An Indonesian example for the US
By Ann Marie Murphy
As the United States election season swings into high gear, millions of
Americans are following every detail of the presidential campaign. Few,
however, are paying attention to Indonesia as it prepares for elections in
2009.
Indonesia may be the world's fourth most populous country, third largest
democracy and home to the world's largest community of Muslims, but it is also
the most important country Americans know virtually nothing about. They should
take notice. Over the past decade, Indonesia has undergone a remarkable
political transformation that clearly refutes the proposition that democracy
and Islam are incompatible.
Following the overthrow of General Suharto after over three
decades in power, Indonesia began a political transition under extremely
inauspicious conditions in 1998. The economy shrank 14% that year, the largest
single year economic contraction of any economy since the Great Depression. The
economic crisis plunged millions into poverty and social violence erupted in
parts of the country.
But Indonesia rose from these depths, consolidated democracy, restored economic
growth, and resolved major social conflicts. Since then, Indonesia has held two
parliamentary elections in 1999 and 2004, which international observers deemed
free and fair. In 2004, Indonesia elected its president directly for the first
time.
A decentralization program transferred significant powers to local governments
and since 2005, there have been over 350 elections for local officials. Voter
turnout in Indonesia's local elections averaged 65-70%. (In contrast, only 55%
of Americans voted in the 2004 elections.) In Indonesia, 43% of incumbents
running for re-election were defeated, while in the US incumbents won over 90%
of congressional races.
The democratic process has encouraged the peaceful resolution of longstanding
conflicts. At the dawn of the millennium, many analysts warned that Indonesia
would become another Yugoslavia: a multiethnic state long held together by an
authoritarian leader that would descend into sectarian violence and break
apart.
But the government signed a historic peace agreement with the Acehnese
separatist group, Gerakan Aceh Merdeka (GAM) in 2005, ending three decades of
fighting. Today, a former GAM leader serves as governor of Aceh after a
landmark election in 2006. At the other end of the archipelago in Papua, direct
elections for provincial governors and an increase in spending on social
services have dampened the appeal of the Papuan separatist movement.
A vibrant civil society has taken root in Indonesia. An outspoken press
provides an important check on the government; stories on official misconduct
are routinely front page news. Corruption watch and human rights organizations
investigate and publicize cases of government malfeasance and abuse of power.
Suharto's traditional suppression of political Islam meant that many Muslim
activists were at the forefront of the reformasi or reform movement that
toppled him. Democracy has opened up political space for Islamic
fundamentalists, but the overwhelming majority of Indonesians adhere to a
moderate interpretation of Islam.
A proposed constitutional amendment to require all Muslims to comply with
sharia law was resoundingly rejected. Today, Nahdlatul Ulama and Muhammadiyah,
the world's two largest Muslim social organizations, with 40 million and 35
million members respectively, are expanding their education, healthcare, and
other social services as they follow Islam’s injunction to promote social
justice.
At the same time, Indonesia regained its economic health, and repaid the US$43
billion that it borrowed from the International Monetary Fund during the
economic crisis ahead of schedule. Its debt burden has steadily declined while
foreign exchange reserves, almost depleted in 1998, now stand at $60 billion.
In 2007, the economy grew 6.4%. At a time of global food scarcity, Indonesia
has once again become self-sufficient in rice, the country's staple food.
But this young democracy faces many daunting challenges, with poverty
alleviation topping the list. Despite the economic recovery, the World Bank
reports that 17% of the country's population lives in poverty, and over 40% of
the population lives on less than $2 a day. Rising prices for food and fuel hit
the most vulnerable Indonesians hard. Generating jobs for the millions who
enter the labor force each year is another critical task given the country's
high level of underemployment.
Indonesia's infrastructure is crumbling after a decade of little maintenance
and requires significant upgrading if economic growth is to continue. An
insecure regulatory and legal environment inhibits foreign investment, which
historically played an important role in the country's economic development.
Despite a high profile anti-corruption campaign by President Susilo Bambang
Yudhoyono that has witnessed the prosecution of senior government officials,
Indonesia remains one of the world’s most corrupt countries, placing 143 in
Transparency International's 2007 corruption index. It is difficult to envision
Indonesian thriving in an increasingly competitive global environment without
major bureaucratic, regulatory and legal reforms.
Expanding access to social services and enhancing the quality of those services
is pivotal to Indonesia's future. The economic crisis reversed many of the
human development gains Indonesia had made earlier. Rates of infant and
maternal mortality rose while those of literacy and access to potable water
dropped. The quality of Indonesian education is poor, and many students were
forced to leave school for financial reasons over the past decade. Social
stability may be threatened if the government cannot meet the basic health and
education needs of so many of its citizens.
The specter of terrorism also lurks - as seen in the 2002 Bali bombings that
killed 202 people and other attacks blamed on the regional terrorist network,
Jemaah Islamiyah (JI). But so far, Indonesia has prevailed in its
counterterrorism fight. Since 2002, it has arrested more than 400 JI terrorists
and more than 250 militants have been prosecuted and convicted. JI's system of
cells has been damaged and its command and control structure degraded.
Indonesia has achieved these results with a "soft" policy of winning hearts and
minds, largely avoiding the use of torture and other harsh techniques that
Indonesian officials argue only provide fuel for terrorist recruitment.
Indonesia has many obstacles to overcome as it strives to enhance the quality
of its governance and the welfare of its citizens. Nevertheless, at a time when
the US has promoted democracy as an antidote to terror, a cure for social
instability and a means to unleash economic growth, Americans should join
Indonesians as they celebrate a decade of democracy. And the US should assist
Indonesia as it grapples with the country's remaining challenges.
Reducing poverty, reforming governance, and improving education are critical to
Indonesia's future. They are also areas where US assistance can make a
difference. Small- and medium-size businesses are the engine of Indonesia's
economic growth. American technical support for this sector can help raise
professional standards and expand opportunities.
An inability to effectively deliver many government services - from power
generation to transportation, communication and health services - impedes
economic development and hence poverty alleviation. Often, the most critical
bottlenecks are at local levels, where government capacity is weakest. The US
has wide-ranging expertise in these areas and can help Indonesia enhance
government capacity.
Most fundamentally, Indonesia must upgrade its poorly functioning education
system. An informed electorate is necessary for the continued consolidation of
Indonesian democracy and an educated workforce is required for economic
progress. The George W Bush administration allocated $157 million for
educational assistance over five years, but more could be done.
There is a stark need for well-trained educators at all levels of Indonesia's
educational system. Expanding opportunities for Indonesians to pursue advanced
degrees in the US would not only produce a new cadre of academic leaders, but
also forge personal ties between a younger generation of Americans and
Indonesians.
Indonesia is too important to remain so unknown to so many Americans.
Indonesia's achievements over the past decade deserve our recognition and its
efforts to build upon them deserve our support.
Dr Ann Marie Murphy is assistant professor at the John C Whitehead School
of Diplomacy & International Relations, Seton Hall University, adjunct
research fellow at the Weatherhead East Asian Institute, Columbia University,
and Asia Society associate fellow.
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