With the unifying struggle to secure Indonesia's independence now over, divisions in Indonesian society began to appear. Regional differences in customs, morals, tradition, religion, the impact of Christianity and Marxism, and fears of Javanese political domination, all contributed to disunity. The new country was typified by poverty, low educational levels, and authoritarian traditions. Various separatist movements opposed the Republic of Indonesia: the militant Darul Islam proclaimed an "Islamic State of Indonesia" and waged a guerrilla struggle against the Republic in West Java from 1948 to 1962; in Maluku, Ambonese formerly of the Royal Netherlands East Indies Army proclaimed an independent Republic of South Maluku; and rebellions in Sumatra and Sulawesi between 1955 and 1961. The economy was in a disastrous state following three years of Japanese occupation then four years of war against the Dutch. In the hands of a young and inexperienced government, the economy was unable to boost production of food and other necessities to keep pace with an increasing population. Most of the population was illiterate, unskilled, and suffered from a dearth of management skills. Inflation was rampant, smuggling cost the central government much needed foreign exchange, and many of the plantations had been destroyed during the occupation and war.
Constitutional arrangements and parliamentary democracy
By 1956, Sukarno was openly criticising parliamentary democracy, stating that it was 'based upon inherent conflict' that ran counter to the Indonesian concept of harmony as the natural state of human relationships. Instead, he sought a system based on the traditional village system of discussion and consensus, which occurred under the guidance of village elders. He proposed a threefold blend of nasionalisme, agama, and komunisme into a co-operative 'Nas-A-Kom' government. This was intended to appease the three main factions in Indonesian politics - the army, Islamic groups, and the communists. With the support of the military, he proclaimed in February 1957, 'Guided Democracy', and proposed a cabinet of representing all the political parties of importance. Western-style parliamentary democracy was thus finished in Indonesia until the 1999 elections of the Reformasi era.
Timeline
1948–62: Darul Islam rebellions begin in West Java, spread to other provinces but conclude with the execution of its leader Kartosoewiryo.
1952, 17 October: General Nasution is suspended as army chief of staff following army indiscipline over command and support that threatens the government.
1955, September: Indonesia holds general parliamentary elections; the last free national elections until 1999; support for the parties is widely distributed with four parties each gaining 16–22 per cent and the remaining votes split between 24 parties.
1958, 18 May: US Air Force pilot Allen Pope is shot down over Ambon, revealing covert American support of regional rebellions, and ends the Dulles brothers', Allen and John, failure to subvert the Sukarno government. Pope sunk the Indonesian Navy vessel, the KRI Hang Toeah, and heavily damaged its sister, the KRI Sawega. Bailed out and captured by Indonesian armed forces on board the KRI Pulau Rengat.
1950s/60s: The military articulate the doctrines of dwifungsi and hankamrata: i.e. a military roles in the country's socio-political development as well as security; and a requirement that the resources of the people be at the call of the armed forces.
1959, 5 July: With armed forces support, Sukarno issues a decree dissolving the Constituent Assembly and reintroducing the Constitution of 1945 with strong presidential powers, and assumes the additional role of Prime Minister, which completes the structure of 'Guided Democracy'.