Political institutions in Indonesia: Democracy, decentralisation, diversity

Briefing 28-01-2020

Until his downfall in 1998, General Suharto ruled Indonesia with an iron fist. Since then, a series of reforms have transformed his authoritarian 'New Order' into the world's third largest democracy (and largest Muslim democracy). Indonesia has a presidential system in which a directly elected president serves as both head of state and of government. A maximum two-term limit on the presidency helps to ensure a peaceful alternation of power. Also directly elected, the House of Representatives (the lower house of the bicameral People's Consultative Assembly) has asserted itself as a strong and independent institution. There are nine parliamentary parties, none of which holds a majority, obliging the government to seek support from a broad coalition. Despite the success of Indonesia's political reforms, its commitment to democratic values cannot be taken for granted. Although Indonesia has traditionally been a tolerant, multicultural society, a rising tide of Islamic populism threatens to disrupt the delicate balance between the country's Muslim majority and minorities such as Christians and Buddhists. The Corruption Eradication Commission (KPK) has had some success in tackling endemic graft in the country's courts, local governments and Parliament; however, the latter recently voted to weaken the KPK's powers. While trust in democratic institutions declines, the military – whose commitment to democratic values has often been questionable – is becoming increasingly influential.