Indonesia: prospects for prosperity Intro.pdfThe interim Habibie government that succeeded the...
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85 T HE 1997 ASIAN FINANCIAL CRISIS devastated Indonesia, leading to economic collapse, rioting and ultimately the resignation of Suharto, Indonesia’s president for 32 years. In the wake of the dramatic collapse of Suharto’s authoritarian “New Order” government in May 1998, many Indonesians and members of the international community feared that the country would fragment into a failed state of epic proportions, not only destroying itself but also threaten- ing the security and prosperity of its neighbors. Instead, the country held together. The interim Habibie government that succeeded the Suharto administration initi- ated a critical reform process that helped stabilize the coun- try and make recovery possible. Shortly after being sworn in, President B.J. Habibie unshackled the press, released politi- cal prisoners, removed restrictions on formation of political parties and announced that new elections would be held. Although the puppet legislature had been reelected to a new five-year term just two months before Suharto fell, it quickly produced legislation in support of these dramatic democratic reforms and declared elections would be held in 1999, four years earlier than required. Although many feared the worst, the June 1999 elections—with a full complement of international and local observers in attendance—proved to be free, fair and peaceful, unmarred by significant vio- lence, coercion or voter fraud. During this same period, the powerful military peacefully accepted a major reduction of the dominant political, administrative and social roles it had assumed during the Suharto era. These remarkable achievements set the stage for a flur- ry of economic and social reforms that enabled Indonesia by James Castle Indonesia: prospects for prosperity JAMES CASTLE is the Chairman of CastleAsia and an ad- junct professor at Johns Hopkins School of Advanced Inter- national Studies. Resident in Indonesia for over 30 years, he has advised in the establishment of many foreign investment projects and serves on the boards of several companies. He has consulted on numerous projects for governments and international agencies and is on the Advisory Board of the East-West Center. 7 Mar. 17, 2011: Workers install steel reinforcement columns at the construction site of a high-rise office and residential towers in Jakarta. Indonesia has been one of the best-performing emerging economies. (ROMEO GACAD/AFP/GETTY IMAGES)
Transcript of Indonesia: prospects for prosperity Intro.pdfThe interim Habibie government that succeeded the...
85
The 1997 AsiAn finAnciAl crisis devastated Indonesia, leading to economic collapse, rioting and ultimately the resignation of Suharto, Indonesia’s president for
32 years. In the wake of the dramatic collapse of Suharto’s authoritarian “New Order” government in May 1998, many Indonesians and members of the international community feared that the country would fragment into a failed state of epic proportions, not only destroying itself but also threaten-ing the security and prosperity of its neighbors.
Instead, the country held together. The interim Habibie government that succeeded the Suharto administration initi-ated a critical reform process that helped stabilize the coun-try and make recovery possible. Shortly after being sworn in, President B.J. Habibie unshackled the press, released politi-cal prisoners, removed restrictions on formation of political parties and announced that new elections would be held.
Although the puppet legislature had been reelected to a new five-year term just two months before Suharto fell, it quickly produced legislation in support of these dramatic
democratic reforms and declared elections would be held in 1999, four years earlier than required. Although many feared the worst, the June 1999 elections—with a full complement of international and local observers in attendance—proved to be free, fair and peaceful, unmarred by significant vio-lence, coercion or voter fraud. During this same period, the powerful military peacefully accepted a major reduction of the dominant political, administrative and social roles it had assumed during the Suharto era.
These remarkable achievements set the stage for a flur-ry of economic and social reforms that enabled Indonesia
by James Castle
Indonesia: prospects for prosperity
JAMES CASTLE is the Chairman of CastleAsia and an ad-junct professor at Johns Hopkins School of Advanced Inter-national Studies. Resident in Indonesia for over 30 years, he has advised in the establishment of many foreign investment projects and serves on the boards of several companies. He has consulted on numerous projects for governments and international agencies and is on the Advisory Board of the East-West Center.
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Mar. 17, 2011: Workers install steel reinforcement columns at the construction site of a high-rise office and residential towers in Jakarta. Indonesia has been one of the best-performing emerging economies. (ROMEO GACAD/AFP/GETTY IMAGES)
