When 14 Indonesian Economy Ministers Resigned En Masse
Jakarta, CNBC Indonesia — Indonesia has recorded a mass resignation of state officials. In one moment, 14 ministers, most from the economic sector, chose to resign from their posts.
The event occurred on 20 May 1998 amid a monetary crisis that devastated the foundations of the national economy. The rupiah collapsed, inflation surged, the banking sector faltered, and public confidence in the government was almost exhausted.
On that day, Coordinating Minister for Economic, Finance, and Industry Ginandjar Kartasasmita chaired a meeting of the economy ministers at the Bappenas Building, 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 discussions since morning with ministers, journalists, and business people. All discussed one thing: Indonesia was moving toward the cliff of economic and political crisis with no roadmap out.
At the Bappenas forum, Ginandjar presented the national economic situation candidly. His conclusion was unequivocal. If left unchecked, Indonesia could collapse. That view was endorsed by almost all ministers present. Only one objected: Ary Mardjono, Minister for Agrarian Affairs/Head of the BPN.
From this collective consciousness arose the major decision. Ginandjar announced his intention to resign from the Development Cabinet VII, which had only been inaugurated by President Suharto four days earlier. But the decision was not made in isolation. One by one, other ministers stated 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 causes of the crisis. The statement dealt a severe blow to Soeharto, not only administratively but also symbolically. That is, the trust of the economic elite in his leadership had collapsed.
Historian Robert Edward Elson, in Soeharto: A Political Biography (2017), notes that Soeharto was shocked and struck. The ministers’ actions were outside the power scenario he had set up. In fact, Soeharto still planned to announce the Reform Cabinet on 21 May 1998 as an effort to salvage legitimacy.
Efforts to deter the mass resignation were also made. Vice President B.J. Habibie, in Detik-detik yang Menentukan (2006), revealed that he had urged the ministers to stay. But the decision was already made.
Losing the support of key ministers and political elites, 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.