1. Indonesia Under President Sukarno It is amazing that the new nation of Indonesia survived at all. Indonesia lacked many of the things that a nation needs to increase its wealth and improve social welfare.

2. Sukarno Indonesia lacked: An education system: The Dutch had not educated the local people. Few were literate. Experts and specialists: Few indonesians had ever become managers or educated specialists. A good transport system: WWII and the fight for Independence had damaged roads, railways and ports. A unified government: The govt rarely agreed. Too many people wanted different things.

3. During the 1950s and 1960s different parts of the country tried to break away and form their own nations. Access to loans: Indonesia was poor. Foreign countries were not willing to lend money. This affect social welfare.

4. Sukarno - Guided Democracy Sukarno believed that Indonesia needed a president with a strong hand to ‘guide’ Indonesia. In July 1959 the Constitutional Assembly was dissolved. Sukarno now ruled without a parliament. In 1960 Sukarno became premier as well as president.

5. Sukarno Sukarno’s cabinent was called a Nasakom cabinent. Members were appointed by him from the fields of nationalism, religion and communism. The army, Muslim organisations and the PKI distrusted each other and the 1960s were tense.

6. Sukarno’s Fall September 30 1965 (the year of living dangerously) Colonel Untung tried to take over the government. He was supported by sections of the PKI. He arrested and killed 6 top generals. Major-Genral Suharto organised units to fight Untung and ended the coup.

7. Sukarno to Suharto The coup of 1965 marked the beginning of the end for Sukarno. Suharto was given full power by the military to restore law and order. Communism was banned and half a million communists were killed. Sukarno spent much of his few remaining years under close surveillance.

8. Suharto In March 1968 Suharto became Indonesia’s second president.