Slide 1:Indonesia Government/History 354 Campbell University

Slide 2:Location of Indonesia

Slide 3:Introduction 18,108 volcanic islands Land of spice islands 203-245 Million Population. 4th largest population in world. 88% Sunni Muslim Largest Muslim population on earth. Was a Dutch colony. Is an oil producer. Maritime choke point.

Slide 4:Early Kingdoms-Srivijaya Srivijaya controlled the Malay Archipelago from 7th thru 13th Century. Controlled Straits of Malacca and Sunda plus Isthmus of Kra with a powerful fleet. Capital at Palembang, a center of Buddhist learning. Benefited from collapse of Funan and surge in Chinese trade during the Tang dynasty. Conquered briefly by Rajendra Chola in 1025. Khmer=Cambodia. The earliest know kingdom is 1st Century Funan, which was Indian in origin. It became Chenla, upper and Lower/water. In turn that became the Ankgor Kingdom, famous for Angkor Wat. Champa is also Indian in origin. It did not survive the development of southern Vietnam, although Chams still exist in small communities/villages.

Slide 5:Early Kingdoms- Sailendras The Sailendras controlled central Java during 8th & 9th Century. Royal family was Funanese who had been deposed by Chenla. Returned to conquer & rule southern Chenla until defeated by Jayavarman II of Angkor in 802. Built Borobodur (778-824), the greatest Buddhist monument in S. E. Asia.

Slide 6:Early Kingdoms - Mataram Patapan, a Sanjaya prince, usurped the Sailendra throne in 832. The capital was moved to Mataram in 929. Mataram emulated Sailandra except in religion. A Hindu resurgence led to the construction of the Prambanan complex. Continued prosperous trade with China & Arabs.

Slide 7:Early Kingdoms – Kediri & Singhasari Mataram challenge Srivijaya’s dominance in 1006, but was decisively defeated. Rajendra Chola’s warfare with & defeat of Srivijaya in 1026 allowed Airlangga, a Balinese prince, to restore Mataram’s political power. Airlangga divided his kingdom between his two sons in 1042. The two kingdoms were Janggala and Kediri. Kediri was dominant and flourished in trade with India and the Mediterranean during early 13th Century. Ken Angrok conquered Janggala and then Kediri to establish the Singhasari 1222. Under King Kertanagara, Singhasari dominated both the Malacca & Sunda Straits until the Mongol invasion in 1292.

Slide 8:Early Kingdoms - Majapahit Kertanagara was killed by a dissident vassal in the face of Kublai Khan’s threatened invasion. His heir, Vijaya, fled to Majapahit. In a twist of fate, the Mongols assisted him in overthrowing the usurper. The Majapahit prime minister, Gaja Mada (1331-1364), then united all of the archipelago for 75 years.. Majapahit dominance ended with the spread of Islam to Malacca in 1402. Majapahit was the last great Hindu kingdom in S.E. Asia.

Slide 9:Summary of Kingdoms Srivijaya, 7-13th Century, Java, Sumatra & Malay Peninsula. Sailendras, 8 – 9th Century, Central Java. Mataram, 832 – 1042, Central Java. Janggala, 1042 – 1222, Central Java. Kediri, 1042 – 1222, Central Java. Singhasari, 1222 – 1292, Java, Sumatra & Straits. Majapahit, 1292 – 1402, The Whole Thing.

Slide 10:Questions On which island does the bulk of the Indonesian population reside? Near what major city is Borobodur located? What religion does it celebrate? What areas did Srivijaya control? What is the significance of the Isthmus of Kra? Where was Funan? What empire built the Prambanan complex? What religion does it celebrate? From what kingdom did Singhasari evolve? Java is the most populated island. Borobodur is located near Yogyakarta.It is Buddhist. Srivijaya controlled Sumatra, Java, the western coastal area of Borneo, the Malay Peninsula up past the Isthmus of Kra, the Malacca and Sunda Straights. The Isthmus of kra is a narrow overland transshipment point through which a canal could be cut bypassing the Straights of Malacca the Sunda Straight. Funan was located in Cambodia and Laos. Prambanan was built by Mataram. It’s Hindu. Singhasari evolved from Kediri.

Slide 11:More Questions What country claims the largest Islamic population in the world? What was the last great Hindu kingdom in Indonesia? How did the Mongols help Vijaya regain the throne of Majapahit? Indonesia. 88% Suni Muslim. Majapahit was the last great Hindu kingdom.

Slide 12:The Dutch in Indonesia Both the Dutch VOC (Vereenigde Oostandische Compagnie) (1602) and English East India Company (1600) were interested in S.E.Asian trade. Conflict led to the Ambon Massacre in 1623 and the withdrawal of the East India Company from the archipelago. The Dutch gradually gained control of the entire archipelago: Ambon – 1605, Malacca – 1641, Aceh – 1667, Macassar –1669, Banten - 1682. The objective was trade: Indian cottons for spices. The Ambon massacre was considered a judicial murder.

