indahnesia.com - History - The republic - Guided democracy, the New Order

After the Dutch the Indonesian leaders had an almost impossible taste to create parliamentary democracy in a multi-ethnical and multi-ideological nation, which was ruined by years of depression and war. A nation with a gigantic number of illiterates (93,5 %) and a little nobility which hardly any governmental experience, which was threatened to be torn apart by radical left and Islamic powers. Due to this, the existence of Indonesia could be called a miracle.

The in 1945 composed constitution was based on "Pancasila" of "five fundaments", national unity, internationalism or humanity, democracy, social rights and believe in an almighty God. The Islamic part, which wanted an Islamic state, was most displeased. A number of revolts were the next step. The Javanese mystic person of S.M. Kartosuwirjo proclaimed an Islamic state in West-Java 1948 and 1949 (Darul Islam), he got support from Moslems from South-Sulawesi and Aceh. The Darul Islam-rebellion lasted until 1965 on Java.

Economical and political tensions

The Indonesian economy was dominated by a small number of very big, mainly Dutch companies. As there already was a middle class, they were mainly Chinese, with little political influence. The politics were conducted by Indonesians with a western education from Javanese priyayi families, which had good contacts with the governmental employees. The big heterogenic army was a political factor with power.

In the in 1950 started people's meeting, was the place for all kinds of small parties, founded during the battle for independence. Between 1949 and 1957 there were no less than 17 cabinets, which were confronted with economical retreat and a worsening relation between army and people.

Picture: Soekarno

Before the first elections in 1955 there were fierce debates, in which Pancasila and Islam were the main topics. The results of the elections didn't have an improved and more powerful government. Besides the four great parties (PNI, Masyumi, Nahdatul en PKI) there were more than 25 smaller parties, with between 1 and eight seats.

A second source of worries was the little power the government had to control Indonesia completely. In the near West-Java the Darul Islam was already causing troubles, and between 1956 and 1957 there were military forces trying to get power on the rich island of Sumatra and in Eastern-Indonesia. In West-Sumatra the military dissidents and political leaders, mainly from Masyumi, imposer a counter-government. Since the real government didn't have much power, and the army was lacks to take action this formed a new threat to Indonesia. Personal action of Soekarno did change this. He called martial laws, to suppress the revolting groups, but that wasn't everything Soekarno did. He spoke freely against parliamentary democracy. In 1956 he held a speech with the much meaning title "Let's bury the parties", already telling about his future actions. Now he proposed to replace political parties by functional groups like, women, laborers, youth, farmers and army, all working together in one place, which he called guided democracy. In 1960 the parliament was replaced by a body that enclosed the functional groups.

Soekarno dancing on the edge

President and army were also part of the 'guided economy' and were the leaders. The nationalization of Dutch plantations and other companies brought economical profits to the army. Politically Soekarno succeeded in bringing together the three main flows in Indonesia (nationalists, Moslems and communists). He took action against those who refused to cooperate.

The popularity of PKI was exploding. Some thought Soekarno as leaning to the left too much. Others point on the fact that he used communist things, but that the communists themselves were not very much represented in politics. The communists were probably used to suppress parts of the army and other parties that didn't listen very well. The communists were not happy with that, and had another target than the PKI had, they wanted centralized power and ideological unity.

In an effort to increase his esteem he got into several military adventures. From 1957 to 1962 he fought an, at the end successful, action in favor of the transfer of New Guinea (Papua). After the annexation in 1963 he was looking for new confrontation. A military conflict with Malaysia over the islands of Sarawak and Sabah didn't work out.

During this guided economy the economical situation worsened dramatically. Inflation rose to new records and the standard of living of the Javanese middle class, and most of all the civil servants, almost crashed.

End of an era

The strong communist PKI's goal was land reformation on the overpopulated island of Java. Words of Soekarno didn't mean anything, and in 1964 in Klaten severe conflicts between poor farmers and rich landowners originated. Violence of the same kind (kidnapping, murders, looting and arson) between Islamic landowners and the PKI-people took place in Banyuwangi, Jember, Jombang, Kediri Sidoarjo and Bangil. The rumor was that the communist were getting weapons from China to take power. The question how long Soekarno could fight violence was a main topic, most of all because the violence was still worsening, was the question of the year 1965. Soekarno called this year tahun vivere pericoloso (the year of living dangerously).

