In October 2015, the Ubud Writers and Readers Festival cancelled the launch of three books containing testimonies collected from survivors of Indonesia’s worst political genocide of the 20th century. Why is discussing history so controversial in Indonesia?
As 2015 draws to a close, the Indonesian government is trying to convince the jury on two counts — first, that it has turned the corner towards more constructive economic policy, and second, that it has the political leadership and capacity to implement this new policy.
The year in Indonesian politics began with a novice president in Joko Widodo (Jokowi) who, while struggling with day-to-day politics, still inspired hope that he would pursue the unfinished business of democratisation. After putting some early blunders behind him, Jokowi spent much of the year pursuing a workable compromise between appeasing the establishment and satisfying voters’ expectations for less corruption and more public goods. As the year draws to a close the president is on firmer political ground but hopes for serious reform have almost entirely evaporated.
Investment in Indonesia’s extractive sectors has languished for years, hurt by regulatory confusion, low commodity prices and endemic corruption. With hydrocarbon and mineral industries, constituting over 40 percent of Indonesia’s exports, and energy consumption rising at home, reform is important to secure the country’s future economic development.
The Indonesian economy continues to stagnate amid low commodity prices and slow domestic demand, according to Bloomberg. GDP growth came in at 4.73 percent from July to September, missing analyst expectations by a slight margin.
President Joko Widodo struggles to improve the economy, especially as the world economy slumps and domestic investment plummets. Government officials’ project that growth will be in the range of 5.0 percent for 2015, but Indonesia will post the slowest rate of growth since the 2008 crisis.
Since President Joko Widodo (Jokowi) took office, he has been clear and consistent in explaining his foreign policy priorities, enunciating the principle of putting ‘national interest’ first. Putting national interest first is to be expected in a leader’s foreign policy. What has been notable is the way that Jokowi has defined ‘national interest’. Put simply, Indonesia’s policy has shifted from one based on values to one based on economics.
On 9 December, Indonesia will have its first simultaneous local executive elections to elect governors, district heads and mayors in 269 localities (out of 537) across Indonesia. While direct election of local executives has been held since 2004, this is the first time these elections will be held simultaneously on a single day.
As South-East Asian countries gear up for their ASEAN Economic Community, coming into effect by the end of this year, Indonesia should look into setting up special economic zones together with bordering countries.
These special zones are in line with the ASEAN Economic Community’s blueprint to support local businesses and allow people and goods to move freely between states. Having countries jointly set up economic hubs in border areas can minimise territorial disputes, reduce cross-border crimes, and improve the lives of people living in remote outposts.
Indonesia became a middle-income country in 2004. Indonesia’s growth rates — while superior to those of most developing countries — remain below those of East Asia’s most dynamic economies. So why hasn’t the country grown faster still and why does growth appear slower in the democratic era than that of Suharto?
President Joko Widodo believes his country is transitioning from an economy based on commodities to one centered on production and investment. The president’s address comes on the heels of slow growth for the Southeast Asian country, which saw 4.7-percent expansion in the first quarter of 2015, the slowest growth rate since 2009.
