Democracy: the Indonesian Experience


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40th World Annual Conference International Association of Political Consultants (IAPC) Denpasar-Indonesia, November 13th 2007

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Democracy: the Indonesian Experience

  1. 1. Democracy: the Indonesian Experience p Ginandjar Kartasasmita Chairman, House of Regional Representatives of the Republic of Indonesia 40th World Annual Conference International Association of Political Consultants (IAPC) Denpasar- Denpasar-Indonesia, November 13th 2007
  3. 3. I. INTRODUCTION IAPC Conference 2007 3
  4. 4. Indonesia is emerging from long period of authoritarian rule to consolidate its status as one of th world’s largest democratic f the ld’ l td ti country. Although Indonesia has not been on “the road to democracy,” for long, there is much democracy,” y, g, that has been achieved for which many citizens may be proud. IAPC Conference 2007 4
  5. 5. In 2004 the Indonesian people for the first time di tl elected their President. ti directly l t d th i P id t In the same year parliamentary elections were also held for a multiparty House of Representatives and non-partisan House of p non-p Regional Representatives (Senate). IAPC Conference 2007 5
  6. 6. Democracy has already rooted and become “th only game in town”, although it still the l i town” lth t h till faces various challenges and yet to prove to be h best— f b the best—if not the only—way to b h only— l creating the conditions for sustainable development and enhancement of people’s people’ welfare. This presentation is an attempt to highlight salient aspects of and draw some lessons of, lessons, from Indonesia’s experience in democracy. Indonesia’ IAPC Conference 2007 6
  7. 7. II. HISTORICAL OVERVIEW IAPC Conference 2007 7
  8. 8. The Indonesian Archipelago p g • a country of 220 million (as of 2005), • an archipelago strung 5000 kilometers along the equator. g g g • more than 13,000 islands, 5,000 are inhabited. • more than 200 ethnic groups and 350 languages and dialects. • 85 to 90% are Muslims. IAPC Conference 2007 8
  9. 9. Rise of Indonesia’s nationalism Indonesia’ The Dutch ruled the Indonesian archipelago for three and a half centuries. They first came to Indonesia at the end of the 16th century as traders, I d i h d f h 16 h d and later as colonizers. May 20, 1908 the birth of an intellectual organization 20 Budi Utomo, commemorated as the “National Awakening Day”. g Day” y October 28, 1928 declaration of the Youth Oath: one country, one nation, one language: Indonesia. In World War II, the Japanese military drove out the Dutch and occupied Indonesia as the new colonial ruler. ruler IAPC Conference 2007 9
  10. 10. Construction of independence The d f t f the Dutch t the hands f Th defeat of th D t h at th h d of an Asian power fueled the rise of indigenous resistances. The Japanese allowed a committee to be p established to “investigate the preparation of independence”. independence” What philosophical foundation the independent Indonesia state should be built on? IAPC Conference 2007 10
  11. 11. Construction of independence . . . The founding fathers of Indonesia’s Indonesia’ independence agreed on Pancasila as th state i d d d P il the t t philosophy. Pancasila: 1) Belief in the One and Only God; 2) Just and Civilized Humanity; 3) The Unity of Indonesia; 4) Democracy; 5) Social Justice. IAPC Conference 2007 11
  12. 12. Birth of a nation All the necessary elements for an independent nation had already existed when the Japanese surrendered to the Allied p powers. August 17 1945, Sukarno and Hatta on g , behalf of the people, proclaimed the independence of Indonesia. Indonesia under the 1945 Constitution: A nationalist non-sectarian, unitarian republic non- with a presidential system of government. ith id ti l t f t IAPC Conference 2007 12
  13. 13. III. PRE-REFORM INDONESIA IAPC Conference 2007 13
  14. 14. Regime Change in Indonesia Sukarno Suharto August 1945 - March March 1968 - May 1998 1968 Elected by MPRS Elected by the PPKI Resigned under pressure Impeached by MPRS Abdurrahman Wahid B.J. Habibie October 1999 – July May 1998-October 1999 1998- 2001 Accountability Speech Elected by MPR Rejected Impeached by MPR Declined to run for President Megawati Susilo Bambang July 2001 – October Yudhoyono 2004 October 2004 – 2009 Elected by MPR Directly elected Lost election to SBY IAPC Conference 2007 14
  15. 15. Summary of Indonesia’s Political History Government The Way President Period Constitution System Elected Exit Sukarno 1945-1950 1945 1950 1945 Presidential/ Independence Parliamentary Committee 1950 Federal Parliamentary 1950-1959 Provisional Parliamentary 1959-1966 1945 Presidential Deposed/ Impeached Suharto 1966-1998 1945 Presidential MPRS Resigned g Habibie 1998-1999 1945 Presidential MPR Accountability speech not accepted by the MPR Decided not to run again Wahid 1999-2000 1999 2000 1945 Presidential MPR Impeached Megawati 2001-2004 1945 Presidential MPR Lost in general election SBY 2004-(2009) ( ) 1945 Presidential Directly y Elected IAPC Conference 2007 15
