{{Short description|1998 Indonesian presidential resignation}}
{{Use dmy dates| date = February 2022}}
{{Infobox civil conflict
| name = Fall of Suharto
| part_of = the [[1997 Asian financial crisis]] and the [[Post-Suharto era in Indonesia]]
| image = {{multiple image
| border = infobox
| total_width = 300
| image_style = border:1;
| perrow = 1/1/2
| image1 = Suharto resigns.jpg
| image2 = Jakarta riot 14 May 1998.jpg
| image3 = May 1998 Trisakti incident.jpg
| image4 = Students occupying the MPR-DPR building, The DPR-RI Stance on the Reform Process and the Resignation of President Soeharto (1998), p51.jpg
}} '''Clockwise, from top:''' {{flatlist|
* [[President of Indonesia|Indonesian president]] [[Suharto]] presenting his [[resignation]] from office
* Rioters burning office furniture on the streets of [[Jakarta]]
* Students occupying the [[MPR/DPR/DPD building|MPR/DPR building]]
* [[Trisakti University]] students and police forces [[Trisakti shootings|clashing]]
}}
| date = 21 May 1998
| location = [[Indonesia]]
| causes =
| result = Fall of the [[New Order (Indonesia)|New Order]]
* Resignation of Suharto as president
* The inauguration of [[B. J. Habibie]] as Suharto's successor
* Creation of the [[Development Reform Cabinet]]
* [[1999 East Timorese independence referendum|Independence referendum]] for [[East Timor (province)|East Timor]] on 30 August 1999
| lead_figures1 = {{plainlist|
* {{flagicon|Indonesia}} [[Suharto]]
* {{flagicon|Indonesia}} [[Feisal Tanjung]]
* {{flagicon|Indonesia}} [[Wiranto]]
* {{flagicon|Indonesia}} [[Prabowo Subianto]]
* {{flagicon|Indonesia}} [[Siti Hardiyanti Rukmana]]
* ''Various other pro-Suharto politicians and generals''}}
| lead_figures2 = {{plainlist|
* {{flagicon|Indonesia}} [[Amien Rais]]
* {{flagicon|Indonesia}} [[Megawati Sukarnoputri]]
* {{flagicon|Indonesia}} [[Harmoko]]
* {{flagicon|Indonesia}} [[Taufiq Kiemas]]
* ''Student leaders and other opposition politicians''}}
}}
{{Suharto series}}
The '''fall of Suharto''' refers to the resignation of Indonesian President [[Suharto]] on 21 May 1998, ending his 32‑year [[authoritarian]] rule under the [[New Order (Indonesia)|New Order]] regime, which occurred following nationwide protests and severe economic collapse. His vice president, [[B. J. Habibie]], assumed the presidency, launching a period of political reform known as [[Reformasi (Indonesia)|Reformasi]], which significantly transformed Indonesia's political institutions and ushered in democratic transition.
The fall of Suharto followed the [[1997 Asian financial crisis]], which triggered mass unrest and exposed rampant corruption under his administration. Student-led protests—sparked by events such as the [[27 July 1996 incident|July 1996 PDI office raid]] and the [[Trisakti shootings]] in May 1998—escalated into riots targeting the government and ethnic Chinese communities, particularly in [[Jakarta]], [[Medan]], and [[Surakarta]].
The resignation precipitated the overthrow of the New Order's centralized power structure and began a Reformasi era characterized by institutional overhaul, increased civil liberties, and regional decentralization. Reforms included legal restructuring, electoral democracy and media liberalization. Indonesia's transition is frequently cited as a model of bottom-up democratic transformation in Southeast Asia.
