Suharto, Indonesia’s second president, ruled the country for over three decades, from 1967 to 1998. His presidency was marked by dramatic economic growth, political stability, and authoritarian rule. Understanding Suharto’s presidency and policies is essential to grasp the complexities of modern Indonesian history. This article explores Suharto’s rise to power, key policies during his rule, and the legacy he left behind.
The Rise of Suharto
Suharto came to power in the aftermath of the chaotic events of 1965–66, a period marked by a failed coup attempt and widespread anti-communist purges. As a general in the Indonesian Army, Suharto capitalized on the political instability to gradually sideline President Sukarno and take control. By 1967, Suharto was officially appointed acting president, and in 1968 he was formally inaugurated as president.
His rise was supported by the military and backed by Western countries concerned about the spread of communism in Southeast Asia during the Cold War. Suharto promised stability, economic development, and a departure from Sukarno’s erratic policies.
New Order Regime: Political Control and Stability
Suharto’s era is commonly referred to as the New Order (Orde Baru), emphasizing a new chapter in Indonesian governance. The New Order focused heavily on restoring order, suppressing dissent, and establishing a centralized, bureaucratic government controlled by Suharto and his inner circle.
Authoritarian Rule
Despite promising political stability, Suharto’s regime was authoritarian. The New Order controlled political parties tightly, limited press freedom, and frequently suppressed opposition. The military played a dominant role in politics, often intervening to maintain the regime’s power.
Suharto’s government implemented a system called “Pancasila Democracy,” which effectively eliminated genuine democratic competition. Only parties approved by the regime were allowed to participate in elections, and the legislature was largely a rubber stamp for presidential decisions.
Anti-Communist Campaign
Following his rise, Suharto led a brutal anti-communist campaign that resulted in the deaths of hundreds of thousands of suspected communists and sympathizers. This campaign was pivotal in consolidating his power but left deep scars in Indonesian society.
Economic Policies: Development and Growth
One of Suharto’s most significant contributions was the focus on economic development. His government prioritized modernization and economic growth, which transformed Indonesia from a largely agrarian society into an emerging industrial economy.
Stabilizing the Economy
When Suharto assumed power, Indonesia was struggling with hyperinflation, economic chaos, and political instability. His administration worked closely with the International Monetary Fund (IMF) and World Bank to implement policies that stabilized the economy. Fiscal discipline, currency stabilization, and investment incentives attracted foreign capital.
Five-Year Development Plans
The government introduced a series of Five-Year Development Plans (Repelita) starting in 1969, which emphasized infrastructure, agriculture, and industrial growth. These plans helped improve education, healthcare, and public works, lifting millions out of poverty over the decades.
Agricultural Reforms
One of the hallmarks of Suharto’s economic policy was the Green Revolution in Indonesia. Through the introduction of high-yield rice varieties, improved irrigation, and fertilizer subsidies, Indonesia became self-sufficient in rice production, reducing food shortages and rural poverty.
Industrialization and Foreign Investment
Suharto’s regime aggressively promoted industrialization by attracting foreign investment and fostering domestic enterprises. Major infrastructure projects, such as roads, ports, and telecommunications, supported this growth.
The government also prioritized natural resource extraction, especially oil and gas, which became key sources of revenue. However, this reliance on resources later exposed the economy to fluctuations in global commodity prices.
Social and Political Policies
Suharto’s presidency was not only about economics; it was also characterized by attempts to shape Indonesia’s social and political fabric.
Pancasila as State Ideology
Suharto emphasized Pancasila—Indonesia’s five founding principles—as the sole ideological foundation of the state and society. All organizations, including political parties and civil society groups, were required to adhere to Pancasila. This policy helped Suharto suppress ideological dissent and unify the nation under his regime.
Military and Bureaucratic Control
The military was integrated into civilian government roles through the Dwifungsi (dual function) doctrine, which gave the armed forces both security and socio-political responsibilities. This ensured military loyalty to Suharto and strengthened regime control.
Education and Cultural Policies
The regime expanded education access but maintained strict controls over curriculum to promote nationalism and discourage political dissent. Cultural policies promoted a centralized national identity, often at the expense of Indonesia’s rich ethnic and cultural diversity.
Controversies and Human Rights Issues
Despite economic success, Suharto’s presidency was marred by widespread corruption, nepotism, and human rights abuses.
Corruption and Cronyism
Suharto’s family and close associates amassed enormous wealth through state resources and business monopolies. Corruption was rampant, with an estimated $15–35 billion allegedly siphoned off during his rule.
Repression and Human Rights Violations
The regime routinely suppressed political opposition, including activists, journalists, and ethnic minorities. Notable human rights abuses occurred in regions such as East Timor and Aceh, where military crackdowns were brutal.
The Fall of Suharto
By the late 1990s, economic problems triggered by the Asian Financial Crisis of 1997–1998 severely weakened Suharto’s grip on power. Massive public protests, combined with demands for reform and democratic transition, led to Suharto’s resignation in May 1998 after 31 years in office.
Legacy of Suharto’s Presidency
Suharto’s legacy is deeply complex, combining remarkable economic development with authoritarianism and corruption. His policies transformed Indonesia’s economy and infrastructure but left lasting challenges in governance, human rights, and democratic institutions.
Economic Development and Stability
Under Suharto, Indonesia experienced decades of rapid economic growth, infrastructure expansion, and poverty reduction. Many credit him with laying the foundation for modern Indonesia’s economy.
Authoritarian Governance
However, Suharto’s authoritarian style entrenched a culture of centralized power, limiting political freedoms and weakening democratic institutions. His regime’s legacy includes unresolved issues around corruption and military influence in politics.
Social and Cultural Impact
The emphasis on Pancasila and national unity under Suharto helped stabilize a diverse and fragmented nation but sometimes suppressed ethnic and political pluralism.
Conclusion
Suharto’s presidency was a defining era in Indonesian history. His policies shaped the nation’s political landscape, economic trajectory, and social structure. While his leadership brought stability and growth, it also left behind a legacy of authoritarianism and systemic corruption that Indonesia continues to grapple with today. Understanding Suharto’s contributions and contradictions provides valuable insights into the complexities of Indonesia’s development as a modern nation.