In Indonesia, mass resignations of government officials are not unprecedented. History records a moment in 1998 when a staggering 14 ministers – the majority from economic portfolios – simultaneously resigned from their posts.
A Nation on the Brink
The resignations occurred on May 20, 1998, amidst a severe monetary crisis that threatened to dismantle the national economy. The rupiah’s value plummeted, inflation soared, the banking system faltered, and public trust in the government nearly vanished. That day, Minister Coordinator for Economy, Finance, and Industry Ginandjar Kartasasmita convened a meeting of economic ministers at the Bappenas building in Jakarta.
The meeting was not routine. Ginandjar, as detailed in his book Managing Indonesia’s Transformation (2013), described the discussion as a continuation of intense conversations held earlier that day with ministers, journalists, and business leaders. The consensus was stark: Indonesia was hurtling toward economic and political collapse with no clear path forward.
A Collective Decision
Ginandjar laid out the grim economic realities at Bappenas, concluding that without intervention, Indonesia risked total collapse. This assessment was largely shared by those present, with only Minister of Agrarian Affairs/Head of BPN Ary Mardjono voicing dissent. From this shared understanding, a momentous decision emerged. Ginandjar announced his intention to resign from Kabinet Pembangunan VII. However, his decision was not isolated. One by one, other ministers followed suit.
Ultimately, 14 ministers agreed to withdraw: Akbar Tandjung, A.M. Hendropriyono, Giri Suseno Hadihardjono, Haryanto Dhanutirto, Ginandjar Kartasasmita, Kuntoro Mangkusubroto, Justika Baharsjah, Rachmadil Bambang Sumadhijo, Rahardi Ramelan, Subiakto Tjarawerdaya, Sanyoto Sastrowardoyo, Sumahadi, Theo L. Sambuaga, and Tanri Abeng.
In a joint statement, the ministers asserted that forming a new cabinet would not resolve the fundamental issues driving the crisis. This act, as historian Robert Edward Elson notes in Soeharto: A Political Biography (2017), was a significant blow to Soeharto, both administratively and symbolically. It demonstrated the collapse of trust from the economic elite.
The Aftermath
Soeharto was reportedly shocked and dismayed, according to Elson, as the ministers’ actions were outside of his anticipated power dynamics. He had been planning to announce a Kabinet Reformasi on May 21, 1998, in an attempt to salvage his legitimacy. Vice President BJ Habibie, in his memoir Detik-detik yang Menentukan (2006), revealed he attempted to persuade the ministers to reconsider, but their decision was final.
Faced with the loss of support from key ministers and political figures, Soeharto chose to end his rule. On May 21, 1998, the day after the mass resignations, Soeharto announced his resignation as President of the Republic of Indonesia.
Frequently Asked Questions
What triggered the mass resignations of the ministers?
The ministers resigned in response to a severe economic crisis characterized by a collapsing rupiah, soaring inflation, and a failing banking system. They believed Indonesia was on the verge of economic and political collapse.
How did President Soeharto react to the resignations?
According to historian Robert Edward Elson, Soeharto was surprised and deeply affected by the resignations, as they were not part of his planned scenario for maintaining power.
What was the significance of the ministers’ joint statement?
The ministers’ joint statement indicated that they believed forming a new cabinet would not address the underlying causes of the crisis, representing a significant loss of confidence in President Soeharto’s leadership.
Given the fragility of economic conditions and the precedent set by this mass resignation, what potential challenges might future Indonesian governments face in maintaining stability during times of crisis?