Djisman S. Simandjuntak<\/p>\n
Though people were not clear on the policy direction and
\npriorities of the contenders in the general elections, all seemed
\nto agree on the need for change, and the year 2004 was full of
\nhope with peaceful legislative and presidential elections.<\/p>\n
The country experienced its first direct elections and
\nwitnessed President Susilo Bambang Yudhoyono's (SBY) and Vice
\nPresident Jusuf Kalla's (JK) landslide victory. They eventually
\nformed a solid new Cabinet (nicknamed, the United Indonesia
\nCabinet).<\/p>\n
All in all, the country has enjoyed a slightly improved
\neconomy with monetary stability, as reflected in the relatively
\nstable rupiah against U.S. dollar and a low rate of inflation. To
\nan important degree, this is because of low global inflation and
\na steep drop in the U.S. dollar.<\/p>\n
Meanwhile, fiscal deficits have been kept within a pre-
\ncommitted level of less than 2 percent of GDP and the debt-to-GDP
\nratio is falling near the level of 60 percent of GDP following an
\nincrease in income. At the same time, the state's balance of
\npayments continues to improve as a result of a positive current
\naccount and a virtually balanced capital account.<\/p>\n
Reserve accumulation continues to be just a fraction of
\noverall bank deposits and the reserve remains small, while growth
\nhas accelerated slightly.<\/p>\n
The peaceful election was an important step toward democracy.
\nReal democracy is reflected in the mindset and behavior of the
\npeople, notably top-level politicians and generals of the not yet
\nentirely depoliticized armed forces, in compliance with laws
\nirrespective of rank in the government hierarchy.<\/p>\n
The peaceful elections can also be observed by the party
\nsupporters' and voters' respect for human rights, for religious
\nand ethnic diversity, their acceptance of power-sharing between
\nthe state and civil society and between different branches and
\nlevels of government. At the same time, their willingness to
\nstick to consensus-building allows the republic to function.<\/p>\n
Indonesians are aware of the gap that separates intent from
\ncontent, as far as the political system is concerned.<\/p>\n
On the economic front, Indonesia is in need of a return to
\nhigh growth, but growth that is shared by a majority of the
\npeople and ecologically sustainable. The twin challenge of
\nrapidly expanding investment and exports has long been
\nunderstood, even before the change in government.<\/p>\n
Flows to the stock market have risen and property is
\nundergoing a strong recovery. Unfortunately, little has changed
\nin machinery investment, so when one considers depreciation on
\nsuch assets, the overall value of many companies has declined. As
\na consequence, unemployment has continued to rise.<\/p>\n
However, the country's international competitiveness continues
\nto weaken as reflected in declining shares in trade, foreign
\ndirect investment inflows and the world income.<\/p>\n
The landslide victory of SBY and JK is a reflection of hope
\nrather than proven performance. While trying to do justice to the
\nrising hope, the new government is faced with a slightly
\ndeteriorating global economic environment characterized by a very
\nhigh oil price, a current account deficit in the United States
\n(in excess of what is perceived to be sustainable), a perceived
\nneed for realignment among the currencies of major trading
\neconomies and a strained fiscal position in the U.S., Japan and
\nGermany.<\/p>\n
In facing the challenge, the new government is staffed with
\nsome new ministers, but the bureaucracy remains largely the same
\nin spite of the fact that many have long been calling for a major
\noverhaul. Corporate leaders have also hardly changed.<\/p>\n
There is clearly a need for innovative changes in investment
\nand trade policy, particularly considering Indonesia's tainted
\nimage on the one hand and the rise of new star economies on the
\nother hand. It is absolutely crucial that investors see credible
\nsigns of progress in fighting corruption, real changes in law
\nenforcement, a proper balance between labor rights and output, as
\nwell as a considerable investment in human capital.<\/p>\n
People do agree on the core items of the agenda, but they
\ndiffer on more peripheral issues. They also seem to agree on the
\nimperative of action. Some \"islands of integrity\" have also been
\ncreated.<\/p>\n
However, people are inclined to simplify matters without
\npaying proper attention to the question of \"how\" because of the
\nprolonged wait for change. Indonesians must not become complacent
\nand allow democratically elected leaders to deteriorate into
\nfirst, authoritarians and later, quasi-kings, who can \"do no
\nwrong\" That would be an unfortunate repeat of past mistakes of
\nexalting leaders to an unchallenged throne, only to unseat them
\ndisgracefully later.<\/p>\n
As legislators in this country have often fallen into a cycle
\nof corruption, a carefully monitoring civil society is
\nindispensable.<\/p>\n
However, President SBY's campaign motto \"together we can\" must
\nbe applied to his post-election period even more. Such
\ntogetherness requires binding glue. Under the current
\nenvironment, the glue will have to include concrete action and
\nprogress in law enforcement and anticorruption programs, starting
\nfirst with the head of the government.<\/p>\n
Election to leading positions is not a privilege to put
\noneself beyond the reach of the laws, but an obligation to be
\nsuperlative in lawfulness. The glue can also include
\nunquestionable respect for political and cultural diversity and
\ndetermination to resist any temptation of resorting to
\nundemocratic processes, while settling differences.<\/p>\n
If these things come about, Indonesians will indeed make 2005,
\nthe 60th year of independent Indonesia, the first important step
\nin the journey of a thousand miles to a respected place in the
\ncommunity of humans.<\/p>\n
Executive Director of the Prasetiya Mulya School of Business<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/djisman-s-simandjuntak-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }