Indonesia in 1982: Electoral Victory and Economic Adjustment for the New Order

Abstract

POLITICAL LIFE in Indonesia under the New Order leadership of President Soeharto has been defined and circumscribed by two major assumptions on the part of the government concerning the historical evolution and priority needs of the nation. First, that economic development and political stability constitute vital national goals in themselves. Second, that these two goals are inseparable, interdependent, and mutually reinforcing: long-term political stability can only be guaranteed by success in economic development, while that development can only be successful in a climate of political stability. Thus, each of the two goals helps make the other possible and, indeed, each cannot be achieved without the other. It is within this context that the government's sweeping victory in the May 4, 1982, general elections under the Golkar banner takes on special significance. Not only is it highly likely that there will be another five years of political stability-with President Soeharto to be named (probably unanimously) to a fourth term in office and also to receive the title Father of Development when the People's Consultative Assembly (MPR) convenes in March 1983. The victory also allows the government the political leeway to carry out the painful but necessary austerity measures and structural adjustments to deal effectively with the international recession and keep Indonesia's long-term economic development drive on course.