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Guided Democracy (1957–1965)
Encyclopedia
Guided Democracy was the political system in place in Indonesia
from 1957 until the New Order
began in 1966. It was the brainchild of President Sukarno
, and was an attempt to bring about political stability. Sukarno believed that Western-style democracy was inappropriate for Indonesia's situation. Instead, he sought a system based on the traditional village system of discussion and consensus, which occurred under the guidance of village elders.
Sukarno proposed a threefold blend of nasionalisme ('nationalism'), agama ('religion'), and komunisme ('communism') into a co-operative 'Nas-A-Kom' government. This was intended to appease the three main factions in Indonesian politics — the army, Islamic groups, and the communists. With the support of the military, he proclaimed in February 1957, 'Guided Democracy', and proposed a cabinet representing all political parties of importance (including the Communist Party of Indonesia
). Western-style parliamentary democracy was thus finished in Indonesia until the 1999 elections of the Reformasi era.
, from the reestablishment of the unitary Republic of Indonesia in 1950 until the declaration of martial law
in 1957, saw the rise and fall of six cabinets, the longest-lasting surviving for just under two years. Even Indonesia's first national elections in 1955
failed to bring about political stability.
In 1957, Indonesia faced a series of crises, including the beginning of the Permesta
rebellion in Makassar
and the army takeover of authority in South Sumatra. One of the demands of the Permesta rebels was that 70 percent of the members of Sukarno's proposed National Council should be members from the regions (non-Javanese). Another demand was that the cabinet and National Council be led by the dual-leadership (Indonesian
: dwitunggal) of Sukarno and former Vice-President Hatta
.
In March 1957, Sukarno accepted the Army chief of staff Nasution's proposal for a declaration of martial law
across the whole nation. This would put the military in charge, and would be a way to deal with the rebellious army commanders, as it would effectively legitimize them.
In the face of a growing political crisis amid splits in the cabinet, Prime Minister Ali Sastroadmidjojo returned his mandate to the president on 14 March.
made an official visit to the People's Republic of China
in October 1956. He was impressed with the progress made there since the Civil War
, and concluded that this was due to the strong leadership of Mao Zedong
, whose centralization of power was in sharp contrast to the political disorder in Indonesia. According to former foreign minister Ide Anak Agung Gde Agung, Sukarno began to believe he had been "chosen by providence" to lead the people and "build a new society".
Shortly after his return from China, on 30 October 1956, Sukarno spoke of his konsepsi (concept) of a new system of government. Two days earlier he had called for the political parties to be buried. Initially the parties were opposed to the idea, but once it became clear that they would not need to be abolished, the Indonesian Communist Party (PKI) threw its support behind Sukarno.
On 21 February 1957, Sukarno detailed his plan. It would be a form of government more suited to the nature of Indonesia, as opposed to the western system. The centerpiece would be a 'mutual cooperation' cabinet of the major parties advised by a National Council (Indonesian
: Dewan Nasional) of functional groups. The legislature would not be abolished. As well as the PKI, the Indonesian National Party
(PNI) supported Sukarno, while the Islamist Masyumi Party and the Socialist Party of Indonesia
opposed the plan. There were demonstrations in support of it.
On 15 March 1957 President Sukarno appointed PNI chairman Soewirjo to form a "working cabinet", which would be tasked with establishing the National Council in accordance with the president's concept. However, that fact that Masyumi were not asked to participate in the formation of the cabinet led to Soewirjo's efforts coming to nothing. However, on 25 March, Sukarno asked Soewirjo to try again, and gave him one week to form a cabinet, but once again, Soewirjo failed.
Finally, Sukarno held a meeting with 69 party figures at the state Palace on 4 April, at which he announced his intention to form an emergency extra-parliamentary working cabinet, and that "citizen" Sukarno would set it up. The new "Working Cabinet
", headed by non-party prime Minister Djuanda Kartawidjaja was announced on 8 April 1957 at the Bogor Palace
. Although the PKI was not included, several members were sympathetic to the party. In fact, in theory, it was a non-party cabinet.
