In the late 1950s , Sukarno moved Indonesia from democracy towards authoritarianism and maintained his power base by balancing the opposing forces of the military and the Communist Party of Indonesia ( '' Partai Komunis Indonesia '' , PKI ) . An attempted coup on 30 September 1965 was countered by the army , which led a violent purge that left at least 500,000 people killed , and the PKI officially blamed for the coup and effectively destroyed . The head of the military , General Suharto , outmanoeuvred the politically weakened Sukarno and was appointed president in March 1968 . His New Order administration , supported by the United States , encouraged foreign direct investment , which was a crucial factor in the subsequent three decades of substantial economic growth . However , rampant corruption was widespread , as well as the suppression of political opposition . In 1975 , Indonesia invaded and annexed neighbouring former Portuguese colony , East Timor
violent purge
Indonesian mass killings of 1965–66
Indonesia