Slide 13:Colonization of Indonesia The Dutch avoided direct administration until the mid 18th Century. Control was exercised thru local rulers who were also doubled as principal traders The system of leveringen began at end the the 17th Century. Fixed amounts at fixed prices. Direct administration of areas growing coffee, sugar, indigo and spices began in the 18th Century.

Slide 14:Colonization of Indonesia The Dutch employed their navy to enforce a monopoly on trade with Europe. There was no effort to impact religion, culture or education. Dutch trade practices did have the unintentional consequence of displacing the indigenous carriage & distribution trade. One result was the rise of the Bugis pirates.

Slide 15:Hermann Daendels Herman Daendels was appointed Gov-Gen of Indonesia by Napoleon from 1808-11 to improve defenses against the British and improve administration. He Centralized administration. Reduced graft and corruption. Established adat courts. Increased compulsory coffee production and established a monopoly on rice to raise funds. Hermann Daendels was a Dutch trained lawyer and French Marshall. The French occupied the Netherlands from 1795 to 1814.

Slide 16:Thomas Stamford Raffles Gov-Gen Minto (India) led an invasion of Java in 1811 and left Stamford Raffles in charge. He introduced major reforms. Permitted land ownership with tax rate based on fertility. Peasants could cultivate and sell crops of their choice, except coffee. Created an elaborate court system with jury trials. Dutch returned in 1816. During Napoleonic War, William V, the Dutch King, took exile in Britain and asked Britain to take charge of all Dutch colonies. Gov-Gen Minto (India) led an invasion of Java and left Stamford Raffles in charge. Raffles held the title of Lt-Gov of Java at the age of 30. He had been in the Malay region since 1805. Had learned the Malay language, customs literature,and history. (We would have called him an area specialist. Prior to WWII he would have been called a language officer, like Joseph Stilwell.) He was the son of a sea captain and was actually born at sea. Raffles interest in the local culture led him to teach himself the Javanese language. He discovered Borobodur and started its restoration. He founded Singapore in 1819.

Slide 17:Questions Describe the Ambon (Amboyna) Massacre. What was its significance? What was the leveringen system? Why did the Dutch seek a monopoly? Were the Dutch interested in spreading Christianity? Who were the Bugis pirates? What were adat courts? The Napoleonic Wars led to two men being appointed governors of Java. Who were they? Which one “discovered” Borobodur? Took place in 1623 when the Dutch attacked the British enclave on Ambon, killed the governor, tortured and killed 10 factors, nine Japanese soldiers and one Portuguese. The Dutch had driven the Portuguese from Ambon in 1609. The British established their factory on the same island in 1615. A treaty was signed in 1619 under which 1/3 of the spice trade was allocated to the British. 2/3s to the Dutch. The treaty was ignored by the Dutch. In turn the British drove the Dutch from Batavia. The Dutch on Ambon suspected a similar attack and preempted. The torture involved water and fire and was finalized by blowing the arms and legs from their captives with gun powder. The leveringen system involved demanding a fixed amount of species, etc., at a fixed price. It began in the 17th Century. The monopoly allowed them to control supply and therefore price. The Dutch had little interest in spreading Christianity until late in the colonial period after the Ethical Policy had been instituted.. The phrase “Buggy man” comes from Bugis. The Bugis are traders who live on Sulawesi. “Adat” means custom. So adat courts functioned according to local custom. The two governors were Hermann Daendels and Thomas Stamford Raffles. Raffles “discovered” Borobodur.

Slide 18:Role of the Regent The Regent was the native VOC agent contracted to deliver export crops. He was subordinated to a governor-general, regional governor & resident/comptroller. In turn, he appointed and supervised village chiefs who he was responsible to pay from the taxes he collected. His role grew to include governmental and religious aspects, usurping the role of local princes. Eventually, the position was considered hereditary. Daendels and Raffles sought to reduce his powers to protect the natives. Raffles land rent system virtually eliminated him. The Java War demonstrated the need for his support. The Regents principal job was to see to the planting and delivery of crops at the fixed rate set by the VOC (later the government). He was not paid in the normal sense, but instead entitled to collect the traditional 10% against the rice crop. From that income, he was expected to pay all subordinates such as assistants and village chiefs. The income must have been substantial as large bribes were offered for appointment to the position. It eventually became commonplace to buy the position. This meant that the cost of the position was added to the tax bite that the peasant had to bear. Daebdels and Raffles were concerned about the rapacious nature of tax collection. Van Den Bosch saw the regent as the lynch pin in his culture system and restored his powers and then some.

