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New Order (Indonesia)

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The New Order (Orde Baru) was Indonesia’s government from 1966 to 1998, led by President Suharto. It followed the chaotic years after a failed 1965 coup and a brutal anti-communist purge. Suharto styled the New Order as a move away from the old, chaotic politics of Sukarno toward order, development, and stability.

What it aimed to do
- Restore political and economic stability after years of instability.
- Promote development and growth, focusing on modernization and infrastructure.
- Keep the country away from communism and strong leftist movements.
- Create a centralized, military-influenced system with limited popular political participation.

How it worked
- The military played a major role in government and society (the “Dwifungsi” or dual function).
- Pancasila, a guiding set of national principles, was promoted as the only legitimate political ideology.
- Political parties were tightly controlled. Golkar, a government-aligned group, won most elections and dominated parliament.
- The regime suppressed opponents, controlled the press, and used security forces to break up protests.
- Civil society was organized to support government programs, while many independent groups were restricted.

Economic policy and growth
- Indonesia shifted from autarky to an export-oriented, growing economy.
- Foreign investment was encouraged, and large Indonesian-Chinese conglomerates expanded in industry and finance.
- The government built roads, housing, energy, and communications networks, helping to raise living standards in some measures.
- Corruption, nepotism, and crony capitalism (the KKN system) increased, with family members and close allies gaining political and business power.

Key events and actions
- 1966: Suharto solidifies power after the Supersemar decree, bans the PKI, and removes Sukarno from influence.
- Late 1960s–1970s: The New Order consolidates control, restructures elections, and paralyzes opposition. Media is restricted; student protests are often crushed.
- 1975–1976: Indonesia invades East Timor and later annexes it as a province, a conflict marked by heavy fighting and many deaths.
- 1980s–1990s: The economy grows through deregulation and infrastructure investment, aided by foreign loans and a few powerful conglomerates.
- 1990s: The government builds closer ties with Islamic groups to broaden its support, while critics push for reform.
- 1997–1998: Asia’s financial crisis hits Indonesia hard. The government seeks IMF help, banks fail, the currency collapses, and public protests grow.
- May 1998: After days of protests and violence, Suharto resigns.BJ Habibie becomes president and reforms begin.

Impact and legacy
- The New Order brought stability and notable economic growth for a time, along with major infrastructure and development.
- It also featured widespread repression, censorship, and the abuse of power. Corruption and family-linked business interests became deeply entrenched.
- The regime’s fall sparked Indonesia’s Reformasi era, bringing greater democracy, more press freedom, and significant political change.
- Opinions about Suharto’s rule are mixed: some remember the economy and stability, others recall the violence, corruption, and lack of political freedom.

In short, the New Order was a long period of authoritarian rule focused on order and development, backed by the military and a single dominant party, ending with popular protests and an economic crisis that forced Suharto to resign in 1998.


This page was last edited on 2 February 2026, at 05:35 (CET).