The National Council was established by emergency law in May 1957. It was chaired by Sukarno, with Ruslan Abdulgani
as vice-chairman. At its inaugaration on 12 July, it comprised 42 members representing groups such as peasants, workers and women, as well as the various religions. Decisions were reached by consensus rather than through voting. As a non-political body based on fujnctional groups, it was intended as a counterbalance to the political system. The cabinet was not obliged to heed the advice given by the National Council, but in practice rarely ignored it.
Meanwhile, the army was trying to enhance its role by establishing functional groups of its own. In June 1957 Nasution began trying to woo the parties' functional groups and managed to unite the veterans groups under army control. He also used martial law to arrest several politicians for alleged corruption, while regional army commanders restricted party activities, particularly those of the PKI, whose headquarters in Jakarta was attacked in July.
Following the failure of a United Nations
resolution calling on the Netherlands to negotiate with Indonesia over the West Irian issue, on 3 December, PKI and PNI unions began taking over Dutch companies, but 11 days later, Nasution stated that the army would run these companies. This gave the army a major economic role.
and Sulawesi
in 1958. These were reactions to Sukarno's seizing of power, the increasing influence of the PKI, and corruption and mismanagement of the central government, and against the domination of Java.
In September and October 1957, various rebellious army officers, including members of the Permesta
movement, held meetings in Sumatra. They agreed on three objectives: the appointment of a less pro-PKI president, the replacement of Nasution and the banning of the PKI. Some of these regional rebels were subsequently accused of involvement in the assassination
attempt on Sukarno on 30 November. On 10 February, rebels including army officers and Masyumi leaders meeting in Padang
, Sumatra, issued an ultimatum to the government demanding dissolution of the cabinet, elections and the adoption by Sukarno of a figurehead role. Five days later, came the announcement of a rebel government, the Revolutionary Government of the Republic of Indonesia (PRRI) based in Bukittinggi
, Sumatra
. It was joined two days later by the Permesta rebels in Sulawesi
.
Despite US support in the form of arms for the PRRI rebels, the Indonesian military defeated the rebels with a combination of aerial bombardment and operations by troops landed from Java. By the middle of 1958, the rebellions had been effectively quashed but guerrilla activity persisted for three years. Amnesty was granted to rebel leaders although their political parties were banned. Early nationalist leaders were discredited, including former Prime Minister, Sutan Syahrir, who along with others was arrested in 1962.
In 1958, Masyumi and the Nahdlatul Ulama, which had split from Masyumi in 1952, called for the planned 1959 elections to be postponed as they feared a PKI victory. In September, Djuanda announced the postponement. Meanwhile, the Constitutional Assembly was still unable to reach agreement on the basis of a new constitution, and was deadlocked between those who wanted Indonesia to be an Islamic state, and those who supported the idea of the state based on the Pancasila
ideology. In July , Nasution proposed returning to the 1945 Constitution
, and in September, he political activity.
Gradually, this gained support from the political parties, and on 5 July 1959, Sukarno issued a decree reinstating the 1945 Constitution and dissolving the Constitutional Assembly. Four days later, a working cabinet with Sukarno as prime minister was announced, and in July, the National Council and Supreme Advisory Council were established. Although the parties continued to exist, only the PKI had any real strength.
, guided democracy, guided economy and Indonesian nationalism.
On 25 August 1959, the government implemented sweeping anti-inflationary measures, devaluing the currency by 75 percent and declaring that all Rp500 and Rp1000 notes would henceforth be worth one tenth of their face value. Meanwhile, anti-ethnic Chinese measures, including repatriations and forced transfer to cities, damaged economic confidence further. However, by 1960, inflation had reached 100 percent per annum.
. In March 1960, Sukarno dissolved the legislature after it had rejected his budget. In June, Mutual Cooperation House of Representatives (DPR-GR), in which the armed services had representation as functional groups, and a Provisional people's Consultative Assembly (MPRS) were established, with the PKI chairman, D.N. Aidit as a deputy chairman. The PKI was estimated to have 17–25 percent of the seats in the DPR-GR, and now had representation in all institutions of state except the cabinet. Despite actions against the PKI by regional army commanders, Sukarno repeatedly defended it. Sukarno also began pushing his ideology uniting Nationalism, Religion and Communism, which would become known as 'Nasakom
'.
