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Fourteen Indonesian Economic Ministers Resign Simultaneously
MFakhriansyah, CNBC Indonesia
31 January 2026 16:15
Key Points / Important Takeaways
On May 20, 1998, 14 Indonesian ministersâmostly from the economic sectorâresigned simultaneously.
The resignations occurred amid the Asian financial crisis, marked by currency collapse, inflation, and banking instability.
The decision followed a critical meeting at Bappenas, led by Ginandjar Kartasasmita.
Ministers concluded that Indonesia risked total economic and political collapse without a viable exit strategy.
Only one minister dissented from the collective assessment.
The ministers stated that forming a new cabinet would not solve the crisis.
The resignations signaled the collapse of elite economic support for President Soeharto.
Historical accounts confirm Soeharto was caught off guard and attempted damage control.
On May 21, 1998, Soeharto resigned, ending his 32-year rule.
JAKARTA â The resignation of state officials within a short period is not new in Indonesia. History records a moment when resignations involved not just one or two officials, but occurred simultaneously, involving 14 ministers, most of whom were from the economic sector.
The event took place on May 20, 1998, amid the Asian financial crisis that devastated Indonesiaâs economic foundations. The rupiah collapsed, inflation surged, the banking sector faltered, and public trust in the government was nearly exhausted. On that day, the Coordinating Minister for Economic, Financial, and Industrial Affairs, Ginandjar Kartasasmita, led a meeting of economic ministers at the Bappenas Building in Jakarta.
This was no routine meeting. In his book Managing Indonesia's Transformation (2013), Ginandjar recalled that the discussion was a continuation of intense conversations that had begun earlier that morning with fellow ministers, journalists, and business figures. All focused on the same conclusion: Indonesia was heading toward an economic and political abyss with no clear roadmap out.
At the Bappenas forum, Ginandjar laid out the national economic conditions candidly. His conclusion was firm: if left unchecked, Indonesia risked collapse. Nearly all ministers present agreed. Only one expressed objectionâthen Minister of Agrarian Affairs and Head of the National Land Agency (BPN), Ary Mardjono.
From this collective realization, a historic decision was made. Ginandjar announced his intention to resign from Cabinet Pembangunan VII, which had been inaugurated by President Soeharto just four days earlier. His decision did not stand alone. One by one, other ministers declared the same stance.
That day, 14 ministers agreed to step down:
Akbar Tandjung, A.M. Hendropriyono, Giri Suseno Hadihardjono, Haryanto Dhanutirto, Ginandjar Kartasasmita, Kuntoro Mangkusubroto, Justika Baharsjah, Rachmadil Bambang Sumadhijo, Rahardi Ramelan, Subiakto Tjarawerdaya, Sanyoto Sastrowardoyo, Sumahadi, Theo L. Sambuaga, and Tanri Abeng.
In a joint statement, they asserted that forming a new cabinet would not resolve the root causes of the crisis. The declaration dealt a severe blow to Soehartoânot only administratively, but symbolicallyâsignaling that the economic elite had lost confidence in his leadership.
Historian Robert Edward Elson, in Soeharto: A Political Biography, noted that Soeharto was shocked and deeply shaken. The ministersâ move fell outside the power scenario he had prepared. At the time, Soeharto still planned to announce a Reform Cabinet on May 21, 1998, in an attempt to salvage legitimacy.
Efforts were made to halt the wave of resignations. Vice President B. J. Habibie, in his book Detik-detik yang Menentukan, revealed that he had personally asked the ministers to remain. However, the decision was final.
Having lost the support of key ministers and political elites, Soeharto ultimately chose to end his rule. On May 21, 1998, one day after the mass resignation, he formally resigned as President of the Republic of Indonesia.
14 Menteri Ekonomi RI Ramai-Ramai Mengundurkan Diri
Indonesia pernah mengalami pengunduran diri yang tak hanya melibatkan satu atau dua pejabat, melainkan terjadi secara serentak dan melibatkan 14 menteri
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