Tag: Pemerintahan

  • The Role of Active Governance in Indonesia’s Development: A Response to Criticisms

    Introduction

    Since the fall of President Soeharto in 1998, Indonesia has embarked on a transformative journey, navigating significant changes in governance and economic strategies. This era marked a shift towards democratic processes and the reformation of institutions, aiming to establish a more transparent and accountable government. However, the nation continues to confront contemporary challenges, including economic disparities, corruption, and the need for sustainable development. The government’s focus remains on enhancing competitiveness, often relying on foreign investment and commercial relationships. This approach has led to significant corporate influence in public services, which raises questions about the balance between economic growth and public welfare.

    The transition from an authoritarian regime to a democratic government has not been without its struggles. The rapid changes have required a reevaluation of governance practices and the implementation of new policies to address ongoing issues. The government’s efforts to attract foreign investment are seen as a means to boost economic growth and create job opportunities. However, this strategy also poses risks, such as increased dependency on external entities and potential neglect of domestic needs. The challenge lies in finding a balance that promotes economic development while ensuring that the benefits are distributed equitably among the population.

    Moreover, the influence of large corporations in public services has sparked debates about the role of the state in providing essential services. While private sector involvement can bring efficiency and innovation, it also raises concerns about accessibility and affordability for the general population. Ensuring that public services remain inclusive and serve the broader interests of society is crucial for maintaining social stability and promoting equitable development. This balance between market efficiency and social equity is a central theme in Indonesia’s ongoing governance reforms.

    Ideal Role of the State

    The concept of the state’s ideal role is dynamic, evolving with prevailing political ideologies and economic theories. According to Indonesia’s 2007 RPJP Law, the state is envisioned as an educator, protector, and guarantor of social-political ideals. This vision encompasses a wide range of responsibilities, from ensuring equitable access to education and healthcare to maintaining social harmony and political stability. The state’s role is to create an environment where all citizens can thrive, ensuring that the basic needs of the population are met and that opportunities for advancement are available to all.

    However, the RPJP 2007 was influenced significantly by the notion of self-limitation governance, which advocates for minimal government intervention. This perspective suggests that the free market should dictate economic activities, with the government’s role limited to ensuring the basic framework within which the market operates. Yet, this often fails to address the complexities and inequalities present in a developing nation like Indonesia. President Joko Widodo’s (Jokowi) Nawa Cita narrative directly opposes this by asserting that “Negara Harus Hadir” (the state must be present), emphasizing that the state has a crucial role in guiding and supporting national development. Without active state intervention, many regions and communities would be left behind, perpetuating cycles of poverty and underdevelopment.

    IKN Nusantara Development: A Critical Necessity

    The development of Indonesia’s new capital, IKN Nusantara, represents a bold vision for the nation’s future. This project aims to decentralize economic activity, alleviate the pressures on Jakarta, and stimulate growth in less developed regions. By relocating the capital, the government seeks to address regional disparities and create a more balanced distribution of economic opportunities. This ambitious initiative has the potential to transform the economic landscape of Indonesia, fostering regional development and reducing congestion in the current capital.

    Strategically located near the ALKI II shipping route, IKN Nusantara is positioned to enhance Indonesia’s geostrategic importance. ALKI II (Indonesian Archipelagic Sea Lanes II) is a vital maritime route facilitating significant global trade. It connects the Indian Ocean with the Pacific Ocean, passing through the Makassar Strait and the Sulawesi Sea, adjacent to IKN Nusantara. This route is crucial for international shipping lanes linking countries such as Japan, South Korea, China, Australia, and various Southeast Asian nations. The commodities shipped through ALKI II include oil and gas, coal, palm oil, and other essential goods. The proximity of IKN to ALKI II positions it as a strategic hub for maritime logistics, enhancing national security and economic resilience.

    Australia, a major player in the global minerals market, exports significant quantities of lithium, cobalt, nickel, rare earth elements, and copper to Japan, South Korea, and China. These countries are leaders in high-tech manufacturing, utilizing these minerals for renewable energy technologies and various high-tech applications. This strategic positioning of IKN near ALKI II thus enhances Indonesia’s potential to become a critical player in the global supply chain.

    Additionally, Indonesia is developing its own industries related to the future of energy, particularly in Sulawesi and the surrounding provinces. Six provinces—North Kalimantan (Kaltara), East Kalimantan (Kaltim), South Kalimantan (Kalsel), West Sulawesi (Sulbar), Central Sulawesi (Sulteng), and South Sulawesi (Sulsel)—are directly connected to the development of IKN at both sides of ALKI II. These provinces are rich in fisheries, plantations, and minerals. Sulawesi, in particular, has seen significant investment in nickel mining and smelters, which are essential for the production of batteries for electric vehicles and energy storage systems. These developments are crucial for Indonesia’s ambitions to become a significant player in the global energy transition.

