[5][6][7] According to the American think tank Freedom House, Indonesia fails to meet many of the civil requirements for a consolidated, or maximalist, democracy.
[8] The "Old Order" (1950–1965) in Indonesia has long been understood to be a period of turmoil and crisis, characterized by rebellions and political unrest.
[10] During the "Liberal Democracy" period (1950–1957), Indonesia aspired to renew its global status and achieve modernity as a newly independent country.
[13] Indonesia's economy heavily relied on the agricultural sector, but without diversification and industrialization, the government became vulnerable to polarization and instability.
[14] "Guided Democracy", which was in place from 1957 to 1966, aimed to bring about political stability, modernization, and development under the leadership of President Sukarno.
[15] Initially, Sukarno sought to build political institutions to bolster representation and resolve conflicts of regionalism, social class, and religion that plagued the Parliament during the Liberal Democracy era.
[12] However, power became increasingly centralized to the executive branch in the latter half of Guided Democracy, with Sukarno assuming a dictator-like role in the government.
Described as the great dhalang ("puppet master"), Sukarno drew power from balancing the opposing and increasingly antagonistic forces of the army and the Communist Party of Indonesia (PKI).
Anti-communists, initially following the army's lead, went on a violent purge of communists throughout the country, killing an estimated half million people and destroying the PKI, which was officially blamed for the crisis.
In contrast to the stormy nationalism, revolutionary rhetoric, and economic failure that characterised the early 1960s under the left-leaning Sukarno, Suharto's pro-Western "New Order" stabilised the economy but continued the official state philosophy of Pancasila.
Sukarno-Indonesia's first national figure and president-dissolved the elected assembly, introduced a concept known as Guided Democracy, and reinstated the 1945 constitution in 1959.
Immediately following the attempted coup in 1965, the political situation was uncertain, but the New Order found much popular support from groups wanting a separation from Indonesia's problems since its independence.
Within a few years, however, many of its original allies had become indifferent or averse to the New Order, which comprised a military faction supported by a narrow civilian group.
It is frequently employed to describe figures who were either tied to the New Order, or who upheld the practises of his authoritarian regime, such as corruption, collusion and nepotism (widely known by the acronym KKN: korupsi, kolusi, nepotisme).
[25] Indonesia experienced a transition toward democratic rule that involved both bottom-up and top-down forces after the fall of the authoritarian regime in 1998, thus altering the political structure of the country.
The highest state institution is the People's Consultative Assembly (Indonesian: Majelis Permusyawaratan Rakyat, MPR), whose functions previously included electing the president and vice-president (since 2004 the president has been elected directly by the people), establishing broad guidelines of state policy, and amending the constitution.
[31][32] Having served as rubberstamp bodies in the past, the DPR and MPR have gained considerable power and are increasingly assertive in oversight of the executive branch.
Under constitutional changes in 2004, the MPR became a bicameral legislature, with the creation of the DPD, in which each province is represented by four members, although its legislative powers are more limited than those of the DPR.
In October 1999, the MPR elected a compromise candidate, Abdurrahman Wahid, as the country's fourth president, and Megawati Sukarnoputri—a daughter of Sukarno—as the vice-president.
In Indonesia, while free and fair elections have been held and a constitution guaranteeing certain rights and freedoms exists, corruption and involvement of money in politics persists.
[35] Additionally, one of the primary reasons Indonesia may not be considered a consolidated democracy is due to their lack of “civilian control over the military”.
[26] Indonesia has created democratic institutions, but there is still progress that must be made to address the challenges the country currently faces in order to consolidate democracy.
[8] However, the country lacks other aspects of democracy that are usually required for a regime to reach democratic consolidation, such as adequate civil rights protections.
[8] A minimalist view of democracy classifies political regimes purely in terms of their institutions and procedures rather than the outcomes they produce.
[38] Maximalists argue that these countries must also guarantee other social, political, and economic rights, often those found in consolidated democracies.
As with any other country, Indonesian civil society spans an array of organizations including professional, religious, intermediary, and mass-based.
[41] The president also has the power to issue presidential decrees that have policy effects, and is also in charge of Indonesia's foreign relations, although treaties require legislative approval.
The DPD acts as a supplementary body to the DPR; it can propose bills, offer its opinion and participate in discussions, but it has no legal power.
The Constitutional Court listens to disputes concerning legality of law, general elections, dissolution of political parties, and the scope of authority of state institution.
Since the 1980s, Indonesia has worked to develop close political and economic ties between Southeast Asian countries, and is also influential in the Organisation of Islamic Cooperation.