It served from October 1946 to July 1947, when it fell due to disagreements related to the implementation of the Linggadjati Agreement and subsequent negotiations with the Dutch.

Following the kidnapping of Prime Minister Sutan Sjahrir, those responsible attempted a coup against the Sukarno-Hatta government, with the cabinet replaced by a "Supreme Political Council" headed by Tan Malaka and President Sukarno's military powers transferred to General Sudirman.

This was a result of pressure on the Dutch from the British, who planned to withdraw the forces they had had in Indonesia since the end of World War II, to come to an agreement with the Indonesians.

The agreement recognized de facto Indonesian sovereignty over Java and Sumatra and called for the establishment of a federal United States of Indonesia.

Many left wing members of the cabinet, including Amir Sjarifuddin and Wikana condemned these concessions, and one by one the minor parties abandoned Sjahrir.