  16. 16. An attempt at liberal democracy In 1955 a free and fair multiparty election was held to elect the Parliament and the Constitutional Assemblyy (Konstituante). The weak short-lived parliamentary governments created short- leadership l d hi vacuum and indecisiveness at time when di d i i t ti h strong leadership was needed. The Konstituante failed to reach the necessary majority to get an agreement on a new constitution. On July 5th, l959, the President Sukarno dissolved the Parliament and Konstituante with a Presidential Decree and restored the 1945 Constitution. IAPC Conference 2007 16
  17. 17. Guided Democracy Sukarno declared that liberal democracy had failed in Indonesia and had brought only disunity and g y y misery to the people. Sukarno proclaimed “Guided Democracy” as the Democracy” suitable system for Indonesia. Sukarno ended Indonesia’s first attempt at Indonesia’ d democracy. Indonesia now joined the group of I d i j i d th f countries to reverse from democracy to authoritarianism authoritarianism. The rise of the military role in politics: dual functions of the military. y IAPC Conference 2007 17
  18. 18. Sukarno: The romantic revolutionary Indonesia under Sukarno took a leading role in I d i d S k t k l di l i Asian African countries solidarity and fight against colonialism. colonialism Sukarno together with third world leaders initiated the Non-aligned movement, which until Non- movement today still exists. But his misguided economic policies based on the notion of a “guided economy” brought chaos to the economy and increased suffering for the common people. IAPC Conference 2007 18
  19. 19. The end of Guided Democracy and the rise of the New Order On September 30th 1965, an aborted coup d’etat was allegedly staged by the communist party party. Two military figures escaped from the assassination attempt, General Nasution and attempt Mayor General Suharto. Proceeded to mobilize the loyal military forces, P d dt bili th l l ilit f and neutralized the units that were involved in the th mutiny. ti The rift of President Sukarno and the military. IAPC Conference 2007 19
  20. 20. The end of guided democracy and the rise of the New Order . . . On May 11th 1966 President Sukarno, under pressure from the military and the public issued public, a Letter of Instruction to accede authority of day-to- day-to-day government to General Suharto Suharto. In the 1968 the Provisional MPR dismissed Sukarno as President and appointed General Suharto as his successor, hence rise of the New Order. IAPC Conference 2007 20
  21. 21. Development Trilogy Stability Growth Equity IAPC Conference 2007 21
  22. 22. Political stability The military, the bureaucracy and Golkar (the y, y ( government party) constituted the political pillars of the New Order. Two other political parties were allowed to exist, h l l ll d but were politically constrained. The floating mass concept (depolitization of the masses) constituted an important aspect of the political strategy to sustain long-term political long- stability. The political system had produced the intended p y p result: political stability that had endured for three decades, sustaining economic growth which in turn further reinforced its claim to legitimacy legitimacy. IAPC Conference 2007 22
  23. 23. Economic Development With political stability assured, the Soeharto Government earnestly e ba ed on economic development, embarked o eco o c de e op e t, which was widely considered as successful using various standard of g measurements. IAPC Conference 2007 23
  24. 24. East Asian Miracle The economic performance of pre-crisis Indonesia could pre- be b seen as part of a general pattern of successful f l f f l economic development in Asia. HPAEs a e are: Japan (The Leader) Hong K H K Si dT i the Rep. Of Korea, Singapore and Taiwan Kong, th R (The Four Tigers ). Indonesia Malaysia and Thailand (Newly Indonesia, Industrializing Economies of Southeast Asia / NIE). Since 1960 the HPAEs have grown more than: twice as fast as the rest of East Asia. three times as fast as Latin America and South Asia. Asia IAPC Conference 2007 24
  25. 25. Characteristics High Hi h average rate of economic growth t f i th Rapid productivity growth. High rates of growth of manufactured exports. Declines in fertility. y High growth rates of physical capital, supported by high rates of domestic savings and y g g investment. High initial levels and growth rates of human g g capital. Declining levels of poverty. IAPC Conference 2007 25
  26. 26. IV. THE END OF AUTHORITARIAN RULE IAPC Conference 2007 26
  27. 27. It all ended with the 1997 financial crisis. The economy crumbled under the weight of the crisis, followed by popular movement , yp p against the Soeharto regime. IAPC Conference 2007 27
  28. 28. What went wrong? Why after Wh afte 32 years of contin o s and seemingl ea s continuous seemingly successful rule, the Soehartos’ government fell? Soehartos’ Huntington (1991) makes the point that the legitimacy of an authoritarian regime might be undermined even if it does deliver on its promises. By achieving its purpose, it lost its purpose. This y g p p , p p reduced the reasons why the public should support the regime, given other costs (e.g. lack of freedom) connected with the regime regime. Economic development provided the basis for democracy. democracy IAPC Conference 2007 28
