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This article is part of the History of Indonesia series
See also: Timeline of Indonesian History
Prehistory
Early kingdoms
Srivijaya (3rd to 14th centuries)
Sailendra (8th & 9th centuries)
Kingdom of Mataram (752–1045)
Kediri (1045–1221)
Singhasari (1222–1292)
Majapahit (1293–1500)
The rise of Muslim states
The spread of Islam (1200–1600)
Malacca Sultanate (1400–1511)
Sultanate of Demak (1475–1518)
Aceh Sultanate (1496–1903)
Mataram Sultanate (1500s to 1700s)
Colonial Indonesia
The Portuguese in Indonesia (1512–1850)
Dutch East India Company (1602–1799)
Dutch East Indies (1800–1942)
The emergence of Indonesia
National Revival (1899–1942)
Japanese Occupation (1942–45)
Declaration of Independence (1945)
National Revolution (1945–1950)
Independent Indonesia
Liberal Democracy (1950–1957)
Guided Democracy (1957–1965)
Transition to the New Order (1965–1966)
The New Order (1966–1998)
Reformation Era (1998–present)
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The Reformation or Reformasi in Indonesian is the name commonly used for the post 1998 era in the history of Indonesia. This is due to a more open and liberal political and social environment in Indonesia after the Revolution of 1998 forced the resignation of the authoritarian President Suharto, ending the three decades of the New Order period.

The Reformation period has been characterized by a careful political balance between long established sociopolitical norms and several emerging forces in Indonesian society. These balancing acts have produced compromises between those backing greater democracy and civilian rule and the interests of the still powerful military of Indonesia; between the growing force of Islamism and the desire to maintain secular government; between demands for greater regional autonomy and supporters of the older centralized state; and between the economic ideologies and policies of neoliberalism and the those of the welfare state.^{[citation needed]}

The process of Reformation in Indonesia, much like that of glasnost in the former Soviet Union, has also been characterized by greater freedom of speech in marked contrast with the censorship of the New Order-era. In the political sphere this has led to a more open political debate in the de-regulated news media, as well as a flowering of cultural expression in the arts.

In addition to longstanding political and cultural debates, Indonesia in the Reformation period has been shaped by a number of events and phenomena of global significance. These have included the growing attentions of the Western world on Indonesia since the Islamic terrorism following the September 11, 2001 attacks, and challenges in dealing with the Boxing Day Tsunami of 2004.

Main article: Indonesian Revolution of 1998

The Revolution of 1998 lead to subsequent changes and reformation of Indonesia's various governmental institutions, reforms upon the structures of the judicial, legislative, and executive. Several changes to heads of state occurred, the latest being Susilo Bambang Yudhoyono (popularly known as SBY).

Generally the fall of Suharto in 1998 is traced from events starting in 1996, when forces opposed to the New Order regime began to rally around Megawati Sukarnoputri, head of the PDI and daughter of the founding president Sukarno. When Suharto attempted to have Megawati removed as head of this party in a back-room deal, student activists loyal to Megawati occupied the headquarters of PDI in Jakarta. This culminated in Black Saturday on July 27, when the Indonesian military broke up the demonstrations.

These actions, along with increasing concerns over human rights violations in Indonesian-occupied East Timor, began to unsettle Suharto's normally friendly relations with Western nations Australia, Great Britain, and the United States. These further worsened when the Asian financial crisis of 1997 reached Indonesia, highlighting the rampant corruption of the Suharto regime as well.

Economic instability from the crisis affected much of the country, in the form of increased prices for staple foods and goods, and lowered standards of living and quality of life. These touched off riots, many targeting ethnic Chinese-Indonesians; bolstered by the findings of Parliamentary and independent investigations, it is often theorized that these anti-Chinese riots were instigated or aided by the military to divert anger away from Suharto himself.

Growing dissatisfaction with Suharto's authoritarian rule and the rapid erosion of the economy led many, chiefly the younger generation, to renew their protests directly against the regime. In 1998, Suharto made the decision to stand before the parliament for a re-election and won. The result was considered so outrageous that students occupied the Parliament. Suharto soon stood down from the presidency, and named Jusuf Habibie (of Suharto's own Golkar party) his successor. Considered the unseen power behind the throne, General Wiranto of the Chief of Staff over the military that was central to the New Order, is believed to have been behind the decision of Suharto to step down

• Dijk, Kees van. 2001. A country in despair. Indonesia between 1997 and 2000. KITLV Press, Leiden, ISBN 90-6718-160-9