By Andi Abdussalam
Jakarta, Jan 11 (ANTARA) - Soeharto, the 'smiling general' clapped his hands in satisfaction as `Gatotkaca,' the prototype of Indonesia's N-250 turboprop plane, took off from the runway of Bandung's Husein Sastranegara airport in West Java.
He was witnessing the plane's maiden flight, a 53-minute round trip from Bandung to Bogor on August 10, 1995.
Soeharto, who had waited for the event for 20 years, smiled. He was satisfied as his dream had come true: he had led the nation to produce its own airplanes. The N-250 was the latest type of aircraft produced by Indonesia after the CN-235s whose prototype was dubbed "Tetuko."
In 1974, Soeharto asked BJ Habibie, a German-educated engineer, to design a hi-tech industry which he hoped would raise Indonesia's rating to the level of the industrialized nations.
Habibie was given 20 years to prepare the development of technology and industry which would take the nation to the take-off phase in 1994.
After more than 20 years of hard work with the IPTN, the national aircraft industry (now PT Dirgantara Indonesia) as its landmark, Indonesia was able to show the world its capability in the aircraft industry.
"Gatotkaca," the prototype of IPTN's N-250 turboprop plane, the first of its class to apply the "fly-by-wire" technology developed by Indonesians themselves, took off on a maiden flight on the occasion of Indonesia's 50th anniversary in 1995.
Soeharto who watched the very historic event smiled in satisfaction clapping his hands amid the applause of the audience, including BJ Habibie, then minister of research and technology.
Two years later, in July 1997, an economic crisis hit Asia. Its domino effects dealt a heavy blow to Indonesia's economy. While other nations gradually recovered, Indonesia continued to be plagued by the economic nightmare.
People's discontent ran high as they were aware that the country's economic achievements so far were not more than `bruised reeds'.
As the crisis dragged on, the people's purchasing power dropped, and essential commodities became scarce.
In May 1998, political movements fueling public discontent were in the backdrop of nation-wide demonstrations demanding political reforms. Riots, looting and arson were rampant almost every day and in practically every corner of the country.
And the country eventually plunged into 'hell'. Indonesia, which was taking off with "Gatotkaca," crashed. Soeharto fell from power.
Economic Development
Soeharto began his New Order government after then President Soekarno authorized him in March 1966 to overcome the chaotic situation in the aftermath of the aborted Communist coup in 1965.
Between 1960 and 1965, the national economy grew merely by an average of 2.1 percent annually. The inflation rate reached over 250 percent in 1961-1965 and even jumped to 650 percent in 1966.
After the stabilization and rehabilitation drive carried out by the New Order in 1966 and 1968, economic growth reached an average of six percent.
Thus, in 1969, Soeharto began to implement his ideas to lift up the country from poverty through five-year development plans called "Repelita".
At the start of Repelita I, Indonesia's per capita income stood at US$70, and Indonesia was rated as one of the poorest countries in the world.
About three decades later, the country's per capita income went up to US$1,155 and Indonesia was regarded a middle income country. The economy grew convincingly by an average of seven to eight percent a year over a period of 25 years.
Entering the 80s and the 90s, the inflation rate was maintained at an average of 10 percent, and in 1996 it reached 6.5 percent.
The result of Soeharto's economic programs made Indonesia which had been crippled by poverty in the previous three decades, one of the newly emerging economies in South East Asia.
The number of poor people declined from 60 percent in 1967 to 40 percent in 1980 and 21 percent or 37 million people in 1987. With a population of about 200 million, Indonesia was able to further reduce the number of its poor to 11.3 percent or 22.5 million in 1996.
The success of his economic development earned him the title "Bapak Pembangunan" (Father of Development) which was conferred on him by the People's Consultative Assembly (MPR) in 1983 in recognition of his success.
Through diversification in the agricultural sector, Soeharto also succeeded in turning Indonesia from a rice-importing to a rice-exporting nation.
In 1980, Soeharto declared Indonesia self-sufficient in rice and traveled to Rome in 1985 to receive a crowning award from the Food and Agricultural Organization of the United Nations.
"The New Order oversaw the transformation of a nation which in 1965 had few roads and was mired in poverty and starvation", wrote Michael Vatikiotis in his book: "Indonesia Under Soeharto". Basic health and education facilities were available with urban development marked by sprawling high-rise buildings.
Weak Foundation
Though he succeeded in boosting the country's economic growth, Soeharto failed in laying down a solid resource-based economic foundation, according to observers.
Basically, the pendulum of the country's economy was swinging in favor of a handful of conglomerates. Most economic gains were enjoyed only by about 20 percent of the people.
As it was not developed on the basis of resources, the economy was unable to sustain crisis from within and from without.
The production sector relied much on imported raw materials. So, when the waves of Asia's currency crisis hit Indonesia, the conglomerates fled and stashed their money overseas.
The country's economy --developed through cronyism, collusive and nepotistic (KKN) approaches-- totally collapsed.
The rupiah, which was valued at 2,400 to one US dollar early in July 1997, fell to 15,000 per US$1 in January 1999. It lost 80 percent of its value and people lost their purchasing power.
The per capita income of US$ 1,155 declined to about US$610. The number of poor increased from 22.5 million to about 80 million. Conglomerates fled overseas with their capital, leaving Indonesia plagued by economic chaos.
In the meantime, students took to the streets demanding political reforms. For two months, student demonstrators refused to be silenced after a carefully scripted inauguration in which Soeharto was endorsed by his retainers for a seventh five year term during the MPR general session early in March 1998.
On May 18, 1998, 5,000 students occupied the Parliament building, pressing then House Speaker Harmoko-- Soeharto's long-time loyalist--to call for his resignation.
Three days later, on May 21, Soeharto was forced to step down from the presidency. He 'crashed' along with his dream to take off with "Gatotkaca." (T.A014/A/HAJM/b005) 2. 17:05/21:00 (T.A014/A/A014/B005) 11-01-2008 21:04:21
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