ABSTRACT
This chapter discusses Soeharto's response to the economic crisis that emerged in 1997 and the chaotic swirl of events leading up to his resignation. It reviews the developments in five key areas—the economy, politics, foreign policy, the Islamic community, and the military—in the final few years of Soeharto's rule. Jusuf Wanandi of the Center for Strategic and International Studies in Jakarta is typical of Indonesians angry at the proponents of the Asian-values argument for providing cover for Soeharto's authoritarian politics. Indonesia has been undergoing an Islamic revival since the 1980s. Modernist Muslims have a broader national base than the traditionalists, and are generally more urban, wealthy and formally educated. The military's efforts to reach out to radical Muslims were led by Prabowo. The military put on a massive show of force, with tanks and armoured personnel carriers cruising the streets and protecting strategic locations, including the presidential palace.
