The 2004 general election in Indonesia began on 5 April with the parliamentary election and ended on 20 September with the second round of the presidential election. This was the longest election that the country had ever witnessed and a marked success in Indonesia's quest for democracy as it was conducted in an orderly and peaceful manner. This chapter examines both parliamentary and presidential elections and their significance for Indonesian politics; the formation of the new cabinet; and the problems faced by the new Yudhoyono administration. It also looks at the tsunami disaster and Indonesia's foreign relations with special reference to military relations between Indonesia and the United States.

The 2004 Election: Another Victory for Democracy

The 2004 election differed from the 1999 election in the sense that this was the first direct presidential election. Unlike the last election at which the president was elected by the MPR (People's Consultative Assembly), this time the people directly elected the president.

In 2003, the Dewan Perwakilan Rakyat (DPR, House of Representatives, the Indonesian parliament) completed the debates on the presidential election bill, concluding the discussion regarding the 2004 election. All laws and regulations regarding the parliamentary and presidential elections were passed. The parliamentary election — for members of DPR, Dewan Pimpinan Daerah (DPD, Regional Representatives Council) and Dewan Perwakilan Rakyat Daerah (DPRD, Regional House of Representatives) — was to be held on 5 April 2004, while the presidential election would be conducted in two phases, the first round would be on 5 July 2004 and the second, on 20 September 2004.

More than 200 political parties registered to take part in the 2004 elections but only 24 parties were qualified to contest, including 6 leading parties which had taken part in the 1999 election: the Partai Demokrasi Indonesia-Perjuangan (PDI-P), Partai Golkar, Partai Kebangkitan Bangsa (PKB), Partai Persatuan Pembangunan (PPP), Partai Amanat Nasional (PAN) and Partai Bulan Bintang (PBB).