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Government/History 354
   Campbell University
Location of Indonesia
• 18,108 volcanic islands     • 88% Sunni Muslim
• Land of spice islands       • Largest Muslim
• 203-245 Million               population on earth.
  Population.                 • Was a Dutch colony.
• 4th largest population in   • Is an oil producer.
  world.                      • Maritime choke point.
      Early Kingdoms-Srivijaya
• Srivijaya controlled the
  Malay Archipelago from
  7th thru 13th Century.
   – Controlled Straits of
     Malacca and Sunda plus
     Isthmus of Kra with a
     powerful fleet.
   – Capital at Palembang, a
     center of Buddhist learning.
   – Benefited from collapse of
     Funan and surge in Chinese
     trade during the Tang
   – Conquered briefly by
     Rajendra Chola in 1025.
Early Kingdoms- Sailendras
             • The Sailendras controlled
               central Java during 8th &
               9th Century.
                – Royal family was Funanese
                  who had been deposed by
                – Returned to conquer & rule
                  southern Chenla until
                  defeated by Jayavarman II
                  of Angkor in 802.
                – Built Borobodur (778-824),
                  the greatest Buddhist
                  monument in S. E. Asia.
      Early Kingdoms - Mataram
• Patapan, a Sanjaya prince,
  usurped the Sailendra throne in
  832. The capital was moved to
  Mataram in 929.
• Mataram emulated Sailandra
  except in religion. A Hindu
  resurgence led to the
  construction of the Prambanan
• Continued prosperous
  trade with China & Arabs.
       Early Kingdoms – Kediri &
• Mataram challenge Srivijaya’s dominance in 1006, but was
  decisively defeated.
• Rajendra Chola’s warfare with & defeat of Srivijaya in
  1026 allowed Airlangga, a Balinese prince, to restore
  Mataram’s political power.
• Airlangga divided his kingdom between his two sons in
  1042. The two kingdoms were Janggala and Kediri.
  Kediri was dominant and flourished in trade with India and
  the Mediterranean during early 13th Century.
• Ken Angrok conquered Janggala and then Kediri to
  establish the Singhasari 1222. Under King Kertanagara,
  Singhasari dominated both the Malacca & Sunda Straits
  until the Mongol invasion in 1292.
Early Kingdoms - Majapahit
           • Kertanagara was killed by a dissident
             vassal in the face of Kublai Khan’s
             threatened invasion. His heir, Vijaya,
             fled to Majapahit. In a twist of fate,
             the Mongols assisted him in
             overthrowing the usurper.
           • The Majapahit prime minister, Gaja
             Mada (1331-1364), then united all of
             the archipelago for 75 years..
           • Majapahit dominance ended with the
             spread of Islam to Malacca in 1402.
           • Majapahit was the last great Hindu
             kingdom in S.E. Asia.
   Summary of Kingdoms
• Srivijaya, 7-13th Century, Java, Sumatra & Malay
• Sailendras, 8 – 9th Century, Central Java.
• Mataram, 832 – 1042, Central Java.
• Janggala, 1042 – 1222, Central Java.
• Kediri, 1042 – 1222, Central Java.
• Singhasari, 1222 – 1292, Java, Sumatra & Straits.
• Majapahit, 1292 – 1402, The Whole Thing.
• On which island does the bulk of the Indonesian
  population reside?
• Near what major city is Borobodur located? What
  religion does it celebrate?
• What areas did Srivijaya control?
• What is the significance of the Isthmus of Kra?
• Where was Funan?
• What empire built the Prambanan complex? What
  religion does it celebrate?
• From what kingdom did Singhasari evolve?
         More Questions
• What country claims the largest Islamic
  population in the world?
• What was the last great Hindu kingdom in
• How did the Mongols help Vijaya regain
  the throne of Majapahit?
        The Dutch in Indonesia
• Both the Dutch VOC (Vereenigde Oostandische
  Compagnie) (1602) and English East India Company
  (1600) were interested in S.E.Asian trade.
