the crisis was felt in the Indies, a raw material producing country. The colonial government responded with a strict balanced budget policy that aggravated economic and social conditions.
Two other leaders of the PNI, Gatot Mangkupradja and Maskun Supriadinata, were arrested and tried in court on charges of plotting against the Government. Soekarno was released in September 1931 but exiled again in August 1933. He remained in Dutch custody until the Japanese invasion in 1942.
In January 1931, Dr. Soetomo founded Persatuan Bangsa Indonesia, the Indonesian Unity Party. Its objective was to improve the social status of the Indonesian people.

In April of the same year, PNI was abandoned. A new party was formed by Sartono. LLM and named Partai Indonesia, the Indonesian Party. Its basis was nationalism, its line was independence.
Also in 1931, Sutan Syahrir formed Pendidikan Nasional Indonesia. Kwon as the new PNI, it envisaged national education. Mohammad Hatta joined this organization.
In 1933 a mutiny broke out on the Dutch warship "De Zeven Provincien" for which Indonesian nationalists were held responsible. The following year Sutan Syahrir and Mohammad Hatta and nationalist leaders were arrested and banished until 1942.

In 1935, Soetomo merged Persatuan Bangsa Indonesia and Boedi Oetomo to form Partai Indonesia Raya (Parindra). Its fundamental goal was the independence of Great Indonesia.
In July 1936, Sutardjo submitted to the "Volksraad" a petition calling for greater autonomy for Indonesia, This petition was flatly rejected by the Dutch-dominated Council.
In 1937 Dr. A.K. Gani started the Indonesian People's Movement, Gerakan Rakyat Indonesia, which was based on the principles of nationalism, social independence and self reliance.
In 1939 the All Indonesian Political Federation, GAPI, called for the establishment of a full-fledged Indonesian parliament. This demand was rejected by the Government in Holland in 1940.
GAPI also demanded an Indonesian military service for the purpose of defending the country in times of war. Again, this was turned down, notwithstanding the impending outbreak of World War II. At the time, there were widespread movements for fundamental and progressive reforms in the colonies and dependencies in Asia.

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The Japanese Occupation

After their attack on Pearl Harbor in Hawaii, the Japanese forces moved southwards to conquer several Southeast Asian countries. After Singapore had fallen, they invaded the Dutch East Indies and the colonial army surrendered in March 1942. Soekarno and Hatta were released from their detention. The Japanese began their propaganda campaign for what they called "Great East Asia Coprosperity". But Indonesians soon realized that it was a camouflage for Japanese imperialism in place of Dutch colonialism.

To further the cause of Indonesia's independence, Soekarno and Hatta appeared to cooperate with the Japanese authorities, In reality, however, Indonesian nationalist leaders went underground and masterminded insurrections in Blitar (East Java), Tasikmalaya and Indramayu (West Java), and in Sumatra and Kalimantan.

Under the pressure of the 4th Pacific war, where their supply lines were interrupted, and the increasing of Indonesian insurrections, the Japanese ultimately gave in to allow the red-and-white flag to fly as the Indonesian national flag. Recognition of "Indonesia Raya" as the national anthem and Bahasa Indonesia as the national language followed. Hence, the youth's pledge of 1928 was fulfilled.
After persistent demands, the Japanese finally agreed to place the civil administration of the country into Indonesian hands. This was a golden opportunity for nationalist leaders to prepare for the proclamation of Indonesia's independence.

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The Birth of the Republic

The Republic of Indonesia first saw light on August 17, 1945, when its independence was proclaimed just days after the Japanese surrender to the Alllies. Pancasila became the ideological and philosophical basis of the Republic, and on August 18, 1945 the Constitution was adopted as the basic law of the country.

Following the provisions of the Constitution, the country is headed by a President who is also the Chief Executive. He is assisted by a Vice President and a cabinet of ministers.

The sovereignty of the people rests with the People's Consultative Assembly (MPR). Hence, the President is accountable to the MPR. The legislative power is vested in the House of Representatives (DPR). Other institutions of the state are the Supreme Court, the Supreme Advisory Council and the Supreme Audit Board.

Soekarno became the first President and Chief Executive, and Mohammad Hatta, the first Vice-President of the Republic. On September 5, 1945 the first cabinet was formed.

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The Beginning of the New Order Government

Over-confident of their strength and precipitated by the serious illness of President Soekarno, who was undergoing treatment by a Chinese medical team from Beijing, the Indonesian Communist Party (PKI) attempted another coup on September 30, 1965. The uprising, however, was abrupt and quickly stamped out by the Armed Forces under Major General Soeharto, then Chief of the Army's Strategic Command.

On the night of September 30, or more precisely in the early hours of October 1, 1965, armed PKI men and members of Cakrabirawa, the President's security guard, set out to kidnap, torture and kill six top Army Generals. Their bodies were dumped in an abandoned well at Lubang Buaya, on the outskirts of Jakarta. The coup was staged in the wake of troop deployments to Kalimantan, at the height of Indonesia's confrontation with Malaysia. Moreover, at the time, many cabinet members were attending a celebration of the Chinese October Revolution in Beijing. It was during this power vacuum that the communists struck again.

Under instructions from General Soeharto, crack troops of the Army's Commando Regiment (RPKAD) freed the central radio station (RRI) and the telecommunication center from communist occupation. Students made for the streets in militant demonstrations to fight for a three-point claim, or "Tritura," that aimed to ban the PKI, replace Soekarno's cabinet ministers, and reduce the prices of basic necessities. They set up a "street parliament" to gather the demands of the people.

