INDIA AND THE POLITICS OF SOUTH ASIA

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 792 Internaional Conference on Social Poliics strategic step in the ield. 1 Another bureaucracy problem, President Yudhoyono runs government set a vision and mission of economics based on the principle Esbeyenomics. This thinking explains SBY in building a nation of Indonesia cannot be separated from its cultural roots. Esbeyenomics has three characteristics. First, Esbeyenomics pay great attention to efforts to reduce poverty and unemployment. High rates of poverty and unemployment in Indonesia become President Yudhoyono foothold in establishing this principle. According to the ILO International Labour Organization the number of unemployment in Indonesia is increasing from year to year. In 2001 as many as 6.1 million later in 2002 as many as 8.6 million and 2003 raise up to 10, 3 million. Furthermore, this igure will describe how big the potential of government should be allocated to tackle. Moreover, in the promise - the promise expressed during the campaign, SBY - JK will reduce the number because it relates directly with the fulillment of the economic rights of citizens. The content of the principle Esbeyenomics is putting a priority the Development in the agricultural sector and rural areas. In addition to lowering the unemployment rate and poverty are concentrated on the poor and job seekers in the agricultural sector and rural areas, the second principle is also done in an effort to move the center businesses are concentrated in urban centers to rural as new industrial centers and economic wheel drive. In fact, it is possible to move the axis rotation of the wheels of the national economy from the international market to domestic market. 2 The third is the policy of liberalization. In the policy stated on chapter RPJM, increasing Investment and Non-Oil Exports, economic ministers agreed to increase international trade cooperation through the principle of co-operation trade mutually beneicial, fair and open. In the context of real, liberalization 1 Aly Yusuf, Evaluasi Pemerintahan SBY-Kalla, Policy Assessment, Juni 2005, The Indonesian Institute, p. 27 2 Aly Yusuf, Evaluasi Pemerintahan SBY-Kalla, Op. Cit., p. 30 conducted with socialization and application of the results of the WTO negotiations, APEC, ASEM, ASEAN, and opened the widest breadth of foreign investors to invest in Indonesia. 3 To do so, bureaucracy reform is done into acceleration and expansion of Indonesia economic development needs strong support from government through bureaucratic reforms that are based on the following principles: 1. Creating an effective bureaucracy, which is able to better manage and enhance the people’s livelihood as well as supporting the needs of the business sector; 2. Bureaucracy supported by strong and effective institutions, which creates a well managed bureaucracy and administration, responsible legislature, independent judicial institutions; 3. Building a commitment to the implementation of good governance; A strong and effective bureaucracy and institution structure will also act as a feedback channel for future planning. It can be said that President Yudhoyono only stresses on the big picture of foreign policy target. Indonesian diplomats more typically lament its failure to convert political diplomacy into increased market access, rather than talk of how Indonesia’ s trade relations or economic heft provide political leverage. 4 While in region level, President Yudhoyono Bureaucracy stress on that ASEAN centrality is a permanent feature of Indonesia’ s foreign policy. No one the author spoke to suggest this centrality was something a new president might change. ASEAN covers Indonesia’ s immediate geographic region, where its interests are most directly engaged. 5 On the relation to Islamic atmosphere, Dewi Fortuna Anwar characterizes Islam as 3 Ibid. p. 31 4 Dave McRae, More Talk Than Walk: Indonesia as a Foreign Policy Actor, Lowy Institute for International Policy, February 2014, p. 5. 5 Ibid. p. 10. 793 Internaional Conference on Social Poliics playing primarily a limiting role on Indonesian foreign policy, making certain positions untenable for the Indonesian government, notably diplomatic relations with Israel. One issue where Indonesia has taken an Islamic stance has been its support for an international instrument to prevent blasphemy. President Yudhoyono used his address to the United Nations General Assembly in September 2012 to call for “ an international instrument to effectively prevent incitement to hostility or violence based on religions or beliefs”. President Yudhoyono made speciic reference to the ilm “ Innocence of Muslims”. He was also, however, careful to phrase his support for an international instrument in secular terms, citing restrictions on the freedom of expression in the Universal Declaration of Human Rights. 