Slide 19:Java War (1825-1830) Also called the Dipo Negoro Revolt. Led to the death of 200,000; 8,000 were Dutch. Dipo Negoro was a prince, but as the son of a lesser wife not eligible to inherit the Sultanate of Yogyakarta. Rejected by Raffles as his father’s successor, he became an Islamic mystic. When tombs were disturbed by road construction, he led a revolt as a messianic ratu adil. Controlled middle Java and Yogyakarta until defeated in 1825. Then led a guerrilla war until 1827. Captured in 1830. The war cost the Dutch 30 million guilders. Dipo Negoro’s ability to gain wide support suggests considerable discontent with Dutch rule. He appealed to the native aristocracy as one of their own and because of their discontent with reform policies of Raffles and Daendels which threatened their income. In the past, they could expropriate cash crops from the peasants for delivery to the VOC while continuing rice and labor taxes. He appealed to the peasants as a mystic holy man and healer. This is a frequently repeated pattern in Asia.

Slide 20:The Culture System The system was implemented from 1830 to 1877 to raise funds to cover the cost of the Java War, Napoleonic Wars and Belgium Civil war. It was the brain child of Baron Johannes Van Den Bosch, Gov-Gen of Java. In theory, it required villages to grow export crops to raise sufficient funds to cover their land taxes. These would be sold to the government at a fixed price for transportation to Amsterdam. The system provided 19-32% of the state’s revenue. Export crops were coffee, sugar indigo, tea, cinnamon, pepper tobacco, cotton, silk and cochineal (a dye made from insect bodies). The Netherlands Trading Company held a monopoly on export crops until 1872 and shipped them to the Netherlands in Dutch bottoms.

Slide 21:Max Havelaar Max Havelaar or The Coffee Auctions of the Dutch Trading Company written by Eduard Douwes Dekker & published in 1860. Portrayed the Culture System as organized forced labor. Increased prices led to increased taxes & taxes were collected on commission. By 1840, rice shortages, famines , epidemics and dislocation all began to appear. Saijah & Adinda. Reforms led to the system being dismantled government monopolies abolished starting in 1860. Coffee remained a monopoly until 1917. Had the impact of Uncle Tom’s Cabin. You can argue with logic but not with emotion. Max... is highly emotional. The problem was not the amount of land required to for export crops, but the time and effort required for their cultivation. Little was left for subsistence staples like rice. Add to this the ever present corruption and exploitation and you have a heavy burden. That was not bad enough. When the government began to pay more for export crops, the land tax was increased because that increase made the land was more valuable. Taxes being collected on commission guaranteed the peasant would be squeezed like ripe fruit. Read selection from Max. Saija and Adinda.

Slide 22:Other Reforms Baron Van Hoevell, a former preacher in Java, led a reform movement in the Dutch States General: 1848 – The legislature would have a say in colonial government. 1854 – Passed a “colonial constitution” for abolition of culture system. 1870 - Passed the Agrarian Act allowing the leasing of land and development of free trade. By 1870 all export crops were removed from the government monopoly except coffee and sugar. However, these were responsible for the bulk of the export crop. In 1890, sugar was exempted. The Agrarian Act permitted greater participation by Dutch entrepreneurs in East Indies. All were eligible to lease land giving and sell the product on the open market. Also protected peasants from some abuses of their chiefs and lessees.

Slide 23:The Ethical Policy The Ethical Policy of 1901: A policy of “ethical obligation and moral responsibility to the people of the East Indies.” Can be summarized as “education, irrigation and emigration.” Included Western education for elites, agricultural extension to open new areas and improve crops, resettlement from Java to Sumatra, improved infrastructure, encouragement of economic development and Christian missionaries. While not intended as such, the policy laid the seeds of nationalism.

Slide 24:Nationalist Movements Many consider the Java War as a first expression of nationalism. Education of the priyayi and santri under the Ethical Policy produced a new elite and a sense of national identity. Organizations which promoted nationalism: 1902 - Kartini Schools - 1908 - Boedi Utomo 1912 –Sareket Islam - 1920 – PKI 1927 - PNI The new education system created often unfulfilled expectations. 1893 - First class native schools were meant for the children of the priyayi . Second class schools were for all others. Professional schools were added: 1903 – Agricultural Secondary School,; 1907 – Veterinary School; 1908 – Law School. Persons who attended became a native elite who were to be substituted into the civil service. But there was discrimination in positions and pay. It made people aware of the subordinate positions to which they had been relegated. a. Kartini Schools were for the daughters of native Javanese officials. b. Boedi Utomo was organization that attracted the product of the Kartini schools. It was an organization that eventually claimed a membership of 10,000. Supporters were from the priyaya class. c. Sareket Islam was an Islamic organization of mass appeal that focused on economic matters. Was anti Chinese, anti Christian and anti capitalist.. Drew from the santri and lower priyaya. Sareket’s leader was Umar Sayed Tjokroaminoto who was know as a ratu adil. Sukarno joined the organization and married Umar’s daughter. Sukarno eventually had nine wives. d. PKI (Partai Kommunis Indonesia). Claimed 50,000 members in by 1923, when it organized a railroad strike. Success in organizing unions led to declaration of a republic. Support was largely in the cities and the revolution failed. Communist members had been expelled from Sareket in 1921. e. PNI (Perserikatan Nasional Indonesia) This was Sukarno’s party. Highly nationalistic with flag and anthem. In 1932 Sukarno and other members were jailed. Were only released when Japanese arrived.

