Indonesian Nationalist Revolution (1945-1949)

The Indonesian Nationalist Revolution was a turbulent time in the birth of an independent nation in the post-World War II decolonization movement. The diverse and disunited region had to combat powerful and independent nations while facing internal struggle. The Nationalist Revolution proved that the Third World nations had a right to self-determination and had the will and power to fight for it and be victorious.
Indonesia’s seed of independence was ironically germinated by their Japanese invaders, but grew under the oppression of their imperialist European dominators. Indonesia was originally under the oppressive rule of the Dutch, but was taken over by the Japanese during WWII. In 1944, when Japan realized it was failing to win the war, it prepared the entire archipelago (including Indonesia) for self-government. Achmed Sukarno, a man who planted the nationalist seed and began the Indonesian Nationalist Party (PNI), proclaimed Indonesia’s independence following Japan’s surrender on August 17, 1945. Once Indonesia began to create a constitution to further validate its status as an independent country, the Netherlands joined forces with the British to stop further flourishing of the thriving independence of Indonesia. When Dutch troops landed in Java and endeavored to return Indonesia’s current independent state back under Dutch control, the Indonesian People’s Army attacked. This led to the signing of the Cheribon Agreement of 1946 that was later disregarded by both sides as further brutality struck.

Indonesian Independence Day
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Alongside the violence between the Indonesian People’s Army and the British-Dutch forces, fighting broke out between the Indonesian Communist party, the Muslim fundamentalists and the Indonesian Republicans. The Republicans, though valiant in their first victory against the Muslim extremists in September 1948, were later unfortunately not as victorious against the Dutch forces in the same year. Though the Dutch were unable to realize at first, this small victory was later seen as a frivolous effort in suppressing the Republican movement. From August 23 to November 2, 1949 Sukarno was issued full sovereignty by the Dutch. The Indonesian Revolution for Independence lasted from 1945 to 1949.

Indonesian flag is raised on August 17, 1945
http://upload.wikimedia.org/wikipedia/commons/9/90/Indonesian_flag_raised_17_August_1945.jpg

Indonesia vs. the Netherlands

When Indonesia finally received full independence in 1949, the people of Indonesia had no idea of the conflicts and hardships they would soon face with the Netherlands when they named Achmed Sukarno effectively the permanent president.

Map of Indonesia and the Netherlands
http://en.wikipedia.org/wiki/File:Indonesia_the_Netherlands_Locator.svg

Sukarno’s involvement in the Indonesian war with his harsh militaristic approach after subtle forms of democracy led Indonesia to invasion and violence and global concern. Sukarno ruled over Indonesia with a harsh dictatorial rule, and moved to get the UN to resolve the dispute over the possession of West New Guinea, known to the Indonesians as their state of Irian Jaya, which remained under Dutch rule. When the UN failed to resolve the possession issue, Sukarno called all Indonesians to strike out against all Dutch-owned businesses, and he cast out many Dutch nationalists. Dutch houses and businesses were also seized and nationalized by the government. Sukarno’s brutal, anti-Dutch actions spawned the fleeing of approximately 40,000 Netherlanders from Indonesia. Those that fled found that their abandoned businesses had been taken over and were now run by the Indonesian army. Because of Sukarno’s actions, however, the Netherlands were forced to open negotiations with Indonesia over the possession of West New Guinea, however to no avail as the negotiations failed. Due to this failure, the Netherlands prepared themselves for the worst from Indonesia, effectively barricading West New Guinea for the impending attack. In 1962, Indonesian paratroopers and native guerillas launched war against the Netherlands’ occupation of their ‘Irian Jaya’. The United States and the UN immediately rushed to organize more peace talks as the as the violence escalated exponentially in the area. On August 15th, 1962, the Netherlands passed on ownership of West New Guinea to UN in the Indonesian-Dutch Aggreement, to prevent further movements and violence against them from the Indonesians. In 1963, the UN passed on their ownership to Indonesia.

Flag of Indonesia and the Netherlands
http://www.crossed-flag-pins.com/Friendship-Pins/Indonesia/Flag-Pins-Indonesia-Netherlands.jpg

Under Sukarno’s rule, although brutal and menacing to the point of a reign of terror, it brought Indonesia to understand the meaning of being a powerful nation, even right out of becoming an independent nation. Although the negotiations with the Netherlands could be viewed to the majority of the world as violent and terrifying, it also brought new meanings of power and control to the Third World countries, emerging from the dust of Imperialism and cultural, political, economic, and religious hegemonies.

