Cautius steps in reform needed to heal the nation

Cautius steps in reform needed to heal the nation

The following is the state-of-the-nation address delivered by
President Megawati Soekarnoputri before the House of
Representatives on Aug. 16, 2001 ahead of Independence Day.

Allow me to invite all of us to together praise and thank God
the Most Merciful and Most Compassionate, for only with His mercy
can we gather together in this noble and esteemed Assembly Hall.
At this juncture, such praise and gratitude are certainly very
meaningful for us.

First, tomorrow morning our beloved Republic will celebrate
its 56th anniversary. During the last year together we could also
demonstrate to ourselves and to the outside world, that this
complex multiethnic nation, although seemingly prone to conflict,
in fact has an endurance beyond the expectations of many people.
We must be indeed very thankful for that.

Second, after going through months of tension, laden with
political conflict, even a constitutional crisis, all of us, from
whatever group, have finally succeeded in proving that we are
capable of settling our differences of opinion peacefully.
Despite all criticism, we have also witnessed that the
Constitution of Proclamation has in fact still served us well.

Previously, many observers and friendly nations were truly
worried that we would slide into even deeper anarchy. Thanks to
God the Almighty all this did not happen. The spirit of unity
which we built with perseverance and determination since the
beginning of the 20th century, turned out to be far stronger than
all the short-term challenges we faced. Now, God willing, we are
ready again to roll up our sleeves to handle the many difficult
problems that have long awaited us. In my observation, this is
one of the indications that we are becoming more mature as a
nation.

Yet, above all, there is really something more important.
Since the beginning, when this nation was formed, we agreed that
the formation and sustenance of our beloved nation was only made
possible by the blessings of the Almighty Allah. I am sure that
this is not only a declaration of faith from our very religious
people, but also an explanation that nobody can deny.

There seems to be no other explanation as to why we have been
able to overcome so many dire problems.

Once again, indeed we are obliged to be thankful, without
slipping into complacency. During the last four years our whole
nation has lived under constant fear, because we were stricken by
monetary, economic, security and political crises, coming one
after the other and, worse, we experienced an institutional
crisis and conflict. This was not only felt at the central level,
but also in the villages. It is understandable, therefore, that
many were very concerned, whether or not the Republic,
painstakingly established by our founding fathers, would be able
to survive or would disintegrate.

Under such conditions, it is not surprising that many
questions arose, as to whether we would be able to resolve the
multi-faceted problems quickly and holistically. Certainly, it is
not the case. Like a disease, a crisis can erupt very suddenly;
however its recovery obviously requires time. Many problems and
arrangements which we have to correct are not only technical and
small in nature, but there are also instances where we have to
correct the functions, structures and working methods of our
national and state institutions, both at the superstructure as
well as infrastructure levels.

Unexpectedly, the weakness of the political supra-structure
and infrastructure has in fact opened up room for various
conflicts in unprecedented form and intensity. There has been so
much loss, both human and material. There is so much which we
need to correct before we can enter a normal life as a society,
nation and state, at least in accordance with standards generally
recognized in modern nations. The question is what we should do
to implement such a remedy.

We need to make corrections based on our own vision and
strengths notwithstanding our many shortcomings and weaknesses.
We clearly have this capability. We have so far succeeded in
developing adequate human resources at all levels and
professions, which can be fully utilized in managing our rich
natural resources for the people's welfare.

Only a few countries in the world are blessed with so much
natural resources. If only they were all well managed, our people
could have lived in a much more prosperous condition. Now, we
must identify the root of the problem as to why this did not
happen. Was there a mistake in the vision and strategy of
development, which we applied in the past? Or did the mistake lie
in the mechanism and work procedure that we have so far used --
or in the many deviations in its implementation?

We can only accomplish this gradually, starting from the most
urgent needs, which cannot be delayed. Indeed so many crises
cannot possibly be resolved all at once. In the short term, we
need to restore the living conditions of the people, nation and
state, to bring a breath of fresh air, feelings of security and a
better environment for all. This is closely related to resuming
normalcy, which among others, needs the functioning of democracy
and upholding of the law. We are aware that there is not much we
can do unless these minimum conditions are met.

