Diplomacy with CGI is really a `dangdut' thing

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.