Breathing Room in Indonesia

As Indonesia’s President Suharto, a proud man, ponders a seventh term, he cannot help but consider his political legacy to his teeming nation of 200 million. Southeast Asia’s largest country has enjoyed remarkable economic growth since 1966 under the former general, now 75 years old, but his regime’s achievements have been marred by corruption, nepotism and political repression.

The Jakarta government’s latest attempt to unseat a popular opposition leader touched off the worst rioting in two decades. At least three people were killed and 90 were injured. Suharto’s instincts may be to dig in his heels, but such a reaction would risk continuing instability that could spook American and other foreign investors. Indonesia has great resources but also formidable debts. It cannot afford a flight of capital.

Suharto’s and Indonesia’s prospects would be bolstered by a more open political process. Instead, the bloody crackdown on demonstrations by the Democratic Party of Indonesia has radicalized politics.

Indonesia has only three parties: the ruling Golkar, which is an umbrella government party, and two smaller opposition groups, including the DPI, headed by Megawati Sukarnoputri, the 49-year-old daughter of independence leader Sukarno, Indonesia’s first president.

Megawati was unseated by party rivals in what was widely believed to be a government-manipulated deal. Rioting resulted when the troops tried to forcibly evict PDI members occupying the party’s Jakarta headquarters in protest. Now Megawati is seeking reinstatement through the courts. The test for her party and the government’s will come in parliamentary elections next year. Elections for president and vice president will be held in 1998.

Suharto, personally a relatively low-profile leader, has nonetheless given the opposition a focal point for simmering discontent. Indonesia’s elite, especially Suharto’s own children, have benefited handsomely under his long rule. The ethnic Chinese minority, which makes up about 4% of the population, dominates the economy, in which the average daily wage for a factory worker is $2.

If the old general wants to leave a legacy that carries Indonesia to a rightfully respected place in Southeast Asia, he will loosen the reins on politics. Golkar is not likely to lose an election, and the other parties need breathing room. Megawati Sukarnoputri: At ground zero in a violent controversy.