When 14 Indonesian Economic Ministers Resigned Together, Here's Why
Jakarta, CNBC Indonesia - The resignation of state officials in quick succession has occurred before in Indonesia’s history. Indonesia once experienced resignations involving not just one or two officials, but occurring simultaneously and involving 14 ministers, the majority from the economic field.
The event took place on 20 May 1998 amid a monetary crisis that devastated the foundations of the national economy. The rupiah exchange rate collapsed, inflation soared, the banking sector was reeling, and public trust in the government was nearly exhausted. On that day, Coordinating Minister for Economic, Financial, and Industrial Affairs Ginandjar Kartasasmita chaired a meeting of economic ministers at the Bappenas building in Jakarta.
The meeting was not a routine gathering. In the book Managing Indonesia’s Transformation (2013), Ginandjar recounted that the discussion was a continuation of intensive conversations since the morning with ministers, journalists, and business actors. Everyone was discussing the same thing: Indonesia was moving towards the brink of economic and political crisis without a roadmap for escape.
At the Bappenas forum, Ginandjar laid out the national economic condition in stark terms. His conclusion was firm. If left unchecked, Indonesia had the potential to collapse. That view was shared by nearly all the ministers present. Only one expressed objection, namely State Minister for Agrarian Affairs/Head of the National Land Agency Ary Mardjono.
From that collective awareness, a major decision was taken. Ginandjar announced his intention to resign from the Seventh Development Cabinet, which had only been inaugurated by President Soeharto four days earlier. But the decision did not stand alone. One by one, other ministers declared a similar stance.
That day, 14 ministers agreed to withdraw. They were 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, they said the formation of a new cabinet would not resolve the root of the crisis. The statement was a heavy blow to Soeharto, not only administratively but also symbolically. It showed that the economic elite’s confidence in his leadership had collapsed.
Historian Robert Edward Elson, in Soeharto: A Political Biography (2017), noted that Soeharto was shocked and devastated. The ministers’ move was outside the power scenario he had constructed. Soeharto had still been planning to announce a Reform Cabinet on 21 May 1998 as an effort to salvage his legitimacy.
Efforts to stem the tide of resignations were made. Vice President BJ Habibie, in Detik-detik yang Menentukan (2006), revealed that he had asked the ministers to stay on. But the decision was already final.
Having lost the support of key ministers and the political elite, Soeharto ultimately chose to end his rule. On 21 May 1998, a day after the mass resignation, Soeharto announced his resignation as President of the Republic of Indonesia.