  29. 29. What went wrong?... Huntington maintains that a social scientist who wished to predict future democratization “would have done di f d i i ld h d reasonably well if he simply fingered the non-democratic non- countries in the $1,000-$3,000 (GNP per capita) $1,000- transition zone” (1991: 63). zone” Further studies, in particular an extensive quantitative h d l d research and analysis done by Przeworsky (2000: b k l ( 92) has lent support to Huntington’s threshold argument. Huntington’ In 1996, the year before the economic crisis swept 1996 Indonesia, its GNP per capita had reached $1,155. According to Huntington’s theory, at that stage g Huntington’ g y, g Indonesia had entered the transition zone, which meant that eventually sooner or later political change would happen. happen IAPC Conference 2007 29
  30. 30. What went wrong?... Three decades of development had significantly increased the level and reach of education across the nation and social classes, resulting in significant social emancipation of the population. International commerce brought about the opening up not of only the Indonesian market to foreign goods but also the Indonesian society to foreign ideas. With globalization came not only the integration of markets but also the introduction and eventual integration of ideas. ideas Thousands of Indonesians who studied at foreign universities, most of them in western countries, learned first h d the socio-cultural values that has been the f hand h socio- l l l h h b h driving force behind the scientific and technological advances that resulted in the affluence of the western societies. IAPC Conference 2007 30
  31. 31. What went wrong?... They returned home with the spirit of freedom which freedom, was a potent source of inspiration and motivation to change. They saw that the way the system worked obviously did not meet the basic principles required in a free society. The existence of political parties civic organizations and parties, interest groups was highly regulated, and only the ones that were established or recognized by the government ll d h were allowed to exist, these including the business, labor, l d h b l b journalist, youth, and women organizations. The absence of effective opposition is one of the essential arguments refuting the New Order’s claim to Order’ democracy. IAPC Conference 2007 31
  32. 32. What went wrong?... At the height of the praise for the New Order achievement, achievement many Indonesian’s complained Indonesian s of the lack of distributive justice, and rampant corruption and nepotism. nepotism Many argued that the Indonesian economic success had benefited the urban and industrial sector while marginalizing the rural and traditional sectors. sectors IAPC Conference 2007 32
  33. 33. What went wrong?... The emerging role of Islam as a force of change should also not be underestimated. underestimated Most Indonesian pro-democracy activists are more than pro- nominally Muslim and they often use Islamic discourses y y to motivate the struggle for democracy. Among the social forces that were poised against the New O d the most consistent and militant were th N Order, th t i t t d ilit t the students. They were successful in galvanizing the silent majority to be concerned about current political issues confronting the nation. Student activism of the late 1980s and early 1990s has y contributed to a radicalization of the democratic opposition in Indonesia. IAPC Conference 2007 33
  34. 34. What went wrong?... Many among the political elites felt that the time had come for political reforms. But an opportunity for a renewed start to rebuild the confidence of the people and engaged in concerted efforts to regain control of the economy was wasted, when Soeharto appointed his daughter and cronies to the cabinet at the height of the crisis. The cracks in the ranks of the New Order had come to the surface, as the regime supporters within and outside the government, including those in the military had grown alienated by the way Soeharto handled the crisis, and by his inability or unwillingness to embark on reforms. IAPC Conference 2007 34
  35. 35. What went wrong?... Before the crisis there were already forces, in favor of political change, arrayed against the New Order regime. However in the absence of the necessary catalyst those elements were inert, and even if change should happen it could take a long while, such as h ld h ld t k l hil h when Suharto pass away or Suharto became physically incapable to lead. lead The financial crisis provided the catalyst that set off a process of change The halving of per capita change. income translated into social misery: unemployment, hunger, riots, and death. p y , g , , IAPC Conference 2007 35
  36. 36. What went wrong?... It is evident that the inability of President Suharto to bring Indonesia out of the crisis, crisis combined with the growing domestic and international awareness that his response to the p crisis— crisis—economic as well political—was digging political— the country into a deeper abyss, destroyed the Hobbesian compact that had kept the country united and politically stable on the path of development. The conclusion: crisis forced a rewriting of the social contract. IAPC Conference 2007 36
  37. 37. V. TRANSITION TO DEMOCRACY IAPC Conference 2007 37
