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.