Diplomacy with CGI is really a `dangdut' thing

Kornelius Purba, Staff Writer, The Jakarta Post, Jakarta, korpur@yahoo.com

It might be worth their while for Japanese Ambassador to Indonesia Yutaka Iimura, U.S. Ambassador Ralph L. Boyce, World Bank country director Andrew Steer, International Monetary Fund (IMF) head representative in Indonesia David Nellor, and other donor members, to consider using a rather unconventional way to deliver their message to the Indonesian officials during their two-day meeting next week, in Bali.

As next week's meeting is being held on the resort island of Bali, it may be more productive if both the delegation of the World Bank-led Consultative Group on Indonesia (CGI) donors and the Indonesian contingent as borrower, forget for a while the formality and the sophisticated language they have used in their previous 11 meetings in Paris, Tokyo and Jakarta.

Why? Since its first meeting in Paris in July 1992, year by year, many of the demands of the international lenders to Indonesia have to be repeated every year, concerns such as the eradication of corruption, good and transparent governance, poverty alleviation, deforestation, poor law enforcement and human rights. The Indonesian government also just repeats its promises for comprehensive economic reform and the enforcement of the law, and in the end repeats its plea for the international community not to halt their loans to the country.

The Jakarta Post quoted then World Bank vice president Gautam Kaji as saying during CGI's first meeting in Paris in July 1992 that an efficient administrative system with transparent procedures as well as an effective legal and accounting framework will be particularly important in ensuring effective implementation of the reform measures.

In its report for the Bali meeting, entitled Indonesia Maintaining Stability, Deepening Reforms", the World Bank in its executive summary of reports states: "The government should stay the course of macroeconomic policies, maintain fiscal sustainability, revamp the investment climate and rebuild the broken institutions in the legal system".

Isn't the suggestion given in 1992 very relevant even today? Has there been any progress? Has there not even been a regression?

The following is just a recommendation for Ambassador Iimura and Ambassador Boyce: Why not sing a dangdut song Kegagalan Cinta (The Failure of Love) during one of the CGI sessions, just to remind Coordinating Minister for the Economy Dorodjatun Kuntjoro- Jakti and his delegation that it was Indonesia who asked for the establishment of CGI in 1992. CGI was set up to replace the 24- year-old Inter-Governmental Group on Indonesia (IGGI) as Soeharto could not longer tolerate the way the Dutch government headed IGGI.

Using the stage as a diplomatic tool is not new tactic at all. The then Japanese foreign minister Makiko Tanaka and U.S. Secretary of State Colin Powell also sang a country and western song during the ASEAN Regional Forum some years ago. They became closer after their performance (and of course the relations between the two countries are also expected to improve).

The two ambassadors can look at the refrain of the dangdut song: Kau yang mulai kau yang mengakhiri

Kau yang berjanji, kau yang mengingkari

(It is you who began it, and it is you who ended it)

(It is you who promised and you who broke the promise)

Indonesian governments, from Soeharto to Megawati Soekarnoputri have always been confident that the donors would continue pouring money into the country and that their complaints were aimed more at the taxpayers of the donor countries than at Indonesia. They continue donating, not because they are Santa Claus or are so generous to Indonesia but because they need the interest from their money and because most of the money would return to the donor countries. CGI projects are mostly carried out by the companies from the donor countries.

"CGI aid is proof that Indonesia remains strongly creditable," the same sentence is also repeated by Indonesian presidents after receiving the reports about CGI's new financial commitment to Indonesia.

In their annual meeting the government also just repeats their commitment to meet the donors' demands, with some new additions. This year Dorodjatun's team will present three main targets: The rebuilding and reconstruction of Aceh, the recovery of Bali after the Oct. 12 blast, and the reconstruction of the country's infrastructure.

The Indonesian delegation could choose another famous song Kemesraan (Intimacy) to woo their counterparts:

Kemesraan ini janganlah cepat berlalu

(Don't let go of this intimacy so fast)

However Dorodjatun or Minister of Finance Boediono need to apologize to IMF representative Nellor and clarify that the song is not dedicated to the agency because the government is now preparing an exit strategy from the IMF program after receiving treatment from the IMF since the 1997 economic crisis.

The international community has helped Indonesia since 1968 when Soeharto was elected for the first time as president. World Bank once regarded Indonesia as its golden boy and showcased the country as a model for developing countries. After the economic crisis in 1997 and Soeharto's fall one year later, the World Bank ashamedly conceded that it had been too soft on Soeharto.

Many Indonesians question why their country still has to attend the World Bank school for 35 years. They believe that even the most stupid students would not take such a long time to finish their study. Is it the mistake of Indonesia as the student or the fault of its stupid teacher?

The IMF is currently under fire for its alleged failure to treat its "patients" from Latin America to Indonesia. There is growing anti-IMF sentiment even among government officials. They argue that Indonesia's economic health continues to worsen because of the IMF's wrong prescriptions, although it has spent billions of US dollars to pay for the doctors and their medication.

Minister Kwik Kian Gie and former coordinating minister for the economy Rizal Ramli are among the most staunch IMF critics. But when the two economists served as coordinating minister under Abdurrahman Wahid, neither of them were able avoid signing a new letter of intent with the IMF.

The IMF itself may quote a Betawi (indigenous Jakartan) joke in responding to the growing calls in Indonesian to exit from the IMF programs without paying because the IMF was responsible for Indonesia's maladies.

"Enak di lu, kagak enak di gue (It is good for you but not for me)," IMF official Nellor can tell the Indonesian delegation if it proposes such an irresponsible plan.

But who will repay the debts? Not just the 220 million people of Indonesia but their great grandchildren will also have to share the burden.