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Suharto resignation ushers in new era for Indonesia
Suharto resigns New president Habibie faces political unrest, economic instability
May 21, 1998
Web posted at: 6:30 a.m. EDT (1030 GMT)JAKARTA, Indonesia (CNN) -- Suharto resigned Thursday as president of Indonesia, the economically crumbling country that he has ruled with an iron fist for 32 years. Meanwhile, soldiers and tanks still controlled downtown Jakarta, a stark reminder of the tensions remaining after last week's riots in this Southeast Asian country.
Vice President Bacharuddin Jusuf Habibie, a close Suharto ally, was immediately sworn in as the new president. Habibie is likely to anger opposition leaders, who may well believe Suharto will be manipulating Habibie from the sidelines.
In a televised address, Suharto asked forgiveness for "any mistakes or shortcomings" as he addressed the world's fourth most populous nation.
Students react to Suharto's resignation 3.0MB/34 sec./320x240
1.2MB/34 sec./160x120
QuickTime movie
The resignation speech of Suharto and the swearing-in of Habibie
6 min. 45sec. VXtreme video
Just a few days ago, such a statement would have been unthinkable from the powerful leader. But deadly riots and anti-government protests proved to be Suharto's undoing. The country's armed forces commander appealed for calm.
Suharto, surrounded by his top aides and the nation's military chiefs, stepped to the microphone at the presidential palace as a military attache handed him the resignation letter to read.
"I have decided to resign as the president of the republic of Indonesia, effective immediately, as of the reading of this statement, Thursday, May 21," said the 76-year-old Suharto, staring intently at the text in front of him.
He added: "For the support and help from the people of Indonesia that I have received during my leadership, I ask for forgiveness if there are any mistakes or shortcomings."
Habibie is sworn in as president New issues arise
Suharto's resignation settles one question, but opens several other issues:
Newly sworn-in President Habibie, who owes his rise to Suharto, must seek to prevent a new round of unrest as the country's troubles mount. Suharto said Habibie would serve out the current presidential term until 2003, though he may turn out to be merely a transition figure.
The newly emboldened civil opposition may continue its challenge to Indonesia's traditional military dominance. Opposition leader Amien Rais refused to endorse Habibie until he sees whether the new Cabinet "consists of corrupt people" and "stinks of nepotism."
Analysis
Suharto's gone, but questions and problems remainInteractive Map
Indonesia at a glanceMessage Board
Indonesia's futureIn-Depth
Time Magazine: Suharto's bloody riseSuharto's family gained control over much of the country's economy under the president's aegis. Family members and cronies may well find themselves more exposed, with international lenders demanding the eradication of corruption and cronyism.
In Washington, the International Monetary Fund said it was suspending its $43 billion rescue package for Indonesia.
At the White House, President Clinton welcomed Suharto's resignation, saying it "provides an opportunity to begin a process leading to a real democratic transition for Indonesia."
Clinton's call for reform may be at odds with the plan for Habibie to serve out the remainder of the former president's term.
Adam Schwarz, a Council of Foreign Relations analyst, said that "it was clear that for him to stay on that there was only one way to restore peace and order on the streets, and that was through violent suppression. And fortunately, and credit to him, he did not take that route."
Just two days after vowing to stay in office to shepherd through a gradual transition of leadership, Suharto stood before his nation, telling them the end had come.
His drab, short-sleeved shirt stood in stark contrast to the ornate trappings of the Istana Merdeka palace, where he had received scores of world leaders since assuming power in 1966.
Leaving palace for last time as leader
Jakarta awakens to a new political day Looking stunned, Suharto turned over the leadership to his vice president, before leaving the palace for the last time as leader.
He was helped into a waiting black Mercedes-Benz limousine by his eldest daughter, Siti Hardiyanti Rukmana. She served as a Cabinet minister in the outgoing government, and came to symbolize the rampant corruption and nepotism that have plagued the country.
Opposition forces will almost certainly distrust Habibie, because of his ties to Suharto.
That could lead to further unrest in this country of 202 million people. Habibie is Indonesia's third president since the country gained independence from the Dutch in 1945.
Habibie himself did not speak at the swearing-in. However, Information Minister Alwi Dahlan read a brief statement saying the new president is committed to making reforms in Indonesia's economic system.
Army supports transition of power
Gen. Wiranto, the armed forces commander, strode to the microphone during Thursday's ceremony, and said the army supports the transition of power from Suharto to Habibie.
Gen. Wiranto asked the Indonesian people to remain calm.
"The armed forces will take part in preventing any irregularities ... that could threaten the nation," Wiranto said.
That was a reference to the military's determination to prevent another outbreak of violence.
Wiranto also promised to protect Suharto and his family, though it was unclear if that protection would also extend to shielding the former first family's huge wealth. Opposition leaders have demanded a return of Suharto's wealth to the people.
Indonesia has lost huge amounts of foreign investment and confidence, which it must quickly regain to rebuild the country's shattered economy.
Wild celebrations
About 500 students who had taken over the Parliament, as part of a wave of anti-Suharto protests, erupted in cheers at news of the president's resignation.
The young people danced in the fountains of the legislature's gardens, threw their fists in the air and whooped and hollered.
They embraced soldiers and police who were guarding them. Some of them knelt in prayer.
Students shouted, "Long live reform, long live the students." They are certain to press Habibie, the new president, into making reforms.
Correspondents Andrea Koppel and Mike Chinoy and The Associated Press contributed to this report.
Message board:
Related stories:
- CNNfn - Suharto news cheers Pac Rim markets - May 21, 1998
- After Suharto resignation, students rejoice - May 21, 1998
- Habibie becomes president after Suharto resigns - May 20, 1998
- Speaker gives Suharto until Friday to resign - May 20, 1998
- Indonesian opposition leader tries to call off protest - May 19, 1998
- Suharto to quit, but when? - May 19, 1998
- Suharto pledges reform, new elections - May 19, 1998
- Military backs Suharto's plan to shuffle Cabinet - May 18, 1998
Related sites:
Note: Pages will open in a new browser window
- Indonesia Internet Information Center - starting point for information about Indonesia
- DKI Jakarta - official Web site of the capital city of the Republic of Indonesia
- Indonesia Times Online - English language daily.
- Indonesia - AsianNet
External sites are not endorsed by CNN Interactive.
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