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Monday, 28 July 2014

Jokowi must rid resistance to reform

JAKARTA: After his resounding victory in Indonesia’s presidential race, Jakarta governor Joko Widodo now faces the daunting task of taking the world’s third-biggest democracy forward as resistance to reform lingers.

The softly-spoken former furniture exporter was declared the next president by election officials last Tuesday, and although his rival, Prabowo Subianto, is contesting the re­­sult in court, Joko is widely expected to prevail.

He is the country’s first president to come from outside the political and military elite, and millions are eager to see him deliver on pro­mised reform.

The challenges are enormous: Indonesia’s public service is dogged by corruption and tangled in a web of bureaucracy. Around half the po­­pulation of 250 million people are poor, while persistent weaknesses in the economy threaten growth.

“I’m not going to sugar-coat it, it will be a really difficult job,” said Indone­sian Defence Uni­versity’s Yohanes Sulaiman.

“He will have to cut fuel subsidies and red tape – a lot of people have financially benefited from red tape for a long time.”

Joko has pledged to eventually scrap energy subsidies that eat 20% of the state budget. Cutting subsidies is politically sensitive, and has met with fierce resistance from the masses and opportunistic opposition parties.

Prabowo’s coalition has more seats in parliament than Joko’s, and even though some parties may jump ship in coming weeks, pushing legislation through will be a challenge.

Parliament is one of the most corrupt public institutions, attendance by lawmakers is dismal and just a small fraction of Bills are made into laws each year.

“The parliament is very hostile – if Jokowi wants good government, he would have to imprison half the lawmakers. He could easily be blocked by them,” Yohanes said, re­­fer­ring to Joko by his widely used nickname.

Resistance could also come from within Joko’s own Indonesian Democratic Party of Strug­gle (PDI-P), known to be split down seve­ral lines.

Legions of PDI-P members are loyal to Puan Maharani, daughter of former president and party leader Megawati Sukarnoputri and granddaughter of Indonesia’s first president, Sukarno. Some have painted Megawati as Joko’s puppet master, raising fears among those who re­­member her 2001-04 presidency as aloof and indecisive as militancy and corruption flou­rished.

Indonesia’s economy had begun to bounce back after a woeful 2013 – when the rupiah dived, inflation soared and the current account hit a record deficit – but fundamental weaknesses were still hampering growth, economists said.

“It’s a huge challenge because of two things. First we’re too depen­dent on commodity ex­ports, we need to ramp up our non-commo­dity export base,” said Kenny Soejatman, portfolio manager at Manulife Asset Management.

“Second, we’re facing competition from other emerging countries. We’re facing a weaken­­ing global economy and wage pressures. We need to improve our human capital and infrastructure to improve competitiveness.”

To make good on some of his economic policies, Joko will have to better engage the labour unions, according to University of Sydney’s Michele Ford.

But what tens of millions of poor Indonesians are hoping for is a sturdier social safety net.

Joko has promised to upscale his popular Jakarta health and education card programme to the na­­tional level. In the capital, residents received cards that guaranteed free medical treatment and schooling.

Joko was commended for the smooth distribution of the cards, but many complained of bed shortages and long waits in hospitals that were overwhelmed with patients.

Giving all children an education will also require more than cards. Schools around the country are grossly underfunded. Buildings have collapsed and even killed students in recent years, while teachers often refuse to work, complaining of unpaid wages.

“Managing those expectations in the early months will be vital for Joko if he is to bring the country with him,” Ford said. — AFP

Tags / Keywords: indonesia


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