Indonesia 2004-2009: Vision for Change

Indonesia 2004 - 2009 :

VISION FOR CHANGE

Preface

On these days the history of Indonesia is in the making: for the first time the nation will directly choose its president. Naturally, within this new political structure the role of presidency will become much more important than it used to be. Result of surveys conducted by respectable research agencies reveals that Susilo Bambang Yudhoyono is one of the most credible president candidates. The quality that distinguishes him from other candidates is his clear vision on the future of Indonesia. This book contains his speech delivered in Singapore on May 26, 2004, in a conference hosted by Institute of Defense and Strategic Studies (IDSS), The Straits Times, and Nanyang Technological

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University. It is supplemented with two articles appeared in The Straits Times the day after. We hope this document will become an important source of information for academic purposes as well as policy formulations.

Brighten Press

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Contents

I. Introduction — 1 II. Change for The Better — 3 III. Prosperity — 6 IV. Peace — 15 V. Justice and Democracy — 21 VI.What I Believe in — 30

Q & A — 33

Article — 39

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I Introduction

Let me begin by expressing my appreciation to the Institute for Defense and Strategic Studies (IDSS) and The Straits Times for inviting me here today to speak about “Presidential Elections in Indonesia”. As I look around this room, I see so many important officials and prominent citizens of Singapore in this forum. I am touched to know that you have keen interests in my country’s elections, although of course that is hardly surprising given that the destinies of our nations are so closely intertwined. I have been asked to speak about my vision, hopes and aspiration for Indonesia’s future. I welcome this invitation because this is exactly what I have been communi-

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cating to the Indonesian electorate in the last few weeks. Mind you, on the campaign trail, I did it in a slightly different way. At campaign rallies all over the country, the Indonesian people not only wanted to meet me and to hear my vision, they also wanted to see me sing, something which I was always happy to oblige. I think the campaign certainly has brought out a musical side I never knew I had. My wife said that I have been transformed from a “musical politician” to become a “political musician”.

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II Change for The Better

In the past few weeks, I have been campaigning throughout Indonesia to speak about one thing : “perubahan” or change. And I have to admit, I am amazed to see how this theme of “change” has struck a cord with the tens of thousands of Indonesians I met on the road, from Jakarta to Medan, Lombok to Kupang, Semarang to Pandeglang. The millions of votes that Partai Demokrat has received from all over the country is a testament to the people’s yearning for “perubahan”, for change. This year’s vote results tell us that Indonesians have not changed their minds about reformasi. What they are telling us is that they continue to have faith in reformasi, but they are worried that the prom-

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ises of reformasi are not being kept. They worry that the country’s future is going in the wrong direction, that the present is not much better than the past.They worry that as stakeholders of this great nation, they are becoming increasingly marginalized in our country’s political development. You do not have to wait until the last votes are counted to feel this public mood. That is why when speaking of “change”, I must specify that I am talking about change for the better. Change itself is easy. But change for the sake of changing is useless. And no one wants to change for the worse. What we need is a change for the better. A better government. A better governance. A better society. A better political culture. A better environment. A better future.And that is why I decided to run for the President of Indonesia, because I truly believe in that Indonesia can do better, can be better, and deserves better.

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The most difficult thing for any nation to do is to reinvent itself, and to adapt to evolving circumstances.To change the way we govern. To change the way we present and carry out leadership. To change the way we conduct politics. All these changes will remain a challenge for our great nation for years to come. But change is necessary because otherwise Indonesia cannot reclaim its greatness. Change is necessary because if we continue on like this, Indonesia will descend into decay. It is often said that Indonesia is a very difficult country to govern. But I have also found that this complex nation has very simple needs. When all is said and done, Indonesians aspire to have three very basic things: prosperity, peace, as well as justice and democracy. Yes, prosperity, peace, justice and democracy. Let me elaborate on each of these themes.