We have started to achieve these minimum requirements. In a
better situation, we witness that our people are able to develop
and make use of their endurance, perseverance and creativity to
survive and improve their welfare. We should admire our people's
endurance and creativity. During the four years of the monetary
and economic crises, their perseverance and creativity did not
only succeed in supporting their own lives; but there were times
when we feel they may have even perhaps rescued the Republic.

For these short-term steps to be fundamentally beneficial, we
also need to take medium and long-term strategic steps, not
excluding the systemic one. We should perhaps ask ourselves,
taking into account the recurrence of the crises in our
constitutional life; is there anything that we can do to perfect
our constitutional principles or rules?

Lately, among our leaders and intellectuals, there has emerged
the awareness of the need to make more comprehensive and more
conceptual amendments to the state system based on the 1945
Constitution. The founding fathers themselves identified such
needs as mentioned in Article 37 of the 1945 Constitution.

However, even if we agree to make these amendments it should
be done with great care and mature thinking, which will be able
to meet our long-term needs of statehood. We desire
constitutional amendments that will not only serve as a political
framework for our coexistence today, but also as a stepping stone
to advance toward a more just, democratic and peaceful future.

It is for that reason that in preparing, formulating and
implementing the amendments we have to hold firm the basic
intentions of this country's establishment. This basic intention
is included and clearly stipulated in the Preamble of the
Constitution. The founding fathers of our nation described the
Unitary Republic of Indonesia as a "free, united, sovereign, just
and prosperous" nation. I believe that the values contained in
this simple formula which we are so familiar with is crystal
clear with no need for involved explanation.

The task given to the government of the Republic of Indonesia
is also clear, simple and straightforward, that is "to protect
all the people of Indonesia and the country of Indonesia, to
promote public welfare, to educate the people and to participate
in the implementation of a world order, based on freedom, eternal
peace and social justice".

The basic moral principle is thus also clear, simple, distinct
and fundamental: "Belief in the one Supreme God, a just and
civilized humanity, Indonesia's unity, democracy led by the
wisdom of deliberations among representatives and social justice
for all Indonesian people".

It seems that what we need to do together is to follow up on
these clear and bold axioms, and transform them into reality to
be enjoyed by every citizen in the archipelago. This vision of
statehood should become a reference and yardstick not only for
the life of the nation and state in general, but also for those
in charge of the central and local governments entrusted by the
people.

The honor to modernize the 1945 Constitution certainly lies in
the hands of the People's Consultative Assembly that
constitutionally represents the Indonesian people.

In this context -- taking into account the intensive public
discourse on the need to amend the 1945 Constitution and to give
as wide as possible opportunity for all segments of society to
contribute to its perfection -- it seems to be more beneficial
for the Assembly to focus its attention on assembling terms of
reference that could hopefully function as a main guideline for
preparing the amendment's concept. This main framework could also
be used to widen public political discourse. The substance of
this dynamic discourse can also be crystallized and drafted
comprehensively, systematically and professionally by a
constitutional commission, to be then reviewed and endorsed by
the Assembly's General Session.

I believe that these measures would not only update the 1945
Constitution that contains important historical values and
reinforce its open and democratic nature, but they would also
smoothen its implementation.

In building up the basis for amendment comprehensively and
conceptually, some points may need further contemplation and a
fundamental solution. These include the nature of a unitary state
that acknowledges institutionally and operationally the right to
regional autonomy; the basic policy of retaining political unity
and national territorial integrity; institutional relations
between the legislative and executive branches; the general
electoral system; relations between the regional and central
governments; the formula of implications to statehood arising
from our diversity, including respect for local customs, cultures
and traditional institutions. The essence is the formulation of a
concrete form of our system of society, nation and state in the
constitution, enabling the reality of our slogan "Unity in
Diversity" (Bhinneka Tunggal Ika), as enshrined in our National
Coat of Arms.

In particular we need to draw attention to relations between
our traditional societies spread out across the vast Indonesian
archipelago, based on the spirit of nationhood and of the Unitary
State of the Republic. Our clarity in understanding the relations
among these three elements is a constant factor, and is a crucial
key for the continuity and progress of our beloved republic.

