Overcoming National Crisis through Habibie’s Leadership

Abstract

This study discusses the strategies employed by President B.J. Habibie in overcoming the 1998 economic crisis in Indonesia. During the final period of President Soeharto’s administration, Indonesia was struck by a severe economic crisis. This crisis ultimately resulted in the downfall of Soeharto as President. Habibie, who succeeded Soeharto as President, sought to overcome the economic crisis through several strategies, namely banking restructuring, the implementation of social safety nets, and the provision of business credit. In addition, President Habibie also attempted to restore public trust in the political sphere. These efforts proved effective in mitigating the economic crisis. This study employs the historical research method. The conclusion drawn is that overcoming an economic crisis cannot rely solely on economic measures, but must also involve a political approach aimed at building public trust. In this case, democracy serves as the key factor.