Among much of the pro-democracy movement which forced Suharto to resign in the Indonesian 1998 Revolution and then gained power, the term "New Order" has come to be used pejoratively. It is frequently employed by them to describe figures who were either tied to the Suharto regime, or who upheld practices of his authoritarian regime, such as corruption, collusion and nepotism.
This produced a number of enemies to the Sukarno regime, both foreign and domestic. These enemies included a substantial, right-wing oriented portion of the Indonesian army, with whom the United States would cultivate ties through military education and equipment sales. Among those in this right-wing camp included Suharto, an officer in the Indonesian Army dating to the time of independence.
When Sukarno cut ties with the United States, including shipments of food (famously telling U.S. officials "To hell with your aid!"), he was forced to adopt rationing measures amidst famine conditions. Taking advantage of this, Suharto and the right-wing camp of the military created elaborate smuggling networks. These networks would eventually create a separate form of government out of its regional command structure, down to the village level. When his role in the scheme was discovered, Suharto would be reassigned to a job at the military college in Jakarta. Disrupted momentarily, this regional command structure (including its corrupt and militaristic aspects) would be revived when Suharto took power.
On September 30, 1965, six generals were killed by guards of Sukarno, a group calling themselves the 30 September Movement. The guards alleged a right-wing plot to kill the president. General Suharto led the army as field general in its retaliation against the alleged perpetrators, the Communist Party of Indonesia (PKI). The violent anti-communist purge resulted in the deaths of at least half a million people.
Tapols often served sentences including internal exile to penal colonies on desolated islands within the Indonesian archipelago. These included the Buru island in the Maluku Islands. Among its more famous prisoners included author and PEN Freedom to Write winner Pramoedya Ananta Toer, who was imprisoned there for alleged membership in a Communist Party literary group, LEKRA. In a book of memoirs (The Mute's Soliloquy), Pramoedya made detailed allegations of forced labour, starvation, torture and other abuses within the colony. ("Tapol Troubles" 1999)
Though the New Order released virtually all surviving tapols by 1979, they continued to be social outcastes afterward. All tapols were required to carry an ID card, stamped "ET" for ex-tapol, and have these ID cards renewed every three years. Many, including Pramoedya, lived under virtual house arrest into the 1990s. Spouses, children, and relatives of tapols have often carried a stigma of guilt by association and commonly face discrimination. Elderly tapols have in more recent times sued in order to win back their rights to vote, and for compensation for their losses.
While resentment toward the Chinese Indonesians by Austronesian descended peoples of the archipelago dated back to the Dutch East Indies era, persisting through the Post-Independence era, the events surrounding the 30 September Movement unleashed both widescale violence and a new tide of anti-Chinese legislation throughout the archipelago. Stereotypes of the Chinese as disproportionately affluent and greed was common throughout the time (both in Indonesia as well as Malaysia), but with the anti-Communist hysteria, the association of the Chinese Indonesians with the People's Republic of China caused them to also be viewed as a communist fifth column.
As a result of this hysteria, Indonesia's hitherto friendly diplomatic relations with mainland China were severed and the Chinese Embassy in Jakarta burnt down by a mob. Several anti-Chinese laws were passed to curtail Chinese culture and civil rights, including laws mandating closure of Chinese language schools, adoption of "Indonesian" sounding names, and severe limits on Buddhist temple construction. The lasting effects of these laws and anti-Chinese sentiment fostered by the Suharto regime was demonstrated in the organization of anti-Chinese pogroms in 1998.
In the place of civilian rule, a new system of military rule took hold, based on set-aside seats in the Parliament as well as the dwifungsi (dual function) doctrine of the military, in taking the roles of both soldiers and administrators. The political parties not banned outright were consolidated into a single party, the Party of the Functional Groups (Indonesian: Partai Golongan Karya), more commonly known as Golkar. Though Suharto would allow for the formation of two non-Golkar parties, these were kept weak during his regime.
As for more mainstream groups, conservative Islamic groups (called the "Central Axis") became a prop of the regime for some time after the civil war. Liberal Islamic groups, on the other hand, are believed to have defected during the wave of protests before the Indonesian Revolution of 1998.
As a result of his victory in the civil war, Suharto would come to be seen as a pro-Western and anti-Communist strongman regime, similar to that of Augusto Pinochet. An ongoing military and diplomatic relationship between the Indonesia and the Western powers was cemented, leading to American, British, and Australian arms sales and training of military personnel.
