B.J. Habibie Inaugurated as Vice President of Indonesia on Today's History, March 14, 1998

Vice President of Indonesia who later became the 3rd President of Indonesia, BJ Habibie. (Between/Sigid Kurniawan)

JAKARTA – Today's history, 25 years ago, March 14, 1998, Bacharuddin Jusuf (B.J) Habibie was officially appointed as Vice President of Indonesia accompanying Suharto. The appointment coincided with President Soeharto announcing the composition of the VII Development Cabinet.

A cabinet hailed as the way out of an economic recession. Previously, the 1997-1998 economic recession was the toughest period in the history of the Indonesian nation. Indonesia's economy is in shambles.

The existence of the New Order government was lasting. There is Suharto and the military behind it. Nothing was able to shake the New Order government. Even in the most difficult political dynamics. Anyone who opposes, the Orba will be ready to block him.

If the student will be sentenced to prison. Meanwhile, the mass media will be banned. The punishment will actually stop when they want to live in harmony with the interests of the New Order. However, not a few choose to stay on the path of the convict.

It was that superiority that made Orba forget himself. Maybe the New Order was good at beating back political opponents, but not with an economic recession. The New Order was overwhelmed when the 1997-1998 recession hit. The value of the rupiah, which plunged to its lowest point, was able to silence the New Order's power.

VII Development Cabinet with B.J. Habibie as Vice President only lasted 2 months, 16 March-21 May 1998. (Wikimedia Commons)

People are victims and their life is very difficult. This condition was exacerbated by an insensitive political elite. They continued to live in luxury. Social jealousy increases. As a result, students are moving down the street.

They demanded that Suharto be held accountable immediately. The Smiling General was asked to resign. The pressure is getting wider. The action was not only present in Jakarta, but in almost all major cities. The demands are the same. All students were fed up with Suharto's authoritarian leadership.

“Other heavy pressures came from the economic crisis and the decline in the value of the rupiah which shattered Indonesia's economic fundamentals. Many people judge that it stems from a crisis of confidence. One by one the economic foundations that are projected as the forerunners of a strong and resilient economic structure must be revoked to comply with the requirements (loan sharks) of the International Monetary Fund (IMF)."

“This economic structure was dismantled suddenly which had a direct impact on the aspect of the life of the wider community. Material needs have soared, companies have been closed, and unemployment has increased which has brought societal tensions to be easily triggered to carry out forms of mass enterprise accompanied by looting, arson and destruction," said Basuki Agus Suparno in the book Reform & Fall of Suharto ( 2012).

Later Suharto and New Order refused to turn a blind eye to student protests. Those with direct power perpetuate various policies to reduce the impact of the recession. However, the results are not optimal. The recession is actually getting worse hitting the Indonesian people.

President B.J. Habibie pointed his finger while joking at his speech on the RAPBN before members of the MPR/DPR in Jakarta in 1999. (Antara/Audy MA)

Under these squeezed conditions, the New Order forced Suharto to be re-elected as President of Indonesia for the seventh time. He took Habibie as his deputy on March 11, 1998. He made a cabinet reshuffle as a charm. Suharto called it the VII Development Cabinet.

The inauguration of the entire cabinet was carried out on March 14, 1998. Habibie was also officially appointed as Vice President (Wapres) of Indonesia. In fact, Habibie's presence, which was predicted to gain the sympathy of the Indonesian people, was not enough.

All Indonesian people still feel that there are many old faces in the cabinet. as a result, Habibie only carried out his role as Vice President for only two months. because, in May 1998 Suharto stepped down, and he was appointed the 3rd President of Indonesia.

“Towards the final seconds of his power, Suharto announced the composition of his cabinet on March 14, 1998, and Habibie was appointed vice president. After Habibie was appointed vice president, the acting chairman of the Association of Indonesian Muslim Intellectuals (ICMI) was temporarily handed over to Achmad Tirtosudiro. Even though ICMI itself has no problem with Habibie's appointment as vice president, maybe even supports it."

“However, Habibie himself invited resistance from many parties, both from among Golkar members and from the military, who were on opposite political paths with Habibie. Among the military and Golkar people, Habibie received strong opposition because in addition to ICMI's growing influence in the New Order bureaucracy, which was a concern for the military, he was also considered ambitious within his industrial empire, explained Ahmad Gaus A. F. in the book Api Islam Nurcholish Madjid (2010).