  38. 38. Laying the foundation for democracy It was during Habibie’s administration that most of the initiatives that significantly g y accelerated Indonesia’s democratization were initiated. The Th process of d f democratization had been in ti ti h d b i conjunction with the process of economic recovery, recovery one reinforcing the other on the way up, in contrast with the situation when the confluence of economic and political crises had brought the country d b ht th t down d deeper into the i t th abyss. IAPC Conference 2007 38
  39. 39. Laying the foundation for democracy . . . The recognition of the basic principle of the separation of powers of the ti legislative d j di i l b th executive, l i l ti and judicial branches of government h f t The dual function of the military was revoked “Political prisoners” were released from detention. prisoners” East Timorese were granted a referendum to determine their own destiny. In July 1999 a multiparty election was held. The election was supervised by an electoral committee of the participating l l d political parties and watched by thousands of foreign observers. h d b h d ff b It was universally agreed that the election was open, fair and clean. The result reflected the will of the people and thus heralded the re- re- birth f d bi th of democracy in Indonesia. i I d i In July 1999 a multiparty election was held. The election was supervised by an electoral committee of the participating political parties and watched by thousands of foreign observers. ti d t h d b th d ff i b It was universally agreed that the election was open, fair and clean. The result reflected the will of the people and thus heralded the re- re- birth of democracy in Indonesia. Indonesia IAPC Conference 2007 39
  40. 40. Constitutional Reform The democratization process in Indonesia, although triggered by the 1997/1998 economic crisis, has been undertaken relatively peacefully in conjunction with the reform of the j constitution. The weaknesses in the constitution contributed heavily to the concentration and abuse of power, the lack of law and order, shallow citizen representation, opacity of governance, and the high incidence of human rights abuses. IAPC Conference 2007 40
  41. 41. Constitutional reform . . . The constitution was written in a very broad and general way. It has only 37 articles and 6 transitory provisions. There is strength to the way it was written that makes th constitution fl ibl and easily adaptable. k the tit ti flexible d il d t bl The weakness is that it is so broad, general and flexible, that it can be—and has been—interpreted in flexible be— been— different ways. It gives a lot of room to the incumbent president to maneuver and concentrate power i hi or her d t t in his h hands, as history has shown with Indonesia’s first a d seco d presidents. and second p es de ts IAPC Conference 2007 41
  42. 42. The amendment process The First Amendment 1999 The Second Amendment 2000 The Third Amendment 2001 The Fourth Amendment 2002 IAPC Conference 2007 42
  43. 43. The First Amendment 1999 A term limit of two consecutive f -year f five- five terms. Returned the power of legislation to parliament. IAPC Conference 2007 43
  44. 44. The Second Amendment 2000 Decentralization and regional autonomy. Members of the parliament would have to be elected through public elections. This provision sends the message that there should be no more appointed members to the parliament. The separation of the police from the military. Through a separate decree that is not part of the constitution, the appointment of the commander of the armed forces and the chief of police have to be confirmed by the parliament. This provision sent a clear signal that the military is subordinate to civilian authority. g y y A new section on human rights was constituted that incorporated statements from the Universal Declaration of H f Human Ri ht Rights. IAPC Conference 2007 44
  45. 45. The Third Amendment 2001 Provides for direct election by the people of the president and the vice president as a ticket. To be elected, the candidate will have to get more than 50% elected of the popular vote with at least 20% of the vote in at least half of all the provinces. Sets out rules and procedures for the impeachment of the president. The parliament can only propose that the president be impeached after requesting that the (the newly established) Constitutional Court examine the charges against the president and after receiving from the court a finding that the president is guilty as charged. This mechanism is intended to prevent abuse of impeachment proceedings by the legislature. IAPC Conference 2007 45
  46. 46. The Third Amendment 2001 . . . Appointments of the members of the Supreme Court by the president have to be proposed by a newly constituted independent judicial commission, and approved by the parliament. In a major structural change to the legislative body, although Indonesia remains a unitarian state, the third amendment state constituted a bicameral system of representation. It established the House of Regional Representatives (Dewan Perwakilan Daerah- D), ep esenting Pe akilan Daerah-DPD) representing each of the p o inces Dae ah provinces equally, similar to the US Senate. Established the rules on general election, to be held once every five years. The elections are carried out by an independent general e ect o commission. election co ss o IAPC Conference 2007 46
