This is a presentation about Indonesian political institution made by Mr. M Faisal Karim for Britzone English club http://britzoneid.com

1. Indonesia Political System

2. Outline
• Conceptual Framework of Political System
• Evolution of Indonesian Political System

3. PRESIDENTIAL AND
PARLIAMENTARY

4. How Presidentialism Works
• Separate origin and separate survival of
executive and legislature
– Separate elections, fixed terms
• Assembly passes laws
• President also has powers
– Name government
– Some legislative powers
• Major policy changes require cooperation

5. Variations on presidentialism
• Legislative powers of president
– Can issue decrees
– Exclusive proposal rights (eg, budget)
– Veto powers (line item, % to overrule)
• Reelection limits (1 term, 2 terms, none)
• Legislature involved in government
– Approve ministers, recall/censure

6. Origin of Presidentialism and
Parliamentarism
• England: Parliament emerges as check to
monarch
• US: English system but without monarch
– President stands in for monarch
• As England democratizes
– Parliament gradually takes over King’s governing
council
– Final result: parliamentary system

7. Spread of presidentialism and
parliamentarism
• Most European countries adopt
parliamentarism
– Follow UK model
• Americas get presidentialism
– Follow US model
• Other regions – often follow colonial power

8. Perils of Presidentialism (1)
• Rigidity: can’t deal with crisis
– can’t drop president if doing a bad job, loses
confidence
• Zero-sum elections: only one winner
– high stakes => conflict, polarization

9. Getting rid of a president

10. Perils of Presidentialism (2)
• Style: monarchical tendencies
• Inexperienced leaders, outsiders
• Dual legitimacy & gridlock
– what happens when president and assembly
disagree

11. Government shutdown

13. Delegative Democracy
• President considers self embodiment of nation
and governs as wishes
• Rules by decree, ignores assembly, courts
• Not responsive to public opinion
• Accountability only at election time
• Is this undemocratic?

15. In favor of presidentialism (1)
• Accountability: voters choose executive
• Leader responsible to whole nation
– Discipline particularistic tendencies
• Stability: fixed term of office
• Checks and balances
• Presidentialism tries to solve tradeoff
between efficiency and representativeness

16. In favor of presidentialism (2)
• Is president dangerous in divided society?
• Will only represent one group
• Horowitz: problem is not presidency but
electoral system
– President can provide unity in divided country
– But need certain type of election: alternative vote
or regional requirements (eg, Nigeria)

17. How to test?
• Of 22 advanced democracies, only 2
presidential
• Regression of democracy on presidentialism
and controls
• What are the problems?

18. Where famous scholars go wrong
Parliamentary (N=41) Presidential (N=36)
Bahamas Israel Algeria Mozambique
Bangladesh Jamaica Angola Niger
Botswana Laos Cameroon Philippines
Burma Mauritius Cyprus Rwanda
Chad Nigeria Congo Syria
Dominica Pakistan Gabon Taiwan
Fiji Singapore Ivory Coast Tunisia
Ghana Sri Lanka Korea Vietnam
India Sudan Madagascar Zambia
Indonesia … Mali …

19. Continuous Democracies 1980-1989
Parliamentary (N=15/41) Presidential (N=0/36)
Bahamas Nauru
Barbados St. Lucia
India St. Vincent
Israel Solomon Isl.
Jamaica Tuvalu
Kiribati …

20. Another explanation?
• But maybe countries that choose presidential
systems are already prone to instability
– Why would they choose presidentialism?
• Does another factor cause both
presidentialism and instability?

21. Also note
• Most successful cases of parliamentarism in
small British colonies
• Maybe historical factors matter
– 1st Reverse Wave: mostly parliamentary
democracies fall
– 2nd Reverse Wave: mostly presidential
democracies fall

22. Better ways to test
• Difference-in-difference
– Look at countries that changed systems and consider
before and after
• 2SLS (two stage least squares)
– estimate causes of presidentialism and then use
predictions in second stage (also other instrumental
variable techniques)
• Matching methods
– Compare apples with apples: countries that are likely to
have presidentialism (or parliamentarism) – some have it
and others don’t

23. Making presidentialism work
• Works best with small number of parties
– President can have majority in legislature
– “The difficult combination”
• Divided government a problem
– Hold elections at the same time: coattails
– Avoid midterm elections
• Limit decree powers
• More reelection
• Switching to parliamentarism worse?

