New Order Government
since taking office in 1967, the New Order Government
of President Soeharto was determined to return constitutional
life by upholding the 1945 Constitution in a strict
and consistent manner and by respecting Pancasila
as the state philosophy and ideology. To emerge from
the political and economic legacy of Soekarno's Old
Order, the new government set out to undertake the
To complete the restoration of order and security
and to establish political stability
To carry out economic rehabilitation.
To prepare a plan for and execute national development
with the emphasis on economic development.
To end confrontation and normalize diplomatic relations
To return to the United Nations, which Indonesia
had quit in January 1965.
To consistently pursue an independent and active
To resolve the West Irian question.
To regain lndonesia's economic credibility overseas.
To hold general elections once every five years.
Much of the implementation of these policies has been
described in the foregoing pages. It remains here
to mention some of the more notable achievements of
the New Order during the first few years of its existence.
Results of national development are presented in this
book under the heading "Development Achievements"
and are updated each year.
With regard to Malaysia, not only were relations normalized
but also Indonesia together with Malaysia, the Philippines,
Singapore and Thailand joined to establish the Association
of Southeast Asian Nations (ASEAN). On achieving independence
in 1984, Brunei Darussalam becomes the sixth member
of ASEAN. The objective of the association is the
establishment of regional cooperation in the economic,
social and cultural fields, but ASEAN also operates
in the political area.
To prepare for national development, in addition to
economic rehabilitation, Indonesia secured an agreement
with creditor countries to reschedule an overseas
debt of US$ 5 billion. With the recovery of the country's
overseas credibility, Indonesia succeeded in the formation
of a consortium of creditor countries to assist in
her economic development. This consortium is known
as the Inter-Governmental Group on Indonesia (IGGI)
and includes the United States, Canada, Australia,
New Zealand, Japan, Britain and a number of West-European
countries. Its annual meetings are held in Amsterdam
under the chairmanship of the Netherlands.
recorded that in 672 AD Timor was part of the Crivijaya
Kingdom. Later the island belonged to the Majapahit
Kingdom for 200 years, until 1520. In the last quarter
of the 16th Century the Portuguese subjugated Sultan
Baabullah of Ternate, then the overlord to Timor.
In 1651 the Dutch invaded Kupang in Western Timor
and on April 20, 1859, concluded a treaty with Portugal
whereby the latter was granted the right only to the
northern part of Timor, Atauro Island and Oecussi,
a tiny Sultanate in the Dutch-controlled part of West
In a statement on May 28, 1974, the Governor of Portuguese
Timor, Colonel Fernando Alves Aldela, granted the
people permission to form political parties. The response
was the emergence of five political parties - UDT
(Uniao Democratica Timorese), FRETILIN (Frente Revolucionaria
de Timor Leste lndependent), APODETI (Associacao Popular
Democratica de Timor),KOTA (Klibur Oan Timur Aswain)
and TRABALHISTA (Labor Party). Through lack of popular
support, FRETILIN resorted to terror tactics, threats
and blackmail in an attempt to intimidate members
of the other parties. This caused growing tension
throughout the colony and sparked an inevitable civil
On August 27, 1975, the Governor and other Portuguese
officials abandoned the capital of Dili, fled to Atauro
Island and left FRETILIN free to continue its reign
of terror. FRETILIN was even supplied with arms from
the Portuguese army arsenal. On November 28 of the
some year, FRETILIN unilaterally "declared the
independence" of East Timor and announced the
formation of "the Democratic Republic of East
In the light of these developments, on November 30,
1975, at Balibo, UDT, APODETI, KOTA and TRABALHISTA
proclaimed the independence of the territory and its
simultaneous integration with Indonesia. On December
17, 1975, the four parties announced the establishment
of the Provisional Government of East Timor in Dili.
On May 31, 1976, the duly elected People's Assembly
of East Timor decided in an open session to formally
integrate the territory with the Republic of Indonesia.
A bill on this integration was approved by the Indonesian
House of Representatives on July 15, 1976 and, with
the promulgation by the President, became Law on July
17. East Timor has since been the 27th province of
Indonesia with all the rights and duties under the
1945 Constitution of the Republic