6 On the other words, His mark on Indonesian foreign policy, while rooted in nonalignment and pragmatism, has been noteworthy for its willingness to address values of democracy and human rights head- on. 7 Indonesia within the Southeast Asian Landscape Southeast Asia’s growing role as the hub of regional integration and increasing market potential, observers are watchful on how the development of regional trade agreements in the area may shape international relations in East Asia, particularly with the realization of the China-ASEAN Free Trade Area. 8 Since U.S. and China play important roles in Southeast Asia, it can be said that the geopolitical changing already happened which highlights the improvement of economic activities as the central of the world. Market power gives Southeast Asia economic signiicance in the world. Southeast 6 Dave McRae, More Talk Than Walk, Op. Cit, p. 12. 7 Ted Piccone and Bimo Yusman, Indonesian Foreign Policy: ‘A Million Friends and Zero Enemies’, downloded from http:thediplomat.com201402 indonesian-foreign-policy-a-million-friends-and-zero- enemies, on November 16, 2015, at 11:53 AM 8 Hung Ming-Te and Tony Tai-Ting Liu, Sino-U.S. Strategic Competition in Southeast Asia; China’s Rise and U.S. Foreign Policy Transformation since911, Political Perspective 2011, Volume 5 3, P. 96. Asia harbors several fast growing economies and a market of more than 500 million people. ASEAN’s total sum of GDP doubled between 2004-2010, growing from USD 715 billion to USD 1800 billion for an increase of 2.5 times. In terms of trade, ASEAN’s total amount of trade also doubled between 2003-2009, growing from USD 825 billion to USD 1537 billion. In the fourth ASEAN + 3 summit 2000, China’s ex-premier Zhu Ronnie proposed joining with ASEAN to advance free trade in the region. The signing of the Framework Agreement on Comprehensive Economic Cooperation in 2002 between China and ASEAN oficially put the China-ASEAN FTA CAFTA in motion. The CAFTA market has a population of almost two billion people and a total sum of production of 7.7 trillion. The region is the largest free trade area in terms of population while trailing only NAFTA and the EU in terms of economic scale. 9 In the other side, economy is not the only issue, which marks Southeast Asia. The sphere of inluence becomes the strategic way for major power, especially U.S. Since the Islamic Radical Groups appear as the non-state actor, which “decide” to create the instability, U.S. willingly raises up this issue into global concern. Since 911, Southeast Asia has gained strategic signiicance under the US global war on terrorism. Penetrated by international terrorists, the so called “New Crescent” region that spreads out across the Philippines, Indonesia, Singapore, Malaysia, Thailand and Burma has become a new hotbed for terrorism and a serious challenge for regional security. Even though the goals between terrorist organizations and revolutionary groups in Southeast Asia are different, the common need for survival contributes to the formation of a cooperative network that has brought about a relatively high level of threat against regional stability. 10 The next issue, as interesting as other ones, is energy security. It has been known that Southeast Asia has unique dominion. Standing between two oceans, it gives 9 Ibid., P. 98. 10 Ibid.,P. 98-99. 794 Internaional Conference on Social Poliics strategic point of view for all nations around the world to be aware with energy security issue. Energy security becoming an important issue in the new century, Southeast Asia’s strategic location began to stand out. Southeast Asia lies at the intersection of the world’s two most heavily traveled sea-lanes. The east-west route connects the Indian and Paciic Oceans while the north-south one links Australia and New Zealand to Northeast Asia. Both routes are economic lifelines by which China, Japan and Korea receive critical inputs like oil and other natural resources and export inished goods to the rest of the world. Nearly all shipping from the Middle East to the Paciic must go through three straits or “chokepoints” in the region: the Strait of Malacca, Sunda Strait and the Straits of Lombok and Makassar. The so called sea lines of communication SLOC greatly affect the outlow of critical natural resources from the Middle East abroad and generate great power competition over control of the maritime lifelines. 