RI must cut off foreign dependence in order to survive

RI must cut off foreign dependence in order to survive

Lela E. Madjiah, The Jakarta Post, Jakarta

Since 1998, nothing seems to have worked to restore national
unity and solidarity, not even the tragic Oct. 12 Bali bombings
that claimed so many lives and shamed Indonesia into being
included on the list of countries foreigners must avoid.

Indeed, national unity and solidarity seem to have become a
remote concept ever since the nation embarked on the reform
movement in 1998. Rather than joining hands to attain the reform
goals of democracy, clean governance and social justice, the
nation has been divided into groups of people fighting each other
for power and wealth at the expense of national unity and
sovereignty.

"Signs of disintegration and rampant communal fights in
various parts of the country show that we are suffering from a
unity crisis," Ali Yafie, legal adviser to the Indonesian Council
of Ulemas (MUI), said at a seminar titled Bersatulah Bangsaku
held by the East Java chapter of the Indonesian Journalists
Association in Surabaya on Oct. 21.

Many share his concern.

"Solidarity has disappeared from the nation's life," said
Army Chief of Staff Gen. Ryamizard Ryacudu.

Worse, "people are divided and are finding fault with each
other," Ryamizard lamented on Wednesday.

A tragedy the scale of the Bali bombings should serve as a
warning of, a time to reflect on, one's shortfalls. More
importantly, the Bali tragedy should foster solidarity and unity
among Indonesians, two traits that are vital for Indonesia to
recover from the impacts of the Bali blasts but are miserably
missing.

The Bali terrorist attacks have plunged the nation even deeper
into an already prolonged, severe crisis and there is only one
way out: to stand up and rise above the challenges.

To do this, Indonesians must rely on their inner strength,
especially since the Bali tragedy has led to travel warnings,
delays in loan disbursements, as well as cancellations of foreign
investments, projects and purchases.

It was only in August that the People's Consultative Assembly
last convened and among the crucial issues discussed was
lessening Indonesia's reliance on foreign help, or control,
including the International Monetary Fund (IMF) and the World
Bank.

The IMF's reform package, for example, has resulted in
Indonesia's imports being bigger than its exports and Indonesia
losing its economic independence.

The free flow of foreign exchange and the easy procedures in
obtaining foreign loans, both for the government and the private
sector, have become a trap that makes Indonesia an easy target
for currency speculators.

Under normal circumstances, it would be difficult, if not
impossible, for Indonesia to shake itself free from the clutches
of foreigners, notably the IMF and the World Bank.

A retired general said that in 1998 a U.S. official threatened
an Indonesian official against abandoning the IMF's reform
package. The threat came after a regional Buddhist organization
offered to bail out Indonesia. President Soeharto told one of his
adjutants he was considering the offer, but then riots broke out
against Indonesians of Chinese descent and the Buddhist
association canceled its offer. Soeharto was forced to take the
IMF's handouts.

Things changed after Oct. 12 and many foreign governments,
investors and institutions, including the IMF and the World Bank,
said they were reviewing the effectiveness of their policies on
Indonesia.

Indonesians must quickly grab this opportunity to break the
cycle of foreign dependence while it lasts.

After all, nearly half of the money given to Indonesia by
taxpayers of Western countries, or Rp 1,500 trillion (US$1.6
trillion), has been stolen by corrupt local bankers anyway.

"The huge amount of foreign loans has been embezzled by
Indonesian bankers," said Richard Holloway, chairman of
Partnership for Governance Reform (PGR) at the UNDP in Indonesia.

He cited, as an example, cases involving the Bank Indonesia
Liquidity Fund (BLBI) during a discussion on Globalization and
Corruption: Eradicating Corruption without Foreign Loans in
Bandarlampung on Oct. 27.

Moreover, 70 percent of the loans flow back to creditor
countries, said Holloway.

One anticorruption activist even went as far as to say that
the huge amount of foreign debts was more frightening than a
ghost.

"The interest rates alone, which amount to Rp 80 trillion a
year, can finance the development of 35 provinces the size of
West Nusa Tenggara," Gatot of NTB was quoted as saying by Antara.

NTB only has Rp 2.5 trillion for its regional development
budget, Gatot added.

To reduce dependency on foreign countries, Indonesians must
forge unity and solidarity: Unity to stand up against the
challenges that the 1998 crisis had created and that were made
worse by the Bali blasts, and solidarity to bear the hardships.

Self-reliance sounds like a good start. Indonesia is a huge
market for its own products and rather than pursuing uncertain
foreign buyers, producers should shift their focus and target
domestic market. The government, on the other hand, must restrict
imports from countries that cancel their purchases of Indonesian
products.

Consumers should play their part by buying only local
products. People, particularly the rich, for example, could start
by eating at Indonesian restaurants instead of foreign fast food
chains. They can do without perfume or Western brand-name items
for a while, and channel their wealth into more productive things
or set up funds for scholarships for poor children.

There may be layoffs, but that is the price this nation must
pay. This is where solidarity comes in. Society must share the
burden of possible layoffs. In the long run this move will create
a new attitude, a new awareness among Indonesians, to only eat,
wear and use what they can produce in as much as it is possible.

This kind of social solidarity will not be attained unless the
government sets an example by leading a simple and honest life.
No more foreign trips, unless really necessary. Reports of
government officials and legislators making foreign trips despite
intense opposition against those trips are an example of poor
behavior of the elite that will hamper efforts to build
solidarity among the people.

The government must also take real actions against corrupt
officials and unscrupulous businessmen. Without concrete actions
against them and overdue punishment for the crooks, the
government will not get the support from the people. In a country
where student movements seem only good at bringing down
governments rather than helping create good governance, it is
important that the government makes good on its reform promises,
including punishing corruptors. We cannot afford another failed
government.

The Bali tragedy has hit Indonesia badly but there are simple
and concrete things Indonesians can do to recover and regain its
pride as a big nation. We were united in the struggle for
independence; it is time to unite in another struggle to free
ourselves from our weaknesses and foreign dependency.