"Rakyat Bersatu Tak Terkalahkan", (the people united will never be defeated) is one of the most popular slogans shouted at the student demonstrations in Jakarta these days. It is proof of a clear shift in the orientation of the democratic student movement towards joining with the workers, the urban poor and the peasants in order to defeat the regime. The new organisations of students which sprung in existence the three last months tend to call themselves people's committees and not a few students are directly involved in organising the workers and the peasants.

On June 17th the Indonesian rupiah hit a new low of 16,800 to the dollar - a fall of 10% in one day, a collapse of 30% in one week. Economists are now predicting that inflation will hit 100% and the economy will contract by 20%. The rupiah has now devalued by a staggering 66% this year and more than 80% since the economic crisis began to unfold in mid-1997.

Confused reports of Officers' plots, coups and countercoups which filtered through to the Western press a week ago were the first indication of a major revolutionary upheaval in Indonesia. The recent events unfolded against a now familiar background of social and economic crisis in a backward country. The regime of Sukarno - despite the superficial appearance of stability - has been exposed as rotten to the core

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