VOL. 7 NO. 2 2019

ARTICLES Financing Peace: Special Autonomy Fund as a Peace Amalia Sustikarini

Dividend in Aceh,

Implementing SDG to Village Level by Integrating Social Roseno Aji Affandi Capital Theory and Value Chain: (Case of Village Tourism Aditya Permana Pentingsari in Yogyakarta, Indonesia) Yanyan Mochamad Yani

Tirta Nugraha Mursitama

Digitalization in the Community-based Tourism Ayu Dwidyah Rini Development in Peripheral Areas: A Case Study of

Sumbermanjing Wetan Village, Malang Regency

Reinventing Place-identity and Embracing New Economic I Nyoman Gede Maha Putra Opportunities: Promoting Creative Economy of Sanur Ida Bagus Gede Parama Putra

Through Public Participation

The Predatory State and Radical Politics: The Case of the Christopher Ryan Baquero Maboloc

Philippines

JOURNAL OF ASEAN STUDIES (JAS)

Editor in Chief Tirta N. Mursitama

Managing Editors Bina Nusantara University, Indonesia Lili Yulyadi Arnakim Bina Nusantara University, Indonesia Moch Faisal Karim

Layout Editors Vena Meilissa Wendsney Arviany Sadi

Associate Editors Bina Nusantara University, Indonesia Donatus K. Marut University of Indonesia, Indonesia Kiki Verico Brawijaya University, Indonesia M. Faishal Aminuddin University at Albany, SUNY, United States Mutti Anggita Vrije Universiteit Amsterdam, Netherlands Pamungkas A. Dewanto Bina Nusantara University, Indonesia Paramitaningrum National Planning Agency, Republic of Indonesia Sumedi A. Mulyo Bina Nusantara University, Indonesia Wendy A. Prajuli

Advisory International Editorial Board BINUS Business School, Indonesia Ahmad Syamil Swinburne University of Technology, Australia Alfons Palangkaraya University of Indonesia, Indonesia Andi Widjajanto Sebelas Maret University, Indonesia Andrik Purwasito Jana Wyżykowskiego University, Poland Arkadiusz Kotlinski Airlangga University, Indonesia Baiq L. S. Wardhani University of Le Havre, France Darwis Khudori Paramadina University, Indonesia Dinna Wisnu Foreign Policy Community of Indonesia, Indonesia Dino P. Djalal University of Hawai’i at Manoa, United States Ehito Kimura Jawaharal Nehru University, India Gautam K. Jha Bina Nusantara University, Indonesia Harjanto Prabowo Ritsumeikan University, Japan Jun Honna University of Indonesia, Indonesia Dr. GR Damodaran College of Science, India K. K. Ramachandran Australian National University, Australia Lorraine Elliott Yunnan University, China Lu Guangsheng ISEAS-Yusof Ishak Institute, Singapore Malcolm Cook National University of Singapore, Singapore Marleen Dieleman Ministry of Foreign Affairs, Republic of Indonesia Marty Natalegawa Universiti Teknologi Malaysia, Malaysia Nanthakumar Loganathan Australian National University, Australia Pierre van der Eng Centre for Strategic and International Studies, Indonesia Rizal Sukma Kaohsiung SEAS, Taiwan Samuel C. Y. Ku Budapest Business School, Hungary Tamas Novak Cheng Shiu University, Taiwan Wan-Ping Tai Padjadjaran Univeristy, Indonesia Yanyan M. Yani

JOURNAL OF ASEAN STUDIES

Volume 7 Number 2 2019 Contents

EDITORIAL

Tirta N. Mursitama

ARTICLES

Financing Peace: Special Autonomy Fund as a Peace Dividend in Aceh, Indonesia 99-121 Amalia Sustikarini

Implementing SDG to Village Level by Integrating Social Capital Theory and Value Chain: (Case of Village Tourism Pentingsari in Yogyakarta, Indonesia) 122-137 Roseno Aji Affandi, Aditya Permana, Yanyan Mochamad Yani, Tirta Nugraha Mursitama

Digitalization in the Community-based Tourism Development in Peripheral Areas: A Case Study of Sumbermanjing Wetan Village, Malang Regency 138-149 Ayu Dwidyah Rini

Reinventing Place-identity and Embracing New Economic Opportunities: Promoting Creative Economy of Sanur Through Public Participation 150-160 I Nyoman Gede Maha Putra, Ida Bagus Gede Parama Putra

The Predatory State and Radical Politics: The Case of the Philippines 161-175 Christopher Ryan Baquero Maboloc

journal.binus.ac.id/index.php/jas

Aim and Scope

The Journal of ASEAN Studies (JAS) is an International peer-reviewed bi-annual journal that enriches understanding of the past, current, and future issues relevant to ASEAN and its circle of issues. The article shall address any research on theoretical and empirical questions about ASEAN. The Topics addressed within the journal include: diplomacy, political economy, trade, national development, security, geopolitics, social change, transnational movement, environment, law, business and industry, and other various related sub-fields.

Journal of ASEAN Studies expects the articles encourage debate, controversy, new understanding, solid theory, and reflection on ASEAN. The articles sent should have a sharp analysis and rigorous methodologies quantitative or qualitative as well as written in an engaging and analytical style. The JAS does publish original research, reviewing research, book review, opinion pieces of current affairs. However, JAS does not publish journalistic or investigative style of article. The JAS would not be responsible for any implied or written statements of articles published. Each author would be responsible for their own writing.

Journal of ASEAN Studies is an international multidisciplinary journal, covering various fields of research on ASEAN either as community, organization, process, and web of cooperation.

Journal of ASEAN Studies publishes the following types of manuscripts:

 Scholarly articles: The manuscripts should be approximately 5,000-8,000 words. The manuscripts must contain a review of the current state of knowledge on the research question(s) of interest, then share new information or new ideas that will impact the state of theory and/or practice in area of ASEAN Studies.

 Review Article: The manuscripts should be approximately 1,500-3,500. The manuscripts must contain the current state of understanding on a particular topic about ASEAN by analyzing and discussing research previously published by others

 Practice notes: These are shorter manuscripts approximately 1,500-3,500 words that are of specific interest to practitioners. These manuscripts must present new development for the ASEAN.

 Research notes: Similar to practice notes, these are shorter manuscripts approximately 1,500-3,500 words that have specific implications for ASEAN. The manuscripts should employ rigorous methodology either qualitative or quantitative.

 Book Review: The manuscripts should be approximately 1,500-4,000. The manuscripts must contain a critical evaluation of book by making argument and commentary on the particular book discussed. Centre for Business and Diplomatic Studies

Centre for Business and Diplomatic Studies (CBDS) is established as part of the International Relations Department, Bina Nusantara (BINUS) University. Our aims are to undertake and promote research and deliberation on diplomacy, business, international relations and developmental issues particularly in Indonesia, Southeast Asia and Asia Pacific.

We also commit to build, connect and share research and others kinds of knowledge generating activities for the betterment of life of the people and earth. Our immediate constituency is International Relations Department, BINUS University and the larger constituency is the broader academic community of the BINUS University and other universities and institutions both national and international as well as policy community.

CBDS publishes scholarly journal, working papers, commentaries and provides training and consultancies services in the areas of diplomatic training, negotiations, commercial diplomacy, conflict resolutions for business, business and government relations, promoting competitive local government in attracting foreign investment, and understanding impact of regional economic integration on development specifically toward ASEAN Community 2015.

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Editorial

Politics and Creative Economy in Tourism Sector

Warm greetings from Journal of ASEAN Studies. We are proudly presenting to all readers Volume 7, no 2, 2019 with distinguished theme on “political and creative economy in tourism sector”. In this volume, several issues related to politics and creative economy especially on tourism sectors are discussed by various authors from different backgrounds from Indonesia and Philippines. This volume is comprised of five articles; two articles related to politics and other three articles on creative economy in tourism sector.

First article is written by Amalia Sustikarini. Her paper discusses the peacebuilding process in Aceh Indonesia. She examines the role of special autonomy fund in accelerating economic development in Aceh in the past ten years by utilizing the concept of the peace dividend and the model of fiscal-sharing. The author argues that while this fund has been successfully increasing Aceh economic growth compared to the conflict era, it has not been optimally utilized to reduce poverty and inequality. According to the author, it is due to the nature of peace in Aceh as an elite-based peace, the peace dividend has contributed to the patronage politics particularly among the former combatants.

Next article is written by Roseno Aji Affandi and others. They assess how sustainable development goals, SDG awareness and implementation in the village level could be enhanced. In this regard, the authors argue that there is a need to look at two essential factors namely; the notion of social capital, and value chain management in order to fulfill SDGs at the local level. The authors argue that social capital can be mobilized by the local leaders to socialize the importance of SDGs at the village level. At the same time, value chain management enables local leaders to manage sustainable economic activities at the village level. It is evident in the authors’ illustration in the case of three tourism village development areas in Yogyakarta namely; Pentingsari in Sleman, Mangunan in Bantul, and Bleberan in Gunung Kidul.

The following chapter is Ayu Dwidyah Rini’s case studies on the paradigm of local communities related to digital-based tourism development. This digital-based tourism development is illustrated through the case of community-based tourism in the Sumbermanjing Wetan area of Malang Regency. She asserts that community participation in tourism is classified into three forms of local participation; First, digital-based tourism can be solutions for tourism development in the Sumbermanjing Wetan region. Second, the community also understand the digitalization of tourism as an effort to alleviate poverty and improve the welfare of local communities. Finally, digital-based tourism can be the strategy for improving the quality of life of the Sumbermanjing Wetan community. In relations to creative economy, I Nyoman Gede Maha Putra and Ida Bagus Gede Parama Putra discuss about promoting Creative Economy of Sanur Through Public Participation. Both authors highlight Reinventing Place-identity and Embracing New Economic Opportunities. To them, collaboration among different actors in managing the transformation of such place could maintain the place-identity of a place, which ensures its attractiveness to visitors, sustains its economic values amidst rapid changes. The collaboration confirms no one is left behind. The authors argue that Sanur is evident in showing the sustained place-identity could economically benefit all actors.

