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Indonesian president Susilo Bambang Yudhoyono is prioritizing the elimination of corruption in government. Indonesia has endured the international image of being a corrupt nation. Aceh province governor Abdullah Puteh has been sentenced to 10 years in jail for corruption.

Religious pluralism is having a negative impact on Indonesia's political landscape. The Indonesian Ulama Council has condemned democracy as un-Islamic. Amadiyah, a minor Muslim sect has been condemned by mainstream Muslims as heretical.

The impact of electoral reforms on Indonesian democracy is discussed.

The presidential election in Indonesia raises hopes and expectations of the people, as they get to choose their ruler directly, first time ever. The election issues and the profiles of the presidential candidates are reported.

IndonesiaEs local influential people like Syaiful Bahri Tandjumbulu, descendent of a former ruler of IndonesiaEs Tojo district, with support from Indonesian politicians and others are increasingly trying to carve out separate provinces and districts like the Tojo Una-Una that is to carved out from Poso district in Indonesia. The reasons, benefits and drawbacks of such moves have been described.

The decentralization of the revenues to the local government in Riau, has resulted in an economic restructuring with the natural resources flowing to the local governments. The challenges to it's success are the conflicts between the central, provincial and district government on power-sharing, the provision of employment to all the people in Riau, misuse of the resources, and the maintenance of law and order.

The movement for reformation in Indonesia is targeting different issues in the provinces than in Jakarta. The capital is experiencing changes including new parties and new laws, but provincial attention is focusing on corruption in local officials, the balance of power between the capital and the regions, and the loss of locally-owned land to large businesses and golf courses. Other important issues in the provincial reformation debate are the dominance of the ethnic Chinese population in the Indonesian economy, and the fact that no revenues from provincial oil resources go to the provinces.

The momentum for President Suharto's resignation reached a climax on a nationalist anniversary commemorating the birth of Indonesian nationalism 90 years ago. Towards the end he was deserted by political allies and business colleagues, with his own cabinet resigning en masse, placing their support behind Vice President B.J. Habibie, who has succeeded him. Indonesians can learn from the legacy of Suharto, never again to allow personal power to grow at the expense of public accountability.

The political future of Indonesia's President Suharto seems to be increasingly in doubt as the country faces severe economic crisis. The international community is putting pressure on him to meet the conditions of a $33 billion rescue package from the International Monetary Fund, but some observers believe that Indonesia's economic problems will only be resolved if there are changes to the country's political leadership. However, there is no obvious alternative to Suharto, and analysts believe that he will be able to dictate his own terms if and when he decides to resign.

Indonesia's new cabinet members include several new faces who represent a bold move away from a technocratic approach toward Minister for Research and Technology Bachruddin Habibie's economic nationalism. The greatest challenge for Coordinating Minister for Economy and Finance Saleh Affif, Finance Minister Mar'ie Muhammad and central bank Gov Sudradjat Djiwandono will be to restore confidence in the failing bank system. Local and foreign creditors were scared by the collapse of Bank Summa. Both private and state owned banks have been forced to raise interest rates to fight heavy defaults on debts.

Indonesian leaders are involved in conversation with the spiritual world that would help them win the elections. Academics and observers feel that the development of democracy would slow down in the country, which has suffered from three decades of autocratic rule.

The political situation in Indonesia in 2003 is discussed.

Some observers believe that the violence against ethnic Chinese in Jakarta, Indonesia, in May 1998 may have been prompted by a political power struggle that drew on racial hatred. There is evidence that the violence was premeditated and organized, rather than spontaneous. Connections have already been made between the military and the abduction and torture since mid-1997 of more than 20 pro-democracy activists. It is possible that the deliberate targeting of ethnic Chinese properties and women was an ethnic cleansing exercise over which the instigators lost control.

President B.J. Habibie, of Indonesia, has won the support of his political opponents and the military commander, General Wirtanto. Habibie is also proving to be more competent than people expected. However, Indonesia is still experiencing economic problems and there are demonstrations about corruption and nepotism under Suharto. Habibie differs from his predecessor, Suharto, in that he talks to journalists, attends parliament and talks about social issues such as the treatment of ethnic Chinese. However, social unrest threatens the stability of the country.