Slide 25:Questions What was Dipo Negoro’s complaint? What’s a ratu adil? Who was Johannes Van Den Bosch? What was the underlying assumption of the Culture System regarding the indigenous population? How did Max Havelaar portray the Culture System? What happened to Saija and Adinda? Who led the colonial reform movement in the Dutch States General? What was the Ethical Policy? What action on the part of the colonial administration led to the beginning of nationalism? What is the historical event that many Indonesians consider to be the first act of nationalism? Dipo Negoro had not been supported for the position of Sultan of Yogyakarta by Stamford Raffles. He was the son of a secondary wife. He claimed that having been passed over the first time, he was entitled to the position when the previous heir died. The road that ran through the burial grounds violated sensitivities and the sensitivities of the people. Johannes Van Den Bosch instituted the Culture System. The assumption was that the peasant farmers didn’t work very hard and had lots of time to work for the colony. Van Den Bosch wanted to teach them to work, it was his Christian duty. Max Havelaar portrayed the culture system as a system of organized forced labor. Baron Van Hoevell led the reform movement in the States General. The Ethical Policy encompassed the idea that the Dutch owed the colony something, possibly in the sense of white man’s burden, etc. It was the duty of the Dutch to educate, irrigate and emigrate. Education which in turn led the indigenous peoples to have a sense of national identity. The Dipo Negoro Revolt or Java War.

Slide 26:World War II The Dutch promise a conference on self-government before they leave in 1941. Sukarno, Mohammed Hatta and Sutan Sjahrir released from jail by the Japanese when they occupied Indonesia in 1942. Sukarno, Hatta and others formed Putera as a double edge puppet government. Gandhi described a similar promise on the part of the British as “a post dated check on a crashing bank.” The Japanese needed the help and cooperation of the Indonesians who were anything but cooperative. The release of Sukarno was intended to help them gain that cooperation through a puppet government. There was particular interest in the production of petroleum products to support the Japanese air forces. Sukarno and Hatta plus others used the Japanese as much as they were used, taking advantage of training and experience they could obtain. The Indonesian army in particular was a product of the Japanese occupation. When the Dutch sought to reestablish colonial rule, they and their British surrogates found the Indonesians to be a very effective fighting force.

Slide 27:Indonesian Revolution Sukarno announced the Five Postulates and declared independence in 1945.The Dutch had not yet returned. Nationalism (National unity) Internationalism (One sovereign nation among equals) Representative Democracy (All significant groups represented) Social Justice ( A Marxist view) Belief in God (A secular state, not Islamic) Note that Sukarno does not specify how groups will be represented. He has a different vision. Social justice for Sukarno included economic justice, socialism. By declaring the right of all Indonesians to worship the god of their choosing, he made the state secular. There was pressure even then for an Islamic state, a theocracy. The desire for an Islamic state is one reason why Aceh continued to resist the Indonesian government well into the 1990’s.

Slide 28:Struggle for Independence The Netherlands asked Britain to reoccupy Indonesia on its behalf. The initial British force attempted to occupy Surabaya on November 10, 1945. The result was a bloody one-month long battle. Negotiations with Dutch led to Linggadjati Agreement in 1947 creating the United States of Indonesia under Dutch sovereignty. The USI was to be part of a larger Netherlands-Indonesian-Surinam-Curacao Union. One British General was killed. Surinam is on the East coast of South America just north of the equator. Curacao is also known as the Netherlands Antilles. It is composed of two groups of island about 50 miles off of the coast of Venezuela. Neither South American possession would be considered comparable to Indonesia or have similar interests.

Slide 29: Sovereignty At Last The Indonesians were not satisfied with the lack of sovereignty. A guerrilla war ensued during which 6,000 Dutch and 150,000 Indonesians were killed during 1947-49. A cease fire was imposed by the U.N. in 1947. An Asian Conference hosted by India imposed sanctions against the Dutch in 1949. Sovereignty was finally transferred by the Dutch in December, 1949. There were in fact two Police Action campaigns, one in 1947 which was ended by the U.N. cease fire and a second in December 1948. India, Pakistan, Sri Lanka, Myanmar, Saudi Arabia and Iraq agreed at the Asian conference not to allow the Dutch ships or aircraft to refuel or reprovision. Dutch reticence at the end of WWII to give up their colonies was certainly matched by the French. The U.S. was one big difference. We backed the French for fear that the country would fold under Communist pressure if we did not. We pressured the Dutch to do the logical thing. The Japanese had destroyed the myth of occidental superiority and invincibility.

Slide 30:Coping with Independence Indonesia found it extremely difficult to create and operate a viable government.. Elections only yielded pluralities and weak, short-lived coalition governments. The economy was in decline and inflation rampant. The country was bankrupt. Fear of nationalization of assets prevented significant foreign investment. National parties drew from 22% to 16% of the vote.

