Post-Suharto era
Issues over this period have included a push for a stronger democracy and civilian rule, elements of the military trying to retain their influence, a growing Islamism in politics and society, demands for greater regional autonomy. The process of reformasi in Indonesia has experienced a greater freedom of speech in contrast to a greater censorship under the New Order. This has led to a more open political debate in the news media and increased expression in the arts. Events that have shaped Indonesia in this period include a bombing campaign by Islamic terrorists and the 2004 Indian Ocean earthquake.
The Reformasi of 1998 led to changes in Indonesia's various governmental institutions, reforms upon the structures of the judiciary, legislature, and executive office. Generally the fall of Suharto in 1998 is traced from events starting in 1996, when forces opposed to the New Order began to rally around Megawati Sukarnoputri, head of the PDI and daughter of the founding president Sukarno. When Suharto attempted to have Megawati removed as head of this party in a back-room deal, student activists loyal to Megawati occupied the headquarters of PDI in Jakarta. This culminated in Black Saturday on July 27, when the Indonesian military broke up the demonstrations.These actions, along with increasing concerns over human rights violations in Indonesian-occupied East Timor, began to unsettle Suharto's normally friendly relations with Western nations Australia, Great Britain, and the United States. These further worsened when the 1997 Asian financial crisis reached Indonesia, highlighting the corruption of the New Order.
Economic instability from the crisis affected much of the country, in the form of increased prices for staple foods and goods, and lowered standards of living and quality of life. These touched off riots, many targeting ethnic Chinese-Indonesians; bolstered by the findings of Parliamentary and independent investigations, it is often theorized that these anti-Chinese riots were instigated or aided by the military to divert anger away from Suharto himself.
In West Kalimantan there was communal violence between Dayaks and Madurese in 1996, 1999 and 2001, resulting in about 500 deaths.
Growing dissatisfaction with Suharto's authoritarian rule and the rapid erosion of the economy led many, chiefly the younger generation, to renew their protests directly against the New Order. During the years 1997-1998, a massive riot broke out in Indonesia. People were burning everything within the city including cars, motorcycles, buildings, and monuments in addition to pillaging and looting from stores. This was further worsened when many were killed and raped, most of which were Indonesians of Chinese descents. No action was taken by the army or the police. In 1998, Suharto made the decision to stand before the parliament for a re-election and won. The result was considered so outrageous that students occupied the Parliament. Suharto soon stood down from the presidency, and named Jusuf Habibie his successor. Considered the unseen power behind the throne, General Wiranto of the Chief of Staff over the military that was central to the New Order, is believed to have been behind the decision of Suharto to step down.
On Suharto's resignation, Vice President Jusuf Habibie was sworn in as President of Indonesia. As President, Habibie undertook numerous political reforms.
In February 1999, Habibie's Government passed the Political Parties Law. Under this law, political parties were not limited to just three as had been the case under the Suharto regime. Political parties were also not required to have Pancasila as their ideology. This resulted in the emergence of many political parties and 48 would go on to compete in the 1999 Legislative Election.
In May 1999, Habibie's Government passed the Regional Autonomy Law. This law was the 1st step in decentralizing Indonesia's Government and in allowing Provinces to have more part in Governing their Province.
The Press became liberated under Habibie's Government although the Ministry of Information continued to exist.
Habibie also released political prisoners such as Sri Bintang Pamungkas, Muchtar Pakpahan, and Xanana Gusmxo.
Habibie also presided over the 1999 legislative elections, the 1st free election since the 1955 Legislative Election. This election was supervised by the independent General Elections Commission instead of an elections commission filled with government ministers as had been the case during the New Order.
In a move that surprised many, and angered some, Habibie called for a referendum on the future of East Timor. Subsequently, on August 30, the inhabitants of East Timor voted to break away from Indonesian rule and become an independent nation. The territorial loss to Indonesia harmed Habibie's popularity and political alliances.