In addition, the last article on the Philippines politics is written by Christopher Ryan Baquero Maboloc. In his article, Christopher examines the radical approach to politics of President Rodrigo Duterte. To him, the predatory nature of the state implies that politics in the country is still defined by vested interests. Duterte’s brand of politics is antagonistic. The president is a polarizing figure. Despite the declaration that he will punish corrupt officials, traditional politicians and elite clans continue to rule the land with impunity. The author argues that the country’s political ills are actually systemic. Elitism is rooted in colonial history that is perpetuated by an inept bureaucracy. In addition, he asserts that the strong resolve and charisma of a leader is inadequate to remedy the troubles in fledgling democracies such as the Philippines.

Finally, as the editor-in-chief, I would like to express my deepest gratitude to all authors who submitted their manuscripts to the Journal of ASEAN Studies (JAS). I would also like to extend my highest appreciation to all reviewers who have contributed to the quality of the manuscripts published in JAS. All parties that supported the Journal from the Indonesian Association for International Relations (AIHII) and the Center for Business and Diplomatic Studies (CBDS) of the Department of International Relations, Bina Nusantara University are also very much appreciated.

Jakarta, 28 December 2019

Prof. Dr. Tirta N. Mursitama, Ph.D.

Editor-in-chief

Financing Peace: Special Autonomy Fund as a Peace Dividend in Aceh, Indonesia

Amalia Sustikarini University of Canterbury, New Zealand

Abstract

This paper discusses the peacebuilding process in Aceh Indonesia. Southeast Asia is one of the regions that has been plagued by severe ethno-nationalist strives due to its high level of diversity and the impact of colonialism. Among several cases of ethno-nationalist struggles in this region, the separatist insurgency in Aceh, Indonesia has been regarded as the protracted conflict that has been successfully resolved and created durable peace. The Helsinki Peace Agreement attempted to redress the economic grievances that were manifested in perceived inequality and the exploitation of Aceh’s natural resources through the arrangement of Special Autonomy Fund. This fund serves as a peace dividend that is expected to bring welfare and enhance economic development in Aceh. The paper examines the role of Special Autonomy Fund in accelerating economic development in Aceh in the past ten years by utilizing the concept of the peace dividend and the model of fiscal-sharing. While this fund has been successfully increasing Aceh, economic growth compared to the conflict era, it has not been optimally utilized to reduce poverty and inequality. Due to the nature of peace in Aceh as an elite-based peace, the peace dividend has contributed to the patronage politics particularly among the former combatants.

Key words: Southeast Asia Insurgencies, Peacebuilding, Aceh, Special Autonomy Fund, Economic Grievances, Peace Dividend

Introduction towards internal insurgencies is caused by the vulnerable state structures which deal Southeast Asia is one of the with identity-based conflict insurgencies. regions that has long been plagued by Due to the impact of colonialism, many separatist conflict. This type of conflict is states in Southeast Asia and the South described by Weller (2005, pp. 4) as Pacific are artificial creations of the “among the most damaging and twentieth century, incorporating diverse protracted to have bedeviled states and ethnicities, races or religious group the international system since 1945”. without strong cohesion (Reilly & Reilly and Graham (2004) argue that the Graham, 2004). Among several Southeast weakness of Asia-Pacific countries Asian countries, Indonesia, Thailand and Journal of ASEAN Studies, Vol. 7, No. 2 (2019), pp. 99-121 DOI: https://doi.org/10.21512/jas.v7i2.5787 ©2019 by CBDS Bina Nusantara University and Indonesian Association for International Relations ISSN 2338-1361 print / ISSN 2338-1353 electronic 100 Financing Peace: Special Autonomy Fund

the Philippines are the homes of the Sukarnoputri, two efforts towards a longest ethno-nationalist insurgencies. peaceful resolution in Aceh were initiated under the facilitation of the Henry Dunant Indonesia provides an appealing Center. In May 2000, the Government of case study of ethno-nationalist insurgency Indonesia and GAM agreed to sign a as well as its successful resolution. Aceh, cease-fire agreement, the Humanitarian the westernmost province of Indonesia, is Pause, followed by a Cessation of known for its long history of war, Hostilities Agreement in December 2002. resistance, and rebellion. The longest post- Neither agreement lasted very long, independence insurgency in Aceh owing to unsatisfied demands between commenced in the midst of increasing GAM and the Government of Indonesia centralism of Suharto’s New Order regarding the issue of Aceh’s government. In December 1976, Tengku independence. Muhammad Hasan di Tiro or known as Hasan Tiro established Aceh-Sumatra In December 2004, Aceh was hit by National Liberation Front (ASNLF) which a calamitous earthquake and tsunami was later renamed Free Aceh Movement which caused more fatalities. According to (Gerakan Aceh Merdeka/GAM). Hasan Tiro data from the International Recovery is the descendant of a prominent Platform, there were 16,389 people dead, Acehnese family and the grandson of and 532,898 displaced (International Teuku Cik Di Tiro, an Indonesia national Recovery Platform, 2004). In the aftermath hero during the struggle against Dutch of the tsunami, a historic agreement colonialism (Schulze, 2004). Grievances between Aceh Rebel Movement (Gerakan over center-periphery antagonism, Aceh Merdeka or GAM) and the economic-natural resources distribution, Government of the Republic of Indonesia political participation and cultural (GoI) was signed in Helsinki, Finland on acknowledgement fueled the mobilization 15 August 2005. This peace agreement organized by GAM. was mediated by Martti Ahtisaari, former president of Finland, under the auspice of The central government responded Crisis Management Initiative (CMI). Since to this rebellion by launching a series of the peace agreement was signed in 2005, counterinsurgency operations that caused peace in Aceh has been maintained for 13 extensive casualties, widespread human years, former combatants have secured right violations and heightened the scale seats in Parliament and the Executive of the conflict. Many years later in 1998, branch of government. Economic Suharto fell from power. This was indicators have gradually improved, and followed by dramatic changes in the development projects are robust. overall Indonesian political landscape, including the way the government dealt In the aftermath of conflict, the with internal conflict. Under President economic condition in Aceh has gradually Abdurrahman Wahid and Megawati improved as shown in table 1. From Journal of ASEAN Studies 101

conflict period in 2004-2005 to peacetime Table 2. Aceh GDP Per Capita 2007-2017 in 2006-2007, economic growth in Aceh Year With Oil Without Oil rocketed from 1.8 and 1.2 per cent to 7.7 and Gas and Gas and 7.4 per cent, respectively. Negative growth in 2008 and 2009 indicated the (In USD) (In USD) impact of the depleting oil reserves in 2007 1.684,90 1.178,31 Aceh coupled with the diminishing 2008 1.705,60 1.601,07 construction and rehabilitation sectors (Bank Indonesia, 2009). In 2015, the 2009 1.633,66 1.336,84 negative growth was instigated by the 2010 1.760,97 1.468,62 discontinuation of the operation of Arun 2011 1.914,05 1.599,36 Gas Company that produces condensate and liquid natural gas (Medan Bisnis 2012 2.034,72 1.714,83 Daily, 2016). 2013 2.012,00 1.714.00

Table 1. Aceh Economic Growth 2004- 2014 2.193,63 1.971,61 2017 2015 1.927,16 1.852,34

Year With Oil Without Oil 2016 2.024,33 1.961,90 and Gas and Gas 2017 2.112,15 2.043,57

2004 -9.6 1.8 Source: BPS (Indonesia Statistical Bureau) 2005 -10.1 1,2 Table 2 shows the Gross Domestic 2006 1.6 7.7 Product per capita in Aceh more than one 2007 -2.5 7.4 decade after the peace settlement that reaches approximately around USD 2100 2008 -8,3 1.9 per year with oil and gas and USD 2000 2009 -3.82 3.78 without oil and gas in 2017. Before peace, 2010 2.79 5.49 GDP per capita in Aceh was recorded at USD 1090 with oil and gas in 2004 (World 2011 5.02 5.89 Bank, 2006). While the Aceh’s GDP is 2012 5.21 6.09 catching up due to the growth, in the 2013 4.82 5.45 same year in 2007 Aceh was one of the poorest Indonesian provinces ranked at 2014 2.71 4.02 sixth lowest among 33 provinces with 2015 -0.72 4.34 16,89% of those in Aceh living below the 2016 3.31 4.31 poverty line of US$ 34/ months (BPS).

2017 4.19 4.14 Aceh Peace Process is considered Source: BPS (Indonesia Statistical Bureau) as one of the most successful and durable peace processes in the world (Djuli, 2018). The model of peace settlement in Aceh has

102 Financing Peace: Special Autonomy Fund

inspired other countries in Southeast Asia dividend has not yet yielded the expected that also experience separatist result in alleviating economic deprivation insurgencies such as The Philippines and in Aceh. It occurs due to the lack of skill Thailand. One primary aspect of the peace from the former combatants that dominate process in Aceh that was partially local government and the type of peace in followed by The Philippines Government Aceh that tends to be an elite-based, to resolve the conflict in the Mindanao, exacerbated by the patron-client network Southern Philippines is the economic that is sustained from the reconstruction settlement. Since perceived inequality is period to peacetime. one of the primary causes of conflict in The Special Autonomy Fund (SAF) as Aceh, the narrative about economic Peace Dividend in Aceh exploitation and unequal sharing of natural resources between the central Peace dividends are the crucial government and the province of Aceh has part of the peacebuilding process as stated fueled grievances over the years. by the 2009 Report of the Secretary- Therefore, post-conflict peacebuilding in General on Peacebuilding in the Aceh is directed to addressing these Immediate Aftermath of Conflict. The grievances by redistributing the revenue report stated, “that if countries can deliver from the national budget and natural early peace dividends, build confidence in resources through a national budget that the political process, and strengthen core aims to enhance Aceh’s economic national capacity early on, they can reduce independence, supporting economic the risk of relapse into conflict and growth and social welfare. This substantially increase the chances for arrangement is duplicated by The sustainable peace”. Philippines Government through The Law of Bangsamoro or BOL. In BOL, The The term "peace dividend" has Bangsamoro Autonomous Region in significantly different meanings at Muslim Mindanao will receive annual different levels of analysis. Peace dividend block grant, the increasing share in is commonly understood as the reduction revenue taxes and natural resources taxes defense budget to increase the fund to and rehabilitation fund for ten years finance non-defense spending such as (Marcelo, 2018). education, health and poverty reduction. O’Hearn (2000) classified the literature on Against this backdrop, this paper peace dividends based on three major seeks to analyze the role of special streams. The majority of studies on the autonomy fund as a peace dividend to peace dividend analyze the impact of the address a (perceived) economic reduction of conflict such as cold war to inequalities that fueled the conflict in the level of dividends accepted by the Aceh over thirty years. The paper argues militarized regions. Smaller literature that within ten years of the disbursement examines the benefit of the military of special autonomy fund, this peace expenditure transfer to the non-defense Journal of ASEAN Studies 103

