Indonesia's Leadership Crisis: A Call for Reform

The democratic island nation of Indonesia, with over 200 million people, is facing a deep-seated leadership crisis. Since President Suharto's removal in 1998, the country has struggled to find stability, facing a series of crisis including drought, currency fluctuations, stock market crashes, and rising civil unrest. The people of Indonesia are demanding reform, citing widespread corruption, economic inequality, and stifled public discourse. Meanwhile, American interests in Indonesia are geo-strategic, with the nation's importance to regional stability a top concern. However, the influence of the U.S. government is highly limited, and American ideals, such as the rule of law and democratic process, remain highly important.

Key Takeaways:

• The removal of President Suharto in 1998 marked a turning point in Indonesia's leadership crisis, with widespread protests and calls for reform.
• The country's economy is heavily concentrated at the top, with business conglomerates and concessions connected to Suharto and his children, leading to feelings of oppression among the population.
• The U.S. government's influence is limited, with President Clinton's phone calls to Suharto and former Vice President Walter Mondale's visit achieving nothing tangible.
• American ideals, such as the rule of law, democratic process, and freedom of expression, have inspired advocates in different segments of Indonesian society.
• The International Monetary Fund (IMF) program for Indonesia is seen as a way to provide basic resources for the poor, aid small and medium-sized businesses, and help restore the middle class.
• Indonesia's crisis requires a fundamental reconception and reconstruction of its governance and economy, with no clear solution in sight.
• The U.S. should be felt as non-intrusive but steadfast in its support for Indonesian reform, with a long-term goal of fostering a stable and prosperous Indonesia.
• Friend argues that Indonesia must clear the way to receive IMF funding, with the program holding potential to restore order and stability to the country.
• The article highlights the importance of the United States' influence being "expressed in a modest voice, no preachy pressure" to avoid antagonizing Indonesians further.
• A replacement for the Suharto government needs to be found by Indonesians themselves, with no foreign pressure or interference.
• Indonesia faces significant challenges in its economic, social, and political systems, with no easy fixes in sight.

Statistics:

• Indonesia has over 200 million people, making it the fourth-largest nation in the world.
• The country's land area is twice the size of Texas.
• Indonesia is the largest Muslim nation in the world, making up 60% of the population.
• Two-thirds of the oil passing through Indonesian waters is bound for Japan.
• Indonesia's economy is heavily concentrated at the top, with business conglomerates and concessions connected to Suharto and his children.
• The country's GDP per capita is one of the lowest in Southeast Asia.
• Indonesia's literacy rate has increased significantly under Suharto's leadership, from 50% to over 80%.
• The country's inflation rate has reached over 50% in recent years.
• The unemployment rate in Indonesia has risen sharply, with estimates suggesting that over 10 million people are out of work.
• The number of student protesters has risen to hundreds of thousands, with widespread civil unrest reported in major cities.

Sources:

• Theodore Friend, senior fellow at the Foreign Policy Research Institute in Philadelphia and author of "Indonesia in Flames," to be published in the summer issue of Orbis.
• Philadelphia Daily News, (c) 1998
• Knight Ridder/Tribune Information Services