This revised third edition provides an analysis of Suharto's New Order from its inception to the emergence of B.J. Habibie as President. The author reassesses the New Order's origins and its military roots and evaluates the considerable economic changes that have taken place since the 1960s. He examines Suharto's politics and, in a new chapter, the reasons behind the crisis and Suharto's fall.

After twenty-five years in power, President Suharto and his New Order government confront a crisis of renewal. The regime, which swept to power in the wake of a military putsch in 1965, has brought enduring stability and economic prosperity to the country, but has shown no inclination to pass the reins of power to the next generation. As a result, pressures for political change are building up. This book offers an informed and balanced analysis of Suharto's new order as it approaches a crucial political juncture. Indonesia's remarkable political stability has for the most part kept the country out of the headlines. Quietly, Indonesia has moved into a strong position just behind other fast-growing economies in the region. Employing widely applauded liberal economic reforms and granting more freedom to the private sector, the government has transformed Indonesia's commodity-dependent economy into a nascent regional industrial dynamo. But now, economic success is running up against domestic political uncertainties. The author reassesses the New Order's fiery origins and its military roots, and evaluates the considerable economic progress achieved under Suharto. He also analyses Suharto himself, a man whose low international profile and uncharismatic style have made him one of the least understood and most intriguing long-serving leaders.

This book responds to the critical need of policymakers, practitioners, and scholars for current research on Indonesia.

Three decades of authoritarian rule in Indonesia came to a sudden end in 1998. The collapse of the Soeharto regime was accompanied by massive economic decline, widespread rioting, communal conflict, and fears that the nation was approaching the brink of disintegration. Although the fall of Soeharto opened the way towards democratization, conditions were by no means propitious for political reform. This book asks how political reform could proceed despite such unpromising circumstances. It examines electoral and constitutional reform, the decentralization of a highly centralized regime, the gradual but incomplete withdrawal of the military from its deep political involvement, the launching of an anti-corruption campaign, and the achievement of peace in two provinces that had been devastated by communal violence and regional rebellion.