    The government has put significant efforts into addressing and mitigating the ethical and practical concerns associated with IKN Nusantara. Environmental sustainability is a top priority, with measures to incorporate green technologies and sustainable practices to minimize environmental impacts. The government plans to complement the urban area with reforestation, planting trees that will facilitate the return of biodiversity and enhance the ecological value of the region. Additionally, the government is committed to ensuring that the displacement of local communities is managed responsibly, providing support and compensation to minimize social unrest and ensure that the benefits of development are widely shared.

    The recent article from Fulcrum denigrates the prospects of IKN Nusantara, citing recent resignations and governance challenges as significant setbacks. However, these issues underscore the need for stronger commitment and better coordination, not a reason to abandon the project. The development of IKN Nusantara remains crucial for decentralizing economic growth and addressing regional imbalances. Transparent governance, community engagement, and robust environmental regulations are essential to mitigate the risks and maximize the benefits of this monumental project. By prioritizing sustainability and social equity, the government can create a new capital that not only drives economic growth but also sets a benchmark for responsible development in the region.

    Addressing the Concerns of Careful Planning

    Careful planning is essential for the success of large-scale projects like IKN Nusantara. However, overly cautious planning can lead to demotivation and detract from the political momentum needed to drive the project forward. It is crucial to strike a balance between thorough planning and decisive action. Ensuring that all stakeholders are engaged and committed to the project’s goals can help maintain motivation and momentum.

    Effective communication and leadership are key to keeping the political class and the public informed and engaged. Clear milestones and transparent progress updates can help maintain confidence in the project’s feasibility and success. Additionally, flexibility in planning allows for adjustments and improvements based on real-time feedback and changing circumstances.

    The development of IKN Nusantara should be seen as an opportunity to showcase Indonesia’s ability to undertake ambitious and transformative projects. By embracing a proactive governance approach, the government can demonstrate its commitment to addressing regional disparities and fostering sustainable development. Jokowi’s Nawa Cita narrative, emphasizing the importance of state presence, provides a strong foundation for guiding this project to completion. With President-elect Prabowo Subianto’s commitment to continuing IKN development, the project is set to maintain its momentum and focus on delivering its promises to the Indonesian people.

    Conclusion

    As Indonesia stands at the cusp of a new era with President-elect Prabowo Subianto committed to continuing the development of IKN Nusantara, the role of active governance becomes even more critical. The transition from Jokowi’s administration, characterized by the Nawa Cita principles, to Prabowo’s leadership underscores the nation’s dedication to proactive state intervention. This commitment is essential for addressing regional disparities and fostering sustainable development. Through effective governance, clear communication, and decisive action, Indonesia can ensure that the IKN Nusantara project not only meets its goals but also serves as a model for responsible and inclusive development.

  • Taming the Leviathan

     

    Indonesia’s Presidential Election 2014 is probably a landmark moment in the country’s democracy. Never before in the last decade saw a big surge of public political participation. Thousands of volunteers’ organisations from villages to the national stage sprouted like mushrooms in rainy seasons. A combination between the hope of a new beginning and the fear of past dictatorship propelled the apolitical citizens to take side in supporting the winning pair Joko Widodo – Jusuf Kalla (Jokowi-JK).

    New Governments are usually expected to bring breakthrough in governance and public life. During the Presidential Race, campaign promises attracted Indonesian voters in terms of change in people’s welfare: health, education and income. Those appeals articulated the new hope and the votes of 9 July 2014. But questions remain: What the winners of the race will actually deliver? What changes will arrive before 2019? How civic engagements of CSOs can push more social, political and cultural changes through the new government?

    The Electoral Balance of Power

    Before we can answer the questions, we have to do a quick scan of the political balance in Jakarta.The President and Vice President are supported by a minority coalition. The four parties (PDI-P, NASDEM, PKB and HANURA) represents only 37% of parliamentary seats elected in April 2014. However, the pair managed to garner 53% of popular votes. This means that while the new Chief of State won the public support, he will face a relatively hostile Parliament.

    This is seen during post-election politics: the outgoing parliament managed to pass two controversial bills (Law on The Peoples Assembly, House of Representatives, House of the Provinces’ Representatives, and Local House of Representatives – or UU MD3, and Bill on The Elections of Provincial and District/Municipal Governments – or UU PILKADA). The two bills are clearly beneficial to the Coalition Opposition (Coalition Red-White, KMP) who controls the national and local parliaments. Through UU MD3, the opposition managed to secure the leadership of the Parliament. UU PILKADA eliminates direct local government elections and gives the mandate to local parliaments to elect local leadership. UU PILKADA, however, is not successful as it was vetoed by the outgoing President Yudhoyono.

    The continuing debates and protests on UU PILKADA also highlight the power structure that will facilitate or hinder the success of the new government. First of all, Indonesia is not a federal state but a unitary state. Thus, the new government’s successes rely on how its policies and programmes are implemented by the provinces (level 1) and districts and cities (level 2) in the highest coherent and integrated manner. One of the main challenges is that the local governments are not controlled by the same ruling coalition, and the binary relationship of government-opposition is not translated in the same manner at the provinces and districts/cities. A governor in a Sulawesi province might be coming from the party that is part of the opposition coalition, but his/her election was supported by parties coming from both ruling and opposition coalitions in Jakarta. And starting in 2015, the race to control the provinces, districts and cities will start. As stated by the National Election Commission, 214 regional head elections will be conducted in that year alone.