Economic crisis in Asia is bringing new political leaders to the fore as traditional methods of economic management are rejected. In Malaysia, the resignation of President Mahathir Mohamad is being given more serious consideration, thus paving the way for Deputy Premier Anwar Ibrahim. Such a shift in power has been made more possible by developments in Indonesia, where President Suharto has already been forced to resign. There are significant differences between Malaysia and Indonesia, but Malaysians are just as concerned as Indonesians about how the government is handling the economic crisis.

The three main players in the post-Suharto era in Indonesia are Gen. Wiranto, armed forces chief, Ginandjar Kartasamita, Coordinating Minister for Economy and Finance, and President B.J. Habibie. The political upheavals leading to Suharto's overthrow have led to worsening economic problems, and hampered the rescue programme. The country requires a new political system before elections can be held, and this will mean extensive changes to five pieces of legislation.

Leading army officials in Indonesia are greatly concerned about the country's economic difficulties, but it is unlikely that they will take action to remove existing political leaders. There is no tradition of the Indonesian military behaving in this way, and even army generals would hesitate to show such lack of politeness towards President Suharto. Many observers believe that Indonesia will shortly enter an unsettled transition period as there is no obvious successor to President Suharto.

Indonesia's Research and Technology Minister, a life-long friend of president Suharto, is likely to become the country's next vice-president. The 61-year-old Habibie is not a popular choice with the financial markets, because of his lack of political and economic acumen. Investors worry about his assertion that inflation and high interest rates are linked, when conventional wisdom believes the opposite. It is expected that Habibie's election will be unopposed and will take place at the People's Consultative Assembly in March 1998.

The political leaders of Southeast Asia face problems beyond the financial crisis in the region. The crisis is challenging the nations' social and political organization, as well as their economic ideologies. Many Southeast Asian countries already had underlying problems, including racial tensions and income inequalities, but reaction remained controlled whilst economies were developing. The task of maintaining stability will grow more difficult. Political protests are already occurring in Indonesia and the Philippines, and Thailand has had to make political changes. Malaysia appears to be more stable.

Some blame the increase in corruption throughout Asia on inadequate political and economic reforms, leading experts to question the traditional wisdom that the free market is a cure for corruption. Throughout the region, senior government officials have been accused of favouring certain bidders in exchange for cash, and this was particularly apparent in India when the Communications Ministry issued licences for cellular and paging serves. In South Korea, many believe that the Hanbo Group received special treatment in return for helping to bankroll Pres Kim Young Sam's election campaign in 1992, and in the Philippines there were bribery allegations over a $2.3 billion Manila Bay land development project.

Riots and a government crackdown in Indonesia fueled one another and forced investors to redo their political risk calculations, sending the stockmarket down. On July 27, 1996, a month after forcing out Megawati Sukarnoputri as head of the opposition Indonesian Democratic Party, police and army-backed thugs drove her supporters from their headquarters. Violent riots erupted in response, with at least two dead, 54 injured, and 158 missing. The government asked beforehand what effect a crackdown would have on the stockmarket.

Indonesia's President Suharto has issued a decree 'recommending' that affluent individuals and corporations contribute 2% of their post-tax income to a scheme that would fund a program aimed at helping poor families become entrepreneurs. Political observers suggest that the plan is aimed at positioning Suharto's Golkar party as an ally of the poor in time for May 1997 parliamentary elections. The deadline to respond to the decree was Mar 31, 1996 but the amount actually raised by the measure remains unclear.

Indonesian President Suharto seems ready to run for his seventh five-year term despite his wife's wishes and in the face of some military unhappiness with his family's influence. Suharto has not lost his political edge, but the problems starting to face him could grow larger than even he can manage alone. He has succeeded in leading the country toward prosperity while limiting unrest, and political change may come slowly. The military seems certain to retain political power, perhaps unlike Suharto's family.

Indonesia's parliament is showing signs of greater, though limited, independence from the ruling government. The parliament has long been viewed as a rubber stamp for the government, but members have selectively been criticizing government policies. However, the minority opposition parties in parliament have contained their most radical elements in an attempt to keep consensus in the legislative body. Such self-regulation indicates their lack of political will.