• Conflict led to the Ambon Massacre in 1623 and the
  withdrawal of the East India Company from the
• The Dutch gradually gained control of the entire
  archipelago: Ambon – 1605, Malacca – 1641, Aceh –
  1667, Macassar –1669, Banten - 1682.
• The objective was trade: Indian cottons for spices.
        Colonization of Indonesia
• The Dutch avoided direct
  administration until the mid 18th
  Century. Control was exercised thru
  local rulers who were also doubled as
  principal traders
• The system of leveringen began
  at end the the 17th Century.
  Fixed amounts at fixed prices.
• Direct administration of areas
  growing coffee, sugar, indigo
  and spices began in the 18th
     Colonization of Indonesia
• The Dutch employed their navy to enforce a
  monopoly on trade with Europe.
• There was no effort to impact religion,
  culture or education.
• Dutch trade practices did have the
  unintentional consequence of displacing the
  indigenous carriage & distribution trade.
  One result was the rise of the Bugis pirates.
Hermann Daendels
      • Herman Daendels was
        appointed Gov-Gen of
        Indonesia by Napoleon from
        1808-11 to improve defenses
        against the British and
        improve administration. He
         – Centralized administration.
         – Reduced graft and corruption.
         – Established adat courts.
      • Increased compulsory coffee
        production and established a
        monopoly on rice to raise
Thomas Stamford Raffles
            • Gov-Gen Minto (India)
              led an invasion of Java in
              1811 and left Stamford
              Raffles in charge. He
              introduced major reforms.
               – Permitted land ownership
                 with tax rate based on
               – Peasants could cultivate and
                 sell crops of their choice,
                 except coffee.
               – Created an elaborate court
                 system with jury trials.
            • Dutch returned in 1816.
• Describe the Ambon (Amboyna) Massacre. What was its
• What was the leveringen system?
• Why did the Dutch seek a monopoly?
• Were the Dutch interested in spreading Christianity?
• Who were the Bugis pirates?
• What were adat courts?
• The Napoleonic Wars led to two men being appointed
  governors of Java. Who were they? Which one
  “discovered” Borobodur?
          Role of the Regent
• The Regent was the native VOC agent contracted to
  deliver export crops. He was subordinated to a governor-
  general, regional governor & resident/comptroller. In turn,
  he appointed and supervised village chiefs who he was
  responsible to pay from the taxes he collected.
• His role grew to include governmental and religious
  aspects, usurping the role of local princes. Eventually, the
  position was considered hereditary.
• Daendels and Raffles sought to reduce his powers to
  protect the natives. Raffles land rent system virtually
  eliminated him.
• The Java War demonstrated the need for his support.
     Java War (1825-1830)
• Also called the Dipo Negoro Revolt.
• Led to the death of 200,000; 8,000 were Dutch.
• Dipo Negoro was a prince, but as the son of a lesser wife
  not eligible to inherit the Sultanate of Yogyakarta.
  Rejected by Raffles as his father’s successor, he became an
  Islamic mystic. When tombs were disturbed by road
  construction, he led a revolt as a messianic ratu adil.
• Controlled middle Java and Yogyakarta until defeated in
  1825. Then led a guerrilla war until 1827. Captured in
  1830. The war cost the Dutch 30 million guilders.
       The Culture System
• The system was implemented from 1830 to 1877
  to raise funds to cover the cost of the Java War,
  Napoleonic Wars and Belgium Civil war.
• It was the brain child of Baron Johannes Van Den
  Bosch, Gov-Gen of Java.
• In theory, it required villages to grow export crops
  to raise sufficient funds to cover their land taxes.
  These would be sold to the government at a fixed
  price for transportation to Amsterdam. The
  system provided 19-32% of the state’s revenue.
            Max Havelaar
• Max Havelaar or The Coffee Auctions of the
  Dutch Trading Company written by Eduard
  Douwes Dekker & published in 1860.
• Portrayed the Culture System as organized forced
  labor. Increased prices led to increased taxes &
  taxes were collected on commission.