11 This situation can be understood as, willy-nilly, the causes of the resulting triangular relationship among the United States, Japan, and China has offered both opportunities and challenges for Southeast Asia. 12 To deal with the opportunities and challenges, those countries create relations to countries in Southeast Asia region, especially countries that have great role, like Indonesia, in regional institution, namely ASEAN. During the President Yudhoyono SBY administration, Indonesia is facing the transition of political and economic constellation where United States of America U.S and China get involved much in Southeast Asia Region. To see the role of Indonesia in this region, President Yudhoyono Administration policies play important role in responding economic and political challenges, especially regional integration within ASEAN, which consists of 11 Ibid.,P. 100. 12 Nobuto Yamamoto, Southeast Asia: A New Regional Order, downloaded from http:csis.orgiles mediacsispubs090201_bsa_yamamoto.pdf , on November 16, 2015, at 11.11 AM, P. 2. economic, and security issues. In this region, Indonesia is no exception. As the third largest democracy, the fourth most populated country in the world and is among the twenty biggest economies. 13 It is also fostered by Indonesia’s status as a middle power, an emerging economy and a member of the G-20. Despite Indonesia’s list of strong points, it is not to say that Indonesia is completely devoid of internal challenges that it needs to tackle in order to be a more credible power. Indonesian leaders are acutely aware of the weaknesses that still plague the country, but it does not prevent them from promoting Indonesia as a “pivotal state”. 14 Looking at the strategic environment in Southeast Asia region, Indonesia, under President Yudhoyono, creates policies to respond economic and security issues. The signiicant policies made are to play role as one of the great power in region. But in the other side, domestically, the activity of terrorism is not handled quite seriously. The shadow of terrorism threat became nightmare for all citizens, including foreigners who stay and work in Indonesia. Another domestic problem during President Yudhoyono, are about domestic problems, like Aceh Conlict and economic instability. Communal conlict and the development of infrastructure, together with unemployment become the problems where President Yudhoyono does not look at this as the relection of foreign policy to adapt the opportunities and challenges in region. The economic involvement done by Indonesia only achieves the macro level. The successful involvement of Indonesia in diplomatic level is not automatically solving the domestic problems. 13 Renita J. Moniaga, Indonesia’s Past, Present and Future Power, Image and Foreign Policy, downloaded from http:web.isanet.orgWebConferences GSCIS20Singapore202015Archiveaa29b834- 52c5-40c9-b12a-1f42c1edb61e.pdf , on November 16, 2015, at 11.20, P. 2. 14 Ibid. 795 Internaional Conference on Social Poliics Indonesian Foreign Policy under Susilo Bambang Yudhoyono, 2004-2009 Under President Yudhoyono Administration, Indonesia reformed itself politically, economically, and socially in a short period of time. Much of this change can be attributed to the democratically elected leaders and political elites who have initiated reforms in the county and have rebuild Indonesia into an important player in global affairs. 15 In Southeast Asia, Indonesia is a country endowed with the highest population and the richest natural resources within its archipelago of 17 thousand islands spread across a vast region. These blessings put Indonesia as South East Asia’s number one powerhouse. However, the planned implementation of ASEAN’s Economic Community and the existence of the ASEAN- China Free Trade Area ACFTA mandate Indonesia to increase its competitiveness. This is to ensure that Indonesia will get the full beneits of those economic integrations. In consideration of these factors, the acceleration of the economic transformation formulated in MP3EI the Master Plan for the Acceleration and Expansion of Economic Development of Indonesia is aimed at providing a catalytic force to increase Indonesia’s competitiveness. 16 The 2025’s vision is achieved by focusing on 3 main goals: 1. Increase value adding and expanding value chain for industrial production processes, and increase the eficiency of the distribution network. In addition increase the capability of the industry to access and utilize natural resources and human resources. These increases can be attained by the creation of economic activities within regions as well as among regional centers of economic growth. 15 Renita J. Moniaga, Indonesia’s Past, Present and Future Power, Image and Foreign Policy, Op. Cit, p. 2. 16 Master Plan Acceleration and Expansion of Indonesia Economic Development 2011-2015 downloaded from www.aseanbrieing.com, on November 16, 2015, at 13:27 AM, P.20. 2. Encourage eficiency in production and improve marketing efforts to further integrate domestic markets in order to push for competitiveness and strengthen the national economy. 3. To push for the strengthening of the national innovation system in the areas of production, process, and marketing with a focus on the overall strengthening of sustainable global competitiveness towards an innovation- driven economy. 