Indonesian-Malaysian War

The devastating three year Indonesian-Malaysian war that began as a conflict between two nations, turned into a twisted internal battle within the nation of Indonesia. Taking place at the Singapore Harbor and Malaysia, specifically Sabah and Sarawak, imperialism infected Indonesia, which in turn prevented them from acknowledging the Republic of Malaysia. And so, there was an official declaration of war in 1963, of Indonesia against Malaysia.

Propoganda by Sukarno
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This conflict occurred during Achmed Sukarno’s rule, one of the most brutal dictators in history. He refused to recognize the Republic of Malaysia, and enforced war against Malaysia in Indonesia., leaving him with full responsibility of the casualties and humility that came as a result of this conflict.
This war was by no means an ordinary war that was fought in organized battles. This was a guerilla war, with secrecy and surprise attacks. Paratroopers were used in Malaysian territory, and demolition teams underwater, to attack the Singapore harbor. These methods of attack made this war hard to predict and rose the number of casualties.
Malaysia’s numerous allies led it to be a powerful foe to the recently independent nation. Malaysia at this time was the union of Malaya, Sabah, Sarawak, and Singapore until 1965. When Indonesia broke into Sabah and Sarawak, Great Britain lent a hand to Malaysia by offering much needed military aid. But, this was not the cause of Indonesia’s loss in the war.

Singapore Harbor
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The Indonesian-Malaysian war had a bad effect on Indonesia as a united country. Communism split the nation by expressing the disproval for the war. In addition to the communist abduction and murder of six high ranking Indonesian generals, a failed coup d'état on September 30, 1965, that resulted in an irrational purge and sent Indonesia into darkness and discontent. The man who began the purge goes by the name of Raden Suharto, Sukarto’s general in chief. The Indonesian forces were sent to eliminate leftists and communists from the Indonesian population. The Indonesian forces consisted of the Indonesian army and right-wing Muslim political groups. It is this dissension within its own nation that cost Indonesia victory in this conflict.
The results of the Indonesian-Malaysian war were catastrophic for Indonesia, as well as Sukarno. Military resources were used during the successful effort to purge the communists, but there were not enough resources to continue the fight Malaysia. The rebellion left Indonesia no option but to agree to open peace negations at Bangkok and accept peace in 1966 with Malaysia, which from that point on was considered an independent republic. An armistice was settled on June 1, 1966, which was then followed by the formal agreement, the Treaty of Jakarta, which was signed on August 11, 1966. This war was responsible for the transition from Sukarno to Suharto. The army demanded that he give most of his authority to Suharto on March 11, 1966, leaving him with very little power after the war. Sadly, this was not the worst result.
The number of casualties was shocking and devastating. It is thought that 150,000-500,000 Indonesian communists were killed. What makes the death toll even more appalling is that a majority of the deaths occurred during a period of eight weeks after the failed coup, though the killings still occurred in 1966. The death toll in Bali (that Indonesia had control over), was at least 50,000, and on east Java, the death toll was at least 100,000. Dipoa Nusuntara Aidit, the leftist leader, was killed, and those that were not brutally murdered were imprisoned in innumerable numbers. Even by 1976, there were approximately 70,000 political prisoners imprisoned from a war and were not released until a decade ago.

Map of Indonasia and Malaysia
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The Indonesian Malaysian war was one of the most devastating and lethal occurrences in Indonesian’s history. It was an imperialistic war that Sukarno enforced with stupidity, and resulted in a grim fate for the people of Indonesia, especially the communists. The situation from this point on, should have, but would not improve. The power change from Sukarno to Suharto was seen as an improvement, but the only thing this transition of power accomplished was the handover of power from one brutal dictator to another to come.

