POLITICS-INDONESIA: Suharto Not Giving Up ‘Without a Fight’

By IPS Correspondents Reprint | | Print |

Kafil Yamin

JAKARTA, May 18 1998 (IPS) - A few days ago and hundreds of miles away from home, Indonesian President Suharto declared he was willing to step down if he was no longer trusted by his people.

Today, well-ensconced in his fortified palace, the 76-year-old strongman, who has ruled Indonesia for nearly 33 years, looks adamant about keeping a tight grip on power.

Stubbornly clinging to power, Suharto is poised to revamp his Cabinet in a bid to appease critics and regain public trust after last week’s anarchy. But opponents describe the move as being “too little, too late”.

“The reshuffle only indicates that he wants to sustain his power,” said political analyst Arbi Sanit. “He will drop ministers who have failed to strengthen his government and replace them with those more loyal to him.”

Critics say Suharto refuses to see that the problem lies with him and that any “cosmetic” solution will not be acceptable.

“It’s too late,” said Laksamana Sukardi, a director of Econit advisory group. “We had a chance to restore confidence six months ago, but they were all wasted,” he said.

Suharto’s political opponents have called for him to step down amid the worsening economic crisis which began last year. Instead, he was bestowed a seventh five-year term in March.

Making things worse, Suharto appointed controversial eldest daughter, Siti Hardijynti Rukmana and long-time confidant and golfing buddy Mohammad “Bob” Hasan to his Cabinet recently.

In compliance with a deal with the International Monetary Fund, Jakarta raised fuel and electricity prices, triggering a fresh wave of protests which ended in violence last week.

About 500 people were believed killed in four days of rioting and destruction, most of them trapped and burned to death when rioters torched hundreds of stores, cars and malls around the capital on Thursday.

The death toll also includes the six student demonstrators who were shot dead by security forces on Tuesday.

On Friday, Suharto rescinded the price hikes on fuel and electricity and later announced he would reshuffle his Cabinet. But analysts say the twin moves cannot mollify an angry public that is demanding his resignation.

But amid the growing political crisis, Suharto continues to resist change and looks determined to stay in office.

Gerry van Klinken, editor of ‘Inside Indonesia’ magazine says there is no doubt that the Suharto regime has smelled defeat, but “it will take more than rioting to dislodge a system he has nurtured for three decades”.

He says Suharto has the option of taking either the military or political approach. “As a military man, the idea of cracking heads is familiar to him and will spring most naturally to mind.”

But military analysts say the armed forces look divided on how to handle the crisis. Defence Minister and Military Chief Wiranto appears supportive of protesters, and may not favour a tough military solution to the problem, while Major-General Prabowo Subianto of the army strategic reserve and Suharto son-in-law, is a hardliner who will back the regime at all cost.

Suharto has largely kept his cards close to his heart. Although he said last week in Cairo, Egypt that he was willing to step down if he was no longer wanted, it now looks that he will not give up power without a fight.

The local currency, the rupiah, plunged at the resumption of trading on Monday as a result of the standoff and the economy, will be in shambles for some time.

Thousands of buildings, restaurants, shops, petrol stations, malls and car showrooms as well as banks were destroyed and burnt. Around a thousand private homes were also looted and damaged and two churches burnt.

But more than the physical destruction which is believed to run into hundreds of millions of dollars, investor confidence has plunged to its lowest in decades.

Foreign capital flight is seen to increase in the coming weeks as overseas companies have suspended operations and evacuated their staff. The ethnic Chinese, who were the primary target of the Muslim Indonesians’ rage, have fled to either Singapore or Taiwan and will certainly stay away.

“This makes all hopes for economic betterment dashed. This means a drastic setback,” said Coordinating Minister for Economy and Industry Ginandjar Kartasasmita.

Unemployment is seen to surge with tens of thousands of people losing their jobs because of the extensive damage to commercial buildings and other physical infrastructure. Economists forecast that inflation could reach as high as 100 percent, the economy may contract by as much as 10 percent.

The spectre of severe food shortage is imminent as people rushed to markets and a handful of stores that managed to open to stock up on food for fear of further unrest. Prices of foodstuff and other essential commodities have skyrocketed.

Some semblance of order and normalcy returned to the capital but people are bracing for bigger protests on Wednesday, when Indonesia marks the 90th anniversary of the formation of a nationalist movement against Dutch colonial rule.

Called ‘National Day of Awakening’, the event had been observed with ceremonies across the country. But protesters plan to use the event to put further pressure on Suharto to quit.

“Suharto must appoligize for the severe economic and monetary crisis and end political decisions that have caused collusion, corruption, cronyism, nepotism and declare his resignation,” said noted Muslim scholar Nurcholish Majid.

“In order to start all that, Soeharto and his family should surrender their personal wealth to the state,” he added.