• By 1840, rice shortages, famines , epidemics and
  dislocation all began to appear. Saijah & Adinda.
• Reforms led to the system being dismantled
  government monopolies abolished starting in
  1860. Coffee remained a monopoly until 1917.
            Other Reforms
• Baron Van Hoevell, a former preacher in
  Java, led a reform movement in the Dutch
  States General:
  – 1848 – The legislature would have a say in
    colonial government.
  – 1854 – Passed a “colonial constitution” for
    abolition of culture system.
  – 1870 - Passed the Agrarian Act allowing the
    leasing of land and development of free trade.
         The Ethical Policy
• The Ethical Policy of 1901:
   – A policy of “ethical obligation and moral responsibility
     to the people of the East Indies.”
   – Can be summarized as “education, irrigation and
   – Included Western education for elites, agricultural
     extension to open new areas and improve crops,
     resettlement from Java to Sumatra, improved
     infrastructure, encouragement of economic
     development and Christian missionaries.
    Nationalist Movements
• Many consider the Java War as a first expression
  of nationalism.
• Education of the priyayi and santri under the
  Ethical Policy produced a new elite and a sense of
  national identity.
• Organizations which promoted nationalism:
   – 1902 - Kartini Schools - 1908 - Boedi Utomo
   – 1912 –Sareket Islam - 1920 – PKI
   – 1927 - PNI
• What was Dipo Negoro’s complaint? What’s a ratu adil?
• Who was Johannes Van Den Bosch?
• What was the underlying assumption of the Culture System regarding
  the indigenous population?
• How did Max Havelaar portray the Culture System? What happened to
  Saija and Adinda?
• Who led the colonial reform movement in the Dutch States General?
• What was the Ethical Policy?
• What action on the part of the colonial administration led to the
  beginning of nationalism?
• What is the historical event that many Indonesians consider to be the
  first act of nationalism?
                 World War II
• The Dutch promise a
  conference on self-government
  before they leave in 1941.
• Sukarno, Mohammed Hatta
  and Sutan Sjahrir released
  from jail by the Japanese when
  they occupied Indonesia in
• Sukarno, Hatta and others
  formed Putera as a double
  edge puppet government.
    Indonesian Revolution
• Sukarno announced the Five Postulates and
  declared independence in 1945.The Dutch had not
  yet returned.
  – Nationalism (National unity)
  – Internationalism (One sovereign nation among equals)
  – Representative Democracy (All significant groups
  – Social Justice ( A Marxist view)
  – Belief in God (A secular state, not Islamic)
 Struggle for Independence
• The Netherlands asked Britain to reoccupy
  Indonesia on its behalf.
• The initial British force attempted to occupy
  Surabaya on November 10, 1945. The result was a
  bloody one-month long battle.
• Negotiations with Dutch led to Linggadjati
  Agreement in 1947 creating the United States of
  Indonesia under Dutch sovereignty. The USI was
  to be part of a larger Netherlands-Indonesian-
  Surinam-Curacao Union.
     Sovereignty At Last
• The Indonesians were not satisfied with the
  lack of sovereignty. A guerrilla war ensued
  during which 6,000 Dutch and 150,000
  Indonesians were killed during 1947-49.
  – A cease fire was imposed by the U.N. in 1947.
  – An Asian Conference hosted by India imposed
    sanctions against the Dutch in 1949.
  – Sovereignty was finally transferred by the
    Dutch in December, 1949.
Coping with Independence
• Indonesia found it extremely difficult to
  create and operate a viable government..
  – Elections only yielded pluralities and weak,
    short-lived coalition governments.
  – The economy was in decline and inflation
    rampant. The country was bankrupt.
  – Fear of nationalization of assets prevented
    significant foreign investment.
         Guided Democracy
• In 1957 Sukarno established guided
  democracy to “save” the country.
  – A national advisory council was established
    composed of representative groups, e.g.,
    peasants, workers, the military.
  – A “cooperating parliament” was established in
    place of the elected parliament. Opinion could
    be expressed but votes were not taken. The goal
    was to govern by deliberation and consensus.