== Historical background ==
=== Dissent during the New Order ===
Having consolidated power in 1967 in the aftermath of the [[Indonesian killings of 1965-66|attempted coup in 1965]] which was launched by middle-ranking officers in the Indonesian army and air force but officially blamed on the [[Communist Party of Indonesia]] (PKI) resulting in purges, the government of Suharto adopted policies that severely restricted [[civil liberties]] and instituted a system of rule that effectively split power between the [[Golkar]] organisation and the military.{{sfn|Mackie|MacIntyre|1994|pp=10–13}}
In 1970, price rises and corruption prompted student protests and an investigation by a government commission.{{sfn|Mackie|MacIntyre|1994|pp=125–126}} Suharto responded by banning student protest, forcing the activists underground. Only token prosecution of cases recommended by the commission was pursued. The pattern of co-opting a few of his more powerful opponents while criminalising the rest became a hallmark of Suharto's rule.{{citation needed|date=October 2019}}
Suharto stood for election by the People's Consultative Assembly every five years, beginning in 1973. According to his electoral rules, three entities were allowed to participate in the election: two political parties and [[Golkar]]. All other political parties were amalgamated into either the Islam-based [[United Development Party]] (PPP) or the nationalist [[Indonesian Democratic Party|Democratic Party of Indonesia]] (PDI). Golkar, Suharto's primary political vehicle, was officially not a political party. All senior civil servants were obliged to join employee associations linked to Golkar, while senior bureaucrats were banned from joining political parties. In a political compromise with the powerful military, Suharto banned its members from voting in elections but set aside seats in the legislature for their representatives. Suharto was unopposed in every election in which he stood (being 1973, 1978, 1983, 1988, 1993, and 1998).{{sfn|Friend|2003|p=35}}{{sfn|Evans|2003|pp=24}}{{sfn|McDonald|1980|p=20}}
In May 1980, a group called the [[Petition of Fifty]] (''Petisi 50'') demanded greater political freedoms and accused Suharto of misinterpreting the [[Pancasila]] state ideology. It was signed by former military men, politicians, academics and students. The Indonesian media suppressed the news, and the government placed restrictions on the signatories, some of whom were later jailed.{{sfn|Ricklefs| 2008| pp=483–492}}
Following the end of the Cold War, Western concern over communism waned, and the West was less willing to tolerate Third World anti-Communist dictatorships. Consequently, Suharto's human rights record came under greater international scrutiny. In 1991, the murder of East Timorese civilians in a [[Dili]] cemetery, also known as the [[Santa Cruz massacre|"Santa Cruz Massacre"]], caused US attention to focus on its military relations with the Suharto regime and the question of Indonesia's occupation of East Timor. In 1992, this attention resulted in the [[Congress of the United States]] passing limitations on [[IMET]] assistance to the Indonesian military, over the objections of US President [[George H. W. Bush]]. In 1993, under President [[Bill Clinton]], the US delegation to the [[United Nations Human Rights Commission]] helped pass a resolution expressing deep concern over Indonesian human rights violations in East Timor.
=== The first cracks emerge ===
{{See also|27 July 1996 incident}}
In 1996, the [[Indonesian Democratic Party]] (PDI), a legal party that had been used by the New Order as a benign prop for the New Order's electoral system, began to assert its independence under [[Megawati Sukarnoputri]], the daughter of Indonesia's founding father, [[Sukarno]]. In response, Suharto attempted to foster a split over the leadership of the PDI, backing a co-opted faction loyal to deputy speaker of Parliament [[Suryadi (politician)|Suryadi]] against supporters of Megawati. After the Suryadi faction announced a party congress to sack Megawati would be held in [[Medan]] on 20–22 June, Megawati proclaimed that her supporters would hold demonstrations in protest. The Suryadi faction went through with the sacking, and the demonstrations manifested themselves throughout Indonesia.{{sfn|Ricklefs|2008| pp = 518–519}}
