Sukarno moved Indonesia from democracy towards authoritarianism, and maintained his power base by balancing the opposing forces of the military and the Communist Party of Indonesia (PKI).[46] An attempted coup on 30 September 1965 was countered by the army, who led a violent anti-communist purge, during which the PKI was blamed for the coup and effectively destroyed.[47][48][49] Around 500,000 people are estimated to have been killed.[50][51] The head of the military, General Suharto, outmaneuvered the politically weakened Sukarno and was formally appointed president in March 1968. His New Order administration[52] was supported by the US government,[53][54][55] and encouraged foreign direct investment in Indonesia, which was a major factor in the subsequent three decades of substantial economic growth. However, the authoritarian "New Order" was widely accused of corruption and suppression of political opposition.[36][56][57]
Indonesia was the country hardest hit by the late 1990s Asian financial crisis.[58] This led to popular protest against the New Order which led to Suharto's resignation in May 1998.[59] In 1999, East Timor voted to secede from Indonesia, after a twenty-five-year military occupation that was marked by international condemnation of repression of the East Timorese.[60] Since Suharto's resignation, a strengthening of democratic processes has included a regional autonomy program, and the first direct presidential election in 2004. Political and economic instability, social unrest, corruption, and terrorism slowed progress; however, in the last five years the economy has performed strongly. Although relations among different religious and ethnic groups are largely harmonious, sectarian discontent and violence have persisted.[61] A political settlement to an armed separatist conflict in Aceh was achieved in 2005.[62]
Sukarno moved Indonesia from democracy towards authoritarianism, and maintained his power base by balancing the opposing forces of the military and the Communist Party of Indonesia (PKI).[46] An attempted coup on 30 September 1965 was countered by the army, who led a violent anti-communist purge, during which the PKI was blamed for the coup and effectively destroyed.[47][48][49] Around 500,000 people are estimated to have been killed.[50][51] The head of the military, General Suharto, outmaneuvered the politically weakened Sukarno and was formally appointed president in March 1968. His New Order administration[52] was supported by the US government,[53][54][55] and encouraged foreign direct investment in Indonesia, which was a major factor in the subsequent three decades of substantial economic growth. However, the authoritarian "New Order" was widely accused of corruption and suppression of political opposition.[36][56][57]
Indonesia was the country hardest hit by the late 1990s Asian financial crisis.[58] This led to popular protest against the New Order which led to Suharto's resignation in May 1998.[59] In 1999, East Timor voted to secede from Indonesia, after a twenty-five-year military occupation that was marked by international condemnation of repression of the East Timorese.[60] Since Suharto's resignation, a strengthening of democratic processes has included a regional autonomy program, and the first direct presidential election in 2004. Political and economic instability, social unrest, corruption, and terrorism slowed progress; however, in the last five years the economy has performed strongly. Although relations among different religious and ethnic groups are largely harmonious, sectarian discontent and violence have persisted.[61] A political settlement to an armed separatist conflict in Aceh was achieved in 2005.[62]
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