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III Prosperity

There is no doubt that Indonesia is recovering from the financial crisis which began in 1997.We welcome the macro-economic stability which now characterizes our economy. Our GDP growth is expected to be 4.5 per cent, inflation is a modest 5 per cent, and the budget deficit is less than 2 per cent of GDP. But we must give credit where credit is due, and the recovery is underway largely because of ordinary Indonesians, who, despite painful economic reforms, continued their small businesses and generated consumer spending that is boosting the economy. Unfortunately, somewhere along the way, a “disconnect” happened.The macro-

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indicators are not mirrored in the microeconomic picture. People are complaining that the costs of basic education have risen sharply. So have the costs of telephone calls, electricity, construction materials. Clearly, the big numbers are not reflected down to the small people. And concerns about legal certainty and reduced competitiveness have prevented foreign direct investment from coming in great numbers. There is therefore something artificial about the prosperity that we are seeing now. Despite the macro-economic numbers, the “feel good factor” is not there. While we are certainly better off today than we were three years ago, the question is: why are we not MUCH better off today than we should be? We need higher growth of at least 7 per cent, because it is only with higher growth that we can improve the welfare of our people, provide them better education,

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and better healthcare. These are the foundations of our future and our children’s future. I am fully aware that my critics sometimes say that I make nice-sounding speeches about my vision for change but do not have the plans and programs to back them up. But I am here before you to present some of my plans should I become President. I am here to talk about concrete measures, and not just ideas and ideals. For example, with unemployment reaching 10 per cent in some regions, Indonesia needs more jobs. As President, I will support more small and medium business enterprises, because they will provide more jobs to our communities. My government policies will be friendlier to small businesses because they have been the engine of our economic recovery so far; we need to provide better credit lines for them so that their enterprises can succeed. And we need to better teach local govern-

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ments how to improve training facilities for workers, including our workers who are sent overseas. It may be surprising coming from a former general, and I know all the jokes out there about military officers running failed businesses, but I do understand the needs of the business community. When I was Minister of Mines and Energy, I regularly met with businessmen and potential investors who told me what Indonesia needs for higher growth. And they all told me the same thing : in order to attract foreign investment, we must improve the legal structure, improve transparency, improve our openness to global trade and investment, and improve the skills of our people. So how do I plan to tackle all these challenges? Firstly, human resources development should be a top priority, as are the creation of better infrastructure and market-friendly policies. I will strive to improve the budget for public works, mass

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transportation projects, and other important infrastructures, mostly on rural and agricultural infrastructures as well as ruralurban linkages infrastructure. We will find innovative and efficient ways for building these projects. State-owned enterprises should be made more efficient. Our tender process should also be more transparent. We must streamline the bureaucracy for setting up businesses, making it easier for investors to invest. And our labor laws must be improved so that employers and employees have equal protection, and communication channels between businesses and labor unions run smoothly. Our tax collection policies also must become more transparent, fair, and effective. And after sitting in traffic jams once too often, I have become a firm believer in the good of effective public transport, be they rail-based or subway projects. Economic growth simply cannot take off if everyone spends too much of their time

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stuck in traffic! Infrastructure development is a real key. Indeed, investors will flock to places where they know their investment will safely prosper, so we must build the best possible environment for investors. Like the American actor Kevin Costner said in that baseball movie, “if you build it, they will come”. In all my meetings with the business community, they always stress the importance of the rule of law, and they are absolutely right. From my experience as Coordinating Minister for Politics and Security, I have learned that the rule of law is vital in any situation, be they pertaining to business interests or national security. And I know from this experience that establishing the rule of law does not happen overnight. But this is one key area where the President and other leaders in government and the legislature must lead by example. As leaders we must provide a

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good example of clean government as well as competent government.The well-being of a nation is a reflection of the quality of that nation’s leadership and I aim to lead this great country to a better state of being. Let’s talk about poverty. My years in various administrations have allowed me to travel all over Indonesia, and what I have seen on my journeys have compelled me to do something to help the poor. In concrete terms, we must simply allocate more funds to help the needies amongst us, to provide them with better basic healthcare by building more clinics, boosting the budget for healthcare subsidies, and providing better education for preventive healthcare. We must make sure that their children get the education they need to escape this cycle of poverty; we must increase the number of scholarships and boost subsidies for schools in povertystricken communities. We must also improve our national curriculum, increase

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the ratio of teachers to students, and encourage our children to read more by replenishing school libraries. Equally important is the need to increase civic education amongst our communities, so that neighbours can better turn to each other for help. When I was younger, I remember that this sense of “gotong royong”, of mutual help and support was much stronger, that if your neighbours were in trouble, it was your duty to assist them. But somehow in our journey as a nation, this sense of community has weakened along with our sense of empathy towards one another. Some became greedy, and became more concerned with our individual well-being rather than the well-being of the whole community. I want to help change all this. I want to tell all Indonesians that if we move forward as a community, we will not only become more prosperous but strengthen our resolve against potential national disinte-

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gration. I say this because I am constantly haunted by the faces I see at campaign rallies. The faces of poor families desperate for a government that will listen to their pleas for help. It is for them that I continue with my campaign. It is for them that I aim to make economic recovery my number one priority in my first hundred days in office.