Megawati's supporters then [[27 July 1996 incident|took over the PDI headquarters in Jakarta]]. On Saturday 27 July, a mob including soldiers in civilian clothing and thugs from the army-associated [[Pemuda Pancasila]] organization forcibly entered the building. According to the [[National Commission on Human Rights (Indonesia)|National Human Rights Commission]], five people were killed, 149 injured and 74 missing – mostly from those arrested by the military. The attack was followed by two days of rioting, in which youths burned at least six buildings, including that of the Ministry of Agriculture.{{sfn|Friend|2003| pp = 226–230}}{{sfn|Adidarma|Saptono|1997|p=xiv}} The political tensions in Jakarta were accompanied by anti-Chinese riots in [[Situbondo]] (1996), [[Tasikmalaya]] (1996), [[Banjarmasin]] (1997), and [[Makassar]] (1997); while violent ethnic clashes broke out between the [[Dayak people|Dayak]] and [[Madurese people|Madurese]] in [[West Kalimantan]] in 1997 during the [[Sanggau Ledo riots]].{{sfn|Elson|2001| p = 267}}
== Fall of Suharto ==
=== Monetary and financial crisis ===
{{Further|1997 Asian financial crisis}}
[[File:IDR USD exchange 1997-07-02 to 1998-05-21.png|thumb|240px|Indonesia followed the Kingdom of [[Thailand]] in abandoning the [[fixed exchange rate]] of its currency on 14 August 1997.{{sfn|''The New York Times''|1997| p = D6}} The [[Indonesian rupiah|rupiah]] further devalued to its lowest point following the signing of the second [[IMF]] letter of intent on 15 January 1998.]]
In the second half of 1997, Indonesia became the country hardest hit by the [[1997 Asian financial crisis]]. The economy suffered a flight of foreign capital leading to the [[Indonesian rupiah]] falling from Rp 2,600 per [[United States dollar|dollar]] in August 1997 to over Rp 14,800 per dollar by January 1998. Indonesian companies with US dollar-denominated borrowings struggled to service these debts with their rupiah earnings, and many went bankrupt. Efforts by [[Bank Indonesia]] to defend its managed float regime by selling US dollars not only had little effect on the currency's decline, but also drained Indonesia's foreign exchange reserves.{{sfn|Enoch|Baldwin|Frécaut|Kovanen|2001| p = 23}} Weaknesses in the Indonesian economy, including high levels of [[debt]], inadequate financial management systems and [[crony capitalism]], were identified as underlying causes. Volatility in the [[global financial system]] and over-liberalization of international capital markets were also cited. The government responded by floating the currency, requesting [[International Monetary Fund]] assistance, closing some banks and postponing major capital projects.{{sfn|Aspinall|Klinken|Feith|1999| p = 1}}
In December 1997, Suharto for the first time did not attend an ASEAN presidents' summit, which was later revealed to be due to a minor [[stroke]], creating speculation about his health and the immediate future of his presidency. In mid-December, as the crisis swept through Indonesia and an estimated $150 billion of capital was being withdrawn from the country, he appeared at a press conference to assure he was in charge and to urge people to trust the government and the collapsing rupiah.{{sfn|Friend|2003| p = 313}}
Suharto's attempts to re-instil confidence, such as ordering generals to personally reassure shoppers at markets and an "I Love the Rupiah" campaign, had little effect. Another plan was the setting up of a [[currency board]], proposed by the then special counselor [[Steve Hanke]] from [[Johns Hopkins University]]. The next day, the rupiah went up by 28% against the US dollar on both the spot and one year forward market, hearing the proposed plan. However, these developments infuriated the US government and the [[International Monetary Fund]] (IMF). Suharto was told – by both the [[president of the United States]], [[Bill Clinton]], and the managing director of the IMF, [[Michel Camdessus]] – that he would have to drop the currency board idea or forego $43 billion in foreign assistance.{{sfn|Hanke|2017}}
