By the time of the Renaissance, the islands of Java and Sumatra had already enjoyed a 1,000-year heritage of advanced
civilization spanning two major empires.
During the 7th-14th centuries, the Buddhist kingdom of Srivijaya flourished on Sumatra. At
its peak, the Srivijaya Empire reached as far as West Java and the Malay Peninsula. Also by the 14th century, the Hindu Kingdom of
Majapahit had risen in eastern Java. Gadjah Mada, the empire's chief minister from 1331 to 1364, succeeded in gaining allegiance
from most of what is now modern Indonesia and much of the Malay archipelago as well. Legacies from Gadjah Mada's time include a
codification of law and an epic poem.
Islam arrived in Indonesia sometime during the 12th century and, through assimilation,
supplanted Hinduism by the end of the 16th century in Java and
Sumatra. Bali, however, remains overwhelmingly Hindu. In the
eastern archipelago, both Christian and Islamic proselytizing took place in the 16th and 17th centuries, and, currently, there
are large communities of both religions on these islands.
Beginning in 1602, the Dutch slowly established themselves as rulers of present-day Indonesia, exploiting the weakness of the small
kingdoms that had replaced that of Majapahit. The only exception was East Timor, which remained under Portugal until 1975. During 300
years of Dutch rule, the Dutch developed the Netherlands East Indies into one of the world's richest colonial possessions.
During the first decade of the 20th century, an Indonesian independence movement began and expanded rapidly, particularly between the
two World Wars. Its leaders came from a small group of young professionals and students, some of whom had been educated in the
Netherlands. Many, including Indonesia's first president, Soekarno (1945-67), were imprisoned
for political activities.
The Japanese occupied Indonesia for 3 years during World War II. On August 17, 1945, three days after the Japanese surrender to the
Allies, a small group of Indonesians, led by Soekarno and Mohammad Hatta, proclaimed independence and established the
Republic of Indonesia. They set up a provisional government and adopted a constitution to govern
the republic until elections could be held and a new constitution written. Dutch efforts to reestablish complete control met strong
resistance. After 4 years of warfare and negotiations, the Dutch transferred sovereignty to a federal Indonesian Government. In 1950,
Indonesia became the 60th member of the United Nations.
Shortly after hostilities with the Dutch ended in 1949, Indonesia adopted a new constitution providing for a parliamentary system of
government in which the executive was chosen by and made responsible to parliament. Parliament was divided among many political
parties before and after the country's first nationwide election in 1955, and stable governmental coalitions were difficult to
achieve.
The role of Islam in Indonesia became a divisive issue. Soekarno defended a secular state based on Pancasila (five principles of
the state philosophy - monotheism, humanitarianism, national unity, representative democracy by consensus, and social justice),
while some Muslim groups preferred either an Islamic state or a constitution which included a preambular provision requiring
adherents of Islam to be subject to Islamic law. At the time of independence, the Dutch retained control over the western half
of New Guinea, and permitted steps toward self-government and independence.
Negotiations with the Dutch on the incorporation of the territory into Indonesia failed, and armed clashes broke out between
Indonesian and Dutch troops in 1961. In August 1962, the two sides reached an agreement, and Indonesia assumed administrative
responsibility for Irian Jaya on May 1, 1963. The Indonesian Government conducted an "Act of Free Choice" in Irian Jaya under UN
supervision in 1969, in which 1,025 Irianese representatives of local councils agreed by consensus to remain a part of Indonesia.
A subsequent UN General Assembly resolution confirmed the transfer of sovereignty to Indonesia. Opposition to Indonesian
administration of Irian Jaya, also known as Papua or West Papua, gave rise to small-scale guerrilla activity in the years following
Jakarta's assumption of control. In the more open atmosphere since 1998, there have been more
explicit expressions within Irian Jaya of a desire for independence from Indonesia.
Unsuccessful rebellions on Sumatra, Sulawesi, West Java, and other islands beginning in 1958, plus
a failure by the constituent assembly to develop a new constitution, weakened the parliamentary system. Consequently, in 1959, when
President Soekarno unilaterally revived the provisional 1945 constitution, which gave broad presidential powers, he met little
resistance. From 1959 to 1965, President Soekarno imposed an authoritarian regime under the label of "Guided Democracy." He also
moved Indonesia's foreign policy toward nonalignment, a foreign policy stance supported by other prominent leaders of former
colonies who rejected formal alliances with either the Western or Soviet blocs. Under Soekarno's auspices, these leaders gathered
in Bandung, West Java, 1955, to lay the groundwork for what became known as the Non-Aligned Movement.
In the late 1950s and early 1960s, President Soekarno moved closer to Asian communist states and toward the Indonesian Communist
Party (PKI) in domestic affairs. Though the PKI represented the largest communist party outside the Soviet Union and
China, its mass support base never demonstrated an ideological adherence typical of communist parties
in other countries.
