1. Indonesia

2. Indonesian Political History
Fragile parliamentary governance under Sukarno,
Guided democracy under Sukarno,
The New Order under Suharto
Liberal democratic reform under multiple presidents, 1999-present

3. Institutions and Social Groups
The Constitution – 1945 Constitution in place throughout republic – hybrid presidential/parliamentary system – People’s Consultative Assembly – Bicameral Legislature – Dewan Perwakilan Rakyat (lower house) – Dewan Perwakilan Daerah (Provincial representation) – Proportional Representation – Divided Government Possible
Pancasila – Belief in One God – Humanitarianism – Nationalism (Bhinneka Tunggal Ika) – Democracy – Social Justice
Political Parties – Golkar – United Development Party (PPP), Indonesian Democratic Party (PDI), PDI – P, National Awakening Party – twenty-one parties split the remainder 49.3% of vote
Political Islam – santri/abangan divide – Suharto co-opted Islam by becoming a hajji and creating Indonesian Association of Muslim Intellectuals – Islamic political parties PPP and Prosperous Justice Party (PKS) earned 16 million votes – smaller than NGO groups such as Nahdlatul Ulama and Muhammadiyah – actions have been take by government against groups associated with violence such Jemaah Islamiyah
Military – Professionalizing the military and abandoning a dual functioning model of providing security and a political/ social function has been the goal of the reformasi

4. Democratization
Initial experiment with multi party democracy failed
Sukarno instituted guided democracy as something more in attunement with Javanese culture
Suharto continued bureaucratic authoritarian state
Post Suharto era generated respect for rule of law and successful transitions of power – good prerequisites for flourishing democracy

5. Economic Development
Largest economy in region, relatively high per capita income – setback by Asian Financial Crisis – average GDP growth at about 6%
Sukarno’s revolutionary economic system under guided democracy was xenophobic and isolationist
Suharto’s New Order system instituted five year plans to improve public welfare, benefit from oil resources, build infrastructure and rely on private sector for capital, structural change, and productivity – difficulties encountered included income disparity, corruption, and mismanaged industries – over dependence on oil caused problems in 1986
Market oriented reforms adopted - Import substitution policies replaced by export and openness to foreign investment – the New Order would witness swings between liberalization and protection of conglomerates owned Suharto family and cronies
Asian Financial Crises created stresses that brought out the weakness of this system and the severity of the IMF austerity package led to downfall of Suharto
Habibie and Wahid administrations failed to stabilize economy but Sukarnoputri and Yudhoyono improved economic conditions though Indonesia maintains a reputation as a place difficult for foreign investment
Over past forty years life expectancy has improved, those living below poverty have decreased, and improvement on the HDI have occurred

6. The Indonesian State
Colonization, Revolution, and anti-communist purge created conditions of social dislocation to create a strong state
State’s legitimacy connected to Suharto’s ability to meet economic needs of citizenry
Organic development of Pancasila within a polity of contesting interest is allowing for the development of a Post-Suharto approach to legitimacy
Present state is weaker than earlier bureaucratic authoritarian state but constitutionalism and pluralism may strengthen the state

7. Foreign Policy
Sukarno opposed to the old established forces and allied with the newly emerging forces – Konfrontasi against Malaysia – supported by PKI in struggle against neocolonialism, colonialism, and imperialism
Suharto ended Konfrontasi and began New Order and quiet support of ASEAN and the zone of peace, freedom, and neutrality in Southeast Asia – lower profile in international relations – Invasion of East Timor in 1975 exception to this rule
Gradual improvement of relations with PRC with formal establishment of diplomatic relations in 1990 – Megawati Sukarnoputri made significant efforts to improve bilateral relations – main trading partners have been with U.S., Japan, and Singapore as well as European and other Asian countries
Skeptical relation to war on terror though accepting of U.S. humanitarian aid and counterterrorism support
Relationship has improved with the election of President Obama and the exploration of strategic partnership
Indonesia plays a role as a regional moderator and is a moderating voice within the Organization of the Islamic Conference

8. Conclusion Economic crisis may have paid a democratic dividend
The New Order had improved the life of the average Indonesian though revelations of corruption and the burden of IMF policies disrupted this order
New institutions offer hope for Indonesia’s development of a sustainable democracy