May 7, 1997**

Report No. 15383-IND

Executive Summary

This report provides an overview of the multidimensional crisis facing Indonesia since the fall of the New Order government. The crisis encompasses various dimensions, including moral and ethical crises, legal crises, monetary crises, economic crises, crises of trust among elites, political crises, and humanitarian crises.

Introduction

The sudden collapse of the New Order government has left a power vacuum that has contributed to the multidimensional crisis facing Indonesia. The lack of direction and purpose in reform efforts has resulted in a loss of momentum and a failure to address the root causes of the crisis.

Dimensions of Growth: A Report on the Multidimensional Crisis

1. Moral and Ethical Crisis

The moral and ethical crises are characterized by a breakdown in values and principles among the political elite, officials, and intellectuals. The absence of moral guidance has led to a culture of corruption and a lack of accountability.

2. Legal Crisis

The legal crisis is a direct consequence of the moral and ethical crisis among the elite. The legal system has become corrupt and ineffective, leading to a lack of trust in institutions and a breakdown in social cohesion.

3. Monetary Crisis

The monetary crisis was initially contained outside the country but has now spread to affect the domestic economy. The dependence on foreign debt has made Indonesia vulnerable to external shocks and has contributed to the economic crisis.

4. Economic Crisis

The economic crisis is characterized by high inflation, a decline in purchasing power, and a rise in poverty rates. The economic crisis has been exacerbated by the lack of moral and ethical values among the elite, leading to corruption and cronyism.

5. Crises of Trust among Elites

The crisis of trust among elites has led to a breakdown in relationships between leaders, resulting in a loss of confidence and a decline in social cohesion.

6. Political Crisis

The political crisis is characterized by a lack of accountability, a decline in democratic norms, and an increase in authoritarian tendencies.

7. Humanitarian Crisis

The humanitarian crisis is characterized by a rise in poverty rates, hunger, and malnutrition, as well as a decline in access to healthcare and education.

The multidimensional crisis facing Indonesia is complex and interconnected. To address this crisis, it is essential to focus on rebuilding trust among elites, strengthening institutions, and promoting moral and ethical values.