However, the army's successes in defeating various rebellions, including the PRRI and the Darul Islam movement in west Java meant that Nasution still had the initiative. Therefore, in December 1960, Sukarno established the Supreme Operations Command 9KOTI), to ensure that the campaign to wrest West Irian from the Dutch would not be controlled by the military. Actual combat operations were to be directed by the Mandala command, headed by (future president) Major-General Suharto. The PKI, anxious to make use of the nationalism issue to cement it alliance with Sukarno, wholeheartedly supported this effort. In June 1962, Sukarno managed to foil Nasution's attempt to be appointed armed forces commander, becoming chief of staff with no direct military commanding role, although he kept his position as minister of defense and security.
By 1962, the PKI had over two million members, and in March, Sukarno made two of its key figures, Aidit and Njoto
, ministers without portfolio. That same year, the Irian Jaya (as west Irian was now called) issue was resolved with the Dutch agreeing a transfer to UN administration. It was later transferred to Indonesia after the controversial 'Act of Free Choice
' in 1969.
When, in 1963, the establishment of the state of Malaysia, incorporating the former British colonial possessions in northern Borneo
, was announced, the PKI once again sought to exploit the issue and organized demonstrations in Jakarta, during which the British Embassy was burned to the ground. On 17 September, Indonesia broke off diplomatic relations with Malaysia, and shortly after, the low level conflict known as konfrontasi (confrontation) was announced (see Konfrontasi). Later that year, the PKI began a "unilateral action" (Indonesian
: aksi sepihak) campaign to implement the 1959–60 land reform laws, which led to violent conflict with NU supporters.
Meanwhile, the army became increasingly concerned with the domestic situation and began secret contacts with Malaysia, while obstructing konfrontasi. At the same time, both the Soviet Union
and the United States
began courting the Indonesian army. The Soviet Union was anxious to reduce the influence of the China-oriented PKI, while the US was worried about communism per se, and large numbers of Indonesian officers traveled to the US for military training. However, the PKI was also targeting the army, and was attempting to infiltrate it.
In early 1965, Aidit proposed to Sukarno the creation of an armed "fifth force" (i.e. in addition to the army, navy, air force and police) made up of armed workers and peasants and the appointment of Nasakom advisers to the each of the armed forces. This was a direct threat to the army. In 1965, Sukarno announced the discovery of a document allegedly written by the British ambassador, the so-called Gilchrist Document
, which was touted as proof of army plots against the government.
and the World Bank
, and in his Independence Day speech on 17 August, announced the Jakarta
-Phnom Penh
-Hanoi
-Peking-Pyongyang
Axis, and said that the people would be armed. On 27 September, Nasution announced that he opposed the "fifth force" and the "Nasakomization" of the army.
On the night of 30 September 1965, six generals were kidnapped and murdered and a group calling itself the 30 September Movement
seized control of the national radio station and the center of Jakarta. Although the movement was quickly crushed by Suharto it marked the end of guided democracy and of Sukarno as an effective president. The New Order
regime established by Suharto had its own ideology — Pancasila Democracy.
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
from 1957 until the New Order
New Order (Indonesia)
The New Order is the term coined by former Indonesian President Suharto to characterize his regime as he came to power in 1966. Suharto used this term to contrast his rule with that of his predecessor, Sukarno...
began in 1966. It was the brainchild of President Sukarno
Sukarno
Sukarno, born Kusno Sosrodihardjo was the first President of Indonesia.Sukarno was the leader of his country's struggle for independence from the Netherlands and was Indonesia's first President from 1945 to 1967...
, and was an attempt to bring about political stability. Sukarno believed that Western-style democracy was inappropriate for Indonesia's situation. Instead, he sought a system based on the traditional village system of discussion and consensus, which occurred under the guidance of village elders.
