Indonesia a country study Federal Research Division Library of Congress Edited by William H. Frederick and Robert L. Worden On the cover: A two-masted pinisi—a modern adaptation of traditional Indonesian watercraft. Based on photography by Tim Hornby and with permission of Explore Worldwide, Farnborough, Hampshire, United Kingdom. This artwork and the images used on the chapter title pages were chosen to represent the diversity of watercraft used in the archipelagic waters of Indonesia. Sixth Edition, First Printing, 2011. Library of Congress Cataloging-in-Publication Data Indonesia: a country study / edited by William H. Frederick and Robert L. Worden. -- 6th ed. p. cm. Includes bibliographical references and index. ISBN 978-0-8444-0790-6 (alk. paper) -- ISBN (invalid) 978-0-8444-9503-3 (alk. paper) 1. Indonesia. I. Frederick, William H. II. Worden, Robert L. III. Library of Congress. Federal Research Division. DS615.I518 2011 959.8--dc23 2011038834 Use of ISBN This is the Official U.S. Government edition of this publication and is herein identified to certify its authenticity. Use of the ISBN 978-0-8444-0790-6 is for U.S. Government Printing Office Official Editions only. The Superintendent of Documents of the U.S. Government Printing Office requests that any printed edition clearly be labeled as a copy of the authentic work with a new ISBN. For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–00001 ISBN 978-0-8444-0790-6 Foreword This volume is one in a continuing series of books prepared by the Federal Research Divison of the Library of Congress under the Country Studies/Area Handbook Program, formerly sponsored by the Depart­ ment of the Army and revived in FY 2004 with congressionally man­ dated funding under the sponsorship of the Joint Chiefs of Staff, Strategic Plans and Policy Directorate (J–5). Most books in the series deal with a particular foreign country, describing and analyzing its political, economic, social, and national security systems and institutions, and examining the interrelationshps of those systems and the ways they are shaped by historical and cultural fac­ tors. Each study is written by a multidisciplinary team of social scientists. The authors seek to provide a basic understanding of the observed soci­ ety, striving for a dynamic rather than a static portrayal. Particular atten­ tion is devoted to the people who make up the society, their origins, dominant beliefts and values, their common interests and the issues on which they are divided, the nature and extent of their involvement with national institutions, and their attitudes toward each other and toward their social system and political order. The books represent the analysis of the authors and should not be construed as an expression of an official U.S. government position, pol­ icy, or decision. The authors have sought to adhere to accepted standards of scholarly objectivity. Corrections, additions, and suggestions for changes from readers will be welcomed for use in future editions. David L. Osborne Chief Federal Research Division Library of Congress Washington, DC 20540–4840 E-mail: [email protected] iii Acknowledgments This edition supercedes Indonesia: A Country Study, published in 1993. The authors wish to acknowledge their use of portions of that edition in the preparation of the current book. Various members of the staff of the Federal Research Division of the Library of Congress assisted in the preparation of the book. Sandra W. Meditz made many helpful suggestions during her review of all parts of the book and managed the editing and production of the book. Catherine Schwartzstein edited the manuscript, made many very useful suggestions, and helped clarify obscure points. She also performed the final prepublication editorial review and compiled the index. Vincent Ercolano also edited parts of the manuscript in its early stages. Sarah Ji-Young Kim provided valuable assistance in checking facts, review­ ing and revising maps and figures, collecting illustrations, and assisting with updating the Country Profile and revising the Bibliography. Janie L. Gilchrist performed word processing and formatting of text. The authors also are grateful to other individuals in the Library of Congress who contributed to the book. Kathryn Wellen, former Indone­ sia Reference Specialist in the Asian Division, provided advice and clar­ ifications on many points. William Tuchrello, director of the Library’s Overseas Office, Jakarta, and his staff assisted in providing photographs and published information from Indonesia. Jennifer Foley compiled draft editions of the maps and identified many of the photographs used in the book. Graphics support was pro­ vided by Christopher Robinson, who prepared the book’s graphics and also performed the photocomposition and preparation of the final digi­ tal manuscript for the printer. Both he and Katarina David of the Fed­ eral Research Division performed digital conversion of