             Foreign Policy
• Sukarno sought a leading role for Indonesia as a
  non-aligned nation.
   – 1954 – Meeting of the Colombo Powers at Bogor.
     Obtained support for claims to West Irian.
   – 1954 – Hosted the 29 nation Asian-African conference
     at Bandung of newly freed peoples.
   – 1962 – Indonesia sought to invade West Irian (Dutch
     New Guinea) after negotiating with the Dutch since
     1949. West Irian was transferred to Indonesia in 1963
     with help of the U.N. and U.S. diplomat Ellsworth
  Foreign Policy Cont’d
– 1963 - 65 - Crush Malaysia Campaign launched by
  Sukarno over the formation of the Federation of
  Malaysia. Felt that the linking of Sarawak, Brunei and
  Sabah to Malaya would threaten Kalimantan.
– The Crush Malaysia Campaign was part of
  Konfrontasia, the confronting of the remnants of
  colonialism. It involved NEFOS vs. the OLDEFOS
– Received $ 2 Billion in aid from the USSR in 1965.
  Nevertheless, Sukarno was drawn thru the influence of
  PKI to align with China.
• How did Sukarno and his cohorts react to the Japanese
• What is particularly significant about Pancasila?
• What part of Indonesia did the British seek to occupy on
  behalf of the Dutch at the end of WWII?
• The Dutch sought to avoid surrendering their position in
  Indonesia by creating the _______________.
• What was the Japanese legacy to Indonesia?
• Why did the U.S. support the French return to Indochina
  but not the Dutch in Indonesia?
• Why did Sukarno establish Guided Democracy?
• What was Konfrontasi?
            The Gestapu Affair
• On the night of September 30, 1965, six leading
  generals and one lieutenant were assassinated in
  an attempted coup.
   – General Nasution escaped the assassination and Major
     General Suharto was not targeted.
   – The reaction was a massacre of a half million
     Communist and Chinese, a combination pogrom and
   – Sukarno had no advanced knowledge of the coup but
     his powers were curbed. He was removed as president
     in 1967 and died in 1970.
       Suharto’s New Order
• March 11, 1966 – Sukarno
  signed the Supersemar decree
  authorizing Suharto to take all
  measures necessary ... This
  was the beginning of the New
   – Revived the parliament of 1955.
   – Adam Malik renegotiated debt of
     $1.7 million.
   – Ended Confrontation Policy.
   – Joined ASEAN
   – Befriended the West and Japan.
   – Held national elections in 1971.
       New Order Problems
• Sekber Golkar (the
  government party) lost
  creditability in the early
• Legitimized “Dual
• Graft, cronyism and
  corruption were extremely
  wide spread. Examples:
   – Astra Toyota & Tommy
   – Pertamina lost $10.5 billion.
  The Downfall of Suharto
• The 1997-98 crises led to Indonesian currency
  losing 70% of its value. The IMF bailout required
  strict austerity measures leading to further
  economic hardship and inflation.
• Sukarno ran unopposed for president for the
  seventh time. Sparked by the killing of six student
  demonstrators, Jakarta was seized by
  demonstrations and riots.
• The army took over Jakarta and Sukarno resigned
  after 32 years as president and $15 billion in graft.
                 B. J. Habbie
• As V.P., Habbie assumed
  the presidency. Many
  were highly skeptical.
• Trained as an engineer in
  Germany. Founded an
  aircraft company in
  Bandung. Championed
  industrial vs. agricultural
• Allowed East Timor
  referendum leading to that
  country’s independence.
Abdurrahman Wahid
        • Elected in 1999. Was a
          nearly blind Muslim
          cleric. Had suffered
          recurring strokes. Proved
          to be indecisive and
          incapable of running the
        • Did not effectively cope
          with the separatist
          demands of Aceh and
          Irian Jaya.
        • Was impeached in 2001.
• Who was responsible for the Gestapu Affair?
• Who signed the Supersemar Decree?
• What was Suharto’s vision of a New Order?
