Former Indonesian President Once Underestimated, Now Revered as a Hero
Bacharuddin Jusuf Habibie, known as B.J. Habibie, was not widely expected to lead Indonesia when he was inaugurated as the 3rd President of the Republic of Indonesia, replacing Suharto, on 21 May 1998 – exactly 28 years ago today. At that time, the country was reeling from the 1997-1998 economic crisis, students were protesting in various regions, and demands for reform were echoing nationwide.
In the midst of this, many questioned Habibie’s abilities. He had long been known as a technocrat and an expert in aviation technology rather than a political or economic figure. Even Suharto himself suggested that Habibie belonged in technology, not politics, saying: “Habibie’s place is in the field of technology,” as cited from Salim Said’s testimony in the book Menyaksikan 30 Tahun Pemerintahan Otoriter Soeharto (2016).
This moment sparked a wave of public doubt about him as he took office as the 3rd President of the Republic of Indonesia.
Cultural figure Emha Ainun Nadjib, also known as Cak Nun, in his memoir Saat-Saat Terakhir Bersama Soeharto (2016) stated that Habibie’s emergence as president provoked a major controversy in society. “This is not only about Habibie’s figure and his position in the national power map, but also about the extent to which this new administration’s attitude toward reform ideas,” Cak Nun said.
Rejection also came from students, reform figures, and ordinary people. Bali Post on 23 May 1998 noted that many viewed Habibie as still part of the New Order and therefore not aligned with the spirit of reform.
Moreover, his technocratic background made many people sceptical. In the midst of the severe economic crisis, Indonesia was seen as needing a leader with an economic background, not an aeroplane expert.
Anti-Habibie groups even named themselves the “anti-Habibie” and took to the streets to demonstrate on several occasions.
Nevertheless, Habibie was acutely aware of the major challenges before him. In a press conference shortly after taking office, he stated that his government would follow through on the reform demands. “The aspirations of brothers and sisters in their struggle for reform in a comprehensive manner, which you have demonstrated all this time, are already in momentum. Those efforts will soon be followed by forming a government in line with what we jointly desire,” Habibie said in his memoir Detik-Detik yang Menentukan (2006).
Over time, public opinion shifted.
In a tenure of only about 1.5 years, Habibie produced a number of important policies. He opened the taps of democracy, granted press freedom, released political prisoners, pushed for reform within the military and police, and strengthened regional autonomy.
In economic terms, his administration also achieved improvements. The rupiah, which had slumped to around Rp16,000 per US dollar, gradually strengthened to around Rp7,000–Rp8,000. It was also during this period that Bank Mandiri was formed and the independence of Bank Indonesia began to be strengthened.
However, Habibie’s political journey ended rather briefly. On 14 October 1999, his accountability speech was rejected by the MPR. One of the most debated issues at the time was the Timor Timur referendum decision, which led to East Timor’s secession from Indonesia.
Nevertheless, history gradually placed Habibie in a distinct position. After his death on 11 September 2019, the name B.J. Habibie has come to be remembered as an important transitional figure who helped Indonesia move from a repressive era toward a more democratic reform era.