photographs and illustrations used in the study. Thanks go to Harris Iskandar, education and cultural attaché of the Embassy of Indonesia in Washington, DC, for providing useful research information on his country. Finally, the authors acknowledge the gener­ osity of individuals and public and private organizations who allowed their photographs to be used in this study; they have been acknowledged in the illustration captions. v Contents Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii Acknowledgments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Table A. Selected Acronyms and Contractions. . . . . . . . . . . xv Table B. Chronology of Important Events . . . . . . . . . . . . . xxiii Table C. Metric Conversion Coefficients and Factors . . . . . xxix Country Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxxi Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxxix Chapter 1. Historical Setting. . . . . . . . . . . . . . . . . . . . . . . . . 1 William H. Frederick ORIGINS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Early Inhabitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Social and Cultural Developments . . . . . . . . . . . . . . . . 5 Expanding Networks. . . . . . . . . . . . . . . . . . . . . . . . . . . 6 EARLY HEGEMONIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 The Earliest Historical Records. . . . . . . . . . . . . . . . . . . 7 Srivijaya and Mataram. . . . . . . . . . . . . . . . . . . . . . . . . . 8 THE RISE AND FALL OF MAJAPAHIT . . . . . . . . . . . . . . 12 Successor Kingdoms of Java. . . . . . . . . . . . . . . . . . . . . 12 Founding and Growth of Majapahit, 1268–1389 . . . . . 14 Outside Influences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 THE EARLY MODERN ERA . . . . . . . . . . . . . . . . . . . . . . . 18 Commercial Developments. . . . . . . . . . . . . . . . . . . . . . 18 Westerners and Indigenous Powers. . . . . . . . . . . . . . . . 19 The Role of the Dutch United East Indies Company, 1602–19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 The Javanese and the VOC, 1619–1749 . . . . . . . . . . . . 24 Decline of the VOC, 1749–1816. . . . . . . . . . . . . . . . . . 27 DEVELOPMENT OF EUROPEAN COLONIAL RULE . . 30 End of the Ancien Régime in Java, 1816–34 . . . . . . . . 30 Establishment of the Colonial State. . . . . . . . . . . . . . . . 33 vii The Cultivation System . . . . . . . . . . . . . . . . . . . . . . . . . 34 The Ethical Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 The Racial Issue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 MODERNISM AND NATIONALISM IN THE COLONIAL AGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 The Rise of Education and Student Associations, 1900–1920 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Formation of Political Parties, 1911–27. . . . . . . . . . . . . 44 The Rise of Sukarno, 1921–26. . . . . . . . . . . . . . . . . . . . 46 Colonial Government Reactions, 1927–40. . . . . . . . . . . 47 WAR AND EARLY INDEPENDENCE . . . . . . . . . . . . . . . . 49 The Japanese Occupation, 1942–45. . . . . . . . . . . . . . . . 49 The National Revolution, 1945–49 . . . . . . . . . . . . . . . . 54 The Road to Guided Democracy, 1950–65 . . . . . . . . . . 60 The “Coup” and Its Aftermath, 1965–66. . . . . . . . . . . . 69 CONTEMPORARY INDONESIA . . . . . . . . . . . . . . . . . . . . 72 Rise of the New Order, 1966–85 . . . . . . . . . . . . . . . . . . 72 Decline and Fall of the New Order, 1985–98. . . . . . . . . 83 Reformasi and the Post–New Order Era, 1998–2009. . . 85 Chapter 2. The Society and Its Environment. . . . . . . . . . . . . 95 Joel C. Kuipers THE GEOGRAPHIC CONTEXT . . . . . . . . . . . . . . . . . . . . . 98 Geographic Regions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Volcanoes and Earthquakes . . . . . . . . . . . . . . . . . . . . . . 99 Climate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Environmental Concerns . . . . . . . . . . . . . . . . . . . . . . . . 104 National Territory: Rights, Responsibilities, and Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 EMERGING DYNAMICS OF INDONESIAN COMMUNITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Population. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Family. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 National, Religious, and Local Authority. . . . . . . . . . . . 110 Urbanization and Decentralization. . . . . . . . . . . . . . . . . 111 Migration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Social Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Civil Society. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Violence, Vengeance, and Law . . . . . . . . . . . . . . . . . . . 117 RELIGION AND WORLDVIEW . . . . . . . . . . . . . . . . . . . . . 118 viii Islam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Christianity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Hinduism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Buddhism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Confucianism and Daoism. . . . . . . . . . . . . . . . . . . . . . . 