Foreign aid and Sukarno's warning

Foreign aid and Sukarno's warning

Juwono Sudarsono, Professor School of Social and Political
Sciences, University of Indonesia, Jakarta

During his visit to the United States in May, 1956, founding
president Sukarno addressed a joint session of the U.S. Congress
on Capitol Hill. One of the most stirring remarks Sukarno made
was: No Niagara of dollars can save us, the people of Indonesia,
unless we effectively use that assistance for the benefit of all
Indonesians.

Sukarno's "No Niagara of dollars" speech came across my mind
as I watched and listened to media reports on President Megawati
Soekarnoputri's recent visit to the U.S. and Japan from Sept. 18
to Sept. 30.

Sukarno's warning against Indonesian complacency after being
offered foreign aid wasn't exactly heeded throughout Soeharto's
tenure as president from 1966 to 1998. Although Soeharto
successfully transformed Indonesia throughout his 30-year rule,
his presidency was marred by widespread collusion not only among
his immediate family but particularly among the web of his
sycophants in the national, provincial and local bureaucracies
and their associated business cronies.

We were made complacent because of our exaggerated notions of
being, in the words of president Nixon in 1967, "the prize in
Asia" in the wake of the failed coup by the Indonesian communist
party in 1965; of being the most politically, economically and
strategically important Southeast Asian country; of being the
anchor of Southeast Asian stability; and of being the recipient
of billions of dollars of foreign assistance from North America,
Europe and Japan.

President Megawati's recent visit to the U.S. was preceded by
favorable signals from the International Monetary Fund (IMF) and
the World Bank of a new era in economic policy making. After a
year of erratic and mercurial leadership under former president
Abdurrahman Wahid, Indonesia now has a president and vice
president who promise firmness and focus in national governance.

There was promise of a predictable, if incremental, government
that was in command, which had clear objectives and was willing
to undergo the painful and patient process of establishing good
governance and economic reform.

Throughout her visit to the U.S., President Megawati assured
the American government and business leaders of her commitment to
undertake the necessary measures to ensure that Indonesian
economic recovery would be based on sustainable efforts to
improve conditions that would facilitate foreign investment --
including the all important reform in the legal and judiciary
system.

Even before the visit, Indonesia received favorable signals
about the impending IMF funds of US$400 million, prospects of
getting $4.8 billion in the coming Consultative Group on
Indonesia meeting, commitments of some $650 million incorporating
economic, trade, financing and military assistance packages from
the U.S. and the rescheduling of $2.8 billion out of the $5.2
billion debt due by March 2002.

The question now is: Will all Indonesians be willing to strive
for improvements at all levels of government to ensure that all
of these forms of assistance be "effectively utilized to the
benefit of all Indonesians," as Sukarno warned in May 1956?

Will Indonesian business people and their friends in high
places be willing to look at this as an opportunity to work
together and persistently work out solutions to resolve our
economic, political and social problems. Or will Sukarno's "No
Niagara of dollars" warning fall on deaf ears and Indonesia's
political and business leaders resort once again to lethargy and
complacency?

This article is abridged and adapted from the Indonesian
version published in Kompas on Sept. 30.