Transition: Sukarno to Soeharto

In the late 1960s, dramatic changes in the processes of government in Indonesia took place in the transition from the Sukarno to the Soeharto era. These changes within Indonesia were accompanied by a transformation of Indonesia's relations with the international community.

Previously, Indonesia had pursued inward-looking policies and in many respects had adopted positions that were antagonistic towards the international community, especially towards Western countries. These policies were quickly reversed when President Soeharto established the New Order in the late 1960s. During the following three decades, Indonesia's economic relations with the international community passed through several phases which may be characterized as reflecting, first, an initial enthusiasm during the 1970s, followed by a maturing of relations during the 1980s, culminating in a cooling during the 1990s.