Picture: Suharto

The events reached a climax in the early morning of October 6. Six generals, under them commander Yani, were kidnapped and killed. Radio reported that lieutenant-colonel Untung took power. He told he was the one to take action before the generals in cooperation of the CIA would do it.

It's the question of the truth will ever come out, but the results of this short coup d'état, which was brought down the next day by General Suharto were clear nevertheless. It meant the end of Soekarno's long way of dancing on the edge. Piece by piece power was grabbed away from him, and in March 1967 Suharto was places at the place of deputy president.

This also meant the end of PKI. However its unclear if the party was part of the coup d'état, the army and Islamic estate owners took the chance to get even with the communists. About a half of a million (supposed) supporters were murdered in a gruesome way, mainly on Bali and Central-, and East-Java, while an even bigger number was send to jail. He army built a firm power, in cooperation with the Moslems, students and intellectuals which were unhappy with the guided democracy.

Suharto's New Order

The years 1942-1945 were marked with war, rebellion and aggressive ideological propaganda, the period after that was in contrary to that very peaceful. Suharto's governance was that of a traditional Javanese ruler: preserved and imperturbable. After he, with support of Moslems, came to power, he agreed for a new Islamic party (Partai Muslimin Indonesia), in which a big number of former leaders were banned on forehand.

In March 1968 Suharto gave the army more power in the parliament. After that he was reelected to President for another 5 years. Also was agreed that in 1971 there should be new elections. When it was almost that far, Golkar, a federation of 'functional groups' from the time of guided economy was changed into a political party. Supported by civil servants and the army Golkar got more than 60% pf the votes in all elections.

After the elections of 1971 the other parties were forced to merge into two great movements: United Party for Development (PPP) and the Indonesian Democratic Party (PDI). Both known big internal tensions and most of all the disillusioned Moslems caused political conflicts since then. In 1984 Islamic protests in Tanjung Priok became clashed with police, which caused dozens of people were killed. Crime like hijacks cost a number of Islamic fighters their life.

Nevertheless Islam had regained power on Java. The number of mosques, their richness and number of visitors increased. The same goes for the number of people that prays five times a day, and the number of young women wearing Islamic clothing, the kiblat-pointers which point to Mecca and the popularity of Islamic music and dangdut groups like Rhoma Irama.

Under Suharto's 'New Order' (in contrary to the 'Old Order' of Soekarno) social and economical development programs started, which helped the major majority of the Indonesian people. The income per person rose 4.6 per cent over the last 20 years to 550 dollar in 1990. The number of Javanese that lives below poverty levels decreased from 40 per cent (32.4 million) in 1976 to 17 per cent (19.5 million) in 1987. Child-death was reduced by 50 per cent and the number of kids going to school is doubled. But most of all, the most populous island is self sufficient in its needs of rice. Due to the trial of several different species of rice, improved kinds and better agricultural methods production rose from 17.9 million tons in 1976 to 27 million tons in 1987.

Progression is mostly from high oil prices. Indonesia takes the fifth place in the OPEC, unless problems due to misbehavior in 1975 and the following reorganization of Pertamina (state oil company). The answer to the recession of 1982 and the descent of oil prices in 1986, the preservation of the economy has been changed into attracting foreign investments.

Picture: Orde baru

A quick growth was the result. Foreign investments increased from 1.4 billion dollar in 1987 to 3.9 billion dollar in 1989, export from 3.9 million dollar in 1982 to 13.5 billion dollar in 1989. Expected is that the industrial growth, on average eight to ten per cent, will pertain for the next several years. Indonesia has more and more become the 'last resort' for producers from Japan, Korea, Taiwan, Hong Kong and Singapore, looking for cheap labor and still unknown economies. Greatest investments contain textile, shoes, nutrition and wood products.

Critics say that Indonesia has become dependent from other countries by the foreign capital. Mainly the Chinese-Indonesian minority, which controls the private capital market and has profited most from recent revivals, is a point of critics. The biggest challenge for 'Orde Baru' is the creation of jobs and the realization of a higher standard of living. Unemployment is still high (40 per cent) and every year about 2.3 million students enter the labor market. In 2010 Java will have a population of 150 million, and only fast industrialization can provide enough elementary needs like food, housing, education and healthcare. You can always ask if the natural resources are resistant to this all.