  47. 47. The Fourth Amendment 2002 Stipulates universal government-sponsored government- primary education, minimum aggregate i d ti i i t education spending of 20% from the national government and regional government s budget government’s budget, Incorporates clauses on social justice and environmental protection. protection Defines that the MPR consists of the parliament (House of Representatives or DPR) and the Regional Representative Council (DPD). IAPC Conference 2007 47
  48. 48. VI. CONSOLIDATING DEMOCRACY IAPC Conference 2007 48
  49. 49. I th post-t In the post-transition period the Indonesian t iti i d th I d i polity has to grapple with two key issues in consolidating its nascent democracy: lid ti it td how best to strengthen the political culture, deepen democracy, and enhance political institutionalization. how to improve the performance of the newly established democratic regime. IAPC Conference 2007 49
  50. 50. Strengthening the Political Institutions All political offices are elected through general elections: President and Vice President;; Member of both house of parliaments, and regional councils; Governors, Bupati (District Heads), Majors, Village Heads. Heads IAPC Conference 2007 50
  51. 51. All important political appointee—except members of the cabinet—have to be confirmed by the parliament; i.e.: ie: Chiefs of the Military and Police; Supreme and Constitutional Court Justices; Governor and Deputy Governor of the Central Bank. IAPC Conference 2007 51
  52. 52. Members of national commissions such as: Anti corruption; Judicial; Elections; Fair business competition; Ambassadors from and to Indonesia; Human rights; have to be confirmed by the parliament. IAPC Conference 2007 52
  53. 53. Political Parties One of the basic requirements or institutions in a democracy is the existence of a free and active political parties to represent the people in the governance of a nation. nation In 2004 elections, 42 political participated, 17 parties won seats in the parliament. Indonesia is gearing for the next general election in 2009. The law for parliamentary elections is being deliberated in the parliament. Among the crucial issues are the redrawing of the voting constituencies and the pa t th eshold in oting constit encies party threshold parliament. IAPC Conference 2007 53
  54. 54. Civil Society Democracy requires a public that is organized for democracy socialized to its values and democracy, norms, and committed not just to its owned myriad narrow interests—although they are interests— important and are the raison d'etre for their existence— existence—but to a larger, common set of civic larger ends. And h bli i l A d such a public is only possible with a vibrant ibl ith ib t quot;civil society. quot; IAPC Conference 2007 54
  55. 55. Civil Society . . . Indonesia's civil society has grown in recent years and has played a role in the political change. However, However as a real countervailing force to the state it is state, still weak. Not only is it a relatively new concept in Indonesia's polity, and thus yet to mature, th quality of th people lit d th tt t the lit f the l who are attracted to join it does civil society little good. Only recently has civil society attracted better-qualified better- people from among the graduates of top universities and among the top ranks. In the past this class of young people was more past, attracted to the bureaucracy, the academia, business and even the military. IAPC Conference 2007 55
  56. 56. Civil Society . . . The existence of such a civil society is particularly important to Indonesia at the present stage of democratic consolidation, as clean open consolidation clean, open, transparent and accountable governance has yet to be established. The country needs an active, informed, selflessly motivated civil society to strengthen the institutions of governance for checking, monitoring and governance, checking restraining the exercise of power of the state, its institutions and office holders and holding them accountable to the law and public expectations of responsible government. IAPC Conference 2007 56
  57. 57. The rise of the middle class Economic development gave birth to the middle class. class Urban middle class is a product of wider and higher education and economic growth. In agrarian Indonesia the t iddl l h d th nascent middle class had grown in number and i b d influence with the advance of industrialization and urbanization. They are businessmen and intellectuals, doctors, lawyers, managers, technicians, university lecturers, writers, artists and journalists. However up until the end of the 1980s the Indonesian middle class, or families that were able to support a middle class lifestyle, was still relatively small. Hence, lifestyle small Hence some have called this problem the “hollow middle” in the Indonesian economic and social class structure. IAPC Conference 2007 57
  58. 58. The rise of the middle class . . . At that stage the Indonesian middle class political attitude g p was not necessarily anti-government; in fact until the end of anti- the 1980s the majority of the middle class who owed their economic advancement to the government’s development g p efforts believed in the government’s development creed and strongly favored political stability. By the mid-1990s the Indonesian middle class had reached mid- the “critical mass” in number as well as in resources to play a significant role at political change. And they had increasingly b iti l f th t th i become critical of the government; their writings, plays and iti l d discourses had provided for intellectual inspiration towards democratization. They have now become the backbone of Indonesia’s civil society as well as filling the growing demand for intellectual professional members of political parties. IAPC Conference 2007 58