    Taming the Leviathan (or the “Deep State”)

    Besides the balance of power at the national and local level, there is also another important feature of contemporary Indonesia’s democracy. The transition to democracy, started in 1998, has also a focus on the bureaucracy reform. A professional, clean and impartial bureaucracy force has been in the vision The reform itself was implemented in many ways, such as the creation of Ombudsman Indonesia, the Anti-Corruption Commission, and more recently, the Law of National Civil Apparatuses.

    Jokowi has a strong track record in driving the bureaucracy reform in Solo and Jakarta. On the other hand, the bureaucracy both at the center and in the regions also have a track record of, often in subtlety, sabotaging the government agenda that they consider not in their favor. It happened in the Habibie, more severe in the successive terms of Wahid (1999-2001), Megawati (2001-2004) and Yudhoyono (2004-2014). From this side of the political landscape, it is equally naive if we expect Jokowi-JK administration running the business as usual scenario in fulfilling their campaign promises.

    At least there are four strategic complexities faced by Jokowi-JK to run the government:

    The first complexity is related to the regulatory barriers successfully enacted by the key bureaucrats to limit bureaucratic reform. One example is the case of the Civil Law of the State Apparatus. Efforts to encourage the formation of a competent bureaucracy and a merit system based on competence and performance are diluted by the interests of key bureaucrats. They want to perpetuate a bureaucracy model based on seniority and other formal aspects.

    This complexity has a serious impact in the performance of the new government after 20 October 2014. The President and the ministers, who are the State’s executive, would have difficulties to quell the resistance from senior bureaucrats in the ministries. As previously stated, the bureaucrats have track record of sabotage. And the only way to eliminate the resistance by replacing those senior officials is also made ​​more difficult. The replacements must have sufficient seniority. The government will also face difficulties to cut sectoral ego in the ministries, with their silos or small kingdoms, which has been making the government inefficient and wasteful due to inability to operate across ministries and to reduce overlaps.

    The second complexity is born from the pattern of regional autonomy. As mentioned earlier, the programs of Jokowi-JK must be synchronized by the programs that are currently running in 511 districts and 34 provinces and cities. Two key Jokowi-JK flag campaign promises, Smart Indonesia Card and Healthy Indonesia Card (basically cash transfer programs related to health and education), require strong coordination between several ministries in the central government and relevant regional departments to implement the dissemination, planning, and execution of the two programs.

    The reduction and conversion of fuel subsidies in the transport sector clearly needs a big role the provincial and district/city governments to make sure the shock of the fuel subsidy reduction can be isolated. In the current pattern of regional autonomy, it is inconceivable how the central government bureaucrats described above can ensure adoption. We can see an example, how the central government failed in pushing the Government of DKI Jakarta under Fauzi Bowo to run 17 policy steps to reduce the Capital’s acute traffic jam. Most of those steps are finally implemented even after Jokowi elected in 2012.

    The third complexity is the problem of legacy programs from Yudhoyono administration which are detrimental or potentially detrimental to the people’s welfare. We can see examples such as the presidential aircraft and Mercedes Benz for the ministers. They are a small sample and insignificant in comparison with some other programs such as the Master Plan for Acceleration of Indonesian Economic Development (MP3EI). Already hundreds of projects have been started by the umbrella of MP3EI Public Private Partnership with multi-year financing scheme. Also, social and ecological impact that occurs in these projects will be a stumbling block on the course of the next administration.

    MP3EI legacy projects will also reduce the fiscal space. Until now, the observations made by some non-governmental organizations, government participation is still much larger than the expected private capital in PPP. Most of the projects are actually financed by the public domestic and foreign debts.

    The fourth and last complexity is not less strategic. This problem lies in the dominant narrative and discourse in the role of the state which has now been adopted by the bureaucracy, they are both reformers and conservatives.

    Previously, the logic of bureaucracy are in ideological veil of mengayomi or “nurturing”. The bureaucracy considers itself as higher, more knowledgable, more competent than the people, thus it devotes itself to guide the people. The problem is, the people at that time did not have the right to know how the bureaucrats and their cronies enriched themselves from pengayoman or “the nurture”. Today, amid the public pressure and scrutiny, the bureaucracy has found a new veil, the “empowerment”. Previously, the State was responsible of everything. Now, the State is responsible for fewer things as needed, because the people need to be empowered. By this logic, the role of the State is minimized and service delivery roles are handed back to the people through market mechanism.

    This means, the ideology of government Jokowi-JK with the agenda Nawa Cita (in short, a strong and present State) will face two opponents and competitors: the ideology that thinks the public goods should be managed by market mechanism (adopted by the reformists) and the ideology of a bureaucratic regime who is busy saving its own interests. These three perspectives of political interests will obviously make difficult policy formulation. It is very likely that the fight will not escalate into severe political crisis, but most likely this will make government policies incoherent, multi-interpretation and eventually ineffective.