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IV Peace

But if Indonesia’s recent history has taught us anything, it is that prosperity will not come in the absence of peace or if justice is ignored. In my line of work, I have seen how conflicts tear apart communities, saps the energy of our nation, destroys economic resources and ruins our social capital. I am fully aware that securing peace and security in our vast archipelago is not just a matter of national interests; it is also an international concern given Indonesia’s strategic position. The threats to peace and security in Indonesia come in many forms and guises. But in the near term three tasks will be most critical. We need to bring an end to armed

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separatist movements in Aceh and Papua. I know this is easier said than done, for problems in these areas have lingered on for decades. But I am of the conviction that the complex problems in Aceh and Papua can be managed and resolved if we have a national leadership that is fully engaged with the problems, and is willing to pursue creative, constructive policies. I also believe that we can best undermine support for separatism through greater promotion of special autonomy in these regions. And while we have to put an end to armed opposition, we must do so while protecting the rights of innocent civilians. We also need to end communal conflicts in Maluku, Poso, and elsewhere. This too will require creativity, constructivisism, compassion. But as the Malino accord and other peace processes that I have been involved in have shown, achieving this end is not impossible. We need to bring back harmony to these communities to prevent

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future destructive actions. We need to rebuild the infrastructure of these communities so that they may return to their normal lives. I remember seeing in Maluku how the rebuilding of houses helped ease the community’s trauma.And most importantly, we must engage these communities in peaceful discussions in order to discover and address the root causes of these conflicts. Indeed, we live in dangerous times, made ever more dangerous by the growing threat of terrorism. Indonesia is a victim of terrorism, and I have spent the last few years fighting this scourge, in order to protect our people as well as foreigners in our midst. It has not been an easy fight. Terrorists by nature work in secret, and their tentacles are difficult to detect and track down. But any counter-terrorism effort must be assisted by a strong legal framework, which we must improve. I know from experience as Coordinating

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Minister for Security that strengthening the capacity of our law enforcement agencies takes time and commitment, but it is an endeavor that must continually be carried out. Terrorists adapt their strategies according to changes in the security infrastructure; so must we if we want to catch them. I remember vividly the wreckage of the Bali bombing, I remember seeing mothers and fathers, husbands and wives, sons and daughters, weeping from their loss. I remember promising to myself, I do not want to see this happen in my country, or in any other countries, again. If I am elected President, I will maintain and heighten the intensity of our counter-terrorism efforts.We are all in this together, for the sake of our friends and families, for the sake of our children. Many communal conflicts are driven by local issues, but let us not be fooled: our national politics must provide a better

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example for our communities. As politicians, we must stop bickering so much with one another, and agree to common principles of tolerance. I am adamant that we must ward off any extremism or radicalism in our formal political landscape. Indonesia’s long, varied history is rooted in tolerance and openness. We have every potential to become a great modern nation if we continue this tradition. Peace and harmony in Indonesia depend on Indonesians carrying out the principles established by this country’s wise, founding fathers. For decades, the core message of Pancasila, and our strong belief in “Unity in Diversity” defined our national identity and our belief system. We must not leave these norms behind especially during these tumultous times; instead we must apply these principles with greater resolve. It may seem vague to some audiences, but I do not think our commitment to diversity is different than the experience of

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other countries. Look at our neighbours in Asia or in Europe. They too have their ideals of ethnic harmony, religious tolerance, social integration. Achieving these ideals in these countries as well in our own country is a continuous work in progress. As President, I will bridge economic and social gaps between communities. That is why we must continually improve our decentralization process, addressing weaknesses and flaws as we find them, bringing in innovative ideas presented by local communities, strengthening the power of effective local leaders. Only by sharing ideas and improving on them will we rebuild the social trust amongst ourselves and between ordinary Indonesians and their leaders. It is time that leaders stop looking down at their people and instead talk to them as brothers and sisters who have as much interest in making this country the best that it can be.