  59. 59. Decentralization One f th h ll O of the challenges facing Indonesia is keeping the f i I d i i k i th country united. The threat of separation has always plagued the country since the first days of independence. One of the main grievance is income and regional g g disparity. It is a complex problem and would take time and effort to resolve, but at the heart of the problem was the overly centralized government structure and decision making process. Devolvement of central authority should be the first step y p toward addressing the problem. IAPC Conference 2007 59
  60. 60. Decentralization . . . Therefore decentralization constitutes one of the most important aspect of quot;reformasiquot; in Indonesia. p p The principles are now embedded in the constitution. Decentralization enhances the efficacy, quality and efficacy legitimacy of democracy; hence decentralization is a necessity for democracy. It is even more so for large—and particularly large— multiethnic and multicultural—countries such as multicultural— Indonesia, Indonesia as decentralization will close the distance between the citizens, the stakeholder, and the power and the process of policy making. IAPC Conference 2007 60
  61. 61. Decentralization . . . Since 1999 Indonesia has two sets of decentralization laws before the amendment to constitution: 1) law No 22/1999 and Law No 25/1999 and; 2) after the amendment consisting of set Law No 32/2003 and Law No 33/2003. Both set of laws put the d h decentralization focus on the District and li i f h Di i d City level for the purpose of getting public services and decision making process closer to i dd i i ki l t the people. IAPC Conference 2007 61
  62. 62. Decentralization . . . After the Aft th regional elections, a new pattern of i l l ti tt f relationship between the local and central governments will emerge. The locally elected leader emerge will consider himself to be more independent and more predisposed to oppose the central government if its policies are considered to be against the interests of his community. D t li ti i t l liti l di t Decentralization is not merely political expedience to deal with rebellious regions. It has more basic value to democracy and democratic consolidation. Thus consolidation decentralization enhances the legitimacy and hence stability of democracy. y y IAPC Conference 2007 62
  63. 63. The Role of Islam The threat to the unity and integrity of the country has recently been perceived as not only to come from ethnic or regional separatism but also from fundamental and political Islam. Islam Many have speculated about the political implication of the rise of the social standing of Islam in Indonesia. In actuality, however, Indonesian Islam is embedded in a y, , culture of tolerance that can be traced back to the history of Islamization of the archipelago. Islam originally came to Indonesia and religiously quot;conqueredquot; conquered the people not through war, but through trade, marriage and education. Hence th absorption of I l H the b ti f Islam by the societies in this vast b th i ti i thi t archipelago was generally peaceful and involved little coercion. IAPC Conference 2007 63
  64. 64. The Role of Islam . . . In fact, in the propagation of Islam there was a fact tendency to adjust the new religion to older beliefs that resulted in moderate and tolerant—some may say tolerant— syncretic— ttit d syncretic—attitudes among th majority of I d ti the j it f Indonesiani Muslims. It is true that fundamentalist Islamic groups some of groups, them militant, do exist in Indonesia, but they are marginal and have little popular support. Despite the recurrence of incidents involving some Islamic extremists, for many years, Indonesia, the country with the largest Muslim population in the world world, has been well known as a pluralistic society characterized by religious moderation and tolerance. IAPC Conference 2007 64
  65. 65. The Role of Islam . . . Although Indonesia is a predominantly Muslim Country, Country Islamic political parties in Indonesia has never been able to attain more than 40% of the votes, since the election of 1955 up to the last election in 2004 Therefore, most Indonesian 2004. Therefore Muslim voted for parties not based in religion. The different from one election to another is the composition p of the votes garnered by the Islamic parties, which constantly changes reflecting the political mood and environment of the time. In the, short run, however, the revival of Islamic values in the minds and lives of the population, most importantly among the intelligentsia and the political elite, and the young, may elite young affect, attitudes or responses to political issues that involve Islam such as international terrorism. IAPC Conference 2007 65
