Indonesia Today

GOVERNMENT AND POLITICS
In March 1998, economic crisis caused by currency devaluation and stringent IMF regulations resulted in factory closings, bank liquidations, withdrawal of foreign investment, and spiraling inflation and unemployment rates. Popular opinion turned decisively against Suharto. Later that year, the military killed four student protesters in Jakarta, provoking serious outrage. Rioting, fires, and looting quickly swept cities throughout the archipelago. Meanwhile, thousands of students staged a sit-in at the House of Representatives, demanding Suharto’s resignation. One by one, government ministers and high-ranking political figures stepped down, calling upon Suharto to do the same. Suharto finally resigned the presidency to Vice President B.J. Habibie in May 1998.

Protests subsided as Habibie, in a bid to regain confidence in the Indonesian presi-dency and government, released political prisoners, opened dialogue on the East Timor issue, distanced himself from Suharto, and addressed the concerns of ethnic Chinese, who had been the victims of many attacks during the riots. The most dramatic change during this so-called reformasi (reformation) era was an easing of censorship; political pundits now openly criticize the government. Fifty new political parties formed before the 1999 parliamentary elections, each espousing the aspirations of a different portion of Indonesian society. The Indonesian Democratic Party (PDI), headed by Sukarno’s daughter Megawati Soekarnoputri, received the most votes, followed by Habibie’s GOLKAR party.

In late 1999, Abdurrahman Wahid defeated front-runner Megawati in the presidential election; Megawati accepted the position of vice president. Wahid’s leadership over the next months, however, proved flawed. Accusations of financial scandal were leveled against the president, who responded by dismissing several top government officials. Amid confusion and intense political maneuvering, the parliament voted to impeach Wahid on July 23, 2001, and presidential responsibilities were handed over to Megawati. In 2004, current President Susilo Bambang Yudhoyono was elected to face the immense task of holding Indonesia together amid political turmoil, ethnic and religious violence, and economic malaise.

• Separatist Movements

In the months after Suharto stepped down, his enforced unity crumbled as various groups scrambled to fill the power vacuum. The most violent separatist movements erupted in East Timor and the Aceh province ...more

• Ethic and Religious Violence

Ethnic and religious violence plagues Indonesia. In Kalimantan, Muslim settlers have come into conflict with indigenous Dayaks and Malays. In February of 2001, 400 Muslims were massacred on the island ...more