The 1945 Constitution itself acknowledges the traditional
societies and their local environments, referring to them as
"special regions".

Our long history has recorded wide and intense relations
among members of these various traditional societies. There have
been family relations, customary and cultural ties, and close
economic ties, among inhabitants of one island with another.
These complex historical bonds can be considered as a solid
social and cultural foundation for the emergence and the
development of a sense of nationalism in modern terms.

The development of a new Indonesia also requires restructuring
the relations between the central and local governments. We are
aware of the fact that the overly centralistic infrastructure has
not only been inefficient, but is has also failed to provide
space for the growth and development of our citizens' initiatives
and creativity. In the system of relations between the central
government and the regions, a large part of authority and
budgetary support should be allotted to the regencies and
mayoralties. The task and authority of the central government
will only be focused on a number of strategic fields that are
really needed by the nation.

On a more operational level, which directly or indirectly
influences the politics of law and the policy of law enforcement,
there is also a need to draw a clearer line on the essence,
nature, method and form of the reform movement as well as the
process to democracy which we embarked upon together in 1998.

I have observed and listened closely to complaints by some
members of society, which indicate that under the banner of
reform and democratization there has been much to be doubted, as
to whether actions are justified under reform or whether they
have instead exceeded their proportion. In several instances, we
witnessed the outbreak of various mass riots, some of which were
conducted in the name of reform and democratization. These series
of actions have raised concerns over the possibility of anarchy
emerging in our midst, either in mild or violent forms. All this
has raised the question of the need for gradual reform and
democratization with a clear agenda under the system of
representative democracy that we adhere to, namely through the
representative bodies. These councils comprise representatives
who we choose ourselves through general elections that are
organized directly, generally, freely, confidentially, fairly,
and justly, and which we should therefore trust.

We do not indeed need to address all these problems from
scratch. Apart from reinforcing our many experiences in
nationhood and statehood, we can also benefit from various ideas,
especially those related to the promotion and fulfillment of
civil rights and political rights as well as social, economic and
cultural rights in our respect for human rights in the framework
of the United Nations' system.

We must admit that our understanding of human rights in
today's modern world lacks depth and dimension. We need to
observe this important point, as human rights are rapidly
advancing and becoming one of those basic cornerstones or
parameters to judge whether a nation-state has reached a modern
stage.

Another important point that we need to ponder upon in
drafting and implementing the modernization of the 1945
Constitution is the decline of our social discipline. There have
been cases in which we have been inconsistent in implementing
what we have so far agreed upon, as manifested in our disrespect
of the law and the rules of the game normally found in a modern
nation-state. All of these create the impression that there has
been a missing link between what we think, see and do in real
life.

Our difficulty in eradicating collusion, corruption and
nepotism (KKN) has directly or indirectly resulted in the crisis
that has swept the nation since 1997.

Unlike a feudalistic society which does not tend to see KKN as
a big mistake, a democratic society sees this as a tremendous
problem.

Regardless of how trivial they may be, KKN practices will
transgress public trust and at the same time violate one's
official oath.

In this context, allow me to humbly report to this august
gathering that I have privately gathered all members of my
immediate family, requesting them to solemnly pledge not to open
the slightest window of opportunity for the recurrence of KKN in
my family.

They have given me their solemn pledge, and I hope that they
will be able to resist the many temptations around them.

I am sure that we will be able to undertake a major
breakthrough to stop and overcome these KKN practices if we in
this Nusantara Room promise -- at least in our hearts -- to avoid
them.

I have also requested all my Cabinet members to report their
wealth and as soon as possible submit their report to the Public
Servants' Wealth Audit Commission.

Although this looks simple, perhaps this small step will
become a starting point of a much bigger social change, which we
must carry out promptly. We need to start from our respective
families and ourselves. God willing, gradually, but in the
not-so-distant future, we will be able to become one of those
well-managed, highly rated governments.

But more importantly, with this step we will be able to
utilize more effectively and efficiently our national resources
for the sake of the public's welfare.

There have been enough lessons from neighboring countries that
indicate how people's welfare has tended to run parallel with
good governance which in turn is a crucial factor in maintaining
stability in the political, social and security sphere.
Experience has also shown that such stability is a prerequisite
for economic progress to be enjoyed by the people.

