Indonesia: The Price of Power and Profits

In 1967, General Suharto came to power in Indonesia following a coup that was reportedly backed by the CIA. Under his regime, the country was promised stability and economic development, but the reality was far different. While Indonesia’s government aligned with Western interests, particularly the United States, it resulted in a long period of economic and environmental exploitation that left deep scars on the nation and its people.

Suharto’s Indonesia quickly became a hub for U.S. multinational corporations eager to tap into the country’s resources and cheap labor. However, the rapid influx of loans and foreign investment came at a heavy cost — one that the Indonesian people continue to pay.

Suharto’s government sought foreign investment to fuel economic growth, and the U.S. was more than willing to provide financial aid. Indonesia’s economy was flooded with loans, much of which went toward infrastructure projects that benefited foreign corporations. In return, Indonesia opened up its markets to American businesses, creating an environment that prioritized profit over people.

The economic policies under Suharto were heavily influenced by Western interests, leading to rapid industrialization but also fostering deep economic inequality. While the elite and multinational corporations profited, the majority of the population faced poverty, and the promise of prosperity largely bypassed the Indonesian people.

The rush for development came at a severe environmental cost. Indonesia’s vast rainforests, which are among the most biodiverse on the planet, were cleared to make way for plantations, logging, and mining. Deforestation became rampant, and the country’s natural beauty, which once attracted tourists and conservationists, was slowly decimated.

As multinational corporations took advantage of Indonesia’s lax environmental regulations, the country’s ecosystems were irreparably harmed. The loss of forests, combined with the growth of industrial pollution, has had lasting effects on Indonesia’s climate and wildlife, while millions of citizens have suffered from the environmental degradation.

Another unfortunate consequence of Suharto’s economic policies was the rise of sweatshops and labor exploitation. With low wages and poor working conditions, Indonesia became a destination for labor-intensive manufacturing, particularly in textiles and electronics. U.S. corporations, eager to take advantage of cheap labor, invested heavily in Indonesia, but this created a cycle of exploitation that affected millions of workers.

Many Indonesians were forced to work in unsafe and unhealthy environments, often without proper compensation or benefits. While multinational corporations enjoyed massive profits, the labor force remained impoverished, struggling to make ends meet. The workers who helped build Indonesia’s economy were often left with little to show for their efforts.

The environmental and economic toll of Suharto’s regime was not felt equally across Indonesia. Indigenous communities, particularly those living in rural and forested areas, bore the brunt of the damage. As vast tracts of land were cleared for plantations and mining operations, entire communities were displaced from their ancestral homes.

The destruction of forests and the loss of land not only deprived indigenous people of their livelihoods but also altered the very fabric of Indonesian society. For many, their relationship with the land was central to their identity, and the damage inflicted during Suharto’s reign continues to affect their communities today.

Deforestation and Displacement: A Tragedy for Indigenous Communities