Transition to the New Order

Indonesia's transition to the "New Order" in the mid-1960s, ousted the country's first president, Sukarno, after 22 years in the position. One of the most tumultuous periods in the country's modern history, it was the commencement of Suharto's 31-year presidency.

Described as the great dhalang ("puppet master"), Sukarno drew power from balancing the opposing and increasingly antagonistic forces of the army and Indonesian Communist Party (PKI). By 1965, the PKI extensively penetrated all levels of government and gained influence at the expense of the army.

On 30 September 1965, six of the military's most senior officers were killed in an action (generally labelled an "attempted coup") by the so-called 30 September Movement, a group from within the armed forces. Within a few hours, Major General Suharto mobilised forces under his command and took control of Jakarta. Anti-communists, initially following the army's lead, went on a violent purge of communists throughout the country, killing an estimated half million people and destroying the PKI, which was officially blamed for the crisis.

The politically weakened Sukarno was forced to transfer key political and military powers to General Suharto, who had become head of the armed forces. In March 1967, the Indonesian parliament (MPRS) named General Suharto acting president. He was formally appointed president one year later. Sukarno lived under virtual house arrest until his death in 1970. In contrast to the stormy nationalism, revolutionary rhetoric, and economic failure that characterised the early 1960s under the left-leaning Sukarno, Suharto's pro-Western "New Order" stabilised the economy but continued the policies of Pancasila.

Nationalist leader Sukarno had declared Indonesian independence in 1945 and was appointed president. Following an internal national revolution and struggle against the former Dutch colonial government, Sukarno had managed to hold together the disparate country; however, his administration had not been able to provide a viable economic system to lift its citizens out of severe poverty. He stressed socialist policies domestically and an avidly anti-imperialist international policy, underpinned by an authoritarian style of rule dependent upon his charismatic personality. Pursuing an independent Indonesian foreign policy, Sukarno developed friendly ties with the Eastern Bloc, the People's Republic of China, whilst courting friendly relations with the United States at the same, in his efforts to maximise Indonesian bargaining power in its foreign policy. Sukarno was also a pioneering figure in developing the Non-Aligned Movement, playing a lead role in hosting the Bandung Conference in 1955. In Indonesia's domestic politics, Sukarno also carefully balanced Indonesia's various political parties, including the PKI.

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