17 The role of Government in the implementation of MP3EI is to provide a set of rules and regulations that provide incentives for investors to build sector of industries and infrastructure. Incentives can be conducive policies on tariff, taxes, import duties, labor regulations, licensing and permits, land procurements, etc. The central and local governments must build a reliable link within and beyond the centers of economic growth. 18 The plan of President Yudhoyono to relect the national or domestic problem to region and international opportunities unfortunately has not yet touched the real advantage. At that time, Indonesia still faces the economic problem, especially in micro level. On the other issue, Foreign Minister Hassan Wirajuda stated, “as the country with the largest Muslim population, Indonesia has proven that Islam can be a bastion of democracy and social justice. 19 Major powers have praised Indonesia’s success at establishing a democratic government in a predominantly Islamic society. During Hillary Clinton’s visit to Indonesia as Secretary of State in 2009, she exclaimed: “If you want to know if Islam, democracy, modernity and women’s rights can coexist, go to Indonesia. 20 Indonesia’s foreign policy began to take a more charm building character, which 17 Ibid., p. 25. 18 Ibid. 19 Renita J. Moniaga, Indonesia’s Past, Present and Future Power, Image and Foreign Policy, Op. Cit, p. 15. 20 Renita J. Moniaga, Indonesia’s Past, Present and Future Power, Image and Foreign Policy, Op. Cit, p.15. 796 Internaional Conference on Social Poliics was dominated by refrains of cooperation Million Friends Zero Enemies” approach, Indonesia’s role as a peace broker in the Asia Paciic region and the bridge between Islam and the West. 21 What exactly President Yudhoyono done through Indonesian foreign policies is amazingly putting Indonesia in quite bigger involvement, especially in building stable relations to major powers. Under President Yudhoyono, the role of Indonesia in 2004-2009 periods signiicantly boost up. Indonesia known by other as the most inluencing countries in Southeast Asia, especially in mediating conlict potential and the representative of Muslim word. Indonesian Foreign Policy under Susilo Bambang Yudhoyono, 2010-2014 In his second presidential period, President Yudhoyono, asserts that it is through engagement with other countries that “an architecture for durable peace” can be achieved. 22 Indonesia’s response to its global ambition is to conduct a foreign policy that is active where cooperation and building diplomatic ties is crucial for Indonesia. In this sense, Indonesia’s worldview appears to be shaped by liberal perspectives, such as the role of institutions and cooperation among states in helping to minimize the anarchy that could exist in the international system. Indonesia’s investment on enhancing ASEAN mechanisms and has made ASEAN a cornerstone of its foreign policy. Minister Natalegawa’s proposal to create an Indo-Paciic wide treaty of friendship and cooperation is an added measure on top of the Treaty of Amity and Cooperation in Southeast Asia TAC and the East Asia Summit’s Bali Principles to reduce tension in the region. Indonesia has continuously stated that it adheres to multilateral frameworks to resolve conlicts. 23 In a country obsessed with Facebook and other social media, SBY used his 2009 inaugural address to describe the strategic 21 Ibid., p. 2. 22 Ibid., p. 23. 23 Ibid., p.24. outlook of Indonesia’s current foreign policy this way: “Indonesia is facing a strategic environment where no country perceives Indonesia as an enemy and there is no country which Indonesia considers an enemy. Thus Indonesia can exercise its foreign policy freely in all directions, having a million friends and zero enemies”. 24 For Indonesia, having “a million friends and zero enemies” does much to help sustain its impressive growth in foreign trade and investment. It also helps explain its reluctance to take hard human rights positions that might upset major economic partners that have poor human rights records, such as China. Furthermore, Indonesia is generally timid in making strong commitments to uphold human rights at the international level because it continues to struggle with its own human rights issues. Recently, for example, Indonesia has seen a signiicant uptick in religious intolerance and government infringement on civil rights and liberties . As the Muslim world’s largest democracy, such troubling internal human rights issues pose a real threat to the credibility of its leaders’ claim to be a beacon of democracy for other fragile democracies. 