Evidence suggested that Suharto's family and associates were being spared the most stringent requirements of the IMF reform process, and there was open conflict between economic technocrats implementing IMF plans and Suharto-related vested interests, further undermining confidence in the economy.{{sfn|Aspinall|Klinken|Feith|1999|p=v}} The government's unrealistic 1998 budget and Suharto's announcement of Habibie as the next vice president both caused further currency instability.{{sfn|Friend|2003|p=314}} Suharto reluctantly agreed to a wider-reaching IMF package of structural reforms in January 1998 in exchange for $43 billion in liquidity (with a third letter of intent with the IMF being signed in April of that year). However, the rupiah dropped to a sixth of its pre-crisis value, and rumours and panic led to a run on stores and pushed up prices.{{sfn|Friend|2003| p = 314}}{{sfn|Aspinall|Klinken|Feith|1999| p = v}} In January 1998, the government was forced to provide emergency liquidity assistance (BLBI), issue blanket guarantees for bank deposits, and set up the [[Indonesian Bank Restructuring Agency]] to take over management of troubled banks in order to prevent the collapse of the financial system. Based on the IMF recommendations, the government increased interest rates to 70% pa in February 1998 to control high inflation caused by the higher prices of imports. However, this action restricted the availability of credit to the corporate sector.{{sfn|McDonald|2008}}
=== Unrest, violence, and riots ===
{{See also|Trisakti shootings|Indonesian riots of May 1998}}
{{multiple image|border=border|total_width=300|image_style=border:1;|perrow=2/2/2|image1=Suharto 1998.jpg|image2=BJ Habibie 1998.jpg|footer=The newly elected pair of President [[Suharto]] (left), and Vice President [[B. J. Habibie]] (right), for Suharto's seventh and final term}}
Despite the worsening economic situation, during the 1998 General Session of the [[People's Consultative Assembly]], Suharto was unanimously re-elected president, with [[Vice President of Indonesia|vice president]] [[Try Sutrisno]] being replaced by minister and longtime confidant [[B. J. Habibie]].{{sfn|Elson|2001| p = 267}} Suharto's choice of Habibie was poorly received, causing the rupiah to continue its fall.{{sfn|Chandra|2008| p = 103}} All the while, he stacked the new [[Seventh Development Cabinet]] with several of his own family and business associates. The government's increase of fuel prices by 70% in May triggered rioting in [[Medan]], [[North Sumatra]].{{sfn|Purdey|2006| p = 105}} With Suharto increasingly seen as the source of the country's mounting economic and political crises, prominent political figures, including Muslim politician [[Amien Rais]], spoke out against his presidency, and in January 1998, university students began organizing nationwide demonstrations.{{sfn|Elson|2001| p = 267}}
A demonstration at the [[Bandung Institute of Technology]] saw 500 demonstrators, and by March, larger demonstrations had occurred at other universities. Including the [[University of Indonesia]] and [[Gadjah Mada University]].{{sfn|Luhulima|2008| pp = 83–84}} On 9 May 1998, a police officer, Dadang Rusmana, was reported to have been killed at a demonstration at Djuanda University.{{sfn|Luhulima|2008| p = 111}} These demonstrators were protesting against massive price rises for fuel and energy, and were demanding that President Suharto step down.{{sfn|Schwarz|1999| p = 610}}{{sfn|Ricklefs|2008|p = 522}}
{{multiple image|border=border|total_width=260|image_style=border:1;|perrow=1/1/1|image1=Trisakti shooting schematics.png |caption1=A rough outline of the situation at Trisakti University during the [[Trisakti shootings|shootings]]|image2=Jakarta riot 14 May 1998.jpg|caption2=Rioters burning office furniture on the streets of [[Jakarta]]}}
On 9 May, Suharto left Indonesia for a [[Group of 15]] summit in [[Cairo]], Egypt. Meanwhile, at Jakarta's [[Trisakti University]], university students planned to march towards the [[DPR/MPR Building|Parliamentary Complex]], but security forces refused to allow them to leave the campus of the university.{{sfn|Purdey|2006| p = 122}} Students then conducted a [[sit-in]] outside the gates of the campus, there men in [[Mobile Brigade Corps]] uniforms appeared on the flyover overlooking Trisakti. They fired at the students, killing four (Elang Mulia Lesmana, Heri Hertanto, Hafidin Royan, and Hendriawan Sie), and injuring dozens more.{{sfn|Schwarz|1999| pp = 613–614}}
