On 14 March 1957, the Second Ali Sastroamidjojo Cabinet collapsed as a result of pressure from regional rebellions, splits between the parties comprising it and attacks on the political system, which led to the resignations of members.

President Sukarno had expressed his desire for a gotong royong (mutual assistance) cabinet, in which the four major parties, including the Communist Party of Indonesia (PKI) would work together in the national interest.

On 15 March, he asked Indonesian National Party chairman Suwirjo to form a cabinet, but he failed, with the result that Sukarno himself called a meeting on 14 April of party leaders and military officers, at which they were all asked if they were prepared to join the cabinet.

The Masyumi Party, most of whose members refused to serve in the cabinet, accused Sukarno of acting illegally, but to no avail.

The cabinet was announced on 8 April and appointed by Sukarno the following day at the Merdeka Palace.