Fall of Suharto (21 May 1998)

Suharto retired as president of Indonesia in May 1998 following the collapse of support for his three-decade long presidency. The resignation followed severe economic and political crises in the previous 6 to 12 months. BJ Habibie continued at least a year of his remaining presidential years, followed by Abdurrahman Wahid in 1999. Suharto's resignation also marked the end of the New Order, a regime that began in 1968.

Reportedly the military was split. There was said to be a power struggle between Prabowo and Wiranto. Both generals claimed to be loyal to Suharto. Some feared factionalism could lead to a civil war.
Some of Suharto's former allies deserted him. Wiranto allowed students to occupy Parliament. Wiranto reported to Suharto on 20 May that Suharto no longer had the support of the army.[citation needed]
Suharto was forced to resign on 21 May and was replaced by Habibie, his Vice President.
In 1998 one of the key generals was Prabowo, son of former Finance Minister Dr. Sumitro Djojohadikusumo who may have once worked with the British and the Americans against Sukarno. Prabowo had learned about terrorism at Fort Bragg and Fort Benning in the US. In May 1998, Prabowo was commander of Kostrad, the strategic reserve, the regiment Suharto commanded when he took power in 1965. Prabowo's friend Muchdi ran Kopassus (special forces) and his friend Sjafrie ran the Jakarta Area Command. General Wiranto, the overall head of the military, was seen as a rival to Prabowo.
Allegedly, late on the evening on 21 May, Prabowo arrived at the presidential palace and demanded that he be made chief of the armed forces. Reportedly, Habibie escaped from the palace. On 22 May, Prabowo was sacked as head of Kostrad. Wiranto remained as chief of the armed forces. Wiranto's troops began removing the students from the parliament building.