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V Justice and Democracy

I am very much aware that justice is perhaps the most difficult part of my vision, but without justice, peace and prosperity will be hard to come by. Yet even in other countries, even in the most developed nations, justice is an elusive ideal. That does not mean that we should stop trying. Indonesia suffers from the lack of justice in so many ways. Our nation continues to be plagued by corruption and extortion. Ordinary Indonesians have long learned the hard way that the law sides with the powerful rather than with them. Foreign investors have seen once too often that regulations are not written in stone, and that at times there is little protection against greedy officials.

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As President, I aim to change all that. I will strive to make sure that the rule of law prevails over the rule of powerful interests. Like many other Indonesians, I dream of an Indonesia where everyone is equal before the law, I dream of an Indonesia marked by freedom and fairness, by a respect for human rights. That to me are the hallmarks of democracy. Achieving all this will be a continuous struggle—that I have learned during my years in government. But step by step, and with the right political resolve, we can take our vision closer to reality. Strengthening the rule of law, for example, is not impossible. We can further professionalize and supervise the judicial system, and reprimand judges and prosecutors who do not abide by the law or show bias towards or against individuals.We can also look to our neighbors for cooperation in the reduction of illegal drug trafficking and piracy. As President, I will work

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towards better coordination between regional governments on these issues. We must be equally vigilant in our anti-corruption efforts and enforcement, strengthening the authority of anti-corruption authorities and regulations. And we must not forget that corruption is a social disease requiring the worst punishment that only society can hand out: shame. So we must continue to encourage ordinary Indonesians to report and publicise graft wherever they see it, to provide ample facilities for this reporting. Indeed, public participation in strengthening law and order is key, because our mutual goal towards freedom and fairness requires a mindset shift. Many ordinary Indonesians suffer from an inferiority complex, feeling that they are just “orang kecil”, or “little people” who don’t deserve much more than what they have. As President, I want to help communities across Indonesia learn that they

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deserve more. I want them to know that “public service” means service to the public, and not just a few, and demand such a service from their governments. I want communities across Indonesia to demand a simple rule: that nobody is above the law. I want to remind these “little people” that democracy is for the people, by the people. It is time that the government stops being afraid of the powerful, and start being afraid of the “little people”, because it is the “little people” that will put them out of office. Let me now speak a little about human rights. I am here to tell you that I am first and foremost a simple citizen of Indonesia who wants my children and grandchildren to have all the rights that they deserve. As President, I want to make sure that the laws respect personal freedoms and rights, for both men and women, rich and poor, across Indonesia. I also feel that my military background

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gives me a better perspective and position on how to further reform the military, so that all our officers and soldiers have a full respect for human rights. I devoted the last years of my military career drawing-up a blue-print for military reforms for the TNI. For many years, I helped provide more and more training to our officers and soldiers on how to implement democracy, and how to become more professional in the field. And allow me to say this about the Indonesian military: please do not underestimate them. Like many other officers and soldiers in Indonesia and in other countries, I myself joined the military because I was motivated by the desire to make the country better. That desire remains, that is why I stand before you here today. I remember that as a young officer, you are continually taught about discipline, about public service, that one’s highest duty is to improve the country’s

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welfare.Those principles are still taught in military academies today, and upheld by many of our young men and women in the military. Let me say a few words now about Indonesia’s foreign policy. To be sure, foreign policy has not been a focus in Indonesia’s elections this year, but it goes without saying that our national agenda can be greatly advanced with international cooperation. As President, I will continue to promote Indonesia’s independent and active foreign policy. We will project Indonesia as an open, tolerant, modern, democratic, outward-looking country with a strong voice for peace and justice in the international community. And Indonesia will remind stead fast as a frontline state in the international fight, and we will pursue active counter terrorism measures, nationally, regionally and internationally against terrorism. ASEAN will remain the anchor for

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Indonesia’s foreign policy. I understand that the regional order and security architecture will continue to evolve. ASEAN leaders have signed the Bali Concord II last year, comprising of 3 pillars —the ASEAN Economic Community, the ASEAN Security Community, and the ASEAN Socio-Cultural Community—to be realized by 2020. ASEAN therefore has a clear vision of where it wants to go, but the question is how we get there from here. ASEAN will need to maintain its cohesion and dynamism in order to manage an increasingly challenging regional order. All ASEAN countries should have a strong sense of ownership of each of the 3 pillars of the ASEAN Community. And ASEAN will need to adapt itself internally as well as externally effectively if it is to enhance its role in this fluid and volatile international situation of today. In all this, I hope Indonesia and Singapore will continue to have a strong