Sukarno proposed a threefold blend of nasionalisme ('nationalism'), agama ('religion'), and komunisme ('communism') into a co-operative 'Nas-A-Kom' government. This was intended to appease the three main factions in Indonesian politics — the army, Islamic groups, and the communists. With the support of the military, he proclaimed in February 1957, 'Guided Democracy', and proposed a cabinet representing all political parties of importance (including the Communist Party of Indonesia
Communist Party of Indonesia
The Communist Party of Indonesia was the largest non-ruling communist party in the world prior to being crushed in 1965 and banned the following year.-Forerunners:...
). Western-style parliamentary democracy was thus finished in Indonesia until the 1999 elections of the Reformasi era.
Background
The Liberal Democracy periodLiberal Democracy Era in Indonesia (1950-1957)
An era of Liberal Democracy in Indonesia began in 1950 following the securing of Indonesian independence in the Indonesian National Revolution, and ended with the imposition of martial law and President Sukarno's introduction of Guided Democracy in 1957...
, from the reestablishment of the unitary Republic of Indonesia in 1950 until the declaration of martial law
Martial law
Martial law is the imposition of military rule by military authorities over designated regions on an emergency basis— only temporary—when the civilian government or civilian authorities fail to function effectively , when there are extensive riots and protests, or when the disobedience of the law...
in 1957, saw the rise and fall of six cabinets, the longest-lasting surviving for just under two years. Even Indonesia's first national elections in 1955
Elections in Indonesia
Elections in Indonesia have taken place since 1955. At a national level, Indonesian people elect a head of state – the president – and a legislature...
failed to bring about political stability.
In 1957, Indonesia faced a series of crises, including the beginning of the Permesta
Permesta
Permesta was a rebel movement in Indonesia, the name coming from Piagam Perjuangan Semesta . It was declared by civil and military leaders of East Indonesia on March 2, 1957. The center of the movement was in Manado, and the movement was led by Colonel Ventje Sumual...
rebellion in Makassar
Makassar
Makassar, is the provincial capital of South Sulawesi, Indonesia, and the largest city on Sulawesi Island. From 1971 to 1999, the city was named Ujung Pandang, after a precolonial fort in the city, and the two names are often used interchangeably...
and the army takeover of authority in South Sumatra. One of the demands of the Permesta rebels was that 70 percent of the members of Sukarno's proposed National Council should be members from the regions (non-Javanese). Another demand was that the cabinet and National Council be led by the dual-leadership (Indonesian
Indonesian language
Indonesian is the official language of Indonesia. Indonesian is a normative form of the Riau Islands dialect of Malay, an Austronesian language which has been used as a lingua franca in the Indonesian archipelago for centuries....
: dwitunggal) of Sukarno and former Vice-President Hatta
Hatta
Hatta may refer to:* Hatta, Gaza, an Arab village in Palestine depopulated in 1948* Hatta, Madhya Pradesh, a village in Damoh District, Madhya Pradesh, India* the Hatta number, a dimensionless parameter in chemical reaction engineering...
.
In March 1957, Sukarno accepted the Army chief of staff Nasution's proposal for a declaration of martial law
Martial law
Martial law is the imposition of military rule by military authorities over designated regions on an emergency basis— only temporary—when the civilian government or civilian authorities fail to function effectively , when there are extensive riots and protests, or when the disobedience of the law...
across the whole nation. This would put the military in charge, and would be a way to deal with the rebellious army commanders, as it would effectively legitimize them.
In the face of a growing political crisis amid splits in the cabinet, Prime Minister Ali Sastroadmidjojo returned his mandate to the president on 14 March.
The establishment of Guided Democracy
President SukarnoSukarno
Sukarno, born Kusno Sosrodihardjo was the first President of Indonesia.Sukarno was the leader of his country's struggle for independence from the Netherlands and was Indonesia's first President from 1945 to 1967...
made an official visit to the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
in October 1956. He was impressed with the progress made there since the Civil War
Chinese Civil War
The Chinese Civil War was a civil war fought between the Kuomintang , the governing party of the Republic of China, and the Communist Party of China , for the control of China which eventually led to China's division into two Chinas, Republic of China and People's Republic of...