Indonesian Epidemics

During the post-world war II period in Indonesia, disease rapidly broke out among the oppressed people, who were already dwindling in numbers due to the mass murders of alleged communists to bring peace to their country. There were two major epidemics that occurred in Indonesia, the cholera epidemic from 1961 to 1962, and the small pox epidemic from 1965 to 1967. It is obvious that the disease and murder decreased the Indonesian population after WWII and further damaged it as a newly independent country, attempting to eliminate any and all problems that it was facing. This of course, led to further damage of the country and its people. Even though Indonesia had a rough beginning, it proved to be strong in the end.

Smallpox Statistics
http://biotech.law.lsu.edu/blaw/bt/smallpox/who/red-book/Chp%2013.pdf


Cholera, a water-borne disease that infects the small intestines and causes large amounts of watery diarrhea, was believed to be spread by the transporting of troops and Indonesians. In January 1961 cholera had spread into the central and northern parts of the island where 109 cases were reported and 29 deaths occurred. Cholera mainly affected the poorer Indonesians, because of unsanitary living conditions and dietary deficiencies. It was confirmed on February 1, 1962 that 4,107 cases occurred and 897 deaths, this continued in certain parts of the country until March 1962.

Smallpox and the Population
http://biotech.law.lsu.edu/blaw/bt/smallpox/who/red-book/Chp%2013.pdf



The smallpox epidemic of 1965 to 1967 had an incredibly large sum of reported cases, and deaths, but was quickly ended by smallpox eradication programs set up in Indonesia following the first reported outbreaks. Smallpox, a contagious disease that is a rash on the skin that eventually begins to horribly scab, was extremely underreported in Indonesia. It is estimated that 100,000 cases of smallpox occurred in Indonesia. The eradication of smallpox program quickly and effectively diminished the epidemic in Indonesia, despite their limited resources, and the great size and population of Indonesia. Vaccines were sent around Indonesia on bicycles, and there were small rewards given to anyone who reported a smallpox case, resulting in the rapid eradication of smallpox in Indonesia, from 1965 to 1967.

Indonesian Communist Party

The Communist party of Indonesia (PKI), originally named Indies Social Democratic Association (ISDV), was first established in 1914 but then increased its membership after the Russian Revolution of 1917 and changed its name in 1920. The Communists first believed that Ahmed Sukarno’s Republic of Indonesia, declared on August 17, 1945, was “Japanese sponsored and fascist”(Indonesian Communist Party [PKI]). On the other hand, in 1950 PKI changed its original views towards Sukarno and his Republic of Indonesia. The PKI soon transformed into a strong political force in Indonesia once they joined forces with PNI (Indonesian Nationalist Party) during the first general elections of 1955.

The Indonesian Communist Party
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From 1945 to 1968, Indonesia continually tried to rid themselves of the PKI (communist party) using any means necessary in their efforts. The PKI later helped in the revolution against the Dutch in 1945. This troubled President Sukarno, though, because the growing Communist powers tested his political position. Sukarno soon felt relief after signing the Renville Agreement in 1948 with the Netherlands, giving the republic a thin veil of fortitude in believing they were able to oppose the PKI forces. This agreement made the PKI armed forces dissolve. Unfortunately, in September of 1948 (the same year that the Renville Agreement was reached) a number of PKI militants refused to follow the agreement and were killed. This resulted in the PKI revolting against the Dutch and Republic forces, thus giving Sukarno a reason to suppress the PKI, and have them lose power. Thousands of PKI militants were killed and approximately 3,600 were imprisoned. The party, though oppressed, began to rise again in 1949. The PKI later began to “arm the people” and the 30 September Movement began. It involved Indonesian Armed Forces and they soon killed six Indonesian Army generals and were keeping Sukarno under their protection. They later killed two more generals before they were disbanded, blaming their killings on the PKI, which led to mass killings of alleged Communists. Approximately 500,000 Communists were killed, and there no longer was a PKI. General Suharto was appointed president in 1968.

Supporters of the Indonesian Communist Party
http://kepustakaan-presiden.pnri.go.id/uploaded_files/jpg/pemilu_peristiwa/normal/pki-kampanye.jpg




In their attempt to exterminate any and all communist forces, Indonesia got itself caught up in a wave of mass murder and destruction in order to ironically, become a liberal country. Later though, Halim base was taken over and it was assumed to be a PKI attack. To insure the extermination of the Communist forces in Indonesia, there was another aggressive mass killing of alleged Communists. About 300,000 to 1 million people were killed. It was said by the CIA that “in terms of the numbers killed, the anti-PKI massacres in Indonesia rank as one of the worst mass murders of the 20th century…”.

