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.