The student's deaths sparked [[Indonesian riots of May 1998|mass violence and riots]] throughout [[Jakarta]] the following day, forcing Suharto to return on 14 May. Despite Suharto's return, riots occurred throughout the city. In [[Jatinegara]], [[East Jakarta]], a [[Matahari (department store)|Matahari]] department store was barricaded and torched, killing around a thousand people. In [[Glodok]], [[West Jakarta]], mobs attacked Jakarta's Chinatown, with store owners being forced to pay local thugs to protect them from violence. Riots also occurred near the port of [[Tanjung Priok]] in [[North Jakarta|Northern Jakarta]], the city of [[Tangerang]], [[Banten]], and [[Kebayoran Baru]] in [[South Jakarta|Southern Jakarta]], with Chinese-owned property being the main targets.{{sfn|Purdey|2006| p = 123}} Over a thousand and as many as five thousand people died during these riots in Jakarta and other cities such as [[Surakarta]]. Many victims died in burning malls and supermarkets, but some were shot or beaten to death. The riots destroyed thirteen [[Marketplace|market]]s, 2,479 shop-houses, 40 [[Shopping mall|mall]]s, 1,604 shops, 45 garages, 383 private offices, nine petrol stations, eight [[public bus]]es and [[minivan]]s, 1,119 [[car]]s, 821 [[motorcycle]]s, and 1,026 [[house]]s.{{sfn|Christanto|2014| p = 44}}
Indonesian Muslims who were considered to physically look Chinese were attacked by rioters, despite not identifying as Chinese at all and only being of distant Chinese descent. An Indonesian Muslim woman,
Ruminah, mentioned she had a single Chinese grandfather (who had married a local Muslim woman), yet she and her family faced constant harassment from neighbours due to their physical appearance and assumed ethnicity. She did not identify as Chinese or speak Chinese. In the riots, her hair salon was ransacked and one of her sons died in a fire at a mall.{{sfn|Glionna|2010}}
=== Military involvement in the riots ===
At the time, the Indonesian military had been split into two differing factions. The "red and white" nationalist faction led by Armed Forces commander General [[Wiranto]], and the "green" Islamist faction headed by [[Prabowo Subianto]].{{sfn|Schwarz|1999| p = 580}} Prabowo, who was the commander of [[Kostrad]] (the strategic reserve, the division in which Suharto himself took power during the 1960's), was friends with [[Muchdi Purwopranjono]], who ran the ''[[Kopassus]]'' (special forces), and another, Syafrie Samsuddin, headed the [[Kodam Jaya|Jakarta Regional Command]].{{sfn|Schwarz|1999| p = 600}} During the riots, both Muchdi and Syafrie failed to order their troops to quell the riots, and a report subsequently emerged that Syafrie had actually been in radio contact with the gangs terrorizing the city. It is possible that Prabowo hoped the riots would discredit his rival Wiranto and result in Suharto appointing Prabowo to head the armed forces.{{sfn|Schwarz|1999| pp = 616–617}}
Meanwhile, other allegations surfaced of the military being actively involved with the riots. A security officer alleged that during the riots, ''Kopassus'' officers had ordered the burning down of a bank. A taxi driver reported hearing a man in a military helicopter encouraging people on the ground to carry out looting. Shop owners at a plaza claimed that before the riots, military officers tried to extract protection money. A teenager claimed he and thousands of others had been trained as protesters. A street child alleged that ''Kopassus'' officers ordered him and his friends to become rioters. There was a report of soldiers being dressed up as students and taking part in the rioting.{{sfn|Arzia Tivany Wargadiredja|2018| p = 48}} Eyewitnesses spoke of the destruction being organized, with bands of men with short haircuts directing looters into shops, malls and banks, and of rioters being transported in military trucks. Rape victims testified that ethnic Chinese women were targeted, with assaults planned in advance.{{sfn|Schwarz|1999| p = 616}}{{sfn|Schwarz|1999| p = 617}}
{{quote box | salign = right | align = center | width = 80% | qstyle = text-align:justify;|In May 1998, thousands of Indonesian citizens were murdered and raped ...
