Indonesia in 2003


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Case Details:

Case Code : ECOA107
Case Length : 11 Pages
Period : 2003
Organization : -
Pub Date : 2003
Teaching Note :Not Available
Countries : Indonesia, Asia
Industry : -

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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I call on all parties to accept this democratic process...this is the voice of the people which we must uphold.

Let us build our country together.

Let us erase all the fights among us which have only prolonged people's suffering

- Megawati Sukarnoputri, President

Introduction

Indonesia, one of the most important countries in Asia was also the largest Islamic nation in the world. 5000 kilometers wide, the country stretched over three time zones. It comprised 17,508 islands, of which, only about a half were inhabited. About 30 islands held the bulk of the population. About 87% of the population consisted of Muslims. The western parts of the archipelago were more prosperous than the eastern parts. Out of the total population of approximately 216 million, about 40 million were unemployed in 2001 and only 20 million were estimated to be middle class.

Indonesia had gone through major upheavals in the late 1990s following the Asian currency crisis. The departure, in May 1998, of General Suharto who presided over almost 32 years of authoritarian politics, amid a deepening financial, economic and social crisis marked a turning point.

Suharto's protégé and vice-president, B J Habibie, took over the presidency from Suharto until October 1999, when Abdurrahman Wahid, a moderate Islamic cleric, was elected to the office. After only 21 months in office, the controversial Wahid was impeached and replaced by his vice-president, Megawati Sukarnoputri, the daughter of Sukarno in July 2001...

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