purpose or to avoid the destruction of war. within existing states. Opportunists extort The minor literature on peace dividends bigger shares of national wealth, while analyses the effects of peace on peripheral local ethnic entrepreneur demands regions or on communities that have been independence to gain local support in conflict with regionally powerful states. (Aleman & Treisman, 2005 pp. 176-177). These communities have been Therefore, the result of peace dividend to experiencing political marginalization and generate welfare to the community will economic disenfranchisement that create a depend on the leader of the separatist fertile ground for armed conflict. Hence, movement, whether it will be well utilized peace dividends give these communities a for the society or being manipulated for promise of greater economic participation the leader’s benefit. and development in terms of trade, The importance of fiscal sharing is investment and entrepreneurship. acknowledged by scholars in the Chan (1995) categorized peace consociationalism school as it is argued by dividends into the three steps: firstly, the (Lipjhart, 1973; 1993 pp. 188-189 as cited in reduction of military expenditure to Aleman & Treisman, 2005 pp. 177): generate nontrivial saving (resource “Proportionality in the allocation of public dividend) and secondly by the promotion funds is an essential element of successful of greater production efficiency (product power sharing arrangement among ethnic dividend). The last step is the direct groups”. The central transfer to the most transfer of defense saving to increase the likely separatist region is also considered budget for the social program and an an effective strategy to prevent secession indirect one by creating a healthier (Roeder & Rotschild, 2005). economy. The other form of the peace In addition to fiscal sharing, peace dividend is fiscal power sharing. Fiscal dividends could also be based on natural sharing is focused on the politics of peace wealth sharing. Onder & Cordela (2016) dividends to generate an equal share of state that natural oil revenue-sharing in fiscal resources by reducing the post-conflict areas would generate various proportion of central government and result. This scheme works in Aceh because allocating a bigger share to local fiscal decentralization was part of the government (Aleman & Treisman, 2005). peace agreement between The The impact of fiscal decentralization on Government of the Republic of Indonesia secessionist violence will depend on the and the Free Aceh Movement in 2005. It true motives of those demanding did not work for Colombia Civil War secession. According to Aleman and resolution as 1991 fiscal reforms led to the Treisman (2005), there are three common appropriation of revenue by the rebel motives for secession: autonomists, group to finance the movement. In Iraq, opportunities and local ethnic the result is mixed. Temporarily, oil entrepreneurs. Autonomists aim to win revenue sharing between Iraq and greater authority to build local entities

104 Financing Peace: Special Autonomy Fund

Kurdistan Regional Government might development in Aceh and can bring preserve Iraq territorial sovereignty, but welfare to the Acehnese people. in the long run, it could strengthen the Aceh has received the Special Peshmerga fighters in their bid for Autonomy Fund since 2001, but the independence (Onder & Cordela, 2016). amount was increased as a result of the The subject of fiscal politics as peace settlement. Peace dividend in Aceh peace dividend is crucial in post-conflict consists of the Natural Resource Revenue peacebuilding especially in sub-national Sharing Fund (Dana Bagi Hasil Sumber conflict since the central government Daya Alam/DBH SDA), in which Aceh tends to allocate a large number of funds gains a bigger percentage (70 per cent) of to redress the imbalance of the oil and gas compared to other provinces. distribution of natural wealth during the This fund is also called the “Additional conflict. As it was mentioned earlier, the Oil and Gas Profit Sharing Fund” in article impact of the distribution of the peace 182 of LoGA (Law on The Governing of dividend will depend on the motives of Aceh). This provision is an effort to separatism. It may generate optimal redress the grievance about the imbalance welfare for the wider public and alleviate of the profit sharing from oil and gas grievances or will end up benefiting which has been perceived by the majority certain groups of elites who belong to one of Acehnese as center-periphery economic ethnic group. Thus, unless managed exploitation. fairly, a peace dividend may contribute to Figure 1 describes how LoGA the possibility of the repetition of internal regulates the utilization of the Natural colonialism, in which one group tends to Resources Revenue Sharing Fund, with exploit resources at the expense of the Aceh’s government obtaining 55% from other. oil and 40% from gas. Thirty per cent of Unlike the traditional literature of this fund must be allocated to education, peace dividends that links the reduction and 70 per cent is granted to of military spending to economic intergovernmental sharing (Islahudin, development, the concept of peace 2010 pp. 4). dividends in Aceh is closer to fiscal and natural wealth sharing. Fiscal and natural revenue sharing are the important aspects of Aceh’s economic development as a mean to alleviate economic grievances that fueled the conflict. The imbalance of the past unfair distribution of Aceh’s natural wealth is being alleviated by granting a large amount peace fund which is expected to accelerate economic Journal of ASEAN Studies 105

Figure 1. Allocation of Additional Revenue Sharing from Oil and Gas for District/City Government in Aceh

Source: World Bank (2008)

The other component of the peace cent share is an effort to redress the dividend is the additional two per cent imbalance of previous decades of the share of the General Allocation Fund distribution natural resources, as the oil (Dana Alokasi Umum/DAU) for 15 years. It and gas in Aceh is already in decline. To will then continue at one more per cent for avoid a confusing word swap, these two five more years until 2027, as shown in schemes of peace dividend are called figure 5.3. DAU is the new system of Special Autonomy Fund (Dana Otonomi Indonesia’s inter-governmental transfer as Khusus-Dana Otsus). defined in Law No 25/1999 on The utilization of the Special decentralization (Barr, Resosudarmo, Autonomy Fund is regulated in Law of Dermawan & McCarthy, 2006 pp. 65). Governing Aceh (LoGA). It is aimed to According to Article 1, Law No 22/1999 finance the following development about decentralization, “this fund is programs: allocated from the national government budget according to a specified formula 1. Development and maintenance of with the objective of equalizing the infrastructure financial capacity across regions to fund 2. Economic empowerment of people their respective expenditure within the 3. Eradicating poverty context of implementing 4. Education decentralization”. The additional 2 per

106 Financing Peace: Special Autonomy Fund

5. Social 6. Health (Law of Governing Aceh, article 183).

Figure 2. Allocation of Special Autonomy Fund into City/District

Source: World Bank (2011)

Figure 3. Aceh Provincial and District’s Revenues 1999-2008

Source: The World Bank (2011) Journal of ASEAN Studies 107

From Figure 3 we can see that the primary health care and education for Special Autonomy Fund had contributed growth in post-conflict settings that are significantly to Aceh’s provincial and often deteriorating during the prolonged district’s revenue. Aceh provincial and conflict. In other words, there is a need to district revenue started to escalate and put greater emphasis on social inclusion reached a peak in 2008 after the allocation and hold macroeconomic and long-term of Special Autonomy Fund. Under policy (Hehn, 2011 pp. 294). The items in Governor Irwandi’s administration, the the planning were based on the committee was established to decide how stipulation in LoGA with some additions to allocate oil Special Autonomy Fund. on disaster risk and governance, two The allocation was articulated in the important subjects for the development of Government of Aceh Mid-Term Aceh in post-conflict. This section will Development Plan period 2007-2011 and focus on the disbursement of Aceh Special set out as follows: Autonomy Fund in infrastructure, health, and education. (1) Strengthening of governance, political processes and the law Infrastructure (2) Economic empowerment, Infrastructure is allotted the most employment opportunities and significant share of the fund, with stark poverty reduction disparities in spending compared to other (3) Development and maintenance of sectors such as economic development, investments in infrastructure education and health. According to the (4) Development of education that is LoGA, infrastructure is one of the of high quality and accessible priorities to be financed by the Special (5) Increase in quality of health care Autonomy Fund. Between 2008 and 2010, services infrastructure always received the biggest (6) Development of religion, society share of the fund. Most of the fund for and culture infrastructure, 58%, is spent on road and (7) Disaster risk reduction and bridge construction and maintenance. management. (Hillman, 2011 pp. Allocation for irrigation is 11%, river 537) conservation and flood control 9.8%, Among the five priorities, village infrastructure 8.7%, and housing education and health were the priorities of 6.6% (World Bank, 2011). Governor Irwandi. During the election However, from the survey campaign, Irwandi promised to allocate a conducted by the World Bank (World large proportion of the fund to these two Bank, 2011) the level of satisfaction with sectors (Hillman, 2011). Irwandi’s policy infrastructure development is low echoes Collier (2006) argument about the compared to other sectors. The importance of inclusive social dissatisfaction occurred due to the poor expenditures such as expansion in quality of the construction and unfinished

108 Financing Peace: Special Autonomy Fund

projects. Another shortcoming of the progress of education is by measuring the infrastructure in Aceh is that most of the Human Development Index (HDI). Aceh’s fund is allocated to small scale projects Human Development Index (HDI) was below IDR 200 million (approximately quite good in the past. Based on official US$ 20,000). Based on Presidential Decree statistics, in 1996 Aceh’s HDI was 69.4 No 70/2012, the procurement of with it ranking 9th out of 26 Indonesian goods/construction works/others are set at provinces while during the 2004-2010 the maximum of IDR 200,000,000.00 (two period, Aceh’s HDI gave the province a hundred million rupiahs) that be rank of 17-18th of 33 provinces (Barron, implemented through the direct Rahmant & Nugroho, 2013). In 2016, appointment. This regulation gives an Aceh’s HDI was steadily progressing and opportunity to newly established and in the relatively same level with the small contractor companies which only national index (CMI, 2017). have the low skill to win projects, often Figure 4. Aceh Human Development through collusive practices that primarily Index 2010-2016 occurred during post-conflict reconstruction.

