Indonesia: On the Mostly Negative Role of Transnational Capital in Democratization

Abstract

In 1995, Indonesians celebrated their 50th year of independence from the Dutch. But at the current rate of change, Indonesia’s 200 million citizens may have to wait another 50 years before they can begin to celebrate their freedom. The fourth most populous country in the world, Indonesia has had just two presidents. General Suharto, now in his late-70s and in declining health, pushed aside President Sukarno in the bloody aftermath of an abortive putsch in 1965. With American complicity, General Suharto and his armed forces orchestrated a pogrom against the Indonesian Communist Party (PKI) that claimed between 500 000 and a million lives by the middle of 1966. Thus was the authoritarian tone set for Suharto’s ‘New Order’ regime. With the passing of North Korea’s Kim Il Sung, Suharto assumed the mantle of Asia’s most enduring dictator. He is also by far the region’s richest