President Megawati Sukarnoputri's Indonesian Democratic Party for Struggle (PDI-P) is locked in a serious struggle with the former Golkar party to control the nation's parliament. Critics feel that failure of MegawatiEs leadership along with Golkar's organization and legislative influence has enabled Golkar to bounce back.

The political prospects of Indonesia's Golkar party in the approaching April 5 general as well as the July 5 presidential elections, after its rout in the general election of 1999 have been described.

The alleged terrorist activities in Indonesia are discussed.

This article describes the rise of new political parties in Indonesia that aim at reform in the government and an end of the cult of personality. Their challenge is to overcome the reluctance of the conservative Indonesian electorate to support change.

Indonesia's ruling Golkar Party has accepted that it must reinvent itself as a real political party following the resignation of President Suharto. The party is to discuss strategy at a special congress on Jul 9, 1998, to Jul 11, 1998. The outcome of this congress will be significant both for the party and for Indonesia as a whole as political changes take place in the run-up to general elections due to take place in mid-1999. Party reformists believe that Golkar can gain between 30% and 35% of the vote if it undertakes internal reforms and gives younger members more prominent positions.

A key group of men is helping to shape President Habibie's public image as an approachable, caring leader, unlike Suharto, who was very distant. This group of advisers has helped Habibie during his whole political career and has helped stage his rise to power. Their opinions are important to him and they have been able to implement change because their man is now in power. Presidential elections are being held in Dec 1999 and Habibie is not going to stand so the future role of the group is uncertain.

It is likely that Indonesian armed forces commander and Defence Minister General Wiranto will face challenges to his authority as senior members in the new cabinet of President B.J. Habibie seek to assert themselves. Some observers believe that there is a worrying shift towards Muslim interference in military matters. If this is the case, then relations between leading generals and the new administration could become even more strained. There is growing pressure on the concept of dual function, under which the armed forces have an institutionalized role in political and social life in Indonesia.

Student protests in Indonesia have attracted faculty members and administrators who could be developing links with groups outside universities. The students are divided and have fragile links with other potential opposition groups in Indonesia. Amien Rais, a Muslim leader, is a charismatic figure among students, despite withdrawing from demands for a presidential succession. Concern over their employment prospects could either lead students to protest, or to study harder and stay out of politics.

Indonesia's President Suharto has appointed a new cabinet which includes Siti Hardijanti Rukmana, his eldest daughter, and Mohamad Hasan, a close friend. Suharto is moving away from the appointment of technocrats in favor of appointing family and friends. Hasan's appointment has been criticized as an example of cronyism, but he is also seen as able to achieve results. There are some divisions within the cabinet, and relations between Suharto's daughter and Vice-President B.J. Habibie are said to be poor.

The Indonesian government promised, in Sep 1997, to review 29 of its private power projects. The government was responding to warnings from experts, including the World Bank, that Java had a 50% oversupply problem, and that the state utility faced financial difficulties due to the excess capacity. However, President Suharto, in Nov 1997, quietly allowed eight projects to proceed. Two of Suharto's daughters are involved in two of the projects. The decisions have stunned the International Monetary Fund which, as part of its $33 billion rescue package, was seeking more transparency and efficiency.

The Indonesian government continues to use television in campaigning the Indonesian Democratic Party's programs. The Party continually seeks media coverage and the thrusts are in line with the party's political agenda of television propaganda.

Indonesia's Golkar Party is openly wooing the Muslim vote in the upcoming April 27 elections. The Golkar Party has increased its support for the construction of Islam schools and institutions. Political analyst believe that Indonesia's Islam community is not likely to throw its full support to the Golkar Party.

President Suharto of Indonesia decides how much Islam and politics can mix in Muslim-majority Indonesia. Suharto has railed against Amien Rais, the Muslim leader, accusing him of making subversive statements. Rais then resigned as head of the board of experts of Science and Technology Minister B.J. Habibie's Indonesian Association of Muslim Intellectuals (ICMI). Others to have crossed Suharto include Sri Brintang Pamungkas who will stand trial for unconstitutional activities. Abdurrahman Wahid, leader of Nahdlatul Ulama, has been critical of ICMI saying it is a threat to secularism.

