POLITICS-INDONESIA: Suharto To Relinquish Power On His Own Terms

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IPS Correspondents

JAKARTA, May 19 1998 (IPS) - After 32 years in power, Indonesian President Suharto does not relish being shoved out the door. He want to slide away from the political scene on his own terms.

On Tuesday, he lay the groundwork for an orderly transition when he announced in a nationwide televised address that he would step down but will hand over power only to a constitutionally elected leader.

In response to growing pressure, Suharto said he would call for fresh general elections “as quickly as can be instituted according to the constitution” in order for parliament to choose his successor.

The 76-year-old ruler, who was bestowed his seventh five-year term by parliament last March, declared he was no longer standing for re-election.

He ordered a revamp of his Cabinet and created a reform committee “to quickly institute rules” on anti-trust, corruption and elections.

Although he gave no time frame for the elections, the announcement, nevertheless, is expected to temporarily calm the capital, Jakarta, which has been gripped by fear and rage over the past week.

Suharto, facing his toughest challenge so far, called for an end to violence and civil disorder and said he was taking the path of reforms to protect national unity and security.

Political analyst Salim Said described Suharto’s plan as “the best way out of the political crisis”.

Abdurrahman Wasid, the head of the largest Muslim organisation in Indonesia, said it was the “best option he can make”.

He said it was “taboo” in Javanese tradition, to disgrace a ruler who has served for 32 years and Suharto’s plan for a transition offered a graceful exit.

Suharto, who hails from Java island, took power from Indonesia’s founding president Sukarno in 1966 in a coup. He had since transformed the country from an agrarian economy to one of southeast Asia’s vibrant industrial economies.

But the world’s fourth most populous country had been hit hard by the financial crisis which rocked parts of Asia, forcing it to implement unpopular economic measures in order to qualify for a rescue package from the International Monetary Fund (IMF).

Clearly, the political crisis is far from over. At most, Suharto’s public address offered only a temporary reprieve from the instability and uncertainty that has engulfed Indonesia the past several days.

Financial analysts say they would like to see more details of Suharto’s plan, adding that the timing of the elections was crucial. However, they believe the announcement will ease tension in the capital and reduce the possibility of further unrest.

About 500 people were killed in last week’s rioting, looting and arson in Jakarta, including six student demonstrators who were shot dead by security forces. The incident and the ensuing violence increased pressure for Suharto to step down.

The Indonesian financial markets, battered by last week’s anarchy, welcomed the announcement. The rupiah soared to 12,450 to a dollar from 17,000 before Suharto’s speech, while the share market index rebounded five per cent.

But it is too early to say whether Suharto’s framework for reform will boost investor confidence, which has been shaken by last week’s rioting.

And even if the political turmoil is somewhat eased, Indonesia still faces its worst economic crisis. It is not known whether the government will proceed with austerity measures required by the IMF.

Also, not everyone took Suharto’s words to heart. Student demonstrators shrugged off his call for elections, insisting he should step down immediately.

Amien Rais, another Muslim leader who has backed the student movement, said he doubted Suharto’s offer to quit. “He is cheating the people. I don’t think he is sincere. He’s buying time to consolidate power,” he said in a television interview.

“What he said has motivated us more strongly to resist him,” he said, adding his group will go ahead with planned demonstrations on Wednesday to mark the 90th anniversary of the formation of a nationalist movement against the Dutch colonial rule.

This day has always been celebrated in Indonesia, and opposition leaders said they would use the event to mobilise more support for the campaign to force Suharto to resign immediately.

This contrasts with Wasid’s position that people should stop the protest action since “the objective has been achieved”.