Sukarno

Known as one of the greatest 20th century independent leaders, Sukarno was a very strong nationalist before coming to power, but following his election as Indonesia’s first “president”, he ruled as a brutal dictator. In June 1947, he formed the Indonesian Nationalist Association, also known as the PNI. Sukarno outlined Pancha Sila, the five principles of Indonesia’s government. Pancha Sila was nationalism, internationalism, consensus, social prosperity, and belief in one God. Sukarno strictly followed these principles when he came to power. He enforced nasakom, which was nationalism, religion and communism. This was the ideal basis of Indonesia’s political system. He fought against neokolim, a combination of neocolonialism, colonialism, and imperialism. Indonesia is 85 percent Muslim, and there are many large groups of Hindus and Christians. Sukarno’s main goal during his reign was to bring together and unite Indonesia.

Image of Sukarno
http://www.foto-foto.com/sukarno/sukarno_9.jpg

Sukarno’s early life greatly influenced his desire for independence and brought him to power. Growing up during the period of Dutch colonialism in Java, he excelled at school. To further his education, Sukarno attended a larger high school where he was part of the extreme Indonesian minority. He stayed with a family friend Jokroaminoto, who taught him of resistance to the Dutch. He eventually graduated school, and sought ways to gain Indonesia its independence. Besides the Dutch, Sukarno felt that the geographic, linguistic, politic, and religious divisions were responsible for Indonesia’s lack of independence. This is when he formed the PNI, and his goal was to overthrow the colonial government. For these acts of independence, he was sent to prison, which only martyred Sukarno in the eyes of the Indonesian people. When released, Sukarno continued to preach for independence, and was exiled. He preached at conferences such as the Bandung Conferrence on April 18, 1955 to put and end to colonialsism:
And, I beg of you do not think of colonialism only in the classic form which we of Indonesia, and our brothers in different parts of Asia and Africa, knew. Colonialism has also its modern dress, in the form of economic control, intellectual control, actual physical control by a small but alien community within a nation. It is a skilful and determined enemy, and it appears in many guises. It does not give up its loot easily. Wherever, whenever and however it appears, colonialism is an evil thing, and one which must be eradicated from the earth. . . .
During the period of exile, World War II began, and the Dutch had to flee to London during their occupation. Sukarno refused their offer of freedom from exile in exchange for supporting pro-Dutch propaganda. By 1942, a new power occupied Indonesia, this time Japan. Sukarno accepted freedom in return for supporting pro-Japanese propaganda. This was symbolic of the fact that Asian nations could resist European colonization. The Indonesians expected more humane treatment from their Japanese invaders, but instead received cruelty and dehumanization that exceeded that of the Dutch. More than 300,000 Indonesians were forced from their villages and only 70,000 returned. The Japanese downfall in 1945 with their surrender to the Allies sent them out of Indonesia, but brought back the Dutch. Eventually, on December 27, 1949, Sukarno became the first president of Indonesia under a provisional constitution.He vividly remebers when he Indonesia gained independence and he was hailed as a hero:

With beating heart I stepped down into the sea of people. We could not get through the crowd. Millions upon millions flooded the sidewalks, the roads. They were crying, cheering, screaming ‘Long Live Bung Karno.'... I raised both hands high. A stillness swept over the millions. There wasn't a sound except for the silent tears; nothing moved. Alhamdullillah—thank God, I cried, we are free.


Sukarno’s rule did not bring the stability Indonesia desperately desired and required but rather brutality. Indonesia went through twelve different governments during the first two years, and though literacy, health care, and other government funded programs increased, there was no political freedom. Sukarno ordered a guided democracy and had parliament dissolved in 1957. Soon Sukarno ruled violently and ordered martial law when rebellions broke out. The nation fell into debt due to Sukarno’s corrupt methods. Furthermore, he diverted attention from his obscene ways by using a policy of “Crush Malaysia”.