Small-scale projects such as building paving blocks or fences will not have a significant impact on the broader community. Borrowing the term used by Muhammad Syarif (Jawa Post, n.d) development in Aceh is interest-based, not need-based. It is built to cater to political interests by creating patron-client networks rather than focusing on a long- term development strategy to create welfare and stimulate economic growth. Source: CMI (2017) Education However, the vast amount for The importance of education in education in Aceh has not been properly post-conflict development in Aceh is and strategically allocated for increasing manifested in the 30% allocation for the quality of education. As shown by education fund in Additional Revenue Figure 5, the biggest proportion of the Sharing from Oil and Gas and one of the Special Autonomy Fund for the education sectors financed by Special Autonomy sector was allocated to building Fund. Until 2027, when Special Autonomy classrooms and school fences, expenses Fund is phased out, Aceh will receive IDR that do not significantly contribute to the 34, 7 trillion (USD 23 million) in education Aceh’s educational excellence. As funding. One of the indicators of the mentioned earlier, such minor Journal of ASEAN Studies 109

construction projects are normally valued Another landmark of the below IDR 200 million. Because utilization of Special Autonomy Fund in government regulation does not require a Aceh is by the establishment of Aceh tender process for the low-value project, Scholarship Commission, an ambitious the local government can employ direct tertiary education program that sends appointment, a practice that is prone to Acehnese to study in prominent patron-client network. universities in Indonesia or overseas. From its commencement in 2009 to 2013, Figure 5. Utilization of Special this program has spent a total of IDR 609 Autonomy Fund in Education Sector Billion, sending 6031 scholarship based on the type of expenses 2012 (In recipients to pursue domestic or Percentage) international postgraduate education (ACDP, 2014). This program is not free of problems. Lack of strategic analysis of 5 7 scholarship has caused unemployability of 16 the scholarship awardees upon their 51 return in Aceh (Putri, 2018). Most 8 recipients aspired to work in the public Building and Classroom sector, partly due to the stagnation of the Laboratory Aceh economy and lack of investment that School Fence leads to limited work opportunities. There Furniture is also a problem of misuse of scholarship Classroom rehabilitation funds by the recipient, which they spend it to non-educational expenses. Source: ACDP (2014) Health Figure 6. The Utilization of Special Autonomy Fund in the Education Sector As one of the priority sectors in the in Aceh Based on the Value of the allocation of Special Autonomy Fund, Project 2013 (In Percentage) health is an exemplary case in the utilization of peace dividends in Aceh. In 6 2 2010, Governor Irwandi launched Aceh Health Insurance (Jaminan Kesehatan 33 59 Aceh/JKA), a provincial-level health insurance scheme for Acehnese. This populist program has been praised as one <100 IDR Miliion of the achievements of Aceh’s local 100 IDR Mo<500 IDR Mo government post-conflict. This insurance 500 IDR Mo-1 Billion offers a simple process for people to 1Billion-5Billion access health service and facility. Unlike national health insurance that is often Source: ACDP (2014)

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criticized of its layered referral system, contractors, while health and education BPJS (Badan Pengelola Jaminan are mostly invested in directing assistance Kesehatan/National Health Insurance or in the form of health insurance and JKN/Jaminan Kesehatan Nasional/National scholarship. This pattern of fund Health Insurance Program), JKA disbursement could be understood from beneficiaries are only required to show the necessity of former GAM combatant to their ID card to access the health service in create legitimacy and maintain loyalty all hospitals in Aceh. In 2010, JKA had and trust from their beneficiaries through spent IDR 241 Billion or 15 per cent of the the patron-client network. However, as Special Autonomy Fund. In 2011, it used will be further elaborated in the next 9.5 per cent of the Special Autonomy section, it leads to difficulty in generating Fund, and by 2017, IDR 773 Billion of the performance legitimacy of the former Special Autonomy Fund had been combatant in post-conflict long term disbursed to finance JKA (Putri, 2018). development.

Despite the compliment as one of a Post Conflict Economic Challenges: successful program of local government in Provincial Poverty and Inequality Aceh, JKA under Irwandi administration Poverty alleviation and equal was severely criticized for its lack of economic development among all districts means-testing. All Acehnese, regardless of and municipalities are paramount in post- their economic status and income bracket, conflict-economic settlements, as the are eligible to access free health services perceived inequality is the major through JKA (Cahyono, 2016). During contributing factor to the rebellion in Zaini Abdullah’s governorship, JKA was Aceh. However, ten years after from its under BPK’s (Badan Pemeriksa Keuangan/ first disbursement, Special Autonomy State Audit Agency) scrutiny due to IDR Fund has yet to significantly contribute to 63 Billion potential loss. It occurred poverty alleviation in Aceh as during Zaini Abdullah’s governorship demonstrated in the following figures. because Aceh local government kept paying IDR 63 Billion to JKA beneficiaries Figure 7. Comparison of Poverty Rate in who failed to validate their ID card (Putri, Aceh and National 2018). 40 In sum, from the three sectors of 29,83 28,37 30 the allocated Special Autonomy Fund, 19,14 18,2 20 15,2 16,66 infrastructure, education and health, the 10 fund is primarily disbursed to finance 0 small scale projects and populist 2000 2002 2004 programs. Infrastructure is dominated by Aceh National low quality and small projects that cantered around GAM elite and Source: BPS (Indonesia Statistical Bureau) Journal of ASEAN Studies 111

Figure 8. Comparison of Poverty Rate in Figure 9. Ten Provinces with Highest Aceh and National in Post Conflict Poverty Rate in Indonesia 2017 Period (2006-2018)

Source: Databoks (2017) Source: BPS (Indonesia Statistical Bureau) Table 3 shows us a contradictory Figures 7 and 8 tell us about fact between the amount of provincial poverty, conflict and its aftermath. budget (Anggaran Pendapatan dan Belanja Interestingly, in 2000 the national poverty Daerah/APBD or APBA in Aceh) and the rate was higher than Aceh that might be poverty level. With the highest provincial caused by the residual impact of the Asian budget derived primarily from Special Financial Crisis experienced by Indonesia. Autonomy Fund, Aceh scored as the Poverty in Aceh increased significantly in poorest province on the island of Sumatra. 2002 after Indonesia stepped into the post- authoritarian era but placed Aceh in Table 3. Provincial Budget and Poverty security turmoil due to martial and civil Rates emergency law. After the 2004 Tsunami and the peace agreement, poverty rates in Aceh began to demonstrate decreasing pattern even though the rate has been higher compared to steady declining pattern in the national average. However, if Aceh is compared to other provinces in Indonesia, its poverty rate has placed Aceh as the sixth poorest province in Indonesia in 2017, after Special Autonomy Fund has been allocating for ten years since 2008 as shown in following Figure 9.

Source: AcehTrend (2017)

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In addition to the provincial the pattern has re-emerged. The GAM- poverty level, the other problem dominated government could be seen as experienced by Aceh in the post conflict is new “internal colonialism” especially by the inequality among the districts. The six people from ethnically distinct areas that districts with the relatively persistent rate are politically disadvantaged and of 20 per cent poverty rate are Gayo Lues, experienced persistent poverty during Aceh Singkil, Bener Meriah, Pidie, Pidie and after conflict. Jaya and West Aceh. The tree places with Patronage Politics and Post-Conflict the lowest poverty level are all urban area Economic Resources in Aceh with Banda Aceh is the only area with single-digit poverty rate and reached As has been mentioned in the above the poverty line. earlier section, the utilization of post- conflict fund is characterized by a patron- Three districts with persistently client network. Although the relationship high poverty level, Gayo Lues, Bener between political elites and their political Meriah and Aceh Singkil are resided by support networks is a central feature in ethnically heterogeneous areas. Economic any political network, it is particularly inequality in these two districts is pronounced in a post-conflict setting perceived as the trigger of the ALA-ABAS (Haass & Ottmann, 2017). The partition movement. ALA and ABAS are government elites depend critically on the movements which aspired to create their constituencies which provided separate province based on Law No necessary recruits and political and 22/1999 about Decentralization that material support during conflict while authorizes the creation of new districts, during peace times, these constituencies often referred to as pemekaran form the electorate of the related political (blossoming). ALA consists of Aceh parties (Haass & Ottmann, 2017). central highlands, the district of Aceh Tengah, Aceh Tenggara and Aceh Singkil; Haass and Ottmann describe this while ABAS is covering areas along feature as selective resource allocation in Aceh’s west coast, Aceh Jaya, Aceh Barat, political patronage or “a politically Nagan Raya, Aceh Barat Daya, Simelue, motivated distribution of selected private and Aceh Selatan. benefits to relevant constituencies by political elites” (Haass & Ottmann, 2017 Aceh will only repeat history if the pp. 63). The resources can take the form of economic inequality that is a legacy from construction of public infrastructure and the conflict period is continued during the facilities, electrification and road and peacetime. During the conflict period, building management. Acehnese perceived that they were being colonialized by the central government According to Aspinall (2009), there due to economic marginalization and the are three main sources of funds that GAM exploitation of natural resources; in peace, actors have been able to tap: post-conflict Journal of ASEAN Studies 113

"reintegration" funds, post-tsunami Coast), both are valued at approximately reconstruction funds, and the US$ 2, 2 million that was won by Pulo development budgets of provincial and Gadeng Company owned by Muzakkir district government. Thus, it is essential Manaf (Aspinall, 2009). to also look at the other two sources of The connection between the fund that create this clientelist economy in construction business and politics is not the post conflict era in Aceh. The exclusive to Aceh. The Global Corruption patronage network had been started in the Report with Special Focus on Corruption utilization of huge post-tsunami in Construction and Post-Conflict reconstruction fund. The former GAM Reconstruction (Transparency members entered this business as a International, 2005) provides global case material supplier or construction studies of the nexus between politics and contractors through the structure of KPA business in the construction industry from (Komite Peralihan Aceh/Aceh Transitional Asia and Africa including India, The Committee) as an organizational-based of Philippines, Lesotho, Iraq and in the GAM mass’ membership (Stange & Europe, Italy and Germany. However, the Patock, 2010). cases in post-conflict areas like Aceh are After winning seats in Aceh’s more extreme because of the legacy of politics, GAM expanded their influences violent conflict (Klinken & Aspinall, 2011). in the construction business as contractors GAM members quickly turned into through KPA network. Since KPA is a construction contracts, relying on civil organization, its members cannot be influence, patronage, and coercion to banned from joining in bids for influence business. construction works. However, due to the The next post-conflict fund is close connection with GAM elites in channeled through the reintegration government sectors, contractors from KPA program. Based on MoU’s provision, a knew how to place the right bid and also special provincial agency was established often won the contract (Aspinall, 2009). It in February 2006 to manage the was helped by the presence of GAM elite reintegration process, namely the Board in BRR, such as Teuku Kamaruzzaman, for the Reintegration into Society of the former GAM negotiator and the head Former GAM Members, later shortened to of BRR’s executive agency (Aspinall, the Aceh-Peace Reintegration Board or 2009). The leaders of KPA were usually BRA. The tasks of BRA covered the awarded the major contract by the implementation and monitoring of provincial government, the BRR and reintegration programs as well as national government. Two examples were coordination with related agencies and the national government project of a major advisory role to the governor (Governor bridge in Lhokseumawe and BRR project Decree No 330/145/2007). MoU also of the construction of metal frames for regulates the responsibility for such tsunami house in Calang (Aceh West