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relationship. Singapore has a unique, special place in Indonesia’s foreign policy. Singapore is our key trading partner and an important source of foreign direct investment. Singapore is the most developed country in Southeast Asia, it has the most “international” outlook, and is the most connected to the global economy. And as a close neighbor, Singapore has always shown a willingness to go the extra-mile to help Indonesia in times of difficulty. Both Indonesia and Singapore have an interest in maintaining stable, strong, cooperative relationship.This will be particularly needed to resolve the outstanding issues in our bilateral relationship, such as the settlement of the maritime boundaries, and the extradition treaty. There is great interest in Indonesia to see the early resolution of these issues, and how we resolve these issues will test our diplomatic creativity. I also hope to see Indonesia and Singapore working ever closer to deal with regional

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issues, to promote ASEAN cooperation, and, given our respective resources, to advance the interests of our region in international affairs.

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VI What I Believe in

I have spoken at length about my vision for change. But my vision of prosperity, peace, and justice and democracy, is not just my vision. For these three objectives were the basic promises of Reformasi. Ordinary Indonesians went to the polls in the 1999 elections because they believed their leaders would deliver these promises. Now, I know I am not Superman, I don’t have magical powers to make all these things come true overnight. But I do believe in hard work, and in the absolute necessity of good governance. I believe in working hard towards achieving what you believe in. And these are the things I believe in: a modern, democratic, outwardlooking, open and tolerant Indonesia. I

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believe in integrity, I believe in ethics. Some may criticise me for this, but I believe in prudence, I believe in clear, rational judgement. And I believe in friendship between nations, in open dialogue with world leaders about the problems we face today as a global community. Most importantly, I believe in faith and hope. I believe that with firm commitment, we together can make our objectives come to life, step by step. What is vital is that the people keep their faith in government and in themselves, that they continue to believe that Indonesia can change for the better. As President, I will work day and night to keep their faith alive, to make the people believe in leadership again, to make ALL Indonesians believe in hope again. Remember, I am a former military man who knows what happens when we don’t get the job done : we get sent back to cleaning up the toilet ! Thank you very much.

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Thursday, May 27, 2004

Page A2

Q&A

Former general Susilo Bambang Yudhoyono fielded questions ranging from corruption and economic growth to the forming of coalitions. Here are excerpts from his question-and-answer session yesterday. Weeding out corruption “Fighting corruption is an unfinished agenda. It must be done top-down. Leaders set an example. Law and regulation will have to be fully implemented.We have to empower the institutions that have been built to fight corruption.We have to

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invite civil society to be part of the national campaign to fight corruption.” Rumours that he will back syariah laws “It is untrue. I am fully committed to the spirit and substance of the Indonesian Constitution. I support the concept of pluralism. We have built a national consensus that we will not accept the syariah laws in our Constitution and I will follow the Constitution. If I am elected, I will abolish all discriminating policies that are based on ethnic or other identities. We have to respect diversity.”

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China products threatening local industry “To solve the problem, we have to improve our own competitiveness, our productivity. We have to improve the management to be able to compete. Of course we will have bilateral agreements.We also have to make sure our products are marketed well.”

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Best man for the job “During my campaign I never attacked the policy and the performance of the administration because I had been part of it for 4½ years. Ms Megawati has achieved many things. But the country is still facing many more problems that need to be solved. Having been part of the government, I know the culture, rules of the game and the decision-making process. If I am elected, I have to improve the situation with more effective governance. I will convince my people that I could be stronger (than my opponents) by offering solutions based on my experience, knowledge and my understanding of problems faced by Indonesia.”