In 1969, Suharto moved to end the longtime controversy over the last Dutch territory in the East Indies, western New Guinea. Working with the United States and United Nations, an agreement was made to hold a referendum on self-determination, in which participants could choose to remain part of the Netherlands, to integrate with the Republic of Indonesia, or to become independent. Though originally phrased to be a nationwide vote of all adult Papuans, the "Act of Free Choice" was held July–August 1969 allowed only 1022 "chiefs" to vote. The unanimous vote was for integration with the Republic of Indonesia, leading to doubts of the validity of the vote. (Simpson)
In 1975, after Portugal withdrew from its colony of East Timor and the Fretilin movement momentarily took power, Indonesian troops invaded the territory. On July 15 1976 Suharto's "New Order" declared East Timor the 27th province of Indonesia. Following Suharto's 1998 resignation from the Presidency, East Timor voted for independence in 1999 and was transferred to United Nations administration. A detailed statistical report prepared for the Commission for Reception, Truth and Reconciliation in East Timor estimated a minimum of 102,800 conflict-related deaths in the period 1974–1999, namely, approximately 18,600 killings and 84,200 'excess' deaths from hunger and illness.
In 1976, the regime was challenged in the province of Aceh by the formation of the Free Aceh Movement, or GAM, who demanded independence from the unitary state. Suharto quickly authorized troops to put down the rebellion, forcing several of its leaders into exile in Sweden. Prolonged fighting between GAM and the Indonesian military and police led Suharto to declare martial law in the province, by naming Aceh a "military operational area" (DOM) in 1990.
Underpinning Suharto's territorial ambitions was the rapid development of Indonesia's traditional urban centers. The rapid pace of this development had vastly increased their population density. In response, Suharto pursued the policy of transmigration to promote movement from crowded cities to rural regions of the archipelago where natural resources had not yet been exploited.
In order to maintain a veneer of democracy, Suharto made a number of electoral reforms. He stood for election before electoral college votes every five years, beginning in 1973. According to his electoral rules, however, only three parties were allowed to participate in the election: his own Golkar party; the Islamist United Development Party (PPP), and the Democratic Party of Indonesia (PDI). All the previously existing political parties were forced to be part of either the PPP and PDI, with public servants under pressure to join the membership of Golkar. In a political compromise with the powerful military, he banned its members from voting in elections, but set aside 100 seats in the electoral college for their representatives. As a result, he won every election in which he stood, in 1978, 1983, 1988, 1993, and 1998.
This authoritarianism became an issue in the 1980s. On May 5, 1980 a group Petition of Fifty (Petisi 50) demanded greater political freedoms. It was composed of former military men, politicians, academics and students. The Indonesian media suppressed the news and the government placed restrictions on the signatories. After the group's 1984 accusation that Suharto was creating a one-party state, some of its leaders were jailed.
In the same decade, it is believed by many scholars that the Indonesian military split between a nationalist "red and white faction" and an Islamist "green faction." As the 1980s closed, Suharto is said to have been forced to shift his alliances from the former to the latter, leading to the rise of Jusuf Habibie in the 1990s.
After the 1990s brought end of the Cold War, Western concern over communism waned, and Suharto's human rights record came under greater international scrutiny. In 1991, the murder of East Timorese civilians in a Dili cemetery, also known as the "Santa Cruz Massacre" , caused American attention to focus on its military relations with the Suharto regime and the question of Indonesia's occupation of East Timor. In 1992, this attention resulted in the Congress of the United States passing limitations on IMET assistance to the Indonesian military, over the objections of President George H.W. Bush. In 1993, under President Bill Clinton, the U.S. delegation to the UN Human Rights Commission helped pass a resolution expressing deep concern over Indonesian human rights violations in East Timor.
Support for Suharto and his New Order government began to increasingly wane in the 1990s with more strident demands for democracy from within Indonesia's legal political parties. Criticism of the New Order's authoritarianism, human rights abuses, and situation of East Timor from Western NGOs and politicians began to isolate the regime diplomatically. The onset of the 1997 Asian financial crisis in Indonesia, and the stubbornness of Suharto in adopting reforms to address the crisis drew greater scrutiny from international lenders to the New Order corruption and lack of transparency. These factors culminated in the Indonesian Revolution of 1998 and the resignation of Suharto as president.