INDIA AND THE REGIONAL ECONOMIC INTEGRATION OF SOUTH ASIA

CHAPTER 3 790 Internaional Conference on Social Poliics 791 Internaional Conference on Social Poliics INDONESIA’S ROLE IN PRODUCING STABLE INTERNATIONAL ORDER UNDER PRESIDENT SUSILO BAMBANG YUDHOYONO ADMINISTRATION 2004-2010 Teuku Rezasyah teukurezasyahpresident.ac.id International Relations Study Program, Faculty of Social and Political Sciences Universitas Padjadjaran ABSTRACT This paper will analyze Indonesia’s role in making itself a credible state in the increasingly dynamic Southeast Asian region, when the country was led by President Susilo Bambang Yudhoyono SBY from 2004-2014. This was an interesting period in the modern Indonesia, when the country was governed using modern ideas which received international appreciation. This paper will argue that despite facing domestic economic downturn, internal instability, as well as regional economic and security uncertainties, the SBY administration managed to balance the country and made itself a credible regional power. The level of analysis will combine the Indonesian bureaucracy and the personal involvement of President SBY in operating the country’s foreign policies. This paper will cover ive sections. One, a review on SBY’s ideas prior to committing himself to lead the country, and SBY’s policies soon after he won the presidential election. Two, it is the domestic settings of Indonesia and the country’s speciic way to recover following the Asian inancial crisis. Particular attention will be given to the way Indonesia responded to modern ideas such as Good Governance, Meritocracy, Free Market Economy, Rule of Law, as well as the domestic promotion for science and technology. Three, the regional economic settings perceived by the Indonesian government, covering ideas such as the reduced capacity of the Indonesian economy on one hand, and the increasingly competitive neighbors. Four, there is the regional security settings, covering the conlicting responses among the ASEAN partners in dealing with the South China Sea issues. Five, there is the Indonesian regional policies and responses in order to produce a conducive region and improve Indonesian regional credibility. Critical analysis will focus on President SBY’s ability to produce better policies during his second ive years of leadership, learning from the challenges the country had faced during his irst ive years in power. Keywords: Producing Stable, International Order, SBY INTRODUCTION This paper will argue that despite facing domestic economic downturn, internal instability, as well as regional economic and security uncertainties, the administration of President Susilo Bambang Yudhoyono SBY managed to balance the country and made itself a credible regional power. In understanding this development, it is necessary to critically examine the nature of Indonesia from its domestic and international context. SUSILO BAMBANG YUDHOYONO AND THE STATE BUREAUCRACY Under President Yudhoyono, Indonesian bureaucracy has no signiicant changing. The bureaucracy reformation done by President Yudhoyono stresses on corruption problem. To respond it, he creates President instruction Instruksi PresidenInpres No 52004 about acceleration of corruption problem that focuses on all ministers in every department to prevent and solve corruption in every level. This instruction should be shock therapy for the doers. The problem appears when the implementation goes to failed. There is no any signiicant progress achieved. The establishment of judiciary surveillance commission which is expected to recover institution and strengthen judiciary performance and recommend discharge of attorney if convicted misappropriation in law enforcement, as constructed Law Undang- Undang, No. 162004, has not seen as