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Fighting destructive ideologies “...We have to try to understand better the root causes of terorrism. We have to conduct very intensive exercises to deter and

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defeat terrorism — by adopting a sound legal framework, improving capacities, conducting intensive operations by the intelligence and the police and last, but not least, by fostering cooperation — bilateral and regional. We have to address the root causes of the problem. Radicalism can pave the way for the act of terorrism. We will not let the people be hijacked by the radicals or by their actions. There are many religious leaders in Indonesia who can play a role to moderate the minds of people of Indonesia. And the government has to support the empowerment of these true religious leaders. At the same time, the government has to take effective action if there is a violation of the law done by the radicals and extremists.” Strategy to win support in Parliament “If I am elected, then forming a coalition

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is the solution for me to maintain sustainability and stability. So if am elected, I will take one or two political partners. Though the Democratic Party is the fourth-largest party, we have to form a coalition because we have 57 seats in a 550-member house. That is not enough.” Dealing with human rights abuse “I respect the rule of law, the supremacy of law. We don’t want to close any legal or human rights case. There are cases for the East Timor incident, the case for Aceh and other cases. I will support the continuation of the process.This must be done fairly and according to our Constitution, laws and other conventions. We have to pursue the legal process.”

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Military reform “I led 38 generals to draw a blueprint and I led two years of military reforms. The

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essence of military reform is quite clear — they should abandon the dual role and get back to professionalism. It is quite clear that the Indonesian military has to stop playing politics, has to respect democratic rights and practices, human rights and our Constitution.” In the face of defeat “I will support the elected president. I will be a good citizen and contribute to nation-building.”

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Thursday, May 27, 2004

Page 4

Bambang says he’s most suited for top job

Laying out his vision, he cites his years of experience to back his claim that he is best placed to lead his country forward By DERWIN PEREIRA INDONESIA BUREAU CHIEF

PRESIDENTIAL frontrunner Susilo Bambang Yudhoyono yesterday staked his claim for Indonesia’s top job as he made clear his resolve to address the country’s problems if elected to office. 39

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Outlining his vision for the country and his credentials to run it, the former minister in Megawati administration said that he was the strongest contender for the presidency, which will be decided in July 5 election. Speaking at a conference on the Indonesian presidential election organised by the Institute of Defence and Strategic Studies (IDSS) and The Straits Times, he said:“I am stronger than the others because of my knowledge and experience in government.” He cited his years of service in government, as well as his leadership in reforming the military and upholding human rights and democracy, to back his claim to being the most prepared to lead the country forward. He made this point in response to a member of the audience, who asked him to rate his rival contenders and their strengths, relative to his. The 54-year-old Bambang, who is 40

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leading in the presidential race according to several opinion polls, was careful not to be drawn into mud-slinging his rivals. Each of the candidates had their strengths and weaknesses, he said, reeling off their names, but struggled for a moment to recall the name of Mr Wiranto, the other retired general in the running for the presidency. Indeed, some observers have billed the election as a battle of the generals. Both Mr Bambang and Mr Wiranto are expected to slug it out in the first round. Some in the Bambang camp, though, see President Megawati Sukarnoputri as an even greater challenge given the powers of incumbency, the Sukarno brand name and the party machinery at her disposal. But the four-star general, who quit the current government in a huff after falling out with the palace, was more intent on spelling out his vision as leader of the world’s most populous Muslim nation. “I am fully aware that my critics some41

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times say that I make nice-sounding speeches about my vision for change but do not have plans and programmes to back them up. But I am here before you to present some of my plans.” Indeed, compared to most of the presidential candidates, he appeared to have drawn up a much more detailed agenda to for resolving Indonesia’s multi-faceted problems. Top of his agenda was the strengthening the rule of law and fighting corruption — a thorny issue that he was the forced to address periodically when pressed by several members of the audience. He was also asked what steps he would take to stop violence in strife-torn provinces. He said he would try to end armed separatist movements in the resource-rich regions of Aceh and Papua. Separatism, he made clear, was out, but efforts to win over these restive regions should go beyond flexing military might. On the economic front, he aimed to 42

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attain economic growth of at least 7 per cent and bring back much needed investments into Indonesia. His vision was also aimed at stirring the economic engine at home. This included supporting small and medium enterprises by offering them better credit lines and cutting bureaucratic red tape for setting up businesses. While giving an insight into his plans if elected, he made clear that it was not going to be a cakewalk. “I know I am not Superman. I don’t have magical powers to make all these things come true overnight. But I do believe in hard work and in the absolute necessity of good governance. “Change is necessary... That is why I decided to run for the presidency because I truly believe that Indonesia can do better, can be better, and deserves better.”

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