The dissolution of the elected DPR and creation of the appointed DPR Gotong Royong (DPR-GR) illustrate the tension between democratic ideals and authoritarianism during Guided Democracy. While democratic principles necessitate electoral legitimacy, Soekarno's actions reflected authoritarian tendencies, consolidating power in the executive and curtailing legislative autonomy. It underscored a shift towards a governance system that emphasized control and compliance over democratic representation and dissent .

Several reasons prompted President Soekarno to announce the Guided Democracy system. From a national security perspective, there were many separatist movements during the liberal democracy period that caused national instability. Economically, frequent changes in government cabinets under liberal democracy led to incomplete implementation of cabinet-designed programs, hindering economic development. Politically, the Constituent Assembly failed to draft a new constitution to replace the Provisional Constitution of 1950 .

President Soekarno's personal decision-making was pivotal in shaping Indonesian political institutions during the Guided Democracy. He unilaterally established MPRS, DPAS, and DPR-GR through presidential decrees, often bypassing constitutional provisions that called for electoral processes. Such actions centralized power around the presidency, reinforced Soekarno's authority, and departed from the democratic principles outlined in the 1945 Constitution .

President Soekarno's establishment of the National Front through Presidential Decree No. 13 of 1959 aimed to foster a mass organization committed to the ideals of the Proclamation and the Constitution of 1945. This move aligned with his broader objectives of galvanizing popular support while furthering state-driven national projects, thus embedding his leadership within a structured nationalistic and developmental framework .

President Soekarno's consolidation of power profoundly impacted Indonesia's legislative processes by effectively sidelining the elected institutions and substituting them with bodies fashioned through presidential decree. The DPR's dissolution and creation of DPR-GR without electoral mandate, as well as the MPRS and DPAS operating under presidential influence, exemplified the erosion of legislative independence. This consolidation led to a system where legislative processes served presidential interests, diminishing checks and balances typically inherent in a democratic system .

The Dewan Pertimbangan Agung Sementara (DPAS) was established through Presidential Decree No. 3 of 1959 to provide advice to the president and present proposals to the government. However, since the government was entirely controlled by President Soekarno, the DPAS served to consolidate his power by reinforcing presidential decisions and offering an additional layer of control over national affairs, rather than providing a check on presidential power .

President Soekarno dissolved the elected People's Representative Council (DPR) due to its refusal to approve the 1960 state budget. Consequently, he replaced it with the DPR Gotong Royong (DPR-GR) through presidential decree, bypassing electoral processes, thereby raising concerns about presidential overreach and lack of adherence to democratic norms .

Soekarno's emphasis on Nasakom aimed to reconcile the diverse ideological factions within Indonesia—nationalists, religious groups, and communists—under a unified government policy, thereby stabilizing the political environment and securing broader support. However, this approach heightened tensions by empowering the PKI, potentially risking authoritarianism, and undermining military influence, which shifted the balance of power and created vulnerabilities in national security .

The PKI positioned itself as a staunch defender of the Nasakom policy (Nationalism, Religion, and Communism) and leveraged this stance to increase its influence within the government. By claiming to be at the forefront of Nasakom advocacy, the PKI began to shift influences away from Pancasila and the 1945 Constitution towards communism, ultimately increasing its power and challenging existing governance structures by gaining Soekarno's trust and undermining the military's influence .

During the Guided Democracy period, the Majelis Permusyawaratan Rakyat Sementara (MPRS) appointed President Soekarno as president for life, which contradicted Article 7 of Chapter III of the 1945 Constitution. This article specifies limitations on presidential terms, but the new arrangement was incompatible with these legal provisions .