CBC News Indepth: Indonesia

INDEPTH: INDONESIA
Indonesia in crisis: Struggling with history
CBC News Online | Updated March 7, 2005

The early years: colonial rule and nationalist struggle

Violence in Borneo

Modern-day Indonesia consists of 300 ethnic groups and 250 distinct languages. As a hub for the spice trade, its strategic location made it a target for the Portuguese, English and, finally, the Dutch, who arrived in the 17th century and took control in the early 19th century.

The nationalist movement in Indonesia, which festered under Dutch authority, grew stronger throughout the early 20th century, prompted by the growth of a new, politically aware middle class. The country declared its independence after its occupation by Japan during the Second World War and the subsequent defeat of Japan and Germany.

That led to several years of bitter fighting, with Dutch authorities trying to re-establish control. It wasn't until 1949 that the Netherlands finally agreed to hand control to Indonesian leaders. Indonesian Nationalist party leader Sukarno proclaimed himself president and the government adopted the parliamentary system.

Independence: challenges facing Sukarno

In the days following independence, modern Indonesia's challenge has been to unite its wide variety of cultures and ethnic groups. Sukarno faced rebellions from Muslim groups, Dutch supporters and the Communist party (PKI), and his government was criticized for being ineffective and corrupt, and for having few ties to the regions.

In 1956, he began to reinforce his position by consolidating power. Sukarno successfully squelched two army coups in outlying regions, but tensions continued to rise as both the army and the Communists increased their power.

In 1965, Indonesia hit a turning point when an attempted army coup ended in the assassinations of six top generals. During the crisis General Suharto, head of the army's strategic commands, emerged as the country's new leader.

The Suharto years

Gen. Suharto

Suharto put down the rebels, eased Sukarno out of power and launched a brutal suppression of Indonesia's Communist movement. Between 300,000 and one million people were killed during the crackdown, and the PKI was banned.

Suharto was inaugurated president in 1968 and instituted a "New Order policy," allowing the government to control subsequent elections. His candidacy went unchallenged for seven terms.

But dissent continued to grow as the social and economic inequalities widened into the early 1970s, and as Suharto, his family and their associates accumulated wealth. Opponents charged Suharto with corruption, hoarding wealth and violating human rights.

At first, opposition was limited to the ranks of Islamic radicals, university students and the country's poorest citizens. But in 1997, Indonesia's currency collapsed and discontent spread to the urban middle-classes as the cost of basic goods and services skyrocketed. Riots broke out after Suharto was re-elected for a seventh term in 1997.

After hundreds of protesters were killed in battles with government troops, Suharto was finally forced to step down. On May 21, 1997, he handed power over to his chosen successor, Vice-President Bucharuddin Jusuf Habibie, who agreed to serve on an interim basis.

Wahid's inheritance

Abdurrahman Wahid

In June 1999, Indonesia's first contested presidential election failed to give any political party a clear advantage. In November of that year, the Assembly expressed a need for change and picked Abdurrahman Wahid as president and Megawati Sukarnoputri as vice-president.

Wahid, who formally headed the country's main Islamic group, rode in on a wave of popular support. But confidence in him dropped off in the face of a failing economy, ongoing ethnic unrest and separatist uprisings.

As he loosened the tight controls imposed by former president Suharto, bitter independence battles flared in several regions including East Timor, Aceh and Papua. At the same time there were outbreaks of violence between rival groups in West Java, Ambon and West Kalimantan.

Anti-Wahid protest

Wahid took steps to reduce the military's power and end discrimination against the country's ethnic Chinese. But his support began to dwindle when he failed to prosecute Suharto for corruption and critics complained of erratic leadership as the country's economy continued to stagnate.

The final straw came when he was implicated in two major graft scandals – accused of diverting a $2-million aid donation from the sultan of Brunei and stealing $4.1 million from the state commodities regulator.

Wahid was censured by parliament in February 2001 and lost the support of the two main parties that had backed him as president – Golkar and the United Development Party. The powerful Indonesian Democratic Party of Struggle sided against him as well.

Megawati Sukarnoputri

Megawati Sukarnoputri

Sworn in as president on July 23, 2001, after the impeachment of Wahid, Megawati Sukarnoputri was a natural candidate for the job – and not simply because she is the daughter of former president Sukarno.

In the 1999 election, Megawati was in the forefront of Indonesia's reform movement and her Indonesian Democratic Party of Struggle won the largest share of votes, mainly from poor and working-class voters. But the party failed to win a clear majority, so the presidency went to Wahid.

As vice-president, Megawati was criticized for failing to outline a cohesive political platform and for taking little part in running the government. She is said to be heavily influenced by her millionaire husband, Taufik Kiemas.

In October 2002, a bomb attack in a nightclub district on Bali killed 202 people, mostly tourists.

Muslim cleric Abu Bakar Bashir was arrested a short time later and accused of planning the attack in an attempt to overthrow the government.

In December 2002, the government signed an agreement with rebels in the mainly Muslim Aceh province, raising hopes for peace. Just six months later, Indonesia ended what it said were fruitless talks and resumed military action against the rebels.

Susilo Bambang Yudhoyono

Susilo Bambang Yudhoyono (AP Photo)

Susilo became president in October 2004. He promised to lead an anti-corruption campaign in an attempt to rebuild the economy.

But Susilo soon came under fire over controversial appointments of Suharto-era officials.

On Dec. 26, 2004, a tsunami devastated Indonesia and neighbouring countries, hitting the troubled Aceh province hardest, with an estimated 200,000 people dead.

Aceh's urgent need for aid and reconstruction prompted both sides to resume talks in January 2005. In March 2005, an Indonesian court found Muslim cleric Abu Bakar Bashir guilty of conspiracy in the 2002 Bali bombing. He was sentenced to 2� years in jail.

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