Two major setback for the New Order in the mid 1970 were the Pertamina Crisis and the suppression of liberal movement in East Timor.
Revolution in Portugal in 1974 opened the prospect of liberating East Timor
The ultra-leftist Front for the Independence of East Timor (Frentilin) party managed to get control of the colony in August and in November 1975 proclaimed its independence. Indonesia quickly sent in volunteers before the Fretilin had time to settle down.
East Timor was occupied by Indonesian forces and formally integrated into the Indonesian Republic in July 1976 .
The May 1977 parliamentary election:-
- Golkar party won 62% of the vote
- The Islamic PPP won 29%
- The secular PDI won 8%