section_path: History/Post-World War II
section_name: Post-World War II
paragraph_text: Post-World War II
  
  Sukarno shifted Indonesia from democracy to authoritarianism and maintained power by balancing the opposing forces of political Islam, the military, and the Communist Party of Indonesia (PKI). Tensions between the latter two culminated in an attempted coup in 1965, leading to a violent anti-communist purge led by the Army's Major General Suharto that killed at least 500,000 people and imprisoned around a million more. The PKI was blamed for the coup and destroyed, weakening Sukarno's power. Suharto capitalised on this, becoming President in 1968 and establishing a US-backed "New Order" administration, which fostered foreign direct investment and drove three decades of substantial economic growth.
  
  Indonesia was the country worst affected by the 1997 Asian financial crisis, which brought out widespread discontent with the New Order's corruption and political suppression and ultimately ended Suharto's rule. In 1999, East Timor seceded after a controversial 25-year occupation following Indonesia's 1975 invasion. Since 1998, Indonesia has strengthened democracy by granting regional autonomy and holding the first direct presidential election in 2004.
  
  Political, economic and social instability and terrorism were persistent in the 2000s. The economy has performed strongly since 2007, although corruption remains a chronic issue. Relations among the diverse population are mostly harmonious, but sectarian discontent and violence remain problematic in some areas. A political settlement to a separatist insurgency in Aceh was achieved in 2005.