CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A010300090001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 7
• Document Creation Date: December 15, 2016
• Document Release Date: December 24, 2002
• Sequence Number: 1
• Publication Date: September 12, 1967
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Top Secret
c173
12 September 1967
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12 September 1967
Central Intelligence Bulletin
CONTENTS
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Indonesia: Suharto making progress in political
and economic reform. (Page 6)
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Indonesia: The Suharto regime continues to give
priority attention to its economic program, while do-
mestic political reform maintains its slow-paced ad-
vance.
I
economic policy during the coming year will remain
concentrated on stabilization and rehabilitation. Pri-
mary emphasis will be on reducing inflation. In view
of the progress thus far, modest development pro-
grams will be started in transportation and communica-
tion, agriculture and mining, and the textile industry.
Indonesia still needs foreign economic assistance.
On the political front, the abolition of the Defense
Ministry post in the cabinet presidium may foreshadow
the dissolution of the presidium itself. This supracab-
inet, an innovation of the Sukarno era, is widely re-
garded among new-order elements as unconstitutional.
Its demise would constitute another move in Suharto's
prescribed return to a "rule of law. " Under a defense
reorganization, the president is now restricted to policy
rather than operational control over the military estab-
lishment. The change presumably is another step to-
ward forestalling a return to one-man rule.
The new order is having trouble developing suit-
able political vehicles. The regime persists in its ef-
fort to encourage and, when necessary, coerce the Na-
tional Party, one of the nation's twp large parties, to
purge itself of leftist elements. The other large party,
the traditionalist Moslem Nahdatul Ulama, shows no
sign of abandoning its opportunistic policies. A new
Moslem party, approved by Suharto in July, has yet to
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12 Sep 67
(continued)
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In view of the slow progress in remaking Indo-
nesia's partisan politics, the regime appears rela-
tively unperturbed at the prospect of an election post-
ponement. Although elections are still slated to be
held by mid- 1968, parliament has been unable to agree
on an election law and a delay of a year or more is
now assured.
12 Sep 67
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