Slide 31:Guided Democracy In 1957 Sukarno established guided democracy to “save” the country. A national advisory council was established composed of representative groups, e.g., peasants, workers, the military. A “cooperating parliament” was established in place of the elected parliament. Opinion could be expressed but votes were not taken. The goal was to govern by deliberation and consensus.

Slide 32:Foreign Policy Sukarno sought a leading role for Indonesia as a non-aligned nation. 1954 – Meeting of the Colombo Powers at Bogor. Obtained support for claims to West Irian. 1954 – Hosted the 29 nation Asian-African conference at Bandung of newly freed peoples. 1962 – Indonesia sought to invade West Irian (Dutch New Guinea) after negotiating with the Dutch since 1949. West Irian was transferred to Indonesia in 1963 with help of the U.N. and U.S. diplomat Ellsworth Bunker. The non-aligned nations concept was Nehru’s. The Colombo Powers were India, Pakistan, Myanmar and Indonesia

Slide 33:Foreign Policy Cont’d 1963 - 65 - Crush Malaysia Campaign launched by Sukarno over the formation of the Federation of Malaysia. Felt that the linking of Sarawak, Brunei and Sabah to Malaya would threaten Kalimantan. The Crush Malaysia Campaign was part of Konfrontasia, the confronting of the remnants of colonialism. It involved NEFOS vs. the OLDEFOS Received $ 2 Billion in aid from the USSR in 1965. Nevertheless, Sukarno was drawn thru the influence of PKI to align with China. Sukarno was drawn to the Chinese Communist. The PKI had 3 million members. It was the largest communist party outside of China. Russian aid was extensive . They liked his idea of confrontation between Newly Emerging Forces and Old Established Forces. Sarawak, Brunei, and Saba are on north Borneo. Kalimantan is south Borneo. The conflict involved British and Australian troops and included peninsular Malaya. It was a nasty little war with parachute insertions from Indonesia, raids and counter raids.

Slide 34:Questions How did Sukarno and his cohorts react to the Japanese invasion? What is particularly significant about Pancasila? What part of Indonesia did the British seek to occupy on behalf of the Dutch at the end of WWII? The Dutch sought to avoid surrendering their position in Indonesia by creating the _______________. What was the Japanese legacy to Indonesia? Why did the U.S. support the French return to Indochina but not the Dutch in Indonesia? Why did Sukarno establish Guided Democracy? What was Konfrontasi? It got him out of jail. He decided to cooperate to the extent that it was beneficial. Formed Putera a puppet government. The development of an effective native Indonesian army was the most obvious benefit. Pancasila was secular and it reflected a socialist view of welfare. The need for such a doctrine suggests the lack of a common vision for the new Indonesia. Sun Yat Sen had had three principals (1911). Other Asian leaders came up with similar statements to principal. Surabaya in 1945. It led to 30 days of intense fighting. The Dutch sought to create the United State of Indonesia (USI)within a Netherlands-Indonesian-Surinam-Curacao Union. It would have functioned much like a commonwealth. The Japanese victories early in the war destroyed the illusion of occidental superiority and invincibility. The U.S. feared the France would collapse and become Communist. Democracy seemed unwieldy and the country was on the verge of chaos. Konfrontasi was about confrontation: Malaysia and the remnants of colonialism.

Slide 35:The Gestapu Affair On the night of September 30, 1965, six leading generals and one lieutenant were assassinated in an attempted coup. General Nasution escaped the assassination and Major General Suharto was not targeted. The reaction was a massacre of a half million Communist and Chinese, a combination pogrom and Jihad. Sukarno had no advanced knowledge of the coup but his powers were curbed. He was removed as president in 1967 and died in 1970. The bodies were dumped in an abandoned well on Halim A.B. The leader of the plot was LTC Untung. The plotters called themselves the Thirtieth of September Movement. They claimed to be protecting Sukarno from an imminent coup led by the Council of Generals. The plotters held Halim A.B. for about 30 hours before the base was stormed and the coup ended. Major General Suharto led the Army’s response. It is he who blamed the Communists for the plot. Sukarno had played the Army against the PKI and the converse. The PKI may have feared that Sukarno’s health would result in his death and a power shift to the Army. Many have also speculated that it was really a CIA plot involving Suharto. The reaction against the Chinese must be explained in context. Chinese make up only 5% of the Indonesian population, but they just about control the entire economy. This is true through out SEA.

Slide 36:Suharto’s New Order March 11, 1966 – Sukarno signed the Supersemar decree authorizing Suharto to take all measures necessary ... This was the beginning of the New Order. Revived the parliament of 1955. Adam Malik renegotiated debt of $1.7 million. Ended Confrontation Policy. Joined ASEAN Befriended the West and Japan. Held national elections in 1971. All measures necessary to to guarantee the security, calm, and stability of the government and the revolution, and guarantee the personal safety of and authority (of Sukarno).