Indonesia labour leader Muchtar Pakpahan is currently standing trial on charges of subversion. Some observers believe that his trial has been deliberately put together in order to stifle the independent labour movement in Indonesia, and there is concern about the fact that the Indonesian government has pressed for financial disclosure in a political case. Disclosures of this kind could damage confidence in financial institutions.

The tension which has existed in West Kalimantan, Indonesia, between Dayak tribesmen and settlers from the island of Madura, east of Java, since the 1950s has led periodically to violent clashes. Most recently, around five people were killed in several days of savage fighting between the two groups. It was necessary to bring in Indonesian troops from East Kalimantan to give support to two infantry and artillery battalions which could not bring an end to the violence. Malaysia closed part of its border with Indonesia in response to the violence.

The Indonesian government is beginning to take firmer action against labour activists. This includes bringing subversion charges against 12 members of the Democratic People's Party, a group of dissident youths. Labour unrest remains a key problem for the Indonesian government, hampering its efforts to make the country stable and prosperous. It feels the need to take action against those who express opposition, even though this brings it international criticism on its human rights record.

Megawati Sukarnoputri, the former chairman of the Indonesian Democratic Party, is currently facing considerable difficulties. These include the rejection of her lawsuit challenging the authority of the Medan party congress and a number of her supporters are now standing trial for fighting during the takeover of the party headquarters. She is now hoping to restore her fortunes by visiting Bali, where she is still highly respected.

Lt Gen Soeyono, Indonesian Chief of the General Staff and ranking third in the military, has been dismissed from his post. This follows riots in Jakarta in Jul 1996 and criticism that the military was not able to anticipate them or deal with them adequately. Meanwhile there have been other changes in the military such as the promotion of Prabowo Subianto, the son-in-law of President Suharto, to two-star general. There is concern that not enough has been done to prepare the succession of Suharto and that the military sees dissent to be a crime.

The ouster of Megawati Sukarnoputri from leadership at the Indonesian Democratic Party (PDI) and the riots of July 27, 1996, are still have political repercussions, despite assurances by new PDI Chairman Suryadi that the party is consolidated. The events have left serious doubts about Megawati's political and organizational skills, though some PDI branches remain loyal to her. The government asserts that the fringe People's Democratic Party is responsible for fomenting the violence and has arrested some party members and leaders of unions and non-governmental organizations.

The Indonesian government is pressing forward with a concerted effort to quell the democracy movement started by Megawati Sukarnoputri. Megawati was removed as head of the Indonesian Democratic Party through government efforts and is fighting her removal by filing several suits in the Indonesian courts. Other suspected opponents have been jailed or harassed by the military. Current activity centers on stopping People's Democratic Party leader Budiman Sudjatmiko.

The Indonesian government's removal of opposition party head Megawati Sukarnoputri from power has led a group of non-governmental organizations (NGOs) to offer her support, breaking a longstanding dichotomy between parties and NGOs. Calling itself the Majelis Rakyat Indonesia, or Indonesian People's Council, the alliance of 30 NGOs hopes to drum up support for Megawati while gaining her help in their own struggles. Anchored by the Indonesian Legal Foundation, the groups represent students, workers, Muslims, and others.

Indonesia's government continues its efforts to marginalize opposition leader Megawati Sukarnoputri despite increasing signs of unrest and hints of dissent within the administration and the military. Police and demonstrators clashed over the congress of a government-backed splinter group of the Indonesian Democratic Party, one of only three authorized political parties. Ironically, the government arranged the appointment of Suryadi as new chairman of the party, despite having ousted him in 1993.

A spate of social-unrest incidents in Indonesia have officials and observers concerned, but the problem's source seems amorphous. Commonly cited causes for the rise in mob violence include a widening gap in incomes; widespread unemployment, especially among those under 25; economic growth creating unrealizable expectations; problems arising from industrialization; a sense of betrayal by, and distrust of, the govt; and a lack of avenues for venting frustration. The apparent anger could spell trouble in 1997 elections.