Thu, 27 May 1999

Indonesia awaits its future after election

By Patrick Schwarz

This is the second of two articles exploring the stake of Indonesian people in the days to come.

SEMARANG (JP): At this important way point in Indonesia's history, one should perhaps reflect a bit on her relating with the outside world. For any nation, globalization has become far more than just a buzzword. Factors from outside Indonesia in the past, as well as the present, have often determined the turning of events. This week's issue of Time magazine that quantified the billions of dollars apparently stashed away by former president Soeharto has stirred up quite a storm over here.

An extra 28,000 copies of the magazine that had been printed for distribution in Indonesia were sold out the instant they hit the newsstands. It has also brought back to the voters mind that incumbent President Habibie is dragging his feet prosecuting his predecessor; and most certainly will continue to do so if reelected.

Another outside factor, commonly known as the "Asian crisis", triggered an even bigger economic crisis in Indonesia. And this started the process that eventually toppled the former dictator. Besides political oppression, it was a cleverly monopolized economy that had kept Soeharto in power for over 30 years. When the economy stalled, then stumbled, his oppressive methods became his undoing when the carefully nursed corrupt, nepotistic system started unraveling.

Indonesians themselves, and the world at large, have been talking forever about the notorious corruption prevailing in this country. But nobody ever did anything about it for real. Although entirely homebred, the fires of Indonesia's corruption were extensively fueled by the outside world.

"Soeharto Inc." was so firmly embedded in the Indonesian economy, that any one who wanted to do any business in this country had to go through it. As a result, even large corporations with strong humanitarian principles, who religiously nursed a morally correct image in their home countries, played a foul game in Indonesia.

"When in Rome, do as the Romans do" was a lame excuse heard all too often. Or, "if I don't pay those bribes, my competitor will". Soeharto and his associates played this to the fullest, to their advantage. Visiting heads of state had to look the other way for the sake of business disguised as "pursuing interests for the mutual benefit of two peoples ..." Several of Soeharto's associates are still representatives of the current Indonesian government. Even with Soeharto out of the picture, their corrupt practices go on unabated. They tend to "grab" whatever they can -- while they can -- knowing full well that the upcoming elections probably will, as we all hope, wipe them off the stage for good.

As his defense, Soeharto uses the fact that most foreign investors played along with his fiddle, stating that, if anyone wanted to go after him, he would have to go after most foreign investors in Indonesia as well.

The power base of Soeharto's genius went even further. International organizations, especially those with the most financial clout such as the World Bank, and the International Monetary Fund (IMF) in particular, are turning a blind eye even today, when millions of dollars that were intended for a social safety net program in Indonesia, simply disappear. Of all the international lenders to Indonesia, the Asian Development Bank is the only one that had the courage to publicly speak up and take a stance against corrupt practices in the Asian financial markets. By turning a blind eye, these institutions inevitably support what remains of the former dictator's corrupt contingency.

They must know full well that by doing so, they are running the risk of throwing a fledgling, democratic political movement out of sync. Why can't these outside powers stop meddling? And let the Indonesian people -- that by now find themselves in the trough of the economic crisis -- find their own way out? Especially at such a crucial time where we can see the emergence of genuine democratic elements, that have a chance to succeed for the first time in Indonesia's history. The IMF should have learned its lesson in Russia and stop throwing money after bad boys!

So, in a couple of days from now, not only will a major page in Indonesia's history be turned, but, as we all hope, an entire new book will be opened. Will it be the beginning of a new "democratic reformist-humanists" era, or will the "old-powers- that-were" prevail? Whatever the outcome -- one way or the other -- the world will stand by Indonesia and her people. The only question is: which element out of this big -- and often cruel -- outside world will be the one that will stand by it?

If the winners are the "old-powers-that-were", the greedy capitalistic element of the outside world will have a field day and bully its way back into Indonesia, as quickly as it possibly can. Looking for a place to invest. For a place with a quick return of profits. Cheap labor. Cheap natural resources. Companies and banks that failed in the crisis to be picked up at real bargains. Discipline and tight control. No messing around with labor organizations. Clear-cut business agreements. Security for all.

Rising stock markets. A quick recovery from the economic crisis. And probably a couple of new Indonesian millionaires within the next two years.

On the other hand, if the "democratic reformist-humanists" cross the finishing line first, different elements of the world with different views and priorities will be looking at a new Indonesia in a different way. Some democracies in the old world have matured over almost two centuries with humanistic and social ideologies that are deeply rooted. And have prospered by applying them.

They will be more than willing to help a fledgling new democracy. And back up words with deeds. They will want to sustain what Indonesia has to offer to the global community. They will be genuinely concerned with rebuilding Indonesia's economy in a way that helps the development of her people. Looking for fair use of her human resources. For protection of her environment. Ecologically sustainable utilization of her natural resources. And help Indonesia find her way to become a valuable, important member of the global community commensurate with her immense potential.

In a few days, Indonesians will be making this big decision. By themselves, and for themselves. And in the process, will learn who their true friends are. Enormous changes lie ahead. A nation is waiting.

The writer is managing director of ANPCorporation, Semarang.