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programs rested with the Indonesian and housing and cash allowance and urged by Aceh governments, not international the mandate of the reintegration process donors. From 2005 to 2012, the in MoU Helsinki. On the contrary, the Government of Indonesia through the opponents opposed the establishment of Ministry of Social Affairs has been BP2A or any other ad hoc reintegration transferring approximately IDR 2 trillion institution, instead preferring to hand (US$ 133 billion) for reintegration over reintegration process to related program through BRA. SKPA (Satuan Kerja Pelaksana Aceh/Aceh Government Work Unit) for efficiency and The contribution to the transparency. SKPA (or SKPD in district reintegration program from provincial level) is the provincial unit or regional budget started in 2008, the first year of the office of national ministries. For example, allocation of the Special Autonomy Fund the disbursement of cash allowance for to Aceh. During the period of 2008 to conflict victims could be channeled 2015, the Aceh Provincial Government has through the regional office of social been disbursing approximately IDR 700 services and the allocation of land farming billion rupiahs (US$ 46 million) for the could be coordinated under the regional reintegration program. Generally, the type land agency. of assistance of the reintegration program in Aceh could be classified into three The preference of individual cash major categories. The first category is cash disbursement indicates the patron-client allowances in the form of diyat (individual relationship in the reintegration program, cash disbursement to former combatant as personal loyalty is easier to guarantee households that had lost family than through community-based loyalty. members). The second category is the BRA as an ad hoc institution is prone to be economic empowerment fund through the exploited by the ruling government as livelihood program assistance. The last their political vehicle, especially in a type is in-kind assistance that comprises political setting where the former of housing settlement and farming land. combatants won the election and hold the political power. The reintegration fund for After BRA was officially dismissed their fellow former combatants is easily by Governor Irwandi, in 2013 during manipulated or mismanaged to gain more Zaini Abdullah’s governorship, there was control or political support as a cash an attempt to maintain the existence of disbursement program is a lucrative reintegration institution through the aspect in political competition. establishment of BP2A (Badan Penguatan Perdamaian Aceh/Aceh Peace The third source of funding in Strengthening Board). The advocates of Aceh’s post conflict era is the ordinary the establishment of BP2A based their development budget in the form of argument on the unfinished reintegration Special Autonomy Fund. Barron and programs such as land farming allocation, Clark note that "special autonomy boosted Journal of ASEAN Studies 115

natural resource revenues kept within percentage of small value projects in Aceh by more than 150 times, from IDR 26 infrastructure and education that is billion (US$2.7 million) in 1999 (or 1.4 mentioned in the previous section is percent of total revenue) to IDR 4 trillion depicted in provincial and district/city (US$421 million) in 2004 (40 percent) data of the all priorities sectors of Special (Aspinall, 2014). Autonomy Fund as shown in Figures 10 and 11. The increase in regional budget, including the one received by Aceh Figure 10. The Utilization of SAF based constitutes a huge injection of resources on Value of the Project in Provincial for predatory captures and patronage, Level 2014 particularly for GAM members and the 1 supporters who have moved into government as well as their business and political allies (Aspinall, 2014). This patronage has taken form in direct 19 19 61 budgetary transfers. In 2013, for example, < IDR 500 Million the provincial budget includes grants of IDR 500 Million-IDR 1 IDR 127,5 billion (approximately US$ 125 Billion million) to the Aceh Transitional Agency >IDR 1 Billion-5Billion (Komite Peralihan Aceh) the organization >5 Billion representing former combatant (Aspinall, 2014). Source: Bappeda Aceh (2015, n.d)

In the subsequent years, the amount of grant gradually decreased to IDR 80 million in 2014 and IDR 61 billion Figure 11. The Utilization of SAF based in 2017. Although the trends show the on Value of the Project in District/City declining patters, the continuity of this Level 2014 grant indicates the entrenched patronage 1 in the post-conflict era in Aceh. It is 10 important to note that the provincial 8 budget receives the biggest share from the special autonomy fund, exceeding other income items such as Local Own-Source 81 Revenue or Additional Revenue Sharing from Oil and Gas. IDR % Billion Another striking feature in the utilization of the Special Autonomy Fund Source: Bappeda Aceh (2015, n.d) in Aceh is the disproportionate use of funds. The problem of a massive

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Small-value projects have been building in Aceh, even though it cost a creating a problem for monitoring and delayed good governance aspect. evaluation programs. These projects are Aspinall (2009) argues that GAM mostly implemented by direct members and supporters have instead appointment and could be executed mostly been reintegrated into Aceh's without undergoing supervision and the political economy by way of predatory monitoring system by LKPP (Lembaga and clientelist patterns of economic Kebijakan Pengadaan Barang Jasa behavior that seek to extract rents from Pemerintah/ National Public Procurement the state. The reconstruction and Agency). Due to the domination of GAM reintegration funds had been utilized to in local government as a result of their create the patronage network in the post- victory in local elections, these small conflict era and this practice is sustained projects could easily be awarded to fellow in peace time through the disbursement of GAM contractors and sustain the patron- Special Autonomy Fund, that could client based economy. indicate the long-term economic The most current case of the predatory behavior during the peace mismanagement of the Special Autonomy building phase in Aceh. Fund is the arrest of incumbent Governor Conclusion Irwandi in July 2018 by KPK (Korupsi Pemberantasan Korupsi/Corruption Economic factors were the major Eradication Commission) due to grievances that triggered a rebellion in allegation of taking illegal fee for Aceh. Grievances over the inequalities of development projects funded by special distribution of natural resources have autonomy fund (Diela, 2018). Irwandi was been a powerful narrative in mobilizing accused to corrupt IDR 500 Million (USD discontent during GAM insurgencies. The 33,000), a relatively low amount compared conditions have been worsened by the to other corruption cases in Indonesia. armed conflict, leaving Aceh as one of However, Governor Irwandi arrest is the poorest provinces in Indonesia with low first high profile corruption case in Aceh investment and high economic costs after the peace agreement. The last case caused by illegal taxes by GAM and poor involving government official in Aceh was infrastructure due to the damaging impact in 2004 when the former governor of of the conflict. The primary effort from the Aceh, Abdullah Puteh was sentenced for central government to alleviate economic 10 years due to marking up the price of grievances in Aceh was initiated in 2008, the purchase of helicopter that caused IDR by a Special Autonomy Fund as a 2 Billion (USD 133,000) state financial loss. development fund. The government of This “belated” KPK intervention could Aceh channeled the fund according to the indicate the careful consideration of the provisions in LoGA which gives the national government to maintain the biggest share for infrastructure, education stability of the early phase of peace and health. Infrastructure has been Journal of ASEAN Studies 117

criticized for its low quality, the lengthy members. Various kinds of peace process, and the focus on small projects dividends in Aceh had successfully that gives insignificant impact on people’s integrated former combatants into post- welfare and economic development. conflict economic development and peacebuilding at large, but the While showing a positive impact, participation and integration will not be health and education sectors also suffer sufficient to maintain peace: there is also several shortcomings in the planning and an urgent need of building and enhancing implementation. The inequality of capacity. The economic settlement in post- economic development within districts conflict peacebuilding in Aceh is and municipalities in Aceh is also characterized by the establishment of an becoming a concern. To some extent, institution with patronage practices and infrastructure, health and education limited participation in economic programs contributed to the short-term development. Given the fact that legitimacy of GAM due to their populist grievance over economic inequality has character and the patron-client network. been the main driver of insurgency in Particularly on the small-scale project, Aceh, the incompetence of the new these practices indicate the continuation government in delivering services, and maintenance of patron-client stimulating inclusive growth and equal economic network among GAM circle that development among regions in Aceh can was initiated in the post-tsunami potentially harm the durability of peace. reconstruction industry and reintegration program. About the Author

Aceh’s first post-conflict Amalia Sustikarini is a PhD administration demonstrated an ability to Candidate at the Department of Political identify policy targets of the disbursement Sciences, University of Canterbury New of the Special Autonomy Fund but not an Zealand and the Research Associate at ability to formulate concrete strategies CBDS, Department of International designed to meet those targets and a lack Relations Binus University Jakarta of capacity in implementation. Another respectively. The author can be contacted shortcoming is state capacity in at [email protected] translating development plans into References comprehensive programs. They lack the long-term vision to channel the peace ACDP. (2014). Penelitian Kebijakan dividend into inclusive growth and Pendidikan di Aceh [Research on investment projects which can stimulate Education Policy in Aceh]. Jakarta: future economic welfare and justice. ACDP.

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Implementing SDG to Village Level by Integrating Social Capital Theory and Value Chain: (Case of Village Tourism Pentingsari in Yogyakarta, Indonesia)

Roseno Aji Affandi Bina Nusantara University, Jakarta Aditya Permana Bina Nusantara University, Jakarta Yanyan Mochamad Yani Padjadjaran University, Jakarta Tirta Nugraha Mursitama Bina Nusantara University, Jakarta

Abstract

Since the publication of the 2030 blueprint, Sustainable Development Goals (SDGs) have been promoted as a global project. Many steps have been taken; however, until now, the achievement remains limited. This is due to the low understanding of SDGs from stakeholders at the local level, such as the village. This study examines how we can develop SDG awareness and implementation in the village level. This article argues that we need to look at two essential factors namely the notion of social capital and value chain management in order to fulfil SDGs at the local level. Arguably, social capital can be mobilized by the local leaders to socialize the importance of SDGs at the village level. Second, value chain management enables local leaders to manage sustainable economic activities at the village level. Hence, these two concepts eventually enhance the implementation of SDGs at the village level. This argument will be illustrated in the case of three tourism village development areas in Yogyakarta namely, Pentingsari in Sleman, Mangunan in Bantul, and Bleberan in Gunungkidul.

