GROUP 7

The End of Suharto’s Rule

• Authoritarianism, corruption and nepotism were increasingly the

hallmarks of the Suharto era.

• Despite this, Suharto’s government brought stability to Indonesia after

the chaos of the late 1950s and early 1960s and for 30 years
delivered steady economic growth.
• The gap between the political, military and economic elites and the

mass of urban and rural people had become obscenely wide by the
mid 1990s.
• Nonetheless, ordinary Indonesians enjoyed basic amenities they had

never had before: enough to eat and a steadily improving diet; better
clothing and housing; subsidized neighborhood clinics that provided
basic health care; and educational opportunities for their children.
The End of Suharto’s Rule
• In the 1990s, speculation about a replacement for the aging Suharto

grew, particularly among the urban middle classes.

• The succession problem turned into a crisis of legitimacy in late 1997,

when it became obvious that there was a speculative bubble, and

capital flight occurred.
• ans. Since independence, successive Indonesian governments have

been involved in a process of nation building—both literally and

symbolically.
The End of Suharto’s Rule
• With the dramatic resignation of Suharto after months of street protests,

urban riots and army violence, the demand for greater openness and a
return to a democratic society has dominated Indonesian public discourse.
• In December 1998, the Indonesian parliament, under pressure from street

demonstrations and sensing the mood for greater openness, passed new
electoral laws that opened the way for elections in June 1999.
• The election of June 1999 created a new House of Representatives which,

together with government and military appointees and representatives of

the regional parliaments, formed the People’s Consultative Assembly
(MPR) which met in October 1999 to hear a report from the outgoing
president, Dr Habibie, and to elect a new president and vice-president.
The End of Suharto’s Rule
• With the dramatic resignation of Suharto after months of street protests,

urban riots and army violence, the demand for greater openness and a
return to a democratic society has dominated Indonesian public discourse.
• In December 1998, the Indonesian parliament, under pressure from street

demonstrations and sensing the mood for greater openness, passed new
electoral laws that opened the way for elections in June 1999.
• The election of June 1999 created a new House of Representatives which,

together with government and military appointees and representatives of

the regional parliaments, formed the People’s Consultative Assembly
(MPR) which met in October 1999 to hear a report from the outgoing
president, Dr Habibie, and to elect a new president and vice-president.