The end of Sukarno’s political regime came as a result of ill-health and discontent among his people. The democracy he created should have brought a better life for the people of Indonesia, but instead corruption, inflation, economic instability, and political instability ruled over Indonesia. In 1965, his health faltered, and Sukarno fainted in the midst of a speech, leaving communists the perfect scenario to stage a coup. Their goal was to assassinate eight leading generals and take control of Indonesia, but two generals escaped and were able to create a countercoup. Sukarno was put under house arrest as these two generals purged the nation of communists. One of these two generals was Raden Suharto, who became the new leader of Indonesia. Sukarno died on June, 21, 1970, and he was hailed as the founder of modern Indonesia. Though he still brought a lot of harm to Indonesia, he united a diversified nation, and ended European colonialism. Sadly though, Sukarno’s death was by no means a sign of a prosperous beginning with Suharto rise to power.

Suharto (left) and Sukarno (right) during Sukarno's presidency
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Suharto

Suharto ruled unopposed well into the 1990s after becoming head of the Indonesian military government. He served as a brutal dictator who purged Indonesia of his political opponents and communists by slaughtering and dividing his nation. Not only did Suharto commit crimes against humanity, but he committed many frauds economically. Suharto’s long reign proved to be at least as harmful, if not worse than Sukarno’s in the end. Indonesia was left distraught after his rule.

Suharto
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Suharto rose to power by climbing the military ladder and slowly highering in rank. Before World War II, Suharto was an ordinary Indonesian man working for a small bank, but when the Dutch called for a local defense team Suharto joined and eventually became sergeant. When the Dutch lost Indonesia to the Japanese, Suharto joined the local Japanese volunteer force and eventually rose to company commander. When the Japanese lost Indonesia, the Dutch tried to once again rule, but the local volunteer forces resisted and independence was declared. From this point on, Suharto served in the militarily and rose in rank. By 1963, he was the major general, and for a short period of time Suharto served as the commander in chief of the army’s strategic command. Though Suharto was militaristically involved, he showed no interest in politics other than his extreme anti-communist beliefs. Suharto gained the greatest recognition for countering a communist rebellion on September 30, 1965 that would have killed the top ranking military officials. When it was discovered that the current president Achmed Sukarno was involved in the coup, Suharto took control of the government and purged Indonesia of communists and opponents. About half a million people were brutally slaughtered in this purge. This led Suharto to his five-year term election in 1968 by the Consultative Congress.

Once in power, Suharto began his “New Order” Regime. Suharto’s goal was to improve the Indonesian economy. This was done with American-educated economists and industrialists which he paid for with more than 200 million dollars in foreign aid from investors. Keynesian economic policies were enforced in Indonesia to prevent inflation. The Indonesian economy had greatly improved by the mid-1970s and Suharto was reelected until 1998 for five year presidency terms. But, in 1997 the currency crisis in Southeast Asia spread to Indonesia and affected the value of their currency the rupiah, causing the economy to collapse once again. Riots broke out, and the army began to disobey Suharto, which left him no option but to resign in 1998 as president of Indonesia.

Polical Comic of Suharto's Legacy in Indonesia
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As time passed, Suharto found himself in many legal charges. Within two years corruption charges were filed, but with Suharto’s declining health, trial was postponed. Because of discontent and violent riots at the capital, Suharto was put under house arrest. Until 2006, Suharto was kept under house arrest for these charges, which were lifted because of his poor health. Once again though, in July of 2007, a civil suit was filed for 1.1 billion rupiahs in embezzlement damages. To add to the legal troubles Suharto was in, an investigation of human rights abuses was announced in December because of the 500,000 people who were killed during the purge. On January 27, 2008, Suharto died at 86 years in a coma after multiple organ failures.

East Timor Conflict

What may have seemed at the start as a simple reassertion of their claim to authority over East Timor by the Portuguese, spiraled out of control becoming deadly and to the point of genocide when Indonesian military got involved in 1975, unfurling one of the most neglected but horrific and bloody global crisis throughout the post-World War II decolonization movement.


