Political and Economic Development The Reign of President B.J. Habibie

After President Soeharto declared quit his post as
President of the Republic of Indonesia on May 21, 1998, on that day also the Deputy
President B.J Habibie was sworn in as the third president of Indonesia under the leadership
Supreme Court at the State Palace. The legal basis for Habibie's appointment
is based on MPR Decree No.VII / MPR / 1973 which contains "if the President
absent, then the Vice President is set to become President ".
When Habibie rose as President, Indonesia was in crisis
the worst economy in the last 30 years, caused by an eye crisis
money driven by enormous foreign debt
lowered the value of the rupiah to a quarter of the value of 1997. Crisis
which has led to technical bankruptcy of the industrial sector and
manufacturing and financial sectors that have almost collapsed, compounded by
a long dry season caused by El Nino, which resulted
declining rice production.
Added to the May 1998 riots has destroyed the business centers
urban areas, especially among Chinese investors who play
a dominant role in the Indonesian economy. The run of capital, and its destruction
production and distribution of goods make the recovery effort
very difficult, it causes a high inflation rate.

Suharto's resignation has liberated social and political energy
as well as the frustration caused by distress over the last 32 years, create feelings
glad in general the political possibilities that now look like
affordable. Students and pro-democracy groups
demanding a democratization of the political system was imminent, requested
general elections were immediately made to elect MPs and MPR,
who can choose a new president and vice president. In addition to the demands
to hold elections as soon as possible, the government
also under strong pressure to eliminate corruption, collusion and
nepotism that marked the New Order.
The task of President B.J Habibie was to lead
transitional government to prepare and implement the reform agenda
thorough and basic, and as soon as possible to overcome the chaos
which is happening. The rise of B.J Habibie to the leadership throne
national is likened to occupying the peak of Mount Merapi ready to erupt
anytime. The mountain will erupt if various political, social problems
and psychological, which is the legacy of the old government is not overcome
immediately.
Answering criticisms of him that are judged as inappropriate people
deal with the state of Indonesia that is being hit by a tremendous crisis.
B.J. Habibie repeatedly affirmed his commitment to do
reforms in politics, law and economics. Habibie explicitly
states that his position as president is a mandate
constitution. In carrying out this task he promised to compile
responsible government in accordance with the demands of change
which was initiated by the reform movement of 1998. His government will
carry out gradual and constitutional reforms and commitments
against the aspirations of the people to restore democratic political life
and increase legal certainty.