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.