24. A compromise?
• Semi-presidentialism
– Elected president with some powers
– But also government which needs to hold
confidence of assembly
• How does it solve each of problems of
presidentalism?
• French 5th republic – Who is in charge?
– Problem of cohabitation

25. Types of parliamentarism
• Majoritarian type – Westminster
– 2 parties, powerful PM, majority government, little
opposition
• Party-controlled – Germany
– 3-4 parties, coalitions but strong majority government
• Assembly government
– Multiple parties, weak discipline, minority/surplus
majority govts, short duration, PM first among equals

26. Parliamentarism rationalized
• Investiture vote
• Constructive vote of confidence or elections
after no confidence
• Head of state role in formation
• Only PM elected, not cabinet
• Guillotine: confidence attached to laws
• Fewer parties
• Party discipline

27. Types of Political Systems
Presidential Parliamentary
Plurality
Elections
United States
Philippines
United Kingdom
India
Proportional
Representation
Latin America Western Europe

28. Majoritarianism & Consensus
• Where do presidentialism/parliamentarism fit
in Lijphart’s scheme?
• Is presidentialism majoritarian?
– Strong, unified executive
– But only if weak legislature
• Is it consensus?
– Separates power
– But only if legislature strong

29. INDONESIAN POLITICAL SYSTEM

30. Republic of Indonesia I (1945-1959)
• Adopted parliamentary system (1949 Constitution and 1950 Constitution)
• President (should) serves as a figure head/constitutional head, while
political responsibility day to day befalls on ministers
• Political parties were too fragmented, built many coalitions with both
small and big parties.
• Existing coalition did not last/fragile
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31. World War II
• The Dutch promise a
conference on self-
government before they leave
in 1941.
• Sukarno, Mohammed Hatta
and Sutan Sjahrir released
from jail by the Japanese
when they occupied Indonesia
in 1942.
• Sukarno, Hatta and others
formed Putera as a double
edge puppet government.

32. Indonesian Revolution
• Sukarno announced the Five Postulates and declared
independence in 1945.The Dutch had not yet
returned.
– Nationalism (National unity)
– Internationalism (One sovereign nation among equals)
– Representative Democracy (All significant groups
represented)
– Social Justice ( A Marxist view)
– Belief in God (A secular state, not Islamic)

33. Struggle for Independence
• The Netherlands asked Britain to reoccupy Indonesia
on its behalf.
• The initial British force attempted to occupy
Surabaya on November 10, 1945. The result was a
bloody one-month long battle.
• Negotiations with Dutch led to Linggadjati
Agreement in 1947 creating the United States of
Indonesia under Dutch sovereignty. The USI was to
be part of a larger Netherlands-Indonesian-Surinam-
Curacao Union.

34. Sovereignty At Last
• The Indonesians were not satisfied with the
lack of sovereignty. A guerrilla war ensued
during which 6,000 Dutch and 150,000
Indonesians were killed during 1947-49.
– A cease fire was imposed by the U.N. in 1947.
– An Asian Conference hosted by India imposed
sanctions against the Dutch in 1949.
– Sovereignty was finally transferred by the Dutch in
December, 1949.

35. Coping with Independence
• Indonesia found it extremely difficult to create
and operate a viable government..
– Elections only yielded pluralities and weak, short-
lived coalition governments.
– The economy was in decline and inflation
rampant. The country was bankrupt.
– Fear of nationalization of assets prevented
significant foreign investment.

36. Republic of Indonesia II (1959-1965)
• Known as Guided Democracy
• Characteristics:
• Strong president role (domination)
• Limited role of political parties
• Increased influence of communism
• Strong military element as socio-political power
• Basis of regime: Presidential Decree 1959 as a solution to break political
chaos through strong presidential leadership
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37. Guided Democracy
• In 1957 Sukarno established guided
democracy to “save” the country.
– A national advisory council was established
composed of representative groups, e.g.,
peasants, workers, the military.
– A “cooperating parliament” was established in
place of the elected parliament. Opinion could be
expressed but votes were not taken. The goal was
to govern by deliberation and consensus.

38. The Gestapu Affair
• On the night of September 30, 1965, six leading
generals and one lieutenant were assassinated in an
attempted coup.
– General Nasution escaped the assassination and Major
General Suharto was not targeted.
– The reaction was a massacre of a half million Communist
and Chinese, a combination pogrom and Jihad.
– Sukarno had no advanced knowledge of the coup but his
powers were curbed. He was removed as president in 1967
and died in 1970.