By 1965, the PKI controlled many of the mass civic and cultural organizations that Soekarno had established to mobilize support for his regime and, with Soekarno's acquiescence, embarked on a campaign to establish a "Fifth Column" by arming its supporters. Army leaders resisted this campaign. Under circumstances that have never been fully explained, on October 1, 1965, PKI sympathizers within the military, including elements from Soekarno's palace guard, occupied key locations in Jakarta and kidnapped and murdered six senior generals. Major General Soeharto, the commander of the Army Strategic Reserve, rallied army troops opposed to the PKI to reestablish control over the city. Violence swept throughout Indonesia in the aftermath of the October 1 events, and unsettled conditions persisted through 1966. Rightist gangs killed tens of thousands of alleged communists in rural areas. Estimates of the number of deaths range between 160,000 and 500,000. The violence was especially brutal in Java and Bali. During this period, PKI members by the tens of thousands turned in their membership cards. The emotions and fears of instability created by this crisis persisted for many years; the communist party remains banned from Indonesia.
Throughout the 1965-66 period, President Soekarno vainly attempted to restore his political position and shift the country back to its
pre-October 1965 position. Although he remained President, in March 1966, Soekarno had to transfer key political and military powers to
General Soeharto, who by that time had become head of the armed forces. In March 1967, the Provisional People's Consultative Assembly
(MPRS) named General Soeharto acting President. Soekarno ceased to be a political force and lived under virtual house arrest until
his death in 1970.
President Soeharto proclaimed a "New Order" in Indonesian politics and dramatically shifted foreign and domestic policies away from
the course set in Soekarno's final years. The New Order established economic rehabilitation and development as its primary goals and
pursued its policies through an administrative structure dominated by the military but with advice from Western-educated economic
experts. In 1968, the People's Consultative Assembly (MPR) formally selected Soeharto to a full 5-year term as President, and he was
re-elected to successive 5-year terms in 1973, 1978, 1983, 1988, 1993, and 1998.
In mid-1997, Indonesia was afflicted by the
Asian financial and economic crisis, accompanied by the worst drought in 50 years and falling prices for oil, gas, and other
commodity exports. The rupiah plummeted, inflation soared, and capital flight accelerated. Demonstrators, initially led by
students, called for Soeharto's resignation. Amidst widespread civil unrest, Soeharto resigned on May 21, 1998, 3 months after the
MPR had selected him for a seventh term. Soeharto's hand-picked Vice President, B.J. Habibie, became Indonesia's third President.
President Habibie reestablished International Monetary Fund (IMF) and donor community support for an economic stabilization program.
He released several prominent political and labor prisoners, initiated investigations into the unrest, and lifted controls on the
press, political parties, and labor unions.
In January 1999, Habibie and the Indonesian Government agreed to a process, with UN involvement, under which the people of East Timor
would be allowed to choose between autonomy and independence through a direct ballot. The direct ballot was held on August 30, 1999.
Some 98% of registered voters cast their ballots, and 78.5% of the voters chose independence over continued integration with Indonesia.
Many persons were killed by Indonesian military forces, and military-backed militias, in a wave of violence and destruction after the
announcement of the pro-independence vote.
Indonesias first elections in the post-Soeharto period were held for the national, provincial, and sub-provincial parliaments on
June 7, 1999. The elections were contested by 48 political parties. For the national parliament, Partai Demokrasi Indonesia
Perjuangan (PDI-P, Indonesian Democratic Party of Struggle led by Megawati Soekarnoputri) won 34% of the vote; Golkar ("Functional
Groups" party) 22%; Partai Kebangkitan Bangsa (PKB, National Awakening Party linked to Nadhlatul Ulama and headed by Abdurrahman Wahid)
13%; and Partai Persatuan Pembangunan (PPP, United Development Party led by Hamzah Haz) 11%. The MPR selected Abdurrahman Wahid as
Indonesia's fourth President in November 1999 and replaced him with Megawati Soekarnoputri in July 2001.
In 2001 and 2002, the MPR enacted laws to provide for the direct election, by popular vote, of the president and vice president. Only
parties that gain at least 3% of the House of Representatives (DPR) seats or 5% of the vote in national legislative elections are
eligible to nominate a presidential and vice presidential ticket. This provision requires that legislative elections be held prior
to the direct presidential election. The 2004 legislative elections took place on April 5. The first presidential election under
this provision was held on July 5, 2004. No one candidate won at least 50% of the vote, so a runoff election between the top two
candidates, President Megawati Sukarnoputri and retired General Susilo Bambang Yudhoyono, was held on September 20, 2004. In
this final round, General Yudhoyono won 60.6% of the vote, a margin of just over 20% greater than his rival. Approximately 76.6%
of the eligible voters participated, a total of roughly 117 million people, making Indonesias the largest and most complex
single-day election in the world. The Carter Center issued a statement congratulating the people and leaders of Indonesia for
the successful conduct of the presidential election and the peaceful atmosphere that has prevailed throughout the ongoing
democratic transition.
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