Recently discourse has developed on the concept of a people's
economy. It should be admitted that the meaning, the scope and
content of this concept have yet to be clarified. Hopefully this
honorable session agrees, that in our current transition, we
should first be able to reach a solid understanding of such basic
issues.

As with other concepts, we also need the ability to give shape
to that concept. As a concept expected to become a system of
national scale, the ability is needed to break it down into
strategies and operational programs. We have much experience with
all sorts of concepts, but we have faced difficulties in
implementing them. This is why I sincerely hope that we can be
wise in introducing new concepts expected to reach a national
scope. Because in relation to welfare and the economy, we seem to
have a clear reference in the 1945 Constitution: "... advancing
public welfare, educating the nation ..." etc. What is needed is
the development and breaking down of these areas.

In this framework, I hope that above vision and strategy of
development can be food for thought for us all.

To operate a modern economic system without the support of a
reliable national banking system is surely impossible. We must
learn much from our bitter experience in managing the banking
sector; especially after economic liberalization in 1983. We have
violated so many conservative norms in banking management, which
have been established over a long period. We really need to learn
from this experience, to prevent us from becoming like the old
man who lost his cane twice.

Like it or not, today we are part of a new world, which has
become global in the field of politics, economics, and social and
cultural issues. What happens in another country also influences
our nation and vice versa. In pursuing economic interests, we
have ventured into formal commitments with other countries, both
bilateral and multilateral.

In general these commitments are designed in the spirit of
mutual benefit. It has to be admitted that some of them have now
become quite burdensome. Therefore, the opinion that has emerged
among us to request adjustment to such burdensome commitments is
not entirely wrong. Notwithstanding the reasons and without any
less appreciation for the good intentions behind such thoughts, a
commitment is a commitment. An agreement is an agreement, whether
national or international.

We must do our utmost to honor the obligations contained in
these commitments. Nonetheless, we would certainly be deeply
grateful if friendly countries and related creditors could give
us some room and breathing space, to enable us to restore our
national life in this difficult transition period.

We are also facing a short-term challenge which we must
respond to with hard work, namely our participation in the ASEAN
Free Trade Agreement and the World Trade Organization. Indeed, I
believe it requires great strength to maintain our national
competitiveness in an increasingly open and competitive
international trade, when our economy is at its lowest bargaining
position.

Allow me now to touch upon the issues of recovery and efforts
to maintain the stability of our national security and defense.
There is not much that we can do without security, or if the
borders of our territory are trespassed in the absence of any the
capability on our part to prevent or counter such violations.

We need an effective, highly disciplined security system and
personnel under government control, yet who have the spirit of
the people.

Along with national reform aimed at creating a more democratic
Indonesian society, the Indonesian Military (TNI) has pledged its
commitment to continue its internal reform through concrete
measures, to become a professional and functional instrument of
state defense, and to uphold democracy and to abide by the law
and to respect human rights.

We have consistently also started to separate the National
Police from the TNI, although in certain cases the police need
military support. Yet the TNI must focus on defending national
territorial integrity, while the police must concentrate more on
creating and maintaining security and a feeling of safety among
the people.

Therefore along with the need to enhance the professional
capacity of the TNI and the National Police, it is the state's
duty to ensure the availability of equipment and minimum backup
for the task entrusted to them of maintaining security and
defense. It would be unfair if we gave the TNI a demanding task
but did not provide them with proper equipment and logistical
support in terms of the appropriate quantity and high quality.

There is therefore a compelling need for an agenda and clear
schedule to pursue on the national policy on TNI and the National
Police. There are many regulations to be amended, basic doctrines
and their implementation need to be revised and education and
training programs to be conducted.

I understand that there are issues inherited from the past
with regards to the repositioning of the TNI and the National
Police, specifically severe violations of human rights in armed
conflict areas. We learned of some of the violations from the
international media right after they took place, but some came to
the fore only recently.

