Indonesian Politics Under Suharto: The Rise and Fall of the New Order (Politics in Asia)

Indonesia's New Order Under Suharto

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Editorial Reviews

Refresh and try again. Open Preview See a Problem? Thanks for telling us about the problem. Return to Book Page. Indonesian Politics Under Suharto: Order, Development, and Pressure for Change 3. After twenty-five years in power, President Suharto and his New Order government confront a crisis of renewal.

The regime, which swept to power in the wake of a military putsch in , has brought enduring stability and economic prosperity to the country, but has shown no inclination to pass the reigns of power to the next generation. As a result, pressures for political After twenty-five years in power, President Suharto and his New Order government confront a crisis of renewal. As a result, pressures for political change are building up.

This book offers an informed and balanced analysis of Suharto's new order as it approaches a crucial political juncture. Indonesia's remarkable political stability has for the most part kept the country out of the headlines. Quietly, Indonesia has moved into a strong position just behind other fast-growing economies in the region. Employing widely-applauded liberal economic reforms and granting more freedom to the private sector, the government has transformed Indonesia's commodity-dependent economy into a nascent regional industrial dynamo. But now, economic success is running up against domestic political uncertainties.

The author reassesses the New Order's fiery origins and its military roots and evaluates the considerable economic progress achieved under Suharto.

He also analyses Suhart Paperback , Revised Ed. Published by Routledge first published November To see what your friends thought of this book, please sign up. To ask other readers questions about Indonesian Politics Under Suharto , please sign up.

Be the first to ask a question about Indonesian Politics Under Suharto. Lists with This Book. This book is not yet featured on Listopia. Aug 09, Inggita rated it liked it Recommends it for: Azharsyah Ibra rated it liked it Sep 03, Matthew Jones rated it really liked it Jan 04, Boyke Rahardian rated it liked it Dec 30, Not unimportant, Indonesia benefited significantly from two oil booms that emerged in the s. Due to these oil booms the New Order's export earnings as well as government revenues rose steeply. This enabled the public sector to play a greater role in the economy by undertaking substantial public investments in regional development, social development, infrastructure and through the establishment of large-scale basic industries, among which were the import-substitution industries.

Capital goods and raw materials could be imported due to increased foreign exchange earnings, giving rise to a developing manufacturing sector. Indonesians were frustrated that the indigenous people seemed to be excluded from the fruits of the economy. The government was shocked because of this violent event that became known as the Malari affair and introduced more restrictive measures on foreign investment and replacing it with preferential policies favouring the indigenous businessmen. Increased government revenue brought on by the first oil boom meant that the government was no longer dependent on foreign investments, therefore an interventionist approach could be started.

In the early s the price of oil began to fall again and currency realignments in aggravated Indonesia's foreign debt.

Fall of Suharto

The government had to take new measures to restore macroeconomic stability. The rupiah was devalued in to ease the rising current account deficit, a new tax law was introduced to increase revenue from non-oil taxes and bank deregulation measures were taken credit ceilings on interest rates were lifted and banks were allowed to set these rates freely. Moreover, the economy had to be redirected from an economy dependent on oil to an economy containing a competitive private sector oriented towards export markets.

Editorial Reviews

This implied new deregulation measures to improve the investment climate for private investors. When the oil price fell again in the mids, the government increased measures to accompany export-led growth such as the exemption of import duties and another devaluation of the rupiah. These policy changes in combination with deregulation packages in the s also affected foreign investments in Indonesia. Especially export-oriented foreign investments were welcomed.

Fall of Suharto - Wikipedia

Another sector that was affected by far-reaching deregulation measures was the Indonesian financial sector. New private banks were allowed to be established, existing banks could open up branches across the country and foreign banks were free to operate outside Jakarta. These financial reforms would later turn out to be a problem that intensified the crisis in Indonesia in the late s. But in the meantime, however, these rigorous measures had a positive impact on Indonesia's economy.

Manufactured exports began to become the engine of the Indonesian economy. Between and Indonesia's Gross Domestic Product grew by an average of nine percent per year, slowing down to an average of 'just' 7. The text above paints a rather positive picture of the economy during the New Order. Indeed the economy grew rapidly and with it came improvements in its social development although at a slower pace.

In particular the reduction in absolute poverty was a remarkable achievement of the government. In the mids over half of the Indonesian population lived below the poverty line but by this number had been reduced to 11 percent of the total Indonesian population. However, the style of rule of the New Order government entailed a couple of dangerous consequences that would come to a climax during the Asian Financial Crisis in the late s.

First of all the essence of the New Order's government's nature.

It was a military-backed authoritarian regime that did not respect human rights. During its course for over three decades the government seemed to become more and more out of tune with its citizens. Politics and economics were basically taken away from the public and kept within a small elite around Suharto. But as Indonesians became more educated due to increasing social developments, its educated circles naturally wanted to let their voices heard and participate in politics as well as the economy.

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