Slide 37:New Order Problems Sekber Golkar (the government party) lost creditability in the early ’70s. Legitimized “Dual Function.” Graft, cronyism and corruption were extremely wide spread. Examples: Astra Toyota & Tommy Pertamina lost $10.5 billion. Sekber Golkar was largely the tool of Suharto and the military to monopolize power. The In January 1974, student demonstration during a visit by Japan’s president Tanaka turned ugly and hundreds of cars at the Astra Toyota dealership were burned, plus many businesses looted. It was called the Malari Incident. The dealership was a visible symbol of corruption – it was owned by Tommy Suharto.

Slide 38:The Downfall of Suharto The 1997-98 crises led to Indonesian currency losing 70% of its value. The IMF bailout required strict austerity measures leading to further economic hardship and inflation. Sukarno ran unopposed for president for the seventh time. Sparked by the killing of six student demonstrators, Jakarta was seized by demonstrations and riots. The army took over Jakarta and Sukarno resigned after 32 years as president and $15 billion in graft.

Slide 39:B. J. Habbie As V.P., Habbie assumed the presidency. Many were highly skeptical. Trained as an engineer in Germany. Founded an aircraft company in Bandung. Championed industrial vs. agricultural development. Allowed East Timor referendum leading to that country’s independence. I giving speeches, Habbie would often ask his audience to consider which was more valuable: a kilo of airplne or a kilo of rice. The airplane could be sold for $30,000.00 a pound. The rice would bring $0.07 per pound.

Slide 40:Abdurrahman Wahid Elected in 1999. Was a nearly blind Muslim cleric. Had suffered recurring strokes. Proved to be indecisive and incapable of running the country. Did not effectively cope with the separatist demands of Aceh and Irian Jaya. Was impeached in 2001. Also called Gus Dur, a secondary name of familiarity. People hoped that in electing Wahid that he would correct the excesses of Suharto. Wahid appeared to have health problems. He rarely gave speeches; they were read for him while he sat next to the podium. He often slept thru his own speeches. As the country descended into political chaos, he became increasingly dictatorial and irrational.

Slide 41:Questions Who was responsible for the Gestapu Affair? Who signed the Supersemar Decree? What was Suharto’s vision of a New Order? What was significant about Sekber Golkar? Describe Dual Function. What caused Suharto’s downfall? Why was there skepticism about Habbie succeeding Suharto? Why was Wahid chosen to be president instead of Megawati Sukarnoputri in 1999? The Communist and Chinese took the blame, but many have doubts. Could the CIA have engineered it? I doubt it, but maybe Suharto did it? Sukarno signed the decree. It basically turned power over to Suharto. How Suharto approached Sukarno to get his signature is very interesting. It was primarily economic development. Sekber Golkar was the government party. It was largely military and the military controlled the government. Dual Function is the idea that the military has both a security function and a social political function. The Red Army espouses a similar concept. Suharto’s downfall was the result of the 1979 economic crises in Asia. Up to that point the country had accepted his nepotism, graft and corruption. The middle class which he had created became disgusted. Habbie had been Sukarno’s second in command. They doubted that he would make the reforms that were needed. In fact, he honored his pledge for democratic elections Wahid was elected by the MPR because many Muslims did not want a women president, even if she had a 34% plurality.

Slide 42:Separatist Movements There have been three major separatist movements: Aceh, Iran Jaya (West Papua) and East Timor. Picture is of Jose Ramos-Horta,the new prime minister of East Timor. He’s was a leader of the independence movement, a former Nobel Peace Prize winner and foreign minister of the country.

Slide 43:East Timor East Timor declared its independence in 1975 after a change in the government of Portugal. Indonesia invaded four days later. Timor had been a Portuguese colony since 1702, as such its population is 90% Catholic. The Netherlands annexed West Timor in 1859. It is largely Islamic. Indonesia invaded East Timor because it feared FRETILIN (the independence party) was in league with China and would turn the country Communist. FRETILIN fought a successful guerrilla war from 1975 to 1999. Total deaths from all causes = 200,000 +/-. East Timor became fully independent in 2002.

Slide 44:Aceh Was independent prior to colonial rule, even controlling part of the Malay Peninsula (Kedah). Indonesia granted Aceh special autonomy status in 1959. The Aceh freedom movement began in 1976 led by GAM. Warfare led to 5,000 deaths by 2000. In 1999, President Wahid assured GAM that all of its demands short of total independence would be met. Granted 75% of all oil and gas revenue plus Sharia law and own flag in 2001. GAM continued to demand total independence until 2005 peace. Fought the Portuguese, British and Dutch. Eventually, had to give up claims to Malay Peninsula under British pressure. GAM = Aceh Sumatra National Liberation Front (ASNLF) After failure of initial settlement with Indonesia, additional negotiations were conducted under the good offices of the Henry Dunant Center for Humanitarian Dialogue in Geneva. A cease fire agreement was reached in December 2002 with 150 Thai and Philippine observers to supervise. However, a real peace was not in place until after the 2004 Tsunami, which killed between 103-238,000 and left 500,000 homeless. The mediator was Finish president Martti Ahtiaari.

