INDONESIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64B00346R000500080016-6
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 16, 2016
• Document Release Date: January 12, 2005
• Sequence Number: 16
• Publication Date: May 16, 1961
• Content Type: BRIEF

Approved For Release 2005/01/27 : CIA-RDP64B00346R000500080016-6
S E C R E T
16 May 1961
President Sukarno has imposed a system of "guided democracy" which
exalts executive power and reduces legislative organs to a rubber
stamp role.
A. Sukarno's major support comes from two elements which he maintains
in uneasy balance --from the 240,000-man army, which is under anti-
from
Communist leadership,and/ a well-organized Communist party with
claimed membership of 1 1/2 million,
II0 Indonesia has contracted for $1025 billion in bloc aid since 1956 and
ranks second among recipients of bloc assistance
A. Over two-thirds of this amount has been provided since February 1960,
most of it by Moscow.
B. Military aid accounts for over 60 percent of bloc assistance.
III. Sukarno's major objectives are the accession of Netherlands New Guinea,
economic development and national unity.
A. He is pursuing his-claim to New Guinea through diplomacy, a Soviet-
supplied military build-up, and small-scale infiltrations into the
B. Sukarno hopes'to diversify and expand Indonesia's economy through
long-term economic development and by nationalizing foreign invest-
ment as rapidly as feasible.
1. He has inaugurated Eight-Year Economic Development Plan (1961-
69), extent of which is still indefinite, which he hopes to
finance largely through foreign assistance and through taxation
of foreign investment.
16-1
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SEC R E T 16 May 1961
C. The Indonesian army has set 1962 as a target date for the eradica-
tion of guerrilla warfare throughout the country by militant Moslem
and
organization Darul Islam'/, insurgent provincial group--Federal Re-
public of Indonesia (RPI).
1. Government will probably effect surrender of most RPI units this
year, but Darul Islam,with some 4,000 guerrillas concentrated in
West Java, is likely continue active.
IV. Sukarno is midway on a two and a half month global tour, which includes
Washington, Moscow, and Peiping.
A. Although Sukarno primarily seeks diversion, he is incidentally
discussing his New Guinea claim and his Eight Year Plan.
Approved For Release 2005/01/27 : CIA-RDP64B00346R000500080016-6