• What was significant about Sekber Golkar?
• Describe Dual Function.
• What caused Suharto’s downfall?
• Why was there skepticism about Habbie
  succeeding Suharto?
• Why was Wahid chosen to be president instead of
  Megawati Sukarnoputri in 1999?
    Separatist Movements
• There have been three major separatist
  movements: Aceh, Iran Jaya (West Papua) and
  East Timor.
                 East Timor
• East Timor declared its independence in 1975 after a
  change in the government of Portugal. Indonesia invaded
  four days later.
• Timor had been a Portuguese colony since 1702, as such
  its population is 90% Catholic. The Netherlands annexed
  West Timor in 1859. It is largely Islamic.
• Indonesia invaded East Timor because it feared FRETILIN
  (the independence party) was in league with China and
  would turn the country Communist.
• FRETILIN fought a successful guerrilla war from 1975 to
  1999. Total deaths from all causes = 200,000 +/-.
• East Timor became fully independent in 2002.
• Was independent prior to colonial rule, even
  controlling part of the Malay Peninsula (Kedah).
• Indonesia granted Aceh special autonomy status in
  1959. The Aceh freedom movement began in 1976
  led by GAM. Warfare led to 5,000 deaths by 2000.
• In 1999, President Wahid assured GAM that all of
  its demands short of total independence would be
  met. Granted 75% of all oil and gas revenue plus
  Sharia law and own flag in 2001. GAM continued
  to demand total independence until 2005 peace.
     Western New Guinea
• The Dutch sought to retain in a commonwealth.
• In 1961, Indonesia mounted an invasion after
  West Papua declared independence.
• In 1962, agreement was reached to transfer the
  territory to Indonesia. An “Act of Free Choice”
  was required. The poll was taken in 1969.
• President Wahid granted special autonomy in
  2000. In 2001, it was split into two provinces. The
  freedom movement wanted a share of the income
  from the rich gas, oil, copper & gold resources.
Megawati Sukarnoputri
          • Indonesia’s first woman
            president. Succeeded Wahid
            in 2001 as his V.P.
          • Formed her own political
            party to win election when
            banned from the PDI. She
            formed PDI-P.
          • Considered herself the “good
            Queen.” Was called “Mother
          • Presided over a 3-year
            transition to civilian rule.
  Susilo Bambang Yudhoyono
• Elected president in
  2004 in Indonesia’s first
  direct presidential
  election. Called “SBY.”
• Top graduate of
  Indonesian military
  academy, U.S. Infantry
  Advanced Course and
  Command and the
  General Staff College.      Retired as a 4 star in 2000.
• Labeled “the thinking
  general.” Took leading
  role against terrorism.
• What precipitated the Indonesian invasion of East Timor in
• What were GAM’s demands for Aceh?
• What led to the Indonesian invasion of West Papua in
• What did the Papuan Freedom Movement want?
• To what great Indonesian figure is Magawati Sukarnoputri
• Susilo Bambang Yudhoyono (SBY) has the distinction of
  being the first president of Indonesia to be elected
Institutions and Social Groups
• Constitution.
   – The constitution is a hybrid: “presidential with
     parliamentary characteristics.” Government is unitary.
      • Executive power is held by the legislature in that it can subject
        the president to votes of confidence.
      • Until 2004, the legislature actually elected the president and
        V.P. They are now elected directly. Limited to two 5-year
      • In 2004, the House of Regional Representatives (DPD) was
        established as a separate legislative body. It is composed of
        four representatives from each of Indonesia’s 33 provinces.The
        House of Representatives (DPR) is still the premier legislative
        body. Composed of 550 seats, members are elected for 5-year
Institutions and Social Groups
• Constitution (Continued)
     • The Peoples Consultative Assembly (MPR) is
       composed of the elected members of the DPR &
       DPD. Responsible to inaugurate and impeach
       president and amend the constitution.
     • The president is head of state, CINC of armed the
       forces, responsible for domestic governance and
       foreign affairs.
     • The president appoints a council of ministers.
