The New Order Government

Ever 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 following:



To complete the restoration of
order and security and to establish political stability.

To carry out economic
rehabilitation.

To prepare a plan for national
development and execute it with the emphasis on economic
development.

To end confrontation and normalize
diplomatic relations with Malaysia.

To rejoin to the United Nations,
which Indonesia had quit in January 1965.

To consistently pursue an
independent and active foreign policy.

To resolve the West Irian
question.

To regain Indonesia'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 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 became the sixth member of
ASEAN. In July 1995, Vietnam was accepted as the seventh member of
this regional organization. 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. Currently, the IGGI has been replaced by the
Consultative Group for Indonesia (CGI) consisting of the former
members of IGGI (except the Netherlands) and five new creditors.

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