Balivayatravel.com - General Information about Indonesia and beyond #4

Sukarno's consolidation of power did little to alleviate Indonesia's economic woes. His corrosive vanity led to a number of grandiose building projects - little more than chimeras of national rebuilding - which provided sharp contrast to the poverty of his people. Instability reigned for several years as Sukarno launched Konfrontasi against Malaysia, withdrew from the United Nations, and planned to socialise the economy. Events came to a head in 1965 when an attempted coup, allegedly by Communist groups, left several army generals dead and Sukarno's hold on power threatened.

General Suharto, who was responsible for brutally quashing the coup, eventually seized presidential control. In stark contrast to the turbulent Sukarno years, Suharto sought to address Indonesia's economic problems, forge national unity, promote openness, and curb its worst excesses. However, the contentious invasion and annexation of East Timor in 1975, the 1991 Dili massacre in East Timor, the prevalence of cronyism and nepotism in the economy and persistent human rights abuses proved many of those excesses were still to be reckoned with.

In 1997 and '98 Indonesia's economy took a dramatic downturn - by January 1998 the rupiah had taken the title of 'world's worst performing currency', 2.5 million people had lost their jobs and the International Monetary Fund was imposing austerity measures in return for sizeable loans. Many Indonesians believed the crisis was brought on by government nepotism, and a few brave souls suggested Suharto should quit his post.

In March 1998 the President decided to give himself another five years in office and appeared to become increasingly out of touch with the mood of the nation. Food shortages and price rises implemented under the IMF's economic bailout package sparked anti-government demonstrations which peaked in May 1998 after six students were shot dead by the army. More than 500 people died in Jakarta in the ensuing riots, and Suharto eventually stood down on 21 May. In accordance with the country's constitiution, he was replaced by his (none-to-popular) vice-president, Jusuf Habibie. Although Habibie has made some cosmetic reforms (including moves toward limited self-rule for East Timor), opposition forces and Indonesian students are still bristling.

But Indonesia's Future looks more bright since democtratic elected president K.H. A. Wahid took office, followed by Megawati Sukarnoputri.

Tourism is regaining stability, despite the riots in Lombok. Bali, as it always has been special, is still a heaven for Travelers and brings with it optimism for the other Indonesian destinations.