Slide 45:Western New Guinea The Dutch sought to retain in a commonwealth. In 1961, Indonesia mounted an invasion after West Papua declared independence. In 1962, agreement was reached to transfer the territory to Indonesia. An “Act of Free Choice” was required. The poll was taken in 1969. President Wahid granted special autonomy in 2000. In 2001, it was split into two provinces. The freedom movement wanted a share of the income from the rich gas, oil, copper & gold resources. The U.S essentially forced the Dutch to turn West Papua over to Indonesia. An agreement was signed in 1962 called the New York Agreement. A transitional period under U.N. administration was called for. The Dutch had made a genuine effort to prepare the Papuans for independence within a “Netherlands commonwealth.” The population contained a large number of Eurasians, all most all of which were Catholic or Protestant. Starting in 1953, began an elaborate education program training the people in everything from police and military to telephone and nursing. The 1969 was anything but an Act of Free Choice. It was administered by the Indonesians and involved considerable intimidation of tribal chiefs. Megawatti Sukarnoputri implemented the order splitting the province in two. The splitting of the West Papua into two provinces violated the special autonomy status of the province. The courts ruled in favor of the the Papuan’s but refused to reverse the the order. Indonesia sponsored the migration of 1.2 million Moslems into the the province to improve the ratios.

Slide 46:Megawati Sukarnoputri Indonesia’s first woman president. Succeeded Wahid in 2001 as his V.P. Formed her own political party to win election when banned from the PDI. She formed PDI-P. Considered herself the “good Queen.” Was called “Mother Mega.” Presided over a 3-year transition to civilian rule. Megawati was not an academic. Studied Psychology but did not graduate. DPI stands for Democratic Party of Indonesia. DPI-P stands for Democratic Party of Indonesia - Struggle. Was selected as V.P. under Wahid by the parliament, although she had a plurality of 34%. Was not academically inclined; never graduated. In forming her own party, she followed the model of Mrs. Ghandi in India. She believed her father was the good king whose throne was taken from him by the bad prince. She saw herself as reclaiming the throne as the good queen.

Slide 47:Susilo Bambang Yudhoyono Elected president in 2004 in Indonesia’s first direct presidential election. Called “SBY.” Top graduate of Indonesian military academy, U.S. Infantry Advanced Course and Command and the General Staff College. Labeled “the thinking general.” Took leading role against terrorism.

Slide 48:Questions What precipitated the Indonesian invasion of East Timor in 1975? What were GAM’s demands for Aceh? What led to the Indonesian invasion of West Papua in 1961? What did the Papuan Freedom Movement want? To what great Indonesian figure is Magawati Sukarnoputri related? Susilo Bambang Yudhoyono (SBY) has the distinction of being the first president of Indonesia to be elected by________. East Timor declared itself independent after Portugal indicated that it was no longer interested in it as a colony. The separation between East and West Timor existed long before the colonial period. The native kingdoms of Serviao controlled the west and Belu the east. That division eventually led to a Dutch–Muslim west and a Portuguese-Catholic east. GAM sought total independence but eventually settled for special status, Sharia Law and 75% of the oil income. The guerrilla war continued until the Tsunami. West Papua declared independence. The Dutch had prepared the area for independence hoping for a commonwealth relationship which allow continued favorable access to the area’s mineral wealth. A share of income from the mineral wealth of oil, gas, cooper and gold. Sukarno. SBY was the first to be elected by direct vote.

Slide 49:Institutions and Social Groups Constitution. The constitution is a hybrid: “presidential with parliamentary characteristics.” Government is unitary. Executive power is held by the legislature in that it can subject the president to votes of confidence. Until 2004, the legislature actually elected the president and V.P. They are now elected directly. Limited to two 5-year terms In 2004, the House of Regional Representatives (DPD) was established as a separate legislative body. It is composed of four representatives from each of Indonesia’s 33 provinces.The House of Representatives (DPR) is still the premier legislative body. Composed of 550 seats, members are elected for 5-year terms. The changes in the constitution represent an amazing change in governance. Numerous changes were made in the constitution through annual meetings of the MPR in 1999 – 2001. Originally there were 37 articles. Now there are 70. The DPD deals with issues peculiar to the provinces and their relationship to the central government and each other. Obviously money and resources are among the issues. It cannot make laws by itself, but must propose them to the DPR for passage.

Slide 50:Institutions and Social Groups Constitution (Continued) The Peoples Consultative Assembly (MPR) is composed of the elected members of the DPR & DPD. Responsible to inaugurate and impeach president and amend the constitution. The president is head of state, CINC of armed the forces, responsible for domestic governance and foreign affairs. The president appoints a council of ministers. Members do not have to be elected members of the legislature. He also appoints provincial governors.

