Indonesia

1. Indonesia

2. Indonesian Political History • Fragile parliamentary governance under Sukarno, 1950-1957 • Guided democracy under Sukarno, 1959 -1965 • The New Order under Suharto 1967-1998 • Liberal democratic reform under multiple presidents, 1999-present

3. Institutions and Social Groups • The Constitution – 1945 Constitution in place throughout republic – hybrid presidential/parliamentary system – People’s Consultative Assembly – Bicameral Legislature – DewanPerwakilan Rakyat (lower house) – DewanPerwakilan Daerah (Provincial representation) – Proportional Representation – Divided Government Possible • Pancasila – Belief in One God – Humanitarianism – Nationalism (Bhinneka Tunggal Ika) – Democracy – Social Justice • Political Parties – Golkar – United Development Party (PPP), Indonesian Democratic Party (PDI), PDI – P, National Awakening Party – twenty-one parties split the remainder 49.3% of vote • Political Islam – santri/abangan divide – Suharto co-opted Islam by becoming a hajji and creating Indonesian Association of Muslim Intellectuals – Islamic political parties PPP and Prosperous Justice Party (PKS) earned 16 million votes – smaller than NGO groups such as NahdlatulUlama and Muhammadiyah – actions have been take by government against groups associated with violence such JemaahIslamiyah • Military – Professionalizing the military and abandoning a dual functioning model of providing security and a political/ social function has been the goal of the reformasi

4. Democratization • 1950-1957 - Initial experiment with multi party democracy failed • Sukarno instituted guided democracy as something more in attunement with Javanese culture • Suharto continued bureaucratic authoritarian state • Post Suharto era generated respect for rule of law and successful transitions of power – good prerequisites for flourishing democracy

5. Economic Development • Largest economy in region, relatively high per capita income – setback by Asian Financial Crisis – average GDP growth at about 6% • Sukarno’s revolutionary economic system under guided democracy was xenophobic and isolationist • Suharto’s New Order system instituted five year plans to improve public welfare, benefit from oil resources, build infrastructure and rely on private sector for capital, structural change, and productivity – difficulties encountered included income disparity, corruption, and mismanaged industries – over dependence on oil caused problems in 1986 • Market oriented reforms adopted - Import substitution policies replaced by export and openness to foreign investment – the New Order would witness swings between liberalization and protection of conglomerates owned Suharto family and cronies • Asian Financial Crises created stresses that brought out the weakness of this system and the severity of the IMF austerity package led to downfall of Suharto • Habibie and Wahid administrations failed to stabilize economy but Sukarnoputri and Yudhoyono improved economic conditions though Indonesia maintains a reputation as a place difficult for foreign investment • Over past forty years life expectancy has improved, those living below poverty have decreased, and improvement on the HDI have occurred

6. The Indonesian State • Colonization, Revolution, and anti-communist purge created conditions of social dislocation to create a strong state • State’s legitimacy connected to Suharto’s ability to meet economic needs of citizenry • Organic development of Pancasila within a polity of contesting interest is allowing for the development of a Post-Suharto approach to legitimacy • Present state is weaker than earlier bureaucratic authoritarian state but constitutionalism and pluralism may strengthen the state

7. Foreign Policy • Sukarno opposed to the old established forces and allied with the newly emerging forces – Konfrontasi against Malaysia – supported by PKI in struggle against neocolonialism, colonialism, and imperialism • Suharto ended Konfrontasi and began New Order and quiet support of ASEAN and the zone of peace, freedom, and neutrality in Southeast Asia – lower profile in international relations – Invasion of East Timor in 1975 exception to this rule • Gradual improvement of relations with PRC with formal establishment of diplomatic relations in 1990 – Megawati Sukarnoputri made significant efforts to improve bilateral relations – main trading partners have been with U.S., Japan, and Singapore as well as European and other Asian countries • Skeptical relation to war on terror though accepting of U.S. humanitarian aid and counterterrorism support • Relationship has improved with the election of President Obama and the exploration of strategic partnership • Indonesia plays a role as a regional moderator and is a moderating voice within the Organization of the Islamic Conference

8. Conclusion • Economic crisis may have paid a democratic dividend • The New Order had improved the life of the average Indonesian though revelations of corruption and the burden of IMF policies disrupted this order • New institutions offer hope for Indonesia’s development of a sustainable democracy