Keywords: Sustainable Development Goals, Social Capital, Value Chain Management, Community Based Tourism.

Introduction standards for the Government of every State and its stakeholders, as well as Sustainable Development Goals industrial entrepreneurs, Multinational (SDG) has become part of the global Corporation, Small-Medium Enterprises, indicator and standard used by UN and Community Leaders to conduct their members in their national development respective business. The biggest challenge, strategy plan. At the national level, SDG however, is how to make this agenda indicators have been valued as important

Journal of ASEAN Studies, Vol. 7, No. 2 (2019), pp. 122-137 DOI: https://doi.org/10.21512/jas.v7i2.5780 ©2019 by CBDS Bina Nusantara University and Indonesian Association for International Relations ISSN 2338-1361 print / ISSN 2338-1353 electronic Journal of ASEAN Studies 123

accommodated and implemented within as known 3 P planet, people, profit for the local values. SDG implementation (Wise, 2015). Our arguments are also supported by Dwyer How can the leaders at the that he noted “triple bottom line national level encourage the dimensions are the core pillars of implementation of SDGs at the village sustainability” (Dwyer, 2005). level? This article shows that all resources and commitments to run development This capital strength is important under SDG based plan programs can to the formation of sustainable community work with rapid and comprehensive development. However, this abstract acceleration under less than 10 years of concept needs to be translated into more remaining towards 2030. It is urgent to be practical and easy steps to implement by accelerated by the state along with all stakeholders. This vacuity then collaborative partnerships between fulfilled by the concept of the value chain. government and stakeholders at all levels. The concept can be mobilized as a method (, 2018) to embrace each member of the community, government, and industry. The government indeed must invite more public participation such as Our argument is that agents are from industrial background, community the main key as a liaison between the leaders, and academics. The government government and industry and society for has often functioned as an initiator as well the creation of an institution capable of as a regulator in the implementation of the forming a synergistic value chain and 2030 SDG blueprint. However, the strengthening among its members. We government function must begin to shift termed this method as “Sustainable and place itself as a facilitator, as well as Supply Chain Management” (SSCM). providing more space for community Our research then aims to integrate participation. Participation from the social capital theory with strategic formal and informal community will be management especially value chain the motor of accelerating the analysis to implement the community implementation of the SDG. The top- management with specific tools to reach down approach will be slightly reduced in as much as possible the value of SDG on portion, and shift to the bottom-up rural areas. In this study, we focus on the approach. Within this framework, it is tourism industry, especially the noteworthy for us to elaborate on the community-based tourism industry with concept of social capital as the core that Desa Wisata Pentingsari Sleman, Desa linked the other capital, i.e. the cultural Mangunan Bantul and Bleberan Gunung capital and environmental capital. Kidul (Tourism Village) of Yogyakarta, We argue that These social capital, Indonesia, as our case. cultural capital and environmental are linked to the concept of three bottom line

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The Framework Research Framework: Figure 1. Research framework In this section, we aim to develop theoretical framework on social capital and value chain method. This framework arguably captures theories, fieldwork, and experiences. The framework is for shaping the model. The model can be used to implement SDG pillars to all levels of governance. Source: Authors

The framework and model have As mentioned earlier, we are been implemented to specific fields on the promoting three main variables for Village Tourism Pentingsari, Mangunan implementing sustainable development to and Blebersari Yogyakarta under their the village level, Social Capital, Cultural social, environmental and cultural Capital and Environment Capital. Those potential and challenges. Pentingsari is a three variables must comply with the good example of how social basics of SDG, which are called three empowerment starts from the power of bottom lines: People, Planet and Profit. leadership. Mangunan is a good example The strategy is to shape the SDG of how cultural capital is the key success implementation. We use the value chain to develop their tourism destination approach which is based on institutional development. Blebersari is a good case of development and business development. how to use their environmental capital to We argue that three steps from the triple create Village Tourism. All of them is in bottom line, three basic capitals, and the the same territory as Yogyakarta. It takes value chain are the fundamental only about 3-4 hours to reach all of them. framework to implement the SDG.

The reason we are using those as Social capital is generally defined our study case is that their process of as efforts carried out by civil society on a implementing community-based economy voluntary basis, outside of their relations is very interesting become a model for with the government or the market other sustainable community (Kumar, 1993). The concept of social development (Sudjatmiko, 2014). In capital was popularized by James addition, Pentingsari “won the Indonesian Coleman (1988) and immediately attracted Sustainable Tourism Award 2017 for the the attention of academics as a field of green bronze category” (The Jakarta Post, study that continued to evolve as well as 2017). the basis for the preparation of new policies in an atmosphere that was pro- The research framework can be market economy from the 1990s. Social seen in Figure no 1, and the model can be capital conception gives economics an seen in Figure no 2. insight into the combination of individual, Journal of ASEAN Studies 125

institutional, and other networks by generated reciprocal norms and trust incorporating (inter)-subjective, emotive, between citizens by such engagement” and affective elements, which are often (Putnam, 2000). excluded by the discipline of Economy Despite the emphasize in that view humans as rational individuals individuality of collective traits, it is clear acting instrumental and driven by that social capital is a phenomenon that incentives (Fafchamps, n.d). However, the arises in the context of free-market biggest academic contribution of social economic society, albeit their conceptual capital is facilitating the exchange of ideas closeness and resemblance with across disciplines. traditional community traits (Fukuyama, The general definition of social 2000; Fukuyama, 2001). In this type of capital is centered on social relations, society, the economic function of social which include elements of social capital is to reduce transaction costs networking, civic engagement, norms of caused by formal coordination reciprocity, and especially important mechanisms such as contracts, hierarchies, concepts of trust. In this light, social and bureaucratic rules (Fukuyama, 2000). capital is founded on shared norms, Given this discussion, social capital values, beliefs, trusts, networks, social is very relevant as a solution to Weberian relations, and institutions that facilitate functionalists’ predictions that cooperation and collective action for modernization will replace traditional mutual benefits (Bhandari & Yasunobu, systems and institutions with a formal 2009; Fukuyama, 2001). However, every bureaucratic system. But recently, scholar has an emphasis on this general empirical research shows that informal notion. For example, three major scholars norms are still very important and of social capital whose works are often relevant in the present days, where cited such as Bourdieu emphasizes social modernization of technology sometimes capital to “the aggregate of actual makes a subordinate more aware of things resources that are linked to the possession that are technical in the field than their of a durable network of more or less superiors/supervisors. This simple institutionalized relationships of mutual illustration gives us example on how acquaintance or recognition” (Bourdieu, social capital has a great opportunity to 1986), whereas Coleman defines it cut off long-term and convoluted functionalistically as “a variety of entities bureaucratic decision-making inefficiency with two elements in common: they are and has the potential to cut project costs, composed of various social structures, and facilitate the process of approaching with they facilitate certain actors within the partners, increasing sustainability, and structure” (Coleman, 1988). Meanwhile, strengthening civil society (Fukuyama, Putnam defines it as “a social network 2001). established by associational engagement such as voluntary organizations and

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However, social capital is also very a collaborative economy and avoids the closely related to the idea of development, occurrence of potential competitions that even expanding the notion of kill each other. development to things that are not solely Social capital links to civil economic. Development is a complex engagement, which is an important multidimensional process involving major element in the bottom-up approach. The changes in social structures, behaviors, importance stems from the ability of social and national institutions, as well as the capital to maintain the authenticity of acceleration of economic growth, local norms. The social capital thus could reduction of poverty, narrowing of equity, be mobilized to create new social forms. and improvement in the quality of life Through this social capital-based model, (Todaro, 1999). Economic variables are the economic activities within the village indeed a prominent driving force of can be integrated in order to increase the development, but the frontier of economic competitive advantage. development transcends beyond income per capita. Socio-cultural value systems To further enhance social capital, help shape the economic, social, and the local governments’ support through political behavior and affect development regulation is needed. This is because through multiple indirect channels sometimes individual within societies lack (Bhandari & Yasunobu, 2009). In this of incentives to band together in their context, development as a process economic activities. The reason for this involves government intervention within due to the lack of knowledge, experiences, certain limits to create conditions that financial capital that make the individuals allow social capital to work. These in the villages little incentive to cooperate. conditions can be created through a Hence, the government plays a role to combination of approaches that are form the model (Higgins-Desbiolles, bottom-up and top-down. The top-down 2011). approach, namely the government providing incentives to economic actors, This model then emphasizes the intervening in creating media to open the importance of relations between door for community participation, government and community. This is building local community-based because, arguably civil engagement may institutions, increasing budgets for grow in such a condition where capacity building for both institutions and government and civilians create the individuals, providing assistance by opportunity to synergize in order to build inviting agents such as from NGOs or the model. universities. The government has a role in In this model, after social capital fostering and nurturing the growth of being formed, the next stage is to utilize social capital (Fafchamps, n.d). The cultural capital. The importance of interference of the government is cultural capital as argued by Fukuyama significant as a facilitator of the creation of Journal of ASEAN Studies 127

lies in the idea that “societies in which Figure 2. Value chain people are accustomed to cooperating and working together in large groups are likely to develop strong and efficient state institutions.” Furthermore, culture is an essential element in the formation of trust and cooperation. To strengthen this cooperation, the emergence of an agency plays an important role as a medium for such a task.