Under these explosive conditions, President Soekarno eventually gave in and granted Soeharto full powert to restore order and security in the country. The transfer of power was effected by a presidential order known as "the 11th of March order" of 1966. Soon afterwards, on March 12, 1966, General Soeharto banned the PKI. This decision was endorsed and sanctioned by virtue of the Provisional People's Consultative Assembly Decree No. XXV/MPRS/1966. He also formed a new cabinet, but Soekarno remained as Chief Executive. This brought dualism into the cabinet, particularly when Soekarno did not show support for the cabinet'' program to establish political and economic stability. Hence, a special session of the Provisional People's Consultative Assembly (MPRS) was convened from March 7-12, 1967. The Assembly resolved to relieve Soekarno of his presidential duties and appointed Soeharto as Acting President, pending the election of a new President by an elected People's Consultative Assembly.

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The New Order Government

Ever since taking office in 1967, the New Order Government of President Soeharto was determined to return constitutional life by upholding the 1945 Constitution in a strict and consistent manner and by respecting Pancasila as the state philosophy and ideology.

Much of the implementation of these policies has been described in the foregoing pages. It remains here to mention some of the more notable achievements of the New Order during the first few years of its existence. Results of national development are presented in this book under the heading "Development Achievements" and are updated each year.

With regard to Malaysia, not only were relations normalized but Indonesia together with Malaysia, the Philippines, Singapore and Thailand joined to establish the Association of Southeast Asian Nations (ASEAN). On achieving independence in 1984, Brunei Darussalam became the sixth member of ASEAN. In July 1995, Vietnam was accepted as the seventh member of this regional organization. The objective of the association is the establishment of regional cooperation in the economic, social and cultural fields, but ASEAN also operates in the political area.

To prepare for national development, in addition to economic rehabilitation, Indonesia secured an agreement with creditor countries to reschedule an overseas debt of US$5 billion. With the recovery of the country's overseas credibility, Indonesia succeeded in the formation of a consortium of creditor countries to assist in her economic development. This consortium is known as the Inter-Governmental Group on Indonesia (IGGI) and includes the United States, Canada, Australia, New Zealand, Japan Britain and a number of West-European countries. Its annual meetings are held in Amsterdam under the chairmanship of the Netherlands. Currently, the IGGI has been replaced by the Consultative Group for Indonesia (CGI) consisting of the former members of IGGI (except the Netherlands) and five new creditors.

The Reform Order Government

Since the outset of the First Five-Year Development Plan in 1969, Indonesia under the New Order Government of President Soeharto had endeavored to achieve its national development goals. Indonesia, indeed, had been able to achieve substantial progress in various fields which had been enjoyed by the majority of the Indonesian people. Indonesia had gained success in the national development. Unfortunately, economic crisis, which began with the monetary crisis, struck Indonesia as of July 1997.

Since the middle of 1997, the people's standard of living dropped considerably. The decline in the people's standard of living was aggravated by various political tensions arising from the 1997 general elections. The political system which had been developed since 1966 turned out to be unable to accommodate the dynamism of the aspirations and interests of the community. This led to riots and disturbances. To a certain extend, they reflected the malfunctioning of the political order and of the government, finally causing this situation to develop into a political crisis.

A number of student demonstrations ensued, including the occupation of the People's Consultative Assembly/House of People's Representatives compound. They appealed for political and economic reform; demanded President Soeharto to step down and stamp out corruption, collusion and nepotism. Critical moments prevailed in the capital, Jakarta, and other towns from 12 to 21 May 1998.
On 12 May a tragedy happened in the Trisakti University Campus, causing the death of four students. On 18 May the leadership of the House suggested the President resign. The President's effort to accommodate the developing aspirations of the people by forming a reform cabinet and a reform committee never materialized as there was no adequate support from various circles.

Finally, on 21 May 1998, , President Soeharto, after a 32-year rule of the New Order Government resigned. Pursuant to Article 8 of the 1945 Constitution and the People's Consultative Assembly decree no VII/1973, he handed over the country's leadership to Vice-President Bacharuddin Jusuf Habibie. After the announcement. Habibie took his oath of office before Chief Justice Sarwata to become Indonesia's third President. Earlier President Soeharto disbanded the cabinet which he formed shortly after his reelection for a seventh five-year presidential term in March.

A day after his installment as the third president, Habibie formed the Reform Development Cabinet. He picked the ministers from the various political and social forces, including three politicians from the two minority parties, the United Development Party (PPP) and the Indonesian Democratic Party (PDI), to provide the needed synergy.

President B.J. Habibie outlined the agenda for reform during his presidency as follows:

	Rooting out corruption, collusion and nepotism, and create a clean government.
	Reviewing the five political laws upon which the current political system is bound. They are the laws on mass organization, the House of Representatives (DPR), the People's Consultative Assembly (MPR), political parties, regional administrations and elections.
	Implementing sweeping reform in all sectors, including in the political, economic, and legal fields, to enable the government to satisfy mounting demands for a strong and clean government.
	Boosting output from the agriculture, agribusiness, export-oriented industry and tourism sectors.
	Safeguarding the implementation of the 1998/99 state budget.
	Accelerating the bank restructuring program.
	Resolving the problem of corporate foreign debts.
	Conducting a special session of the People's Consultative Assembly (MPR) in November 1998, followed by General Elections in May 1999.

 

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