It must be admitted that many such reports have cornered us.
Yet our stance remains clear. Should there be convincing evidence
of severe violations of human rights outside the battleground,
those found guilty should be held responsible and legal action
must be taken against them, according to the law. We will not
entertain any impression of covering up such severe abuses.
For it is clear that Indonesia is a state based on law. No single
person is beyond the reach of law, not even a president.

In preparing ourselves to embark upon a better future, allow
me to dwell on the three questions from the past that need a
comprehensive solution. They are the questions of East Timor,
Aceh and Irian Jaya.

Right from the outset, the issue of East Timor has had an
international dimension, especially in the framework of
decolonization. There was no specific design of the Republic of
Indonesia in that region.

Our involvement in the region was unintentional, for it was
the stance adopted by the state's founding fathers that the
territory of the Republic of Indonesia was the ex-territory of
the Dutch Indies. No more, no less.

Without delving again into the causes, we have now
fundamentally settled the question of East Timor in 1999 and have
openly respected the choice of our brothers and sisters in the
region to have their own state.

Yet some lingering issues remain, such as the solution to the
problem of a considerable number of refugees in the province of
East Nusa Tenggara and assistance for our East Timorese brethren
who feel more comfortable to remain in our territory or who have
become Indonesian citizens.

The issues of Aceh and Irian Jaya are quite different with
that of East Timor. These questions are strictly internal
matters, especially connected to nation- and state-building.

We have to honestly admit that the crux of the issues is the
various policies of the past, which have been considered very
oppressive to the people in those regions. It is therefore
natural that as a nation we offer a sincere apology to our fellow
citizens who have long suffered from those incorrect policies.

But apology is not enough. It must be accompanied by a series
of rearrangements to restore things in the shortest possible
time.

Therefore, we are now carrying out basic corrections in the
two provinces, not only by paying respect to the cultural
identities and specific characteristics of the people, but also
by granting the regional administrations more authority to manage
their respective regions in the framework of special autonomy.

Yet, one thing is clear; all these should remain within the
context of preserving the territorial integrity of the unitary
state of the Republic of Indonesia.

Allow me now to take this opportunity to underline the urgency
of maintaining the country's territorial integrity.

Territorial integrity is not only of highly important
attribute of a nation-state, but also serves as an integral part
of a stable world order, which has permanent boundaries. In this
context, any movement intending to secede from the unitary state
of the Republic of Indonesia would not only face our strong
rejection, but would fail to win support from the international
community as well.

This fact needs the close attention of the leaders of such
separatist movements, especially those who have opted for the
path of armed violence, which has led to so many victims among
innocent people. From this forum I call on my brothers and
sisters who, due to various reasons, have chosen armed violence,
to return to society and together build a new Indonesia, a better
one than what we have been through.

As I said earlier, now we have at our disposal the instruments
of special autonomy, which I believe provides enough room to
fulfill your valid aspirations and interests.

It was based on my comprehension of the above conditions that
I formed the Gotong Royong Cabinet to carry out the mandate you
have entrusted to me until the end of my tenure in 2004.

I apologize for being rather late in announcing the line up of
the new Cabinet. The reason was simply because it was not easy to
select the most suited among so many candidates who were all the
nation's best sons and daughters. It was only due to the limited
posts available that I could not accommodate all the candidates
to take up the posts of coordinating ministers, portfolio
ministers, or state ministers. Hopefully the next time round the
others will get their chance.

In a bid to respond to the above issues allow me to repeat the
six programs of the Gotong Royong Cabinet.

* Maintaining the nation's unity in the framework of the
Unitary State of the Republic of Indonesia;

* Continuing reform and democratization in all aspects of
national life through a clearer framework, direction and agenda,
while improving respect for human rights;

* Restoring the economy and strengthening the basis for
people's economy;

* Consistent upholding of the law and creating a feeling of
security and eradicating corruption, collusion and nepotism;

* Conducting a free and active foreign policy, restoring the
dignity of the state and nation and recovering the trust of
foreign countries, including international donor institutions and
investors, in the government; and

* Preparing a safe, orderly and direct general elections in
2004.

I am fully aware that this Cabinet will be unable to perform
without the understanding, cooperation and support from every
sector of society. From this forum, I again request that
understanding, cooperation and support. Only through this
approach will we be able to gradually come out of this deeply
painful crisis.