The New Order era in Indonesia, spanning from 1966 to 1998 under President Suharto, is one of the most defining periods in the country’s modern history. Characterized by authoritarian rule, political stability, and remarkable economic growth, the New Order implemented a range of policies that reshaped Indonesia’s political, economic, and social landscape. This article delves into the key policies of the New Order era, their impacts, and the legacy they left on Indonesia.
Background: Rise of the New Order
The New Order regime began after the tumultuous period of the Guided Democracy era and the failed 1965 coup attempt attributed to the Indonesian Communist Party (PKI). General Suharto emerged as a powerful figure, and in 1966, he officially replaced President Sukarno, initiating a new political order focused on stability, development, and anti-communism.
The New Order policies were crafted to rebuild a fractured nation, attract foreign investment, and suppress dissent, ultimately maintaining Suharto’s strong grip on power for over three decades.
Political Policies: Authoritarian Control and Stability
Consolidation of Power and Military Role
One of the central pillars of the New Order was the consolidation of political power under Suharto and the military. The regime institutionalized the Dwifungsi (dual function) doctrine, which justified the military’s involvement in both defense and socio-political roles.
The military became deeply embedded in governance, overseeing regional administration and internal security. This policy suppressed political opposition, ensuring regime stability but limiting democratic freedoms.
Controlled Political System
The New Order created a tightly controlled political environment by limiting party competition to three main entities: Golkar (the government’s political vehicle), the Indonesian Democratic Party (PDI), and the United Development Party (PPP). Golkar dominated elections, which were held regularly but were neither free nor fair by democratic standards.
The regime used political repression, media censorship, and selective cooptation of elites to prevent dissent and maintain control.
Anti-Communism and Repression
Following the 1965 coup attempt, the New Order aggressively pursued anti-communist purges. Hundreds of thousands suspected communists and sympathizers were imprisoned or killed, and the PKI was banned.
This policy ensured the regime eliminated its main political rivals and justified authoritarian measures as necessary for national security.
Economic Policies: Development and Growth
Stabilization and Liberalization
Indonesia’s economy was in crisis at the end of the Sukarno era, suffering from hyperinflation, stagnation, and political instability. The New Order prioritized economic stabilization through orthodox fiscal and monetary policies supported by international institutions like the International Monetary Fund (IMF) and World Bank.
Price controls were lifted, subsidies rationalized, and foreign investment encouraged. This marked a shift towards a market-oriented economy.
The Role of the Technocrats and the “Berkeley Mafia”
A group of Western-educated Indonesian economists, often called the Berkeley Mafia, played a key role in shaping economic policies. They promoted policies such as export-led growth, agricultural development, and industrialization.
These technocrats worked to modernize the economy, improve infrastructure, and integrate Indonesia into the global market.
Export-Led Growth and Diversification
The New Order focused on boosting exports of natural resources, including oil, rubber, tin, coffee, and palm oil. Oil revenues, especially during the 1970s oil boom, financed infrastructure projects, health, and education.
The government also promoted industrialization, encouraging sectors like textiles, manufacturing, and consumer goods to reduce dependence on commodities.
Rural Development and the Green Revolution
The regime implemented the Green Revolution, introducing high-yield rice varieties, irrigation, and fertilizer subsidies, significantly increasing rice production and achieving self-sufficiency in staple food.
This rural development policy helped reduce famine risks and alleviate poverty in the countryside.
Social Policies: Control and Development
Education and Health Expansion
The New Order expanded access to basic education and healthcare services, resulting in improved literacy rates and health outcomes. Schools and clinics were established in rural areas, and government programs aimed to increase primary school enrollment.
Family Planning Program
The government launched an ambitious family planning program (KB program) to control population growth. It promoted contraception and reproductive health services, which contributed to a decline in fertility rates.
Pancasila as State Ideology
Pancasila—the state philosophy emphasizing unity, belief in God, humanitarianism, democracy through consensus, and social justice—was institutionalized as the guiding ideology. All organizations and citizens were required to pledge allegiance to Pancasila, reinforcing national identity and regime legitimacy.
Media Control and Censorship
The New Order tightly controlled the media, censoring criticism and restricting information that challenged the regime. Only state-sanctioned narratives were allowed, limiting public discourse.
Regional and Foreign Policies
Regional Autonomy and Military Presence
The regime maintained strict control over Indonesia’s diverse regions, especially in conflict-prone areas like Aceh, Papua, and East Timor (annexed in 1975). Military operations were often used to suppress separatist movements.
Decentralization was minimal; local governments were subordinate to the central authority.
Foreign Policy: Non-Aligned but Pragmatic
While maintaining a non-aligned stance during the Cold War, the New Order regime sought strong ties with Western countries and international financial institutions to attract aid and investment.
Indonesia joined international organizations such as ASEAN (Association of Southeast Asian Nations) and played a constructive regional role.
Criticisms and Negative Impacts
Human Rights Violations
The New Order era was marked by significant human rights abuses, including suppression of political opponents, restrictions on freedom of speech, and violent crackdowns on dissent.
Military operations in provinces like East Timor led to international condemnation due to alleged atrocities.
Corruption and Cronyism
Despite economic growth, corruption was endemic. Suharto and his family, along with close business associates, controlled vast wealth through monopolies and patronage networks, leading to inequality and social resentment.
Environmental Degradation
Rapid industrialization and resource extraction led to significant environmental damage, including deforestation, pollution, and loss of biodiversity.
Economic Vulnerability
Indonesia’s dependence on commodity exports and foreign debt left the economy vulnerable, culminating in the devastating 1997 Asian Financial Crisis that triggered the collapse of the New Order.
The End of the New Order and Transition to Reformasi
The Asian Financial Crisis exposed the weaknesses of the New Order policies. The economic collapse, combined with widespread social unrest and loss of elite support, forced Suharto to resign in 1998.
The transition to the Reformasi era marked a move towards democracy, transparency, and decentralization, addressing many of the shortcomings of the New Order.
Conclusion
The New Order era policies in Indonesia had a profound impact on shaping the country’s political, economic, and social landscape. While the regime achieved notable successes in stabilizing the economy, promoting development, and maintaining political order, it did so through authoritarian control, suppression of dissent, and widespread corruption.
Understanding the New Order’s policies is essential for grasping Indonesia’s contemporary challenges and the reforms undertaken in the post-Suharto era. The legacy of this period continues to influence Indonesia’s political dynamics and development trajectory today.