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COMMENTARY ON US-INDONESIA COMMERCIAL DEVELOPMENTS FROM THE AMERICAN INDONESIAN CHAMBER OF COMMERCE

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Friday, January 29, 2010

Autophagy

You may have heard of the octopus that will eat one of its arms under stress. Well, Indonesia could be doing the same thing. I read the following words from a recent Jakarta Post article with chagrin: "He [Vice President Boediono] confirmed his commitment to serving the country, no matter if he had to lose his job," said organizational affairs chairman of the Indonesian Young Entrepreneurs Association (HIPMI) Kamrussamad, who sat with the beleaguered economist recently.

I am astonished that impeachment talk is still heavy in the air in Jakarta, even after months of inquiry by a House special committee and no evidence of criminal wrongdoing by the President, Vice President or other Ministers. And if impeachment isn't the ultimate goal of the political infighters, they apparently hope to settle for the resignation of some of the nation's best and brightest.

Jakarta media is rife with reports of "deal-making" to prevent the impeachment of the President and/or Vice President, with Finance Minister Sri Mulyani or other top officials as sacrificial lambs. Members just returning from Jakarta report that this is the hot topic of discussion. I suppose its akin to the calls for the resignation of Treasury Secretary Tim Geithner, as earnest and dedicated a public servant as you will find, or the "Cornhusker Kickback", the deal made to gain Nebraska senator Ben Nelson's vote on healthcare.

But, the stakes in a developing country with high levels of poverty and unemployment are very high. For the first time in several years Indonesia's economic future looks so much brighter. The government has made a good effort through its 100 day program to lay the groundwork for more foreign investment, especially in infrastructure, as well as reforms in environmental safety, education, healthcare, and agribusiness. Sovereign credit ratings have improved and prospects for increased foreign investment and trade are strong. It would be a shame to see all this stalled, a real danger since although the House committee is close to ending its investigation the Corruption Eradication Commission is just beginning theirs. Who knows what other revelations will be revealed? We can expect them, but doubtful they directly implicate SBY, Boediono, or Sri Mulyani. Meanwhile, they need to govern without facing a perpetual guillotine.

I suppose it was too much to expect that the coalition formed after the reelection of President SBY would "hang together" for the good of the country. Could it be that the democracy that Indonesia adopted after the fall of the Suharto regime is that of 1950-57, when Parliamentary coalitions were highly fragile, the Cabinet/Prime Minister changed ten times, the bureaucracy atrophied, and little was accomplished? Lets hope not.

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President of the American Indonesian Chamber of Commerce, a private not for profit membership organization based in NY.

These views do not necessarily represent those of the American Indonesian Chamber of Commerce or its members.

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