In the post-Suharto era, strengthening of democratic processes has included a regional

Modern era autonomy program and the first direct presidential election in 2004.[68] Political, economic
and social instability, corruption, and terrorism remained problems in the 2000s; however,
in recent years, the economy has performed strongly. Although relations among the diverse
population are mostly harmonious, acute sectarian discontent and violence remain a
problem in some areas.[69] A political settlement to an armed separatist conflict in Aceh was
achieved in 2005 following the 2004 Indian Ocean earthquake and tsunami that killed
130,000 Indonesians.[70] In 2014, Joko Widodo became the first president popularly
elected from outside the military and political elite.[71]

Sukarno (left) and Hatta (right), Indonesia's founding fathers and the first President and Vice
President

As president, Sukarno moved Indonesia from democracy towards authoritarianism and

maintained power by balancing the opposing forces of the military, political Islam, and the
increasingly powerful Communist Party of Indonesia (PKI).[50] Tensions between the military
and the PKI culminated in an attempted coup in 1965. The army, led by Major
General Suharto, countered by instigating a violent anti-communist purge that killed
between 500,000 and one million people.[51] The PKI was blamed for the coup and
effectively destroyed.[52][53][54] Suharto capitalised on Sukarno's weakened position, and
following a drawn-out power play with Sukarno, Suharto was appointed president in March
1968. His "New Order" administration,[55] supported by the United
States,[56][57][58] encouraged foreign direct investment in Indonesia,[59][60] which was a crucial
factor in the subsequent three decades of substantial economic growth.
Indonesia was the country hardest hit by the 1997 Asian financial crisis.[61] It brought
out popular discontent with the New Order's corruption and suppression of political
opposition and ultimately ended Suharto's presidency.[62][63][64][65] In 1999, East Timor seceded
from Indonesia, following its 1975 invasion by Indonesia[66] and a 25-year occupation that
was marked by international condemnation of human rights abuses.[67]