, and concluded that this was due to the strong leadership of Mao Zedong
Mao Zedong
Mao Zedong, also transliterated as Mao Tse-tung , and commonly referred to as Chairman Mao , was a Chinese Communist revolutionary, guerrilla warfare strategist, Marxist political philosopher, and leader of the Chinese Revolution...
, whose centralization of power was in sharp contrast to the political disorder in Indonesia. According to former foreign minister Ide Anak Agung Gde Agung, Sukarno began to believe he had been "chosen by providence" to lead the people and "build a new society".
Shortly after his return from China, on 30 October 1956, Sukarno spoke of his konsepsi (concept) of a new system of government. Two days earlier he had called for the political parties to be buried. Initially the parties were opposed to the idea, but once it became clear that they would not need to be abolished, the Indonesian Communist Party (PKI) threw its support behind Sukarno.
On 21 February 1957, Sukarno detailed his plan. It would be a form of government more suited to the nature of Indonesia, as opposed to the western system. The centerpiece would be a 'mutual cooperation' cabinet of the major parties advised by a National Council (Indonesian
Indonesian language
Indonesian is the official language of Indonesia. Indonesian is a normative form of the Riau Islands dialect of Malay, an Austronesian language which has been used as a lingua franca in the Indonesian archipelago for centuries....
: Dewan Nasional) of functional groups. The legislature would not be abolished. As well as the PKI, the Indonesian National Party
Indonesian National Party
The Indonesian National Party is the same used by several political parties in Indonesia from 1927 until the present day.-Pre-independence:...
(PNI) supported Sukarno, while the Islamist Masyumi Party and the Socialist Party of Indonesia
Socialist Party of Indonesia
The Socialist Party of Indonesia was a political party in Indonesia from 1948 until 1960, when it was banned by President Sukarno.-Origins:...
opposed the plan. There were demonstrations in support of it.
On 15 March 1957 President Sukarno appointed PNI chairman Soewirjo to form a "working cabinet", which would be tasked with establishing the National Council in accordance with the president's concept. However, that fact that Masyumi were not asked to participate in the formation of the cabinet led to Soewirjo's efforts coming to nothing. However, on 25 March, Sukarno asked Soewirjo to try again, and gave him one week to form a cabinet, but once again, Soewirjo failed.
Finally, Sukarno held a meeting with 69 party figures at the state Palace on 4 April, at which he announced his intention to form an emergency extra-parliamentary working cabinet, and that "citizen" Sukarno would set it up. The new "Working Cabinet
Djuanda Cabinet
The Djuanda Cabinet, or "Working Cabinet" was an Indonesian cabinet that served from 9 April 1957 until 5 July 1959, when it was dissolved by a decree from President Sukarno.-Background:...
", headed by non-party prime Minister Djuanda Kartawidjaja was announced on 8 April 1957 at the Bogor Palace
Istana Bogor
Istana Bogor is one of 6 Presidential Palaces in Indonesia. The palace is noted for its distinctive architectural, historical, features, as well as the adjoining botanical gardens. Istana Bogor was opened to the public in 1968 to public tour groups , with the permission of the then President of...
. Although the PKI was not included, several members were sympathetic to the party. In fact, in theory, it was a non-party cabinet.
The National Council was established by emergency law in May 1957. It was chaired by Sukarno, with Ruslan Abdulgani
Ruslan Abdulgani
Ruslan Abdulgani was an Indonesian government official and diplomat known for his role as a leader during the Indonesian National Revolution in the late 1940s, and as a key minister and United Nations ambassador in the Sukarno government during the 1950s and 1960s.Ruslan was born...
as vice-chairman. At its inaugaration on 12 July, it comprised 42 members representing groups such as peasants, workers and women, as well as the various religions. Decisions were reached by consensus rather than through voting. As a non-political body based on fujnctional groups, it was intended as a counterbalance to the political system. The cabinet was not obliged to heed the advice given by the National Council, but in practice rarely ignored it.
Meanwhile, the army was trying to enhance its role by establishing functional groups of its own. In June 1957 Nasution began trying to woo the parties' functional groups and managed to unite the veterans groups under army control. He also used martial law to arrest several politicians for alleged corruption, while regional army commanders restricted party activities, particularly those of the PKI, whose headquarters in Jakarta was attacked in July.