The Joint Fact Finding Team established to inquire into the 1998 massacres found that there were serious and systematic human rights violations throughout Jakarta. The Team also found that rioters were encouraged by the absence of security forces, and that the military had played a role in the violence. The Team identified particular officials who should be held to account.
The Special Rapporteur on violence against women ... also pointed to evidence suggesting that the riots had been organised (E/CN.4/1999/68/Add.3, para. 45) | source = [[Asian Human Rights Commission]] Press Release{{sfn|AHRC Press Release|2003}}}}
=== Government response ===
The violence and riots, which occurred throughout the country, drew the government's attention. On 6 May, [[Wiranto]], Prabowo's aforementioned rival, toured the affected areas, and helped restore calm to the streets. On 8 May, two days later, Prabowo himself, deployed one of his units "to support local troops and assured the public that others were ready to go into troubled areas should the need arise". However, neither efforts were able to fully contain the violence, as riots continued in [[Indonesian riots of May 1998#Medan (4–8 May)|Medan]], fueling speculation from the public that very few orders were carried out by the deployed units.{{sfn|Purdey|2006| p = 120}}
Order was finally restored when regional military commander Yuzaini requested the help of community leaders and youth organizations to arrange for local patrols (''{{lang|id|siskamling}}''), to patrol with security forces.{{sfn|Purdey|2006| p = 121}} However, inaction on the government's part continued, with responses to the violence being inconsistent. In the northern area of [[Taman Sari (Jakarta)|Mangga Besar]], [[Jakarta]], soldiers, allegedly stood by and allowed looters to walk away with stolen goods.{{sfn|Jusuf|Simanjorang|2005| pp = 46–48}} While in [[Palmerah|Slipi]], [[West Jakarta]], soldiers reportedly risked their lives to protect civilians.{{sfn|Jusuf|Simanjorang|2005| p = 29}} In [[Surakarta]] (Solo), Armed Forces representative Colonel Sriyanto denied allegations of neglect, claiming that ground forces were limited and few due to units being transferred to Jakarta with only a few soldiers left to assist the police in controlling protesters at the [[Muhammadiyah University of Surakarta|Muhammadiyah University]]. For the most part, the military portrayed the violence "in terms of mobs gone mad, acting in an uncontrollable and spontaneous manner, outnumbering security forces".{{sfn|Purdey|2006| p = 130}}
=== Resignation of Suharto ===
{{Infobox event
| name = Suharto's resignation speech
| image = Suharto resigns.jpg
| image_caption = President Suharto resigning from office. On his left, in the foreground, wearing a robe, is Chief Justice [[Sarwata]], and on his right, in the foreground, is Vice President [[B. J. Habibie]]
| time = 9:00 am ([[Western Indonesia Time]], [[UTC+07:00]])
| date = {{start date and age|1998|05|21}}
| duration = 4 minutes
| cause =
| participants = [[Suharto]]
| venue = Credential Room, [[Merdeka Palace]]
| location = [[Jakarta]], Indonesia
| module = {{listen|embed=yes|filename=President Suharto announces his resignation.ogg|title=Audio recording of Suharto's resignation speech|type=speech}}
}}
{{Infobox event
| name = Presidential inauguration of B. J. Habibie
| image = Habibie presidential oath.jpg
| image_caption = President B. J. Habibie taking his presidential oath
| date = {{Start date and age|df=yes|1998|05|21}}
| location = [[Merdeka Palace]], [[Jakarta]]
| organizers =
| participants = {{ubli|[[B. J. Habibie]]
3rd president of Indonesia}}''— Assuming office''