Indonesia: The Year of Continuing Turbulence

Abstract

Indonesia since it embarked on reforms and democratization in 1998. By and large, the adverse conditions in 2001 were the continuation of the unstable conditions of the previous year.1 But in contrast to 2000, which was marked by a high expectation for stabilization at the beginning of the year, only to be quashed by political infighting at the end, 2001 started out on a gloomy note and was coloured by a heightened sense of optimism in the middle, and then ended showing signs of strain, and the seeds for possible future tension. The impeachment of President Abdurrahman Wahid (popularly known as Gus Dur), his replacement by Vice-President Megawati Sukarnoputri, and all the accompanying drama and tension both before, during, and after the process, were th? main events of the year. Additionally, there were signs of a possible resurgence of Islamic extremism, which gained much publicity after the 11 September terrorist attack on the United States and subsequent retaliation against the alleged perpetrator, Osama bin Laden and the Al-Qaeda organization, and the Taliban regime in Afghanistan accused of harbouring these terrorists. These developments in Indonesia brought anxiety to its neighbours as well as the international community in general. In the political arena, the democratization process in Indonesia underwent a severe test as the nature of relationships among the high state bodies was put into question. Indeed, the controversies surrounding Gus Dur's impeachment have put forth the idea that a totally amended Constitution is needed. Understandably, this issue became one of the main subjects of contention during the annual assembly of the MPR (Majelis Permusyawaratan Rakyat, or People's Consultative Assembly ? Indonesia's highest state body). The country's economy remained in a precarious position. If anything, the situation has gone from bad to worse. In the preceding year, foreign investment had already been difficult to come by because of the lack of confidence in the