Following the failure of a United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
resolution calling on the Netherlands to negotiate with Indonesia over the West Irian issue, on 3 December, PKI and PNI unions began taking over Dutch companies, but 11 days later, Nasution stated that the army would run these companies. This gave the army a major economic role.
Regional rebellions
CIA-backed, and UK and Australian governments supported rebellions occurred in SumatraSumatra
Sumatra is an island in western Indonesia, westernmost of the Sunda Islands. It is the largest island entirely in Indonesia , and the sixth largest island in the world at 473,481 km2 with a population of 50,365,538...
and Sulawesi
Sulawesi
Sulawesi is one of the four larger Sunda Islands of Indonesia and is situated between Borneo and the Maluku Islands. In Indonesia, only Sumatra, Borneo, and Papua are larger in territory, and only Java and Sumatra have larger Indonesian populations.- Etymology :The Portuguese were the first to...
in 1958. These were reactions to Sukarno's seizing of power, the increasing influence of the PKI, and corruption and mismanagement of the central government, and against the domination of Java.
In September and October 1957, various rebellious army officers, including members of the Permesta
Permesta
Permesta was a rebel movement in Indonesia, the name coming from Piagam Perjuangan Semesta . It was declared by civil and military leaders of East Indonesia on March 2, 1957. The center of the movement was in Manado, and the movement was led by Colonel Ventje Sumual...
movement, held meetings in Sumatra. They agreed on three objectives: the appointment of a less pro-PKI president, the replacement of Nasution and the banning of the PKI. Some of these regional rebels were subsequently accused of involvement in the assassination
Assassination
To carry out an assassination is "to murder by a sudden and/or secret attack, often for political reasons." Alternatively, assassination may be defined as "the act of deliberately killing someone, especially a public figure, usually for hire or for political reasons."An assassination may be...
attempt on Sukarno on 30 November. On 10 February, rebels including army officers and Masyumi leaders meeting in Padang
Padang, Indonesia
Padang is the capital and largest city of West Sumatra, Indonesia. It is located on the western coast of Sumatra at . It has an area of and a population of over 833,000 people at the 2010 Census.-History:...
, Sumatra, issued an ultimatum to the government demanding dissolution of the cabinet, elections and the adoption by Sukarno of a figurehead role. Five days later, came the announcement of a rebel government, the Revolutionary Government of the Republic of Indonesia (PRRI) based in Bukittinggi
Bukittinggi
Bukittinggi is one of the larger cities in West Sumatra, Indonesia, with a population of over 91,000 people and an area of 25.24 km². It is situated in the Minangkabau highlands, 90 km by road from the West Sumatran capital city of Padang. It is located at , near the volcanoes Mount...
, Sumatra
Sumatra
Sumatra is an island in western Indonesia, westernmost of the Sunda Islands. It is the largest island entirely in Indonesia , and the sixth largest island in the world at 473,481 km2 with a population of 50,365,538...
. It was joined two days later by the Permesta rebels in Sulawesi
Sulawesi
Sulawesi is one of the four larger Sunda Islands of Indonesia and is situated between Borneo and the Maluku Islands. In Indonesia, only Sumatra, Borneo, and Papua are larger in territory, and only Java and Sumatra have larger Indonesian populations.- Etymology :The Portuguese were the first to...
.
Despite US support in the form of arms for the PRRI rebels, the Indonesian military defeated the rebels with a combination of aerial bombardment and operations by troops landed from Java. By the middle of 1958, the rebellions had been effectively quashed but guerrilla activity persisted for three years. Amnesty was granted to rebel leaders although their political parties were banned. Early nationalist leaders were discredited, including former Prime Minister, Sutan Syahrir, who along with others was arrested in 1962.
Return to the 1945 Constitution
Pancasila Indonesia
Pancasila is the official philosophical foundation of the Indonesian state. Pancasila consists of two Sanskrit words, "pañca" meaning five, and "sīla" meaning principles...
ideology. In July , Nasution proposed returning to the 1945 Constitution
Constitution of Indonesia
The Constitution of Indonesia is the basis for the government of the Indonesia.The constitution was written in June, July and August 1945, when Indonesia was emerging from Japanese control at the end of World War II...