Slide 51:Institutions and Social Groups Military. The military played both a security and sociopolitical role under Suharto, labeled “dual function.” Active duty military were members of the cabinet, provincial governors, members of the legislature and leaders of Golkar. Since the election of SBY, the dual function concept has been down played. The goal is to eliminate it completely.

Slide 52:Institutions and Social Groups Bureaucracy Indonesia is a bureaucratic polity in which power and decision making is limited to members of the bureaucracy, specifically the military, civil servants and technocrats. Economists serving in top technocrat positions are commonly called the “Berkley Mafia.” Korpri was created in the 1970 to provide a new corps of civil servants, including provincial governors. The 1997 economic downturn did lessen the awe in which technocrats were held.

Slide 53:Institutions and Social Groups Political Parties. Until 1999, no party could compete with Golkar, the official government and military party. All government employees and the military were required to belong.. Sukarno banned all competing political parties except PDI and PPP. Smaller political parties were forced to become part of one or the other. PDI is the Indonesian Democratic Party; PPP is the Muslim Party. Sukarno required that PDI and PPP espouse Pancasila only as their political philosophy and not depart from it. All these restrictions were lifted in 1999. Megawati Sukaroputri was literally thrown out of the PDI when the government found her position as head of the party objectionable. She founded a splinter group, PDI-P, the P standing for struggle. She boycotted the elections in 1997, but was highly successful in 1999, garnering 34% of the vote.

Slide 54:Institutions and Social Groups Democratization. The Sukarno period of Guided Democracy (1950-57) was followed by a return to the pre-1950 constitution under Suharto. Suharto’s New Order relied heavily on military rule (Dual Function), but did achieve great economic progress and a “middle class.” Suharto saw himself as the “Development President.” 1999 to 2001 saw the development of real democracy under Wahid and then Megawati Sukarnoputri. SBY has pledged to completely eliminate “Dual Function.” The general concept of dictatorial rule (benign dictatorship) as a road to economic development is shared by other countries in SEA plus China. The MPR met in 1999, 2000, & 2001 to change the Indonesian constitution. The original 37 articles became 70.

Slide 55:Institutions and Social Groups Economic Development. Has averaged a 6% GNP growth since 1965, although per capita GNP is extremely low ($685.00). The 1997 economic crises slowed the GNP, but it has returned to a projected 5.2% for 2006. Natural resources include oil (aging fields and old equipment), natural gas (exports 20% of world’s LNG), tin, copper, and gold. Agricultural exports include palm oil, rice, tea, coffee, spices and rubber. Major industries include mining, petroleum, NG, textiles & apparel, labor intensive assembly.

Slide 56:Institutions and Social Groups Economic Problems, Most manufacturing is sub-contract assembly and low tech such as footwear, canning, & wood processing. Support by Chinese of Golkar led to preferential treatment by the government. Chinese businessmen, called cukong (boss), are resented for their power. Primitive slash and burn farming on Kalimantan and Sumatra started forest fires that spread smoke over much of SEA in 1997. Suharto family corruption and the national car – Timor.

Slide 57:Institutions and Social Groups Foreign Policy. Sukarno sought security in anti-western nationalism: the NEFOSs against the OLDEFOSs. Konfrontasi against Malaysia was the result. Suharto assumed a lower profile role in international affairs. Supported ASEAN and the Zone of Peace. East Timor was the exception. Played a role in attempting to resolve the Cambodia crises. Relations with China have improved since the Gestapu Affair. Established diplomatic relations in 1990. The West is still Indonesia’s primary market and source of investment and development assistance. NEFOS = Newly emerging forces. OLDEFOS = Old established forces. September 30, 1965=Gestapu

Slide 58:Questions Does Indonesia have a presidential or parliamentary system of government? In 2004, a new national legislative body was established. What is it called? Does Dual Function continue to exist. What is Korpri? How many political parties were allowed under Suharto? Name them. What was Sukarno’s New Order? How important are the Chinese to Indonesia’s economic development? Neither presidential nor parliamentary. It’s a hybrid. The House of Regional Representation (DPD). It is fading quickly. SBY has pledged to eliminate it completely. A civil service organization, similar to a union or a guild. Has 6 million members and is a subsidiary of GOLKAR. All civil service employees are required to belong. it was supposed to serve as a vehicle to professionalize the civil service. Three. Golkar, the Muslim Party and the Indonesian Democratic Party. It was largely economic, involved heavy participation by the military in government. The Chinese are extremely important to the economic development of Indonesia. Suharto saw them as the key and is said to have favored them over Indonesians. However, it must be remembered that the Chinese supported him financially.

Slide 59:More Questions What was significant about Indonesia’s national car (the Timor)? What two forces did Sukarno see confronting each other in Konfrontasi? How has Indonesia related to the rest of Southeast Asia in recent years. Tommy had the sole rights to develop and sell. The car would have actually been manufactured in Korea. It has been a cooperating member of ASEAN and aligned with democratic countries. It has established good relations with China. The OLDEFOS and the NEFOS.

Slide 60:The End