Although East Timor finally overthrew one imperialistic dictator of a governing power, it was only lighting the fuse for an even greater and more deadly conflict that was still to come. The harsh dictatorship that developed over East Timor at the hands of their brutal overlords, the Portuguese, reached its boundary in 1974, when it became so overbearing that the Portuguese government was overthrown in a “bloodless military coup”. Following this ousting of East Timor’s authoritarian governing power, numerous political parties of varying and drastically opposing views formed, leading to the eruption of a civil war in 1975, sprung by military intelligence operations and the declaration of independence by FRETILIN (Revolutionary Front for the Independence of East Timor). Recognizing the instability and unrest of East Timor during this turbulent time, Indonesia took advantage of the weakness of East Timor and invaded with its forces in 1975. By the following year, Indonesia had proclaimed East Timor its 27th province, but the United Nations rejected this flagrant claim, and recognized East Timor as an independent nation.

East Timor Conflict
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East Timor would be destroyed by bloody warfare throughout 1999, with the conflict between those seeking independence and that of the ruthless Indonesian military. It is estimated that over 200,000 East Timorese were killed throughout the course of 24 years. The air force of Indonesia heavily bombarded East Timor from 1977-78, and the years following were dominated by brutal guerilla warfare. The crimes committed during 1999 to the East Timorese people were so horrific that in 2002 they held a Commission for Reception, Truth and Reconciliation to try and convict those who committed such serious crimes, proof of the sheer horror and physical and mental scars this time period left of the victims:

"The commission concluded that gross human rights violations, in the forms of crimes against humanity, did occur in East Timor in 1999 and that these violations included murder, rape and other forms of sexual violence, torture, illegal detention, and forcible transfer and deportation carried out against the civilian population."

Decolonization and the right to self-determination finally prevailed in 1988, when the European Union (EU) voted in favor of East Timorese independence, with the United Nations (UN) following in 1989, but despite this auspicious event, Indonesia continued to refuse to back down on its claim of the nation. In 1991, at the Santa Cruz Cemetery of East Timor’s capital city, the Indonesian Army murdered over 250 protestors and mourners. Even though the Indonesian government publically investigated the incident, even going as far as to, in 1992, convict the military, behind closed doors the protestors were given in some cases 10 years behind bars, while the military was let off with, in essence, hardly more than warnings. Shortly following the incident, in 1993, Konis Santana became substitute leader of FRETILIN, when Xanana Gusmão was caught and sentenced 20-years imprisonment.

The presence Indonesian military in East Timor increased throughout the 1990s. In 1997, violence prevailed once more when the Indonesian military once more attacked protestors at pro-independence demonstrations. However, this violent action triggered the Catholic Church to organize a form of peace talks in 1998, in an effort to reconcile the Portuguese, Indonesia, and East Timor, and to finally end the brutal violence and political truculence.

East Timor Conflict
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On May 5th, 1999, at the UN, Portugal, Indonesia, and those with leadership over East Timor signed an agreement over the crisis, triggering further actions to help prevent further needless bloodshed and warfare, but this was yet the end to political turmoil in the nation. UNAMET (United Nations Mission in East Timor) was established on June 11th, 1999, with the hopes of aiding in a people’s vote over the issue of the independence of East Timor. The vote was held on August 30th, 1999, and on September 4th, 1999, the results were announced. 78.5% of East Timorese people voted to be completely independent from Indonesia, leaving only 21.5% voting to remain under Indonesian rule. This historic and miraculous event, however, proved to be devoid of result and termination to the incessant violence, as Indonesia armed the 21.5% of East Timorese, provoking a brutal massacre of independence fighters and believers, and East Timor’s 2nd Civil War since its “independence”. In the horrific violence of 1999, it has been estimated that of East Timor’s total buildings, 85%, consisting mostly of businesses and schools, were demolished. It has also been estimated that about 1 million East Timorese fled East Timor to its neighbor, West Timor, other islands within Indonesia, and Australia, whom East Timor had assisted in World War II. INTERFET (International Force for East Timor), formed by the UN, on September 20th, 1999, traveled to East Timor to protect UNAMET in its effort to carry out independence of East Timor and to restore peace and order to the region. The UN created another organization on October 25th, 1999, a United Nations Transitional Administration in East Timor (UNTAET), to form as a government until elections could be held for the independent nation of East Timor.

The year of 2002 proved to be a final relief to the stricken and tired East Timorese after years of militaristic and political turmoil and ghastly bloodshed and crime. In 2002, East Timor, under United Nations supervision, was declared an independent nonself-governing territory. The stand-in government, in February 2002, began drafting a constitution, which in April 2002 permitted the fitting release of Xanana Gusmão, the imprisoned leader of FRETILIN, who was subsequently elected the first president of East Timor. After residing under the oppressive hold of two aggressive nations and under the grip of violence and terror, at long last, on May 20th, 2002, East Timor became a fully independent nation.