, and in September, he political activity.
Gradually, this gained support from the political parties, and on 5 July 1959, Sukarno issued a decree reinstating the 1945 Constitution and dissolving the Constitutional Assembly. Four days later, a working cabinet with Sukarno as prime minister was announced, and in July, the National Council and Supreme Advisory Council were established. Although the parties continued to exist, only the PKI had any real strength.
Acronyms and economic chaos
In his Independence Day address on 17 August 1957, Sukarno laid down the ideology of guided democracy, later renamed Manipol (Political manifesto). This was later expanded into the ideology known as USDEK — standing for the 1945 Constitution, Indonesian socialismSocialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...
, guided democracy, guided economy and Indonesian nationalism.
On 25 August 1959, the government implemented sweeping anti-inflationary measures, devaluing the currency by 75 percent and declaring that all Rp500 and Rp1000 notes would henceforth be worth one tenth of their face value. Meanwhile, anti-ethnic Chinese measures, including repatriations and forced transfer to cities, damaged economic confidence further. However, by 1960, inflation had reached 100 percent per annum.
The rise of the PKI
In an attempt to strengthen his position in his rivalry with Nasution, Sukarno gradually became closer to the PKI and to the Indonesian Air ForceIndonesian Air Force
The Indonesian Air Force is the air force branch of the Indonesian National Armed Forces.The Indonesian Air Force has 34,930 personnel equipped with 110 combat aircraft including Su-27 and Su-30.-Before Indonesian independence :...
. In March 1960, Sukarno dissolved the legislature after it had rejected his budget. In June, Mutual Cooperation House of Representatives (DPR-GR), in which the armed services had representation as functional groups, and a Provisional people's Consultative Assembly (MPRS) were established, with the PKI chairman, D.N. Aidit as a deputy chairman. The PKI was estimated to have 17–25 percent of the seats in the DPR-GR, and now had representation in all institutions of state except the cabinet. Despite actions against the PKI by regional army commanders, Sukarno repeatedly defended it. Sukarno also began pushing his ideology uniting Nationalism, Religion and Communism, which would become known as 'Nasakom
Nasakom
Nasakom was a political concept during the Sukarno presidency in Indonesia. It is an acronym based on the Indonesian words NASionalisme , Agama , and KOMunisme ....
'.
However, the army's successes in defeating various rebellions, including the PRRI and the Darul Islam movement in west Java meant that Nasution still had the initiative. Therefore, in December 1960, Sukarno established the Supreme Operations Command 9KOTI), to ensure that the campaign to wrest West Irian from the Dutch would not be controlled by the military. Actual combat operations were to be directed by the Mandala command, headed by (future president) Major-General Suharto. The PKI, anxious to make use of the nationalism issue to cement it alliance with Sukarno, wholeheartedly supported this effort. In June 1962, Sukarno managed to foil Nasution's attempt to be appointed armed forces commander, becoming chief of staff with no direct military commanding role, although he kept his position as minister of defense and security.
By 1962, the PKI had over two million members, and in March, Sukarno made two of its key figures, Aidit and Njoto
Njoto
Njoto was a top national leader of the Communist Party of Indonesia . He was shot dead by around 6 November 1965 in the anti-Communist purge during the Transition to the New Order.-References:...
, ministers without portfolio. That same year, the Irian Jaya (as west Irian was now called) issue was resolved with the Dutch agreeing a transfer to UN administration. It was later transferred to Indonesia after the controversial 'Act of Free Choice
Act of Free Choice
Act of Free Choice was an event in July to August 1969 by which Indonesia asserts that the Western New Guinea population decided to relinquish their sovereignty in favor of Indonesian citizenship...
' in 1969.
When, in 1963, the establishment of the state of Malaysia, incorporating the former British colonial possessions in northern Borneo
Borneo
Borneo is the third largest island in the world and is located north of Java Island, Indonesia, at the geographic centre of Maritime Southeast Asia....
