Indonesia Still on Hold

Indonesian President Suharto’s dramatic departure from office leaves a crucial element of unfinished business. The beleaguered and politically beaten leader yielded power to his vice president and longtime crony, B.J. Habibie. But while the new president pledged to appoint an experienced and professional Cabinet and to root out corruption, he uttered not a word about holding elections. This is not what the students and other opponents of the regime were seeking. They want real change.

Habibie apparently does not see himself as a caretaker. But only by winning elections can he prove that she is more than a puppet of the ousted Suharto and a perpetuator of the autocratic status quo.

The 61-year-old Habibie is widely unpopular, with virtually no personal following and no special acheivement beyond a long and loyal friendship with Suharto. As a Cabinet member, he has rankled the military and alarmed investors. While the new president said he will implement reforms demanded by the International Monetary Fund for loans granted to try to steady Indonesia in the Southeast Asian economic crisis, his track record on economic ventures has been a costly and reckless one. When the leader of Indonesia’s ruling Golkar Party pressed Suharto to resign for the good of the country, he said he wanted Habibie out too.

Indeed when Habibie was handpicked by Suharto to be vice president in March, Indonesia’s currency and stock markets answered by crashing to a new low. U.S. Treasury Secretary Robert E. Rubin told reporters that he wants to see who Indonesia’s top economic officials will be before deciding on further economic support (11 members of Suharto’s Cabinet who handled economic policy have resigned). This crisis has not ended. Despite Suharto’s departure from office, the State Department is still warning Americans not to travel to Indonesia because of the danger of upheaval.

Indonesia needs a popular and strong leader at this time of crisis, one who can demand sacrifice and nurture faith in the leadership. The nation faces formidable challenges: a paralyzed economy, rising unemployment and food shortages. Habibie must engage the opposition with positive programs to get through this wrenching debacle. The first step must be a strong and believeable commitment to building democratic institutions.

While the students were charged up by Suharto’s departure, a muted response from other quarters indicates wariness. Indonesia is not accustomed to smooth transitions of power and the presidency may merely have a new face, not new policies. Unless Habibie holds elections by the end of the year, there will be trouble again in Indonesia.