This analysis of Indonesian politics focuses on the Suharto regime. The termination of the Sukarno era was handled by General Suharto with remarkable wisdom and restraint. The executive branch under Suharto as Acting President emerged strengthened and streamlined at the end of 1967 and may be able to pursue the rational course it has set for itself. Besides its pragmatic approach to domestic affairs, the Suharto regime has also followed a similar course of action internationally, deciding to support regional cooperation in Southeast Asia through the creation of an Association of Southeast Asian Nations (ASEAN). In contrast to the last years of the Sukarno era, Indonesia today seems ready to assume the role of constructive leadership to which natural resources, strategic position, and 112 million people entitle her. 33 pp.