Following Habibie's presidency, Abdurrahman Wahid and Megawati Sukarnoputri served as president. In 2004 Susilo Bambang Yudhoyono was elected Presidentâ€"a position he has held since. Yudhoyono's coalition, which brings together figures from the military, business community, and conservative Islam, has restabilized the office of the Presidency.
In 1999, Abdurrahman Wahid became President of Indonesia. His 1st Cabinet, dubbed the National Unity Cabinet, was a Coalition Cabinet which consisted of members of various political parties. PDI-P, PKB, Golkar, PPP, PAN, and Justice Party. Non-partisans and the military were also represented in the Cabinet. Wahid then went on to make two administrative reforms. The 1st administrative reform was to abolish the Ministry of Information, the New Order's main weapon in controlling the media while the 2nd administrative reform was to disband the Ministry of Welfare which had become corrupt and extortionist under the New Order.
Wahid's plan in Aceh was to give it a referendum. However, this referendum would be to decide on various modes of autonomy rather than to decide on independence like in East Timor. Wahid also wanted to adopt a softer stance towards Aceh by having less military personnel on the ground. In March, Wahid's Government began to open negotiations with the Free Aceh Movement. Two months later, in May, the Government signed a memorandum of understanding with GAM to last until the beginning of 2001, by which time both signatories would have breached the agreement.
On 30 December, Wahid visited Jayapura the capital of Papua province. During his visit, Wahid was successful in convincing West Papuan leaders that he was a force for change and even encouraged the use of the name Papua.
In September 2000, Wahid declared martial law in Maluku. By now, it was evident that Laskar Jihad were being assisted by members of the military and it was also apparent that they were financed by Fuad Bawazier, the last Minister of Finance to have served under Suharto. During the same month, the West Papuans raised their Morning Star flag. Wahid's response was to allow the West Papuans to do this provided that the Morning Star flag was placed lower than the Indonesian flag For this, he was severely criticized by Megawati and Akbar. On 24 December 2000, a series of bombings were directed against churches in Jakarta and in eight cities across Indonesia.
In March of that year, Wahid suggested that the 1966 Provisional People's Consultative Assembly resolution on the banning of Marxism-Leninism be lifted.
When he ascended to the Presidency, one of Wahid's goals was to reform the military and to take it out of its dominant socio-political role. In this venture, Wahid found an ally in Agus Wirahadikusumah who he made Commander of Kostrad in March. In July, Agus began uncovering a scandal involving Dharma Putra, a foundation with affiliations to Kostrad. Through Megawati, military members began pressuring Wahid to remove Agus. Wahid gave in to the pressure but then planned to have Agus appointed as the Army Chief of Staff to which top military leaders responded by threatening to retire and Wahid once again bowed down to pressure.
Wahid's relationship with the military deteriorated even further when in July it was revealed that Laskar Jihad had arrived in Maluku and was being armed by the military. Laskar Jihad, a radical Islamic militia had earlier in the year planned to go to Maluku and assist Muslims there in their communal conflict with the Christians. Wahid had ordered military to block Laskar Jihad from going to Maluku, but nevertheless they still made it to Maluku and they were then being armed with what turned out to be military weapons.
Wahid embroiled in two scandals which would damage his Presidency. In May, the State Logistics Agency reported that US$4 million was missing from its cash reserve. The missing cash was then attributed to Wahid's own masseur who had claimed that Wahid sent him to Bulog to collect the cash. Although the money was returned, Wahid's opponents took the chance of accusing him of being involved in the scandal and of being aware of what his masseur was up to. At the same time, Wahid was also accused of keeping US$2 million for himself. The money was a donation by the Sultan of Brunei to provide assistance in Aceh. However, Wahid failed to account for the money.
By the end of 2000, there were many within the political elite who were disillusioned with Wahid. The most obvious person who showed this disillusion was Amien Rais who showed regret at supporting Wahid to the Presidency the previous year. Amien also attempted to rally opposition by encouraging Megawati and Akbar to flex their political muscles. Megawati surprisingly defended Wahid whilst Akbar preferred to wait for the 2004 Legislative Elections. At the end of November, 151 DPR members signed a petition calling for the impeachment of Wahid.
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