The above discussion focuses in understanding social capital in abstract Source: (Porter, 1985) way. In order to further implement the social capital model, this article utilizes First part is Support Activities. The value chain method. firm infrastructure is the umbrella for the institution. Its function is to form the The term value chain is coined by agreement among members. The concept, Michael Porter (1985) in his book entitled values and legal matters are the basic “Competitive Advantage”. His methods to transform from informal to elaboration of his theory explained by de formalize the communities. This part is Mozota as follows, structuring the mind map of the “Every firm (institution) is a communities from every member such as collection of activities that are how to manage the monetary flows, performed to design, produce, providing materials, cash management, market, deliver, and support its how much investment, How the product. A reflection of its history, organization mechanism etc. This part we its strategy, its approach to can illustrate as the head of the human implementing its strategy, and the underlying economics of the body. Transforming every interest of the activities themselves.” (Mozota, member’s needs, wish and hope into the 1998) collective purpose. It requires high participation for each member. In principle, the Value chain consists of two parts, namely Supporting The second part of value chain is Activities, and Primary Activities as primary activities. The primary activities illustrated in the image as figure 2: are processed to transform the raw material into production and deliver it to the customer until the customer makes the payment. Including product design, services design, packaging and marketing design (Porter, 1985). In context tourism,

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the activities on this part are starting from interviews with pioneers, local leaders, developing tourism products such as members of the Pentingsari, Mangunan destination, homestay, attractions and and Blebersari village tourism. This tour guide persons. The first things first to method is very helpful to identify the be done after those job descriptions and practices of forming their social capital, basic infrastructure have been done are 1. knowing their values, how to manage inviting the visitors, 2. picking up, 3. their groups and communities, as well as service them with activities such as art, the positive impacts they get. Our cultural and rural events, 4. service them research analysis tool is linking the with home stay, 5. selling the souvenir conception about three capitals (social, and the last send the customer back to the cultural and environmental), agency, and airport. This part is the place for the value chain analysis from Michael Porter distribution economy based on the and sustainable tourism approach coined capabilities of every member and the by Bob McKercher. potential demand from customers. The Our first case is Pentingsari agent must be clever enough to distribute Tourism Village. The village was economic capabilities to every member. previously known as one of the poorest Who will provide the raw material, who hamlets among the villages on the slopes will provide homestay, who will act as of Mount Merapi with relatively low tour guide and who will pick up visitors. economic and community income. The reason why value chain However, there was a local leader who method is helpful in implementation of initiated a program for tourists to stay at social capital model is due to several their native home with local family reasons. First, it enables to divide members. The leader is Doto individuals within groups according to Yogopratomo. Doto was starting to their competencies such as knowledge, develop social capital first instead of the experience, and financial capital. Second, tourism business. His approaches have value chain method facilitates the proven this slightly backward village to be coordination of each individuals to more radiant, both socially and complement each other. economically, and in turn brought broader trickle-down effects among its The analysis of the case studies community, as reported by the local Having established the theoretical newspaper framework above, this section aims to "Through our tourism villages, we examine the implementation of the model are able to have a tremendous effect within three case studies. Before we went on the community, because with for a research fieldwork, we conducted a tourism villages we will be able to library review through various relevant accommodate all the components and academic journals, books, news and improve the economy of the seminars. Then we proceed with community” (Sudjatmiko, 2014). Journal of ASEAN Studies 129

The progress and the uniqueness individuals in their tourism destination. approach from the stakeholder in During our visit to the Mangunan Village, Pentingsari called international attention, we were accompanied by Fahlul Mukti as as reported in The Jakarta Post, tour manager to meet with several village tourism pioneers. I met with Pak Hardi as “World Tourism Organization the head of Watu Goyang. Watu Goyang (UNWTO) has pointed to is a rock that can sway located on the hill Pentingsari Tourist Village as one of the pilot projects for Community- of the village of Mangunan Bantul, based Tourism and Sustainable Yogyakarta. According to local history Tourism Development program. The and stories, this place was one of the five village also won the Indonesian other sites before Sultan Agung (the Sustainable Tourism Award 2017 for greatest Islamic Mataram King) the green bronze category” (The determined the burial place of the kings of Jakarta Post, 2017). Islamic Mataram, now known as Imogiri. Therefore, it will be an excellent And all five places were scattered in example of how SSCM can become a several areas of Mangunan Village. feasible combination of the top-down During our fieldwork, one of the approach and the bottom-up approach to homestays is operated with the traditional create a sustainable economy for Master puppet families. The Father is also community-based tourism programs in the abdi dalem (traditional servant) of the rural area. Yogyakarta Kingdom, the mother is sinden Therefore, we chose the formation (traditional singer). So, every visitor to the of the Pentingsari Yogyakarta tourism burial kings of Imogiri, will get both a village community as the case for this package of historical stories about Sultan research. This is because the village is a Agung and the magical and spiritual real example of how the development of culture and nature of Java. Another family social capital can create positive economic focuses on providing craft for souvenirs impact. The social capital grows stronger and Fahlul itself acting as Village Tourism through the emergence of local pioneers Tour Guide. The social capital based on who received support and facilities from culture has formed the economic activities the local government. These local pioneers chain among tourism village players on become agents that strength the bond Mangunan Village. between members of communities in the However, the individualistic village. With the growth of social capital, economic tendencies of this approach are it also increases the income of its members still relatively high, especially from in the community. existing industries or individualists whose The Mangunan Village tourism is economic ego is eminent. Thus, the self- an example of how Javanese culture interested and individualistic side of creates the chain among social and classical capitalism (what Schumpeter

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called “methodological individualism”) is processes. The gap between the senior and still the biggest challenge in this model. young generation is one of the biggest challenges in Mangunan Village Tourism. In Pentingsari Village Tourism, Culturally in Java, the younger generation there are still domestic political problems is not comfortable speaking frankly with about Doto's hegemony itself. While Doto seniors. Seniority behavior is one of the is a local leader, at the same time, he acts communication gaps in the organization. as the system itself in the group. There is That caused some of the talents of the no system to prevent if Doto cannot younger generation to work outside the perform its function due to his age. Some community. Then it became a new members still don't have enough competition between them. Then, it alternatives to support the group when became a situation in the village-based Doto can't do it anymore. village tourism far from the principle of After significant socio-economic the social capital chain. Instead of growth and development in the complementing and synergistic, they Pentingsari Tourism Village, Doto as a create new competition. leader must begin to manage the village To avoid increasingly sharp economic activities in a more structured competition and to strengthen groups, the manner. For the sake of the sustainability main function of agents is to create of the organization and business of the synergies between existing industries and Pentingsari tourism village, regeneration social capital groups, while strengthening is needed. In modern organizations, one social capital institutions to strengthen of the keys to success in creating group members. Thus, the demands of an sustainability is regeneration. Doto's agency are those that come from third success will be an example of the next parties outside the government and generation if Doto can prepare his outside the community members. In its successor to guarantee the principles of main competency, agents must be able to community-based business by create bridges that connect each other so strengthening social, cultural and that a synergic work chain is created. As environmental capital as Doto has done. theorized by Partszch (2017), “... for the In Mangunan there are also non-state and non-collective agency... cultural constraints. Seniority tends to non-state and non-collective agency... I make organizations less creative and suggest three categories of individual cannot accelerate the younger generation agents, increasingly relevant to global to express their ideas, especially in the governance: Celebrities, philanthropists context of commercial problems. Senior and social entrepreneurs' ' (Partszch, people who cannot use digital instruments 2017). Here she emphasizes that one to adapt to the contemporary business group of agent acts as “inventors of new environment, such as optimizing digital, ideas, norms, or products.” Partszch sees to promote and coordinate business it as the first phase of a life cycle, as Journal of ASEAN Studies 131

theorized by Sikkink & Finnemore (1998). After The public water services became a The next phase is norm cascading, which village-owned enterprise running for makes a new norm of entrepreneurship about 8 years. The village's own enterprise widely spread (Finnemore & Sikkink, creates some business units. One of them 1998). Followed by the next phase i.e. the is Village Tourism. The experience as institutionalization of entrepreneurship, former Village government leader, Pak Tri norms are the role to reorganize and has more experience of networking with choose the best options for implementing university and government without the new norm. The last phase is the policy eliminating the bottom up approach. of entrepreneurs who play institutional Based on the three cases above, we arrangements and leverage to create new can see that an approach that uses a institutions that replace the old (Partszch, combination of formal and informal, 2017). seniority and structural, bottom up and “social capital research as it pertains top down, state and cultural is a suitable to economic development and formulation for the development of identify four distinct approaches the socioeconomic chains. research has taken: communitarian, networks, institutional, and The approach to the distribution of synergy” (Woolcock, Michael, work functions, in a series of value chain Narayan, & Deepa, 2005. systems is the key to the formation of synergistic, complementary cooperation The best example of the paragraph and avoiding competition among explanation above is from the village of members. Blebesari Gunungkidul with Mr. Tri Hajono as the leader. Incidentally Mr. Tri This approach needs not be carried is the leader of the Yogyakarta tourism out separately. Thus, we need to model it village communication forum. Compared into a more operational framework while to the example from Pentingsari and continuing previous study carried out by Mangunan, Blebesari is more modern in Xavier Font, Richard Tapper, Karen determining its social economic chain Schwartz and Marianna Kornilaki from management. He used the village Leeds Metropolitan University (WOTU government apparatus to create his Bank Research Observer, 2000, pp. 225- socioeconomic chain. Pak Tri is a former 49). Using companies engaged in tour village head who has led for 18 years. operator services as case studies, their While he was still in the lead, there was a study entitled “Sustainable Supply Chain major problem of the village which was Management in Tourism”, focuses more the provision of clean water. Assisted by on environmental issues within tourism the Gajah Mada University Community business (Font, 2000). As travel organizer Empowerment Agency, in 2003 received services providers, they consider tourist assistance from the Ministry of Public destinations as vendors who are Development in the form of water pipes. encouraged to provide environmentally

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friendly tourism, food and equipment. business processes (Lippmann, 1999) This approach indeed inspired our study, Lippmann S. 1999. Supply chain but we emphasize more on how to build environmental management: community-based tourist destinations. elements for success. Environmental Management 6(2): 175–182.” We expand previous research by To facilitate community deepening and trying to build the participation in the village tourism, the possibility of synergy between Travel and Ministry of Tourism is collecting the Tourists Corporations who already have tourism activist called “Pokdarwis”. an awareness of sustainable tourism with Pokdarwis is an acronym from “kelompok a village tourism which is based on sadar wisata (tourism activist group). The community development. Within this government provides and facilitates the limitation, we argue that (1) if there is a community with training and capacity synergistic relationship between industry building and rural tourism communities, a sustainable tourism environment will be "Efforts to strengthen and increase achieved; and (2) if sustainable tourism is capacity, roles and community created in one area, it will accelerate the initiative as one of the stakeholder’s process of implementing the SDG to reach interests, to be able to participate and rural areas. play an active role as a subject or actor or as a recipient benefits in It is also important to note that developing tourism sustainable ". monitoring the progress achieved and (Directorate of Strategic Planning, reports on the improved environmental 2019) performance by both companies and their The agent has to be well understood suppliers by awards and recognition that about the value chain and can be acting as acknowledge the supplier’s involvement moderator to motivate every member of in the environmental concerns. the communities to involve to form the

