For Indonesians in general, the year 1995 marked a memorable milestone at the fiftieth anniversary of the country's independence from colonial rule. Viewed from the Pesta Rakyat (Celebrations for the People) occurring everywhere in the country, with an obvious highlight in its capital city of Jakarta, one could not help but appreciate the past accomplishments of the country and yet, at the same time, be aware of the challenges to come.

The President's current term ends in 1998. His achievements are well documented. He succeeded where Soekarno failed because he used his power to nurture a consistent economic policy suited to local conditions, yet founded on a managed opening of the economy to international investment and trade. Government investment in infrastructure and the improvement of educational and social standards have been among the legacies of the Soeharto era. These successes, coupled with a formidable system of state power used periodically to curb dissent, have delivered to Indonesia internal stability and given it the credibility to play a pivotal role in international organizations like the Association of Southeast Asian Nations (ASEAN), the Asia-Pacific Economic Co-operation (APEC) forum and the Non-Aligned Movement (NAM).

The underlying theme in this article is that in 1995, rather than contemplating the end of the Soeharto era, Indonesia was indeed preparing itself for the likelihood of the President continuing to a seventh term in 1998. The article also provides an overview of important developments in the fields of politics, the economy and international affairs which impacted on the nation during the year.

Preparing the Way for Soeharto's Re-election

President Soeharto probably wants his final legacy to the Indonesian people to be a smooth transition of power. For this reason, it is likely that, health permitting, he will seek a seventh term of office. There have been implicit and explicit indicators to support this view. Implicitly, the once rampant speculation about the presidential succession quietened down considerably in the second half of 1995, suggesting a growing acceptance that the President will stand again in the next presidential election in March 1998.