Background
The Liberal Democracy period, from the reestablishment of the unitary Republic of Indonesia in 1950 until the declaration of martial law in 1957, saw the rise and fall of six cabinets, the longest-lasting surviving for just under two years. Even Indonesia's first national elections in 1955 failed to bring about political stability.
In 1957, Indonesia faced a series of crises, including the beginning of the Permesta rebellion in Makassar and the army takeover of authority in South Sumatra. One of the demands of the Permesta rebels was that 70 percent of the members of Sukarno's proposed National Council should be members from the regions (non-Javanese). Another demand was that the cabinet and National Council be led by the dual-leadership (Indonesian: dwitunggal) of Sukarno and former Vice-President Hatta.
In March 1957, Sukarno accepted the Army chief of staff Nasution's proposal for a declaration of martial law across the whole nation. This would put the military in charge, and would be a way to deal with the rebellious army commanders, as it would effectively legitimize them.
In the face of a growing political crisis amid splits in the cabinet, Prime Minister Ali Sastroadmidjojo returned his mandate to the president on 14 March.
Read more about this topic: Guided Democracy In Indonesia
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