, was announced, the PKI once again sought to exploit the issue and organized demonstrations in Jakarta, during which the British Embassy was burned to the ground. On 17 September, Indonesia broke off diplomatic relations with Malaysia, and shortly after, the low level conflict known as konfrontasi (confrontation) was announced (see Konfrontasi). Later that year, the PKI began a "unilateral action" (Indonesian
Indonesian language
Indonesian is the official language of Indonesia. Indonesian is a normative form of the Riau Islands dialect of Malay, an Austronesian language which has been used as a lingua franca in the Indonesian archipelago for centuries....
: aksi sepihak) campaign to implement the 1959–60 land reform laws, which led to violent conflict with NU supporters.
Meanwhile, the army became increasingly concerned with the domestic situation and began secret contacts with Malaysia, while obstructing konfrontasi. At the same time, both the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
began courting the Indonesian army. The Soviet Union was anxious to reduce the influence of the China-oriented PKI, while the US was worried about communism per se, and large numbers of Indonesian officers traveled to the US for military training. However, the PKI was also targeting the army, and was attempting to infiltrate it.
In early 1965, Aidit proposed to Sukarno the creation of an armed "fifth force" (i.e. in addition to the army, navy, air force and police) made up of armed workers and peasants and the appointment of Nasakom advisers to the each of the armed forces. This was a direct threat to the army. In 1965, Sukarno announced the discovery of a document allegedly written by the British ambassador, the so-called Gilchrist Document
Gilchrist Document
The Gilchrist Document is a much cited letter from 1965 often used to support arguments for Western involvement in the overthrow of Sukarno in Indonesia....
, which was touted as proof of army plots against the government.
The end of Guided Democracy
During his 1964 Independence Day speech, Sukarno publicly denounced the United States. An anti-American campaign ensued in which American companies were threatened, American movies were banned, American libraries and other buildings were attacked, American journalists banned, and the American flag was often torn apart. Large anti-American propaganda posters were set up around Jakarta's streets. American aid was stopped. In August 1965, Sukarno announced that Indonesia was withdrawing from the International Monetary FundInternational Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
and the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
, and in his Independence Day speech on 17 August, announced the Jakarta
Jakarta
Jakarta is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of , and a population of 9,580,000. Jakarta is the country's economic, cultural and political centre...
-Phnom Penh
Phnom Penh
Phnom Penh is the capital and largest city of Cambodia. Located on the banks of the Mekong River, Phnom Penh has been the national capital since the French colonized Cambodia, and has grown to become the nation's center of economic and industrial activities, as well as the center of security,...
-Hanoi
Hanoi
Hanoi , is the capital of Vietnam and the country's second largest city. Its population in 2009 was estimated at 2.6 million for urban districts, 6.5 million for the metropolitan jurisdiction. From 1010 until 1802, it was the most important political centre of Vietnam...
-Peking-Pyongyang
Pyongyang
Pyongyang is the capital of the Democratic People's Republic of Korea, commonly known as North Korea, and the largest city in the country. Pyongyang is located on the Taedong River and, according to preliminary results from the 2008 population census, has a population of 3,255,388. The city was...
Axis, and said that the people would be armed. On 27 September, Nasution announced that he opposed the "fifth force" and the "Nasakomization" of the army.
On the night of 30 September 1965, six generals were kidnapped and murdered and a group calling itself the 30 September Movement
30 September Movement
The Thirtieth of September Movement ) was a self-proclaimed organization of Indonesian National Armed Forces members who, in the early hours of 1 October 1965, assassinated six Indonesian Army generals in an abortive coup d'état. Later that morning, the organization declared that it was in control...
seized control of the national radio station and the center of Jakarta. Although the movement was quickly crushed by Suharto it marked the end of guided democracy and of Sukarno as an effective president. The New Order
New Order (Indonesia)
The New Order is the term coined by former Indonesian President Suharto to characterize his regime as he came to power in 1966. Suharto used this term to contrast his rule with that of his predecessor, Sukarno...
regime established by Suharto had its own ideology — Pancasila Democracy.