       Members do not have to be elected members of the
       legislature. He also appoints provincial governors.
Institutions and Social Groups
• Military.
  – The military played both a security and
    sociopolitical role under Suharto, labeled “dual
    function.” Active duty military were members
    of the cabinet, provincial governors, members
    of the legislature and leaders of Golkar.
  – Since the election of SBY, the dual function
    concept has been down played. The goal is to
    eliminate it completely.
Institutions and Social Groups
• Bureaucracy
  – Indonesia is a bureaucratic polity in which power and
    decision making is limited to members of the
    bureaucracy, specifically the military, civil servants and
    technocrats. Economists serving in top technocrat
    positions are commonly called the “Berkley Mafia.”
  – Korpri was created in the 1970 to provide a new corps
    of civil servants, including provincial governors.
  – The 1997 economic downturn did lessen the awe in
    which technocrats were held.
Institutions and Social Groups
• Political Parties.
   – Until 1999, no party could compete with Golkar, the
     official government and military party. All government
     employees and the military were required to belong..
   – Sukarno banned all competing political parties except
     PDI and PPP. Smaller political parties were forced to
     become part of one or the other. PDI is the Indonesian
     Democratic Party; PPP is the Muslim Party.
   – Sukarno required that PDI and PPP espouse Pancasila
     only as their political philosophy and not depart from it.
   – All these restrictions were lifted in 1999.
Institutions and Social Groups
• Democratization.
  – The Sukarno period of Guided Democracy (1950-57)
    was followed by a return to the pre-1950 constitution
    under Suharto.
  – Suharto’s New Order relied heavily on military rule
    (Dual Function), but did achieve great economic
    progress and a “middle class.” Suharto saw himself as
    the “Development President.”
  – 1999 to 2001 saw the development of real democracy
    under Wahid and then Megawati Sukarnoputri.
  – SBY has pledged to completely eliminate “Dual
Institutions and Social Groups
• Economic Development.
  – Has averaged a 6% GNP growth since 1965, although
    per capita GNP is extremely low ($685.00).
  – The 1997 economic crises slowed the GNP, but it has
    returned to a projected 5.2% for 2006.
  – Natural resources include oil (aging fields and old
    equipment), natural gas (exports 20% of world’s LNG),
    tin, copper, and gold.
  – Agricultural exports include palm oil, rice, tea, coffee,
    spices and rubber.
  – Major industries include mining, petroleum, NG,
    textiles & apparel, labor intensive assembly.
Institutions and Social Groups
• Economic Problems,
  – Most manufacturing is sub-contract assembly and low
    tech such as footwear, canning, & wood processing.
  – Support by Chinese of Golkar led to preferential
    treatment by the government. Chinese businessmen,
    called cukong (boss), are resented for their power.
  • Primitive slash and burn farming on Kalimantan and
    Sumatra started forest fires that spread smoke over
    much of SEA in 1997.
  • Suharto family corruption and the national car – Timor.
Institutions and Social Groups
• Foreign Policy.
  – Sukarno sought security in anti-western nationalism: the NEFOSs
    against the OLDEFOSs. Konfrontasi against Malaysia was the
  – Suharto assumed a lower profile role in international affairs.
    Supported ASEAN and the Zone of Peace. East Timor was the
    exception. Played a role in attempting to resolve the Cambodia
  – Relations with China have improved since the Gestapu Affair.
    Established diplomatic relations in 1990.
  – The West is still Indonesia’s primary market and source of
    investment and development assistance.
• Does Indonesia have a presidential or parliamentary
  system of government?
• In 2004, a new national legislative body was established.
  What is it called?
• Does Dual Function continue to exist.
• What is Korpri?
• How many political parties were allowed under Suharto?
  Name them.
• What was Sukarno’s New Order?
• How important are the Chinese to Indonesia’s economic
            More Questions
• What was significant about Indonesia’s national car (the
• What two forces did Sukarno see confronting each other in
• How has Indonesia related to the rest of Southeast Asia in
  recent years.
The End