Editing History of Indonesia (section)

===Economic crisis and Suharto's resignation===
{{Main|Fall of Suharto}}

In 1997 and 1998, Indonesia was the country hardest hit by the [[1997 Asian financial crisis]],<ref>{{cite book | last =Delhaise | first =Philippe F. | title =Asia in Crisis: The Implosion of the Banking and Finance Systems | publisher =Willey | year =1998 | page =123 | isbn = 978-0-471-83450-2}}</ref> which had dire consequences for the Indonesian economy and society, as well as Suharto's presidency. At the same time, the country suffered a severe drought and some of the largest forest fires in history burned in Kalimantan and Sumatra. The [[Indonesian rupiah|rupiah]], the Indonesian currency, took a sharp dive in value. Suharto came under scrutiny from international lending institutions, chiefly the [[World Bank]], [[International Monetary Fund]] (IMF) and the United States, over longtime embezzlement of funds and some [[Protectionism|protectionist]] policies. In December, Suharto's government signed a letter of intent to the IMF, pledging to enact [[austerity]] measures, including cuts to public services and removal of [[Subsidy|subsidies]], in return for aid from the IMF and other donors. Prices for goods such as kerosene and rice, as well as fees for public services including education, rose dramatically. The effects were exacerbated by widespread corruption. The [[austerity]] measures approved by Suharto had started to erode domestic confidence with the New Order<ref>{{cite journal |title=Indonesia: from showcase to basket case |author=Jonathan Pincus and Rizal Ramli |journal=Cambridge Journal of Economics |volume=22 |issue=6 |pages=723–734 |year=1998|doi=10.1093/cje/22.6.723}}
</ref> and led to [[Indonesian Revolution of 1998|popular protests]].

Suharto stood for re-election by parliament for the seventh time in March 1998, justifying it on the grounds of the necessity of his leadership during the crisis. The parliament approved a new term. This sparked protests and riots throughout the country, now termed the [[Indonesian 1998 Revolution]]. Dissent within the ranks of his own [[Golkar]] party and the military finally weakened Suharto, and on 21 May he stood down from power.<ref>{{cite news |url=http://news.bbc.co.uk/2/hi/events/indonesia/latest_news/97848.stm |title=President Suharto resigns |publisher=BBC |date=21 May 1998 |access-date=12 November 2006 |archive-date=19 February 2015 |archive-url=https://web.archive.org/web/20150219061205/http://news.bbc.co.uk/2/hi/events/indonesia/latest_news/97848.stm |url-status=live}}</ref> He was replaced by his deputy, Vice President [[B.J. Habibie]].

President Habibie quickly assembled a cabinet. One of its main tasks was to re-establish [[International Monetary Fund]] and donor community support for an economic stabilisation program. He moved quickly to release political prisoners and lift some controls on freedom of speech and association. [[1999 Indonesian legislative election|Elections for the national, provincial, and sub-provincial parliaments]] were held on 7 June 1999. In the elections for the national parliament, the [[Indonesian Democratic Party-Struggle|Indonesian Democratic Party of Struggle]] (PDI-P, led by Sukarno's daughter [[Megawati Sukarnoputri]]) won 34% of the vote; [[Golkar]] (Suharto's party, formerly the only legal party of government) 22%; [[United Development Party]] (PPP, led by [[Hamzah Haz]]) 12%; and [[National Awakening Party]] (PKB, led by [[Abdurrahman Wahid]]) 10%.
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