25 In President Yudhoyono Administration Policy, democracy become very strategic tools to get involved in global and regional level. For President Yudhoyono, Muslim, Democracy, and the bridge of West East, could bring Indonesia as one of nations, which concerns more on global peace. Foreign Minister Marty Natalegawa 2009-2014 stating that Indonesia is “a living proof that democracy, Islam and modernization can lourish together”. 26 For Indonesia, it was necessary to promote the country as a tolerant society because in recent years the government has been highly criticized for its inability to handle the 24 Renita J. Moniaga, Indonesia’s Past, Present and Future Power, Image and Foreign Policy, Op. Cit, p. 24. 25 Ted Piccone and Bimo Yusman, Indonesian Foreign Policy: ‘A Million Friends and Zero Enemies’, Op. Cit 26 Renita J. Moniaga, Indonesia’s Past, Present and Future Power, Image and Foreign Policy, Op. Cit, p. 15. 797 Internaional Conference on Social Poliics rise of religious intolerance, radicalism and communal conlicts. President Yudhoyono reiterated Indonesia’s pledge to maintain pluralism and harmony in the society during his acceptance speech of the World Statesman Award in 2013: We are one of the most ethnically diverse nations in the world, home of a quarter billion people who profess to the world’s 5 major religions, living across our 17,000 islands. And from day one of our independence, we have always aspired to be a nation united in diversity. A nation where citizens of various race, faith and creed live together in harmony. A nation based on the rule of law. All these core principles are enshrined in our Constitution, and in our state ideology: Pancasila. And our ability to live by these ideals would determine not just our progress but also our survival as a nation. 27 Domestically, President Yudhoyono has often used the Aceh peace agreement in his statements to depict Indonesia’s ability to engage in a constructive and open dialogue to reach a peaceful solution. However, Indonesia is still facing several domestic challenges due to its large population and the politics of identity that can engulf such a diverse country. The leaders have afirmed that although protecting Indonesia’s unity is essential, their response to communal conlicts and religious violence will always be “a democratic response”. Hence, Indonesia has been fostering numerous interfaith and intercultural dialogues throughout the country as a way of increasing tolerance and exchanging views. Internationally, Indonesia has worked alongside other countries to conduct regional interfaith conferences and supports the UN Alliance of Civilization, which Indonesia hosted in August 2014 with the country’s theme of “unity in diversity” 28 Indonesia consistently put peace in the frame of Indonesian foreign policy to mediating conlict around the world. Indonesia plays as “peace keeper” to show its role in region and global. Under President 27 Renita J. Moniaga, Indonesia’s Past, Present and Future Power, Image and Foreign Policy, Op. Cit, p. 15-16. 28 Ibid., p. 16. Yudhoyono, Indonesia brings democracy as the way to achieve cooperation and stability. Indonesia has offered its expertise and advice to countries in the wake of the Arab Spring, particularly Egypt and Tunisia. It has also encouraged Myanmar’s democratic transition and has been supporting the reforms made by the Burmese government. 29 Indonesian leaders have incorporated as part of their diplomacy to establish Indonesia’s global reputation and inluence, which leads us to Indonesia’s foreign policy as a soft power quality. President Yudhoyono stated, “It is only natural that all these achievements have strengthened Indonesia’s capacity to project a new activism in its foreign policy, to play greater and diverse roles, to help shape regional and global order.” 30 Type of activist foreign policy that Indonesia is trying to project, which is mainly centered on its willingness to cooperate and build partnerships with various countries. Concepts, such as the “geopolitics of cooperation”, “dynamic equilibrium” and “a million friends-zero enemies” outlines Indonesia’s cooperative and peaceful foreign policy. Indonesia has been able to establish comprehensive and strategic partnerships with around 14 countries, including the major powers. It is also a member of over 50 international organizations and has a vocal voice in the UN, ASEAN, WTO, G20, APEC, NAM and OIC. Indonesia has ratiied around 200 international treaties, including all the major human rights conventions. In addition, Indonesia has held the chairmanship of several high-level forums, including ASEAN in 2011 and APEC in 2013. 31 Around region and regional institution, Indonesia sees Southeast Asia as the main object of foreign policy. Looking at the region where Indonesia stays, Southeast Asia become the main ground for Indonesia through its policy to play as leader. Indonesia is the Southeast Asia’s 29 Ibid. 30 Ibid. p. 17. 31 Renita J. Moniaga, Indonesia’s Past, Present and Future Power, Image and Foreign Policy, Op. Cit