39. Republic of Indonesia III (1965-1998)
• Also known as Democracy Pancasila/New Order
• Formal basis: Pancasila, 1945 Constitution and decree of MPRS (people’s
consultative assembly)
• Stronger presidential role in government as the most dominant figure in
Indonesian political system. No effective check-and-balances, leading to abuse of
power
• Political goals:
- Maintain political stability
- Promote national development
- Strengthen national integrity
• General election was routinely and continuously held every five year. However,
violation against democratic values was massive: no freedom for voters in election
• Opposition was suppressed
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40. Suharto’s New Order
• March 11, 1966 – Sukarno
signed the Supersemar decree
authorizing Suharto to take all
measures necessary ... This
was the beginning of the New
Order.
– Revived the parliament of 1955.
– Adam Malik renegotiated debt
of $1.7 million.
– Ended Confrontation Policy.
– Joined ASEAN
– Befriended the West and Japan.
– Held national elections in 1971.

41. New Order Problems
• Sekber Golkar (the
government party) lost
creditability in the early
’70s.
• Legitimized “Dual
Function.”
• Graft, cronyism and
corruption were
extremely wide spread.
Examples:
– Astra Toyota & Tommy
– Pertamina lost $10.5
billion.

42. Eco dev’t cont:
Crony Capitalism
• He also turned the country into a family business
• Suharto’s family and friends were virtually synonymous with Indonesian
big business
• Arranged economic life to the point where it was virtually impossible for
an Indonesian to make any purchase without some profit ending up with
the first family
• Within this context, there was much corruption within govt.
• 1997 World Bank report claimed that at least 30% of gov’t development
funds were diverted through informal payments to gov’t personnel and
politicians and the ruling party faction GOLKAR.
• Before his resignation the the Suharto family’s personal wealth had been
estimated at $4 billion.

43. Political development
• Suharto was the dominate figure, who controlled all aspects
of political life.
• Limited opposition, both in parties and media
• State had own political party-GOLAR, became compulsory
political affiliation for all govt. employees
• During his rule, rival parties (of which only 2 were permitted)
were subject to significant state manipulation
• Thus, opposition was effectively silenced so the country (and
by extension his family) could benefit economically.

44. Insecurity Forces
• Under Suharto’s rule the military served as the president's right arm,
constituting a powerful force that penetrated every village.
• The military were part of the political establishment, as the Indonesian
constitution assigned them the dual function of defending the country
from external invaders and guiding its internal political development.
• Also, they were assigned a block of seats (38) in the parliament, which was
not very important during Suharto’s rule as parliament simply served to
rubber stamp the president’s policies
• But, this has the potential to complicate Indonesia’s transition to
democracy since Suharto’s fall

45. Beurocratic Authoritarianism
• Suharto’s regime exemplifies B-A as defined by Waltz
• (1)Populist forces were controlled through a repressive state apparatus
• (2) Technocratic elite played an important role in rebuilding the economy
once Suharto rose to power, and the military was utilized to maintain
social order so uprisings would not impede economic success
• (3) Extreme centralization of public policy, such that Suharto dominated
every aspect of political life ; a strong, unresponsive state (in terms of its
typology)
• (4)As in Argentina and Brazil economic progress was not linked to
democracy, as economic success linked to authoritarian rule for over 30
years
• this model falls in 1997

46. Republic of Indonesia IV (1998 – now)
• Known as Reformation era, paved the way to reform politics and democratisation
in Indonesia
• Check-and-balance function is restored. Legislative is given more power to check
executive (no longer serve as rubber stamp of president policy)
• Amendment of 1945 Constitution, e.g. role of DPR (House of Representative) is
strengthened, all members of parliament is elected through democratic election,
human rights is guaranteed
• Decentralisation of politics: direct election of local government
• General election in 2004 marked as an important milestone in Indonesian political
history as president and vice president are elected preceded by the election of
member of parliament
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47. Institutions and Social Groups
• Constitution.
– The constitution is a hybrid: “presidential with
parliamentary characteristics.” Government is unitary.
• Executive power is held by the legislature in that it can subject the
president to votes of confidence.
• Until 2004, the legislature actually elected the president and V.P.
They are now elected directly. Limited to two 5-year terms
• In 2004, the House of Regional Representatives (DPD) was
established as a separate legislative body. It is composed of four
representatives from each of Indonesia’s 33 provinces.The House
of Representatives (DPR) is still the premier legislative body.
Composed of 550 seats, members are elected for 5-year terms.

48. Institutions and Social Groups
• Constitution (Continued)
• The Peoples Consultative Assembly (MPR) is composed
of the elected members of the DPR & DPD.
Responsible to inaugurate and impeach president and
amend the constitution.
• The president is head of state, CINC of armed the
forces, responsible for domestic governance and
foreign affairs.
• The president appoints a council of ministers.
Members do not have to be elected members of the
legislature. He also appoints provincial governors.