  66. 66. The Role of Islam . . . The September 11 act of terrorism against the US was almost unanimously condemned by organized Muslims and by the public in general. Except for a few very vocal fanatics, Indonesia's Muslims were outraged by with happened in New York. The feeling of outrage against terrorism that had taken the lives of innocent people was heightened when Indonesia also became a victim of international terrorism with the bombing in Bali on 12 October 2002, the more recent 2002 Marriot bombing in Jakarta on 5 August 2002, and the second Bali Bombing in 2005. F many I d For i M li Indonesian Muslims, terrorism had only t i h d l succeeded in creating the wrong image of Islam and Islamic values. IAPC Conference 2007 66
  67. 67. The Role of the Military Observers of Indonesia have paid much attention to the role of the military in post-New Order politics and how the military post- perceive its role in democracy. Events surrounding the fall of Soeharto showed that the military had been supportive of political change. Its role was crucial in the peaceful transition from an authoritarian regime to real democracy. democracy In the political transition period, the military lent its political weight to the institutionalization of democracy, that dismantled the ld th it i t t d l th old authoritarian structures and replaced it with a democratic d ith d ti system. The military has shown its commitment to democracy when it accepted the consensus of the polity that it should no longer take an active role in politics and therefore no longer hold seats in the elective political institutions. p IAPC Conference 2007 67
  68. 68. The Role of the Military . . . In the post-Soeharto period, the military had been post- steadfast in refusing to be used as an instrument to subvert the constitution and resisted the pressure to reverse to authoritarianism. Although many retired senior officers were against g y g changing the constitution, the serving military establishment fully supported the amendments that have become the foundation for a stronger and more stable democracy. Therefore it is safe to say that at p y present the military is y not a threat-but an asset to Indonesia's democracy. threat- IAPC Conference 2007 68
  69. 69. VII. ECONOMIC PERFORMANCE IAPC Conference 2007 69
  70. 70. After the dramatic economic, political and social upheavals at the end of the 1990s Indonesia has 1990s, started to regain its footing. The country has largely recovered from the economic crisis that threw millions of its citizens back into poverty in 1998 and saw Indonesia regress to low-income status. low- status Recently with GNP per capita of $1280 (2005), it has once again become one of the world's emergent middle- o ld's eme gent middle- income countries. Poverty levels that had increased by over one-thi d during the crisis are now back to pre- one-third d i th i i b k t pre- crisis levels. IAPC Conference 2007 70
  71. 71. Poverty in Indonesia fell rapidly until the 1990s, and has declined again since the crisis IAPC Conference 2007 71
  72. 72. Macroeconomic Update p Indonesia: Economic Growth 1998-2006 6.5 6.5 5.7 6 5.6 5.6 5.2 4.9 5.1 4.9 4.9 5.1 4.4 5 3.8 0.9 1.2 0 .a 1998 1999 2000 2001 2002 2003 2004 2005 2006 P rc nt p e e -5 -10 - 13.8 14.1 -15 - GDP Non Oil and Gass IAPC Conference 2007 72
  73. 73. Positive Growth Trajectory Sustained economic growth despite difficult environment Economy is on a steady upward E i t d d > 7% trend. Indonesia’s performance 6-7% is very much comparable in the 5-6% region 5.25 % Over the medium term, this acceleration process should 4% continue assuming that all reform programs are implemented. The Indonesia’s economy is still fragile and sensitive to external 2001-2003 2004-2005 2006 2007 - 2009 2010 - shocks (financial turbulence, Source: CBS beyond . high oil price, etc) IAPC Conference 2007 73
  74. 74. VIII. DOES CULTURE MATTER? IAPC Conference 2007 74
  75. 75. Does culture matter? . . . All the discussions on democracy are based on the th di i d b d th works of western scholars. Is democracy a monopoly of the west? Are there no cultural variants of democracy? On the other hand, is culture a legitimate (or genuine) justification or merely an excuse (or apology) for authoritarianism? Indonesia, under both Sukarno and Soeharto i i t d that culture was indeed th di ti ti insisted th t lt i d d the distinctive variable of any political system, and launched concepts for the political systems that would respond best to what they claimed to be the intrinsic values characterizing Indonesia’s society. g y IAPC Conference 2007 75
  76. 76. Does culture matter? . . . Lee K Y th f L Kwan Yew, the former P i Prime Minister of Singapore, Mi i t f Si the founding father of the country and its political a c tect, as been a g architect, has bee making a very st o g case about t e e y strong the Asian values as an important element in the political system of the East Asian countries. He believes that adversarial politics is out of place in a multiracial society such as Singapore. Many scholarly works have been devoted on the subject of cultural paradoxes in democracy; most concluded that indeed culture exerts a certain influence on how democracy is adapted among countries (see Alagappa Alagappa, 1996; Fukuyama, 1996; Lipset, 1996; Huntington, 1996: Inglehart, 2000; Sen, 2001). IAPC Conference 2007 76