Indonesian Economy

Although the Indonesian economy experienced fits off rapid growth throughout its colonial and independent life, the Indonesian economy faced numerous issues, leading it to its place in today’s modern world as rank number 18 in GDP per capita by the International Monetary Fund (IMF) in 2010.


Before Indonesia’s relief from imperialistic rule, the economy of Indonesia experienced a sustainably large economy followed by a fit of economic downfall. A term of which many people are familiar is that of the Dutch East India Trading Company, which domineered Indonesian economy for the majority of its colonial life, until its dissolution in 1798. Toward the end of WWII, the Japanese held control of the colony, leading to the creation of independence feelings within the region, which lead to further conflict and economic stagnation.

In Indonesia’s pursuit of independence and freedom from its two overwhelming imperialistic controllers, as well as following its victory in this momentous struggle, Indonesia’s economy faced missed opportunities and suppression. During Indonesia’s independence struggle following the Japanese surrender to the Allies in 1945, the Dutch were forming post-war plans to create a Netherlands and Indonesian Common-wealth, by which Indonesia would become an economic equal to their governing power the Netherlands, but these plans dissolved when the Netherlands were forced to relinquish their hold on Indonesia and grant it complete independence in the post-WWII decolonization movement. Following its independence, however, Indonesia’s economy faced numerous issues threatening its expansion and flourishing, such as political turmoil and oppression by two independent dictators, Sukarno and Suharto, numerous wars and conflicts within Indonesia’s innumerable islands and with the greater powers of the modern world, and that of Indonesia’s climate restrictions and its diversity of people, all leading to the suppression of what could have been the greatest economy of the modern world.

Aftermath of the tsunami
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The first “president” of Indonesia, Sukarno, further suppressed the economy with his communist political tendencies and his bloodthirsty endeavors into unification and even imperialism, while the newer Suharto, while allowing the economy room for immense expansion, still limited the growing economy from reaching its full potential. Under Indonesia’s first life-long elected dictator, Sukarno, the independent nation’s economy was first suppressed by a strong military presence in economic affairs due to the seizing and nationalization of Dutch businesses, as well as the occupation of the abandoned Dutch businesses, throughout the duration and in the epilogue of the Indonesia-Netherlands Conflict over the ownership of West New Guinea. Also, under Sukarno, Indonesia leaned toward a more communist approach to politics, possibly leading to more suppression of the economy. Under the new dictator, Suharto, elected two years before the death of Sukarno, Indonesia’s economy actually accelerated, with Suharto looking to the United States for aid in revitalizing the damaged economy. He shut down frivolous spending and costly wars, and managed to gain international interest, procuring for the country hundreds of millions of dollars in aid. Within a couple of years, the economy had returned to a higher standard. Unfortunately, Suharto’s regime did not come without its economic obstacles, as when the currency crisis struck Southeast Asia, Indonesia fell also, as did its currency, the rupiah. Following Suharto’s fall from leadership following numerous reelections, it was discovered that he had embezzled billions of dollars from the country, also suppressing Indonesia’s economic growth substantially.

In current times, Indonesia faced a horrific disaster in 2004, when the tsunami hit the island of Sumatra, on the 26th of December, 2004. Nearly half the deaths of this nature-made colossal expanse of water were for Indonesia, which lead to an obvious effect on the economic growth and sustainability of the nation.

GDP of Indonesia
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In even more recent times, the economy thrives once more, with an expected increase of 6.4% in 2011. The Finance Minister of Indonesia, Agus Martowardojo, predicted this in June, 2010, also saying “We hope growth can be supported by household consumption that stays strong, the improving investment climate and the increase in export activities”. The current main exports according to the United States Department of State include oil, natural gas, crude palm oil, coal, appliances, textiles, and rubber.
Although Indonesia is haunted by “what could have been”, Indonesia holds strong prospect to “what still may be”, as the nation, freed from the majority of its political turmoil and hopefully rid of its diversity and climatic issues, as well as free from the reins of western hegemony, accelerates forward as a leading economic power.