QUOTE (tangawizi @ Jan 26 2006, 01:58 PM)
Can you offer an explanation why weren't Sukarnoe's anti-capitalist views shared by Suharto who subsequently came to power? Was Suhartoe's bloodbath against the PKI sponsored also in part by the CIA?
1) Since Suharto had wiped out the PKI, broke diplomatic relations with China (though not the Soviet Union, which was an enemy of China), and banned Marxism-Leninism, Indonesia had made enemies with the communist bloc. Hence, Suharto was not foolish enough to maintain hostilities with the capitalist bloc, instead he made friends with US and UK. As the saying goes, enemy of your enemy is your friend.
2) Indonesia's economy was in a poor state, since Sukarno spend 80% of the budget on military expenditure, causing hyperinflation and widespread poverty. To remedy this situation, Suharto decided Indonesia needed foreign investment, reversing Sukarno's decision to expel all foreign (mostly Dutch) investors from Indonesia in 1957.
3) Suharto's economic policies went under the infuence of the so-called "Berkeley Mafia", all doctorate graduates from UC-Berkeley, such as Widjojo Nitisastro, Ali Wardhana, and Emil Salim. The Berkeley Mafia put Indonesia's economy into a strongly capitalistic system in order to attract foreign investment, which worked until 1997-98 crisis.
4) Abt CIA, after the United States realised Suharto was going to crush the communists, they decided to help him a bit by giving Suharto a bit of money (Rp 50 million, which was not much) on December 1965, which is quite late since the bloodbath begin on November 1965 and mostly ended by February 1966. Overall, the role of CIA is insignificant in the scheme of things.