49. Institutions and Social Groups
• Military.
– The military played both a security and
sociopolitical role under Suharto, labeled “dual
function.” Active duty military were members of
the cabinet, provincial governors, members of the
legislature and leaders of Golkar.
– Since the election of SBY, the dual function
concept has been down played. The goal is to
eliminate it completely.

50. Institutions and Social Groups
• Bureaucracy
– Indonesia is a bureaucratic polity in which power and
decision making is limited to members of the bureaucracy,
specifically the military, civil servants and technocrats.
Economists serving in top technocrat positions are
commonly called the “Berkley Mafia.”
– Korpri was created in the 1970 to provide a new corps of
civil servants, including provincial governors.
– The 1997 economic downturn did lessen the awe in which
technocrats were held.

51. Institutions and Social Groups
• Political Parties.
– Until 1999, no party could compete with Golkar, the official
government and military party. All government employees
and the military were required to belong..
– Sukarno banned all competing political parties except PDI
and PPP. Smaller political parties were forced to become
part of one or the other. PDI is the Indonesian Democratic
Party; PPP is the Muslim Party.
– Sukarno required that PDI and PPP espouse Pancasila only
as their political philosophy and not depart from it.
– All these restrictions were lifted in 1999.

52. Institutions and Social Groups
• Democratization.
– The Sukarno period of Guided Democracy (1950-57) was
followed by a return to the pre-1950 constitution under
Suharto.
– Suharto’s New Order relied heavily on military rule (Dual
Function), but did achieve great economic progress and a
“middle class.” Suharto saw himself as the “Development
President.”
– 1999 to 2001 saw the development of real democracy
under Wahid and then Megawati Sukarnoputri.
– SBY has pledged to completely eliminate “Dual Function.”

53. Institutions and Social Groups
• Economic Development.
– Has averaged a 6% GNP growth since 1965, although per
capita GNP is extremely low ($685.00).
– The 1997 economic crises slowed the GNP, but it has
returned to a projected 5.2% for 2006.
– Natural resources include oil (aging fields and old
equipment), natural gas (exports 20% of world’s LNG), tin,
copper, and gold.
– Agricultural exports include palm oil, rice, tea, coffee,
spices and rubber.
– Major industries include mining, petroleum, NG, textiles &
apparel, labor intensive assembly.

54. Institutions and Social Groups
• Economic Problems,
– Most manufacturing is sub-contract assembly and low tech
such as footwear, canning, & wood processing.
– Support by Chinese of Golkar led to preferential treatment
by the government. Chinese businessmen, called
cukong (boss), are resented for their power.
• Primitive slash and burn farming on Kalimantan and
Sumatra started forest fires that spread smoke over much
of SEA in 1997.
• Suharto family corruption and the national car – Timor.

55. Institutions and Social Groups
• Foreign Policy.
– Sukarno sought security in anti-western nationalism: the NEFOSs
against the OLDEFOSs. Konfrontasi against Malaysia was the result.
– Suharto assumed a lower profile role in international affairs.
Supported ASEAN and the Zone of Peace. East Timor was the
exception. Played a role in attempting to resolve the Cambodia crises.
– Relations with China have improved since the Gestapu Affair.
Established diplomatic relations in 1990.
– The West is still Indonesia’s primary market and source of investment
and development assistance.

56. Democratic Transition
• This ties into the concept of political culture, particularly after being
subject to an authoritarian regime for more than 32 years most ordinary
Indonesians would not have a meaningful conception of democracy. If
democracy was not entrained into their political culture than it would not
be able to surface.
• Thus, the authoritarian regime may have caused an authoritarian political
culture, as few citizens had any understanding of meaningful political
competition
• Democracy, thus, may have been seen as more of a means to an end
(economic success) than an end in itself.

57. The Complications of transition
• military- still holds a significant degree of power, particularly because it is
still politicized. It is thought that they gave the new President Wahid its 38
votes in parliament, therefore he may now feel he owes them something.
Arguably, democracy can not be fully realized with solders holding seats in
parliament, or until the president places the solders under civilian control.
• Ethnic politics- As a country with 200,000 people speaking 250 languages
and representing 300 different ethnicity's society has become increasingly
divided since Suharto’s fall. His authoritarianism held the various elements
together, as he was able to repress the vast differences among citizens. In
the past 12 months, as many as 2000 have been killed in surges of
religious warfare. (Muslim v. Christian
• “Few people here have any understanding of healthy political or social
competition. For some of them democracy means chaos and killing”

58. The Reform
• Political Party
• The Military
• Central-local relations