Jakarta, the capital, was on the brink of anarchy. Sukarno was presented with an ultimatum by the generals and ceded power to Suharto. The process, which took months, was conducted with skill and subtlety. Now, after 30 years of Suharto's rule, Indonesia is transformed but has not fulfilled its promise. Rich in oil, timber, minerals, and metals, the economy has prospered, but not much of that wealth has gone to the upper and middle classes, and it certainly has not filtered down to the masses living at subsistence level.
Corruption is rife.
President Suharto's family members and cronies have been particular beneficiaries. Confidence in Indonesia has eroded. Indonesians are restless. There is discussion about whether Suharto should run again when his term expires in March. Last week, President Suharto signed an agreement with the International Monetary Fund that would initiate tough reforms to put Indonesia on a stable economic course.