Guided Democracy (1957–1965)

Guided Democracy (Indonesian: Demokrasi Terpimpin) 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, although the latter were never actually given functional cabinet positions). Since then, there was no Western-style parliamentary democracy in Indonesia until the 1999 elections of the Reformasi era.

The Liberal democracy period, from the re-establishment 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.

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