126 THE EMERGING NATIONAL CULTURE . . . . . . . . . . . . 126 Living Environments. . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Language. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 Food, Clothing, and Popular Culture. . . . . . . . . . . . . . . 129 SOURCES OF LOCAL IDENTIFICATION . . . . . . . . . . . . 130 Tradition and Multiethnicity . . . . . . . . . . . . . . . . . . . . . 130 Javanese. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 Balinese. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 Peoples of Sumatra . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Ethnic Minorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 EDUCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 Primary and Secondary Education . . . . . . . . . . . . . . . . 150 Islamic Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Higher Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 HEALTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Services and Infrastructure . . . . . . . . . . . . . . . . . . . . . . 156 Government Support . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Traditional and Modern Health Practices . . . . . . . . . . . 159 Major Health Problems . . . . . . . . . . . . . . . . . . . . . . . . . 159 Pharmaceuticals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 Public Sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 SOCIETY’S PROSPECTS . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Chapter 3. The Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 J. Thomas Lindblad THE ROLE OF GOVERNMENT . . . . . . . . . . . . . . . . . . . . . 166 The Political Economy of Reform. . . . . . . . . . . . . . . . . 167 Financial Reform. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Industrial and Trade Reform . . . . . . . . . . . . . . . . . . . . . 172 Crisis Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 Postcrisis Reform. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 GOVERNMENT FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . 180 Central Government Budget . . . . . . . . . . . . . . . . . . . . . 180 Decentralization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 Monetary and Exchange-Rate Policy . . . . . . . . . . . . . . 185 ix INDONESIA IN THE GLOBAL ECONOMY . . . . . . . . . . . 188 The Changing Nature of Trade and Aid. . . . . . . . . . . . . 188 Principal Trade Relationships. . . . . . . . . . . . . . . . . . . . . 191 EMPLOYMENT AND INCOME . . . . . . . . . . . . . . . . . . . . . 192 AGRICULTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Food Crops. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Export Crops. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 Livestock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202 Fishing and Forestry. . . . . . . . . . . . . . . . . . . . . . . . . . . . 202 INDUSTRY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 Foreign Inputs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 Small-Scale Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 MINERALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 Petroleum and Natural Gas. . . . . . . . . . . . . . . . . . . . . . . 210 Other Minerals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 SERVICES AND INFRASTRUCTURE . . . . . . . . . . . . . . . . 214 Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Post and Telecommunications . . . . . . . . . . . . . . . . . . . . 219 Electric Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 ECONOMIC PROSPECTS . . . . . . . . . . . . . . . . . . . . . . . . . . 221 Chapter 4. Government and Politics . . . . . . . . . . . . . . . . . . . 225 Blair A. King THE POLITICAL DEBATE . . . . . . . . . . . . . . . . . . . . . . . . . 229 THE CONSTITUTIONAL FRAMEWORK . . . . . . . . . . . . . 231 THE STRUCTURE OF GOVERNMENT . . . . . . . . . . . . . . . 234 Legislative Bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235 The Executive. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241 The Judiciary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 Independent Bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 Local Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 POLITICAL CULTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 Inclusionary Coalitions. . . . . . . . . . . . . . . . . . . . . . . . . . 254 Consensus-Based Decision Making. . . . . . . . . . . . . . . . 256 Traditional Political Culture. . . . . . . . . . . . . . . . . . . . . . 257 Islamic Political Culture. . . . . . . . . . . . . . . . . . . . . . . . . 258 Pancasila: The State Ideology . . . . . . . . . . . . . . . . . . . . 260 THE POLITICAL PROCESS . . . . . . . . . . . . . . . . . . . . . . . . 262 The Multiparty System: Significant Pluralism. . . . . . . . 263 Secular Nationalist Parties . . . . . . . . . . . . . . . . . . . . . . . 264 x