  77. 77. Does culture matter? . . . In the I th case of A i countries there has been much f Asian t i th h b h serious discourse about Asian values being the determinant factor in the remarkable economic achievements of the East Asian countries. But in the wake of the economic crisis, the argument for the Asian values has somewhat lost its credence. The fact that countries in Asia have abandoned attaching certain values to d tt hi t i l t democracy and d embraced the western style of democracy, such as the Philippines, Korea Thailand Taiwan and most Philippines Korea, Thailand, recently Indonesia have further muted the cultural argument. g IAPC Conference 2007 77
  78. 78. Does culture matter? . . . However culture does matter Although there are certain intrinsic values of democracy that are universal in nature, without which the term nature democracy does not apply, cultural values are still regarded as important variables and providing more than g p p g just local color for democracy. As Inglehart (2000: 96) says that “in the long run, democracy is not attained simply by making institutional changes or through elite level maneuvering. Its survival also depends on the values and beliefs of ordinary p y citizen”. IAPC Conference 2007 78
  79. 79. IX. INDONESIA AND THE WORLD IAPC Conference 2007 79
  80. 80. Indonesia and the world . . . Indonesia has always been an active member of the international community. Being (in t B i (i term of population): f l ti ) the fourth largest; the largest Muslim country; the third largest democracy; the third largest market economy in the world; the largest in ASEAN; calls for certain involvement, responsibility and influence in the world affairs. IAPC Conference 2007 80
  81. 81. Indonesia and the world . . . Indonesia has been the host and one of initiators of many international or regional undertakings, such as: AA: Bandung Conference (1955); APEC: Bogor Declaration (1994); Bali Conference on Climate Change (2007). Indonesia is currently a member of the UN Security Council. y Indonesia has contributed to UN peace keeping missions since 1950 s. 1950’s. IAPC Conference 2007 81
  82. 82. Indonesia and the world . . . Indonesia is actively participating in regional affair: ASEAN South East Asia Community APEC While keeping close ties with western countries, Indonesia maintains good relationship with countries, countries that are deemed to be “adversaries” of adversaries the west, such as: Iran North Korea (Venezuela) ( ) IAPC Conference 2007 82
  83. 83. Indonesia and the world . . . In the Middle Eastern affairs, Indonesia projects a moderate stance although it always fully stance, supports the rights and the struggle of the Palestinian people. people Indonesia can play a significant role—and is in a role— good position—t contribute t th attainment d position—to iti t ib t to the tt i t of world peace. IAPC Conference 2007 83
  84. 84. X. CONCLUSION IAPC Conference 2007 84
  85. 85. Conclusion . . . In conclusion, much has been achieved, but even more remains to be done. The past few years have been extremely i t b d Th tf h b t l eventful for Indonesia. Following the maelstrom of political, economic and social g p , crises, economic stability has now returned though the economy has not returned to the heady levels of the boom years. Most significantly of all, the country is charting new political waters with a comprehensively amended constitution a process that again marks a dramatic break from the past. past To overcome the challenges ahead, whether from political corruption, violent communal strife and terrorism in the name p , of God or external economic shocks, the new tools of government and democratic governance will face their definitive test. IAPC Conference 2007 85
  86. 86. Conclusion . . . What is significant about Indonesia s democracy that it Indonesia’s democracy, is “homegrown”. Indonesia’s a e adap g democratic models and values do es a s are adapting de o a ode s a d a ues that are universal in nature, but the democratization process in Indonesia had been initiated and carried out by political forces within the country. country In certain stages of process such as in implementing the general election, Indonesia receives foreign assistance such as in observations of the balloting, or such as in Aceh, in foreign facilitation in peace negotiation. But in the case of Indonesia democracy was not imposed by foreign powers. IAPC Conference 2007 86
  87. 87. Conclusion . . . Indonesia still needs to strength its democratic foundations and practices, which greater executive accountability to the law, to other branches of government, and to the public; a reduction in the barriers to political participation and mobilization by marginal groups; decentralization of power to f facilitate broader political access and accountability; vigorous independent action by civil society; and more effective protection f the political and civil rights of citizens. for h l l d l h f The fledging democracy still faces serious challenges, such p political corruption, the rule of law, as well as accelerating its p , , g economic reform and improving its governance to sustain growth and poverty reduction. However the course of the country is heading into the right direction. The Indonesian experience, its successes and failures maybe worthy of some lessons to other, especially those who at the stage of or entering the same “zone of transition”. IAPC Conference 2007 87
  88. 88. Thank you y IAPC Conference 2007 88