Japan and RI's move to democracy

Japan and RI's move to democracy

By Arief Budiman

SALATIGA, Central Java (JP): Japan is known as the economic animal of Asia. Its foreign policies are directed to smoothen Japanese foreign trade. Within the country the role of business has been so prominent that any government would fall if they failed to get the support of the business community. That is why many people look at the Japanese government as a business enterprise and call it Japan Incorporated.

Japan is not unique. All governments in the world following the capitalist path will be dominated by business. Capitalism has been set up for capital to rule. The difference is only in degree. In Japan we have to admit that the role of business in influencing government policies is substantially high.

As an NGO activist I have some experience in lobbying the Japanese government. I have learned that to make our lobby effective we have to talk the language of dollars. For these state bureaucrats it doesn't make sense to talk about the importance of human rights, democracy or environmental protection without linking it to Japan's economic interests.

Indonesian NGOs have worked together with some of Japan's anti-nuclear NGOs in regards to the nuclear power plant to be built in Jepara, Central Java. The feasibility study for the nuclear site was done by a Japanese company, so it is likely that some Japanese companies will get a substantial share in the building of the plant. We are trying to convince those involved that the danger of any accident would not be limited to Indonesia, but would also reach its neighbors, including Japan.

However, our lobbying efforts seem to have fallen on deaf ears. Business profits have already blinded their eyes, and Japan seems too far away to be affected by the possibility of a nuclear accident in Jepara.

However, things may be different now. The pioneer status given by the government to PT Timor Putra Nasional (PT Timor), owned by the president's youngest son, Hutomo Mandala Putra, will be an interesting case to watch. It may change Japan's policies towards Indonesia and other developing countries.

As we know, PT Timor was given a project to develop the prototype of the "Timor Car", the future Indonesian automobile. For this purpose, this two-year-old company with very little experience in the automobile business will be exempted from import duties (about 100 to 200 percent) on components and from luxury sales tax (about 20 to 35 percent).

PT Timor is working together with South Korea's Kia Motor company, from whom it will import components. PT Timor has promised that at the end of the first year it will use 20 percent local products, 40 percent in the second year and 60 percent in the third year. It will also produce under an Indonesian brand name. With the exemptions, PT Timor will undoubtedly be able to sell its cars at very competitive prices and beat the other established automobile industries.

Who are the other automobile industries? As in many other developing countries, Indonesia is dominated by Japanese cars. Indonesia imports US$ 4 billion worth of Japanese car components every year. This is a small amount if we compare it to Japan's international trade surplus of US$600 billion. However, US$4 billion is hardly negligible. If nothing happens, in a few years a substantial amount of this money will go to South Korea.

Will Japan do something about this, especially given that Indonesia is becoming a newly industrialized countries with a huge potential market?

The Japanese government will probably undertake quiet negotiations with the Indonesian government at the top level. Japanese Prime Minister Hashimoto is a famous international negotiator with a solid track record. He successfully negotiated Japan's economic interests against U.S. pressures. Problem solving through diplomacy will be the most favored way because it will not rock the good relationship of the two countries.

Solving the problem diplomatically does not mean that Japan will not use its strong position to pressure Indonesia. Japan is the biggest financial aid donor to Indonesia. Moreover, Japan is Indonesia's biggest trading partner. But of course this is not the case for Japan. Thus, if there is a problem in the relationship between the two countries, it would cause more damage to Indonesia. It is more likely that Japan will somehow get a deal as long as it allows a face saving device for Indonesia.

However, in my opinion, Japan must not stop at that. The practice of giving economic monopolies to people close to top government officials has to end. A more transparent and democratic process of making public decisions has to be encouraged. In the present political system, this may not be easy. But every country, including Japan, that deals with Indonesia must help to bring about some process of political democratization in Indonesia.

The first reason for doing so may be moral. A non-democratic regime tends to misuse its power and violate the rights of its people. Secondly, this democratic struggle has some linkages to healthy business relations between Indonesia and its trading partner countries. As demonstrated above, unhealthy business practices will damage the economic interests of Japan. If PT Timor is tolerated, this surely will not be the last case.

It is my hope that the Japanese government will open its eyes more widely and help the struggle for democracy in Indonesia. If not for moral ideals, then for their own economic interests.

The writer is a researcher and sociologist living in Salatiga.