“environmental achievement is also institutions. The agent has to be able crucial (NEETF, 2001) National design the institution development and Environmental Education and also business plan. The circle to develop Training Foundation (NEETF). Pokdarwis will be among Government- 2001. Going Green Upstream ... the Community-Business. To enhance Promise of Supplier Environmental Pokdarwis’ capacity in Pentingsari Village Management. NEETF: Washington, tourism, some business sector from certain DC. Additionally, companies may industry such as Asia Central Bank (BCA) also organize supplier meetings, in support them through their Corporate which useful information can be exchanged and companies’ Social Responsibility (CSR) program. expectations can be communicated. Their programs mainly involve design Following this pattern, integrate training such communication skill, team environmental concerns into all building, service excellence and also Journal of ASEAN Studies 133

donate 109 million rupiah (Nugraha, 2015) Program by the world tourism The training aim also facilitate local organization UNWTO (Aprilyani, 2017). community development more specific in- In these three case studies of home stay management to reach Pentingsari, Mangunan and Bleberan international standard without Village Tourism, we also observe how the eliminating the local values (CNN villages create a tourism product that Indonesia, 2017) incorporate farming activities along with Doto as leader said that the its natural uniques. Travelers who came to trainings provided by the Government these villages will experience not only as a and BCA have indeed increase their guest but also an active participant of the member’s understanding on sustainability farmers who can feel the real life of the of their economic activities. This, in village community. return, has an effect to their community Given this arrangement, the village financially. For instance, in 2008 the community were given different type of turnover of the economic activities in tasks. For instance, some members are Pentingsari Village was 30 million rupiah. responsible for the homestay, others are But after development and training by responsible to provide meals, while some supporting from the government, the are responsible to perform cultural following year the turnover increased to activities ranging from entertainment to 250 million rupiah. In 2011 to 2014 the game playing in rice fields. So, each turnover from Pentingsari jumped sharply member of the community has a role in to Rp. 1 billion per year or approximately this type of tourism areas. Rp. 100 million per month after having supervising and development from BCA. During our fieldwork, Doto, Fahlul and Tri told us that the above BCA continues to supervise arrangement shows that indeed Pentingsari on 2015-2017 and the result distribution of roles create individual turnover reaches Rp 2.5 billion per year or incomes for the member of community. around 200 million rupiah per month. This in return enhance local trust and Those performances provide about 55 solidity. As leaders, they are willing to units or 150 rooms and consist of 1255 sacrifice their portion of roles as long as heads of households. The community the community having bigger benefit from development is really making a good such arrangement. impact on the people relations to their environment, culture and people to In his words, Doto told us people relations. Pentingsari Tourism Village was appointed as one of the pilot “in every arrangement, each member of the community who perform their projects of the Community Based Tourism roles will instantly get the income and Sustainable Tourism Development from their respective roles. For instance, if the member is the one

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who provide the homestay with the As a result, the integration of social capital price of Rp. 100,000 per night, he theory and value chain method will will get instantly Rp. 90,000. The ensure the sustainability of the other Rp. 10,000 will be put into community. community saving. This 10% contribution will be reinvested to Based on the above the analyses of cover operational cost for the the case studies, it turns out that the community such as common theory of social capital combined with a infrastructure and maintenance in management strategy approach with the village. If there is money left, it value chain tools has been able to produce will be used as a bonus for every sustainable community development. So member of the community after deducted with all expenses at the end that the implementation of SDG as a of period once a year.” global value was able to be implemented up to the village level. The sustainable Conclusion development community is the basic

Based on the empirical analysis understanding for each stakeholder to above, there are some insights that can be implement the SDG. Thus, the SDG used by others in their pursuit of social implementation for village level can be capital. started from the integration among social capital theory and value chain method. In order to create a sustainable development-based community, Supporting Activities on Value fundamentally, the stakeholders should chain has proved that social capital, maximize the local potentials from their cultural capital and environment capital culture and environment. In order to has been designed and agreed among maximize these potentials, the members. They use those capitals as stakeholders must create a social bond product differentiation, in the context of among the community members. In this institution development. Supporting stage, the social capital is needed in order activities deepening the members to agree to engage each member of communities to that every transaction will be deducted take part of the economic activities. 10% as community saving. The kind of arrangement is the most democratic, While the social capital is indeed inclusive, transparent and flexible important. The next step is to translate according to members aspirations. Thus, this concept into practice. One way of supporting activities can be used to form doing this is by using value chain method. the social capital of the key success of Value chain method helps the community Pentingsari, Mangunan and Bleberan to distribute the roles within arrangement village tourism. Moreover, the primary to each member of community. Thus, in activities proved that distribution this community, the system will run as if activities from inviting visitors, entertain the community is one single cooperation. with local art, culture, farming event, Journal of ASEAN Studies 135

home stay, culinary, selling the souvenir desa-pentingsari-percontohan- make them more synergize instead of wisata-berkelanjutan competing with each other. Bhandari, H., & Yasunobu, K. (2009). At the end of the day, this model What is Social Capital? A can only be successful with the existence Comprehensive Review of the of good cooperation between the Concept. Asian Journal of Social government-business and the community Science 37, 480–510. that put the social, cultural and Bourdieu, P., & Richardson, J. G. (1986). environmental capital as the principle. Handbook of Theory and Research The government functions as a facilitator. for the Sociology of Education. The The business is anchor or foster father. forms of capital, 241-258. And the community is the executor. The academic sector provides research and CNN Indonesia. (2017, September 6). community development center. Those Yogyakarta Siapkan Desa Pentingsari actors are the most important actors to Jadi Wisata Unggulan. Retrieved implement the SDG to the micro level of June 2019, from CNN Indonesia: village community https://www.cnnindonesia.com/ga ya-hidup/20170906134612-307- About the Author 239805/yogyakarta-siapkan-desa- Roseno Aji Affandi, Humanity pentingsari-jadi-wisata-unggulan Faculty International Relations Coleman, J. S. (1988). Social capital in the Department, Bina Nusantara University. creation of human Aditya Permana, Humanity capital. American journal of Faculty International Relations sociology, 94, S95-S120. Department, Bina Nusantara University. Directorate of Strategic Planning. (2019). Yanyan Mochamad Yani, Directorate of Strategic Planning, International Relations Department, Community Empowerment. Padjadjaran University Retrieved June 2019, from kemenpar.go.id: Tirta Nugraha Mursitama, http://www.kemenpar.go.id/userfil Humanity Faculty International Relations es/1_%20Pedoman%20Pokdarwis. Department, Bina Nusantara University. pdf References Dwyer, L. (2005). Relevance of the triple Aprilyani, J. (2017, December 10). bottom line for sustainable Retrieved June 2019, from tourism: A scoping study. Tourism lifestyle.kontan.co.id: Review International, 9, 79–93. https://lifestyle.kontan.co.id/news/

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Digitalization in the Community-based Tourism Development in Peripheral Areas: A Case Study of Sumbermanjing Wetan Village, Malang Regency

Ayu Dwidyah Rini Universitas Trilogi, Jakarta

Abstract

The paradigm of digital-based peripheral area tourism development is carried out within a broader development of technology and communication in Indonesia. This is done as a way to reduce the level of disparity between the city and the peripheral region. This study examines the paradigm of local communities related to digital-based tourism development. This digital-based tourism development is illustrated through the case of community- based tourism in the Sumbermanjing Wetan area of Malang Regency. This article shows that community participation in tourism is classified into three forms of local participation. First, digital-based tourism can be solutions for tourism development in the Sumbermanjing Wetan region. Second, the community also understand the digitalization of tourism as an effort to alleviate poverty and improve the welfare of local communities. Third, digital-based tourism can be the strategy for improving the quality of life of the Sumbermanjing Wetan community.

Key words: community-based tourism, peripheral area, gua cina beach and local economy

Introduction Indonesia. The number of foreign tourists coming to Indonesia before 2015 is always Effective collaboration between under 10 million people. International existing resources, community, and tourist visits then surged above 10 million government create a healthy and in the following period. Foreign tourist sustainable regional economy. The arrivals in 2018 grew by 12.6% compared government, as a regulator, plays a to 2017, which amounted to seven million strategic role in seeking broad visits. Overseas tourist growth exceeds opportunities for local people to neighboring countries such as Malaysia participate fully in every economic and Singapore. Even in 2018, Malaysia activity, one of which is the tourism sector. experienced negative growth in bringing Indonesian Statistics Agency in foreign tourists. shows a rapid increase in tourist visits to

Journal of ASEAN Studies, Vol. 7, No. 2 (2019), pp. 138-149 DOI: https://doi.org/10.21512/jas.v7i2.6115 ©2019 by CBDS Bina Nusantara University and Indonesian Association for International Relations ISSN 2338-1361 print / ISSN 2338-1353 electronic Journal of ASEAN Studies 139

However, the interest of foreign The peripheral region can be tourists to stay longer in Indonesia is still defined as an area far from the population low. This is indicated by the relatively and economic centers, travel to them short duration of tourist visits. Indonesian requires time and costly. Peripheral Statistics Agency (2019) also recorded the tourism development is expected to average length of stay of foreign tourists increase value-added peripheral area and in Indonesia is 2.81 days in Bali Province, triggering peripheral region development 2.42 days in Papua Province, and 2.33 process. days in Southeast Sulawesi Province, Peripheral tourism is part of the while the shortest average length of stay development strategy of the periphery. of guests occurred at 1.25 days in Central Peripheral tourism can be used as the Java Province. The numbers of occupants choice of tourist destinations to extend the of the hotel rooms in Indonesia decreased length of stay of tourists. Besides, the in December 2018. The most significant development of peripheral tourism is also number of decreases occurred in four expected to encourage the development of islands: (1) Sulawesi Island, namely the local economy by utilizing the Central Sulawesi Province at 14.38 points, momentum of increased tourist visits. The (2) Sumatra Island consisting of Aceh results of the Probst et al. (2013) study on Province 14.37 points and North Sumatra the Alpine area show that the Province at 14.31 points. (3) Papua Island development of peripheral regions is very decreased by 12.80 points in West Papua. instrumental in maintaining economic (4) Java Island decreased in three sustainability in the region. The provinces, namely Central Java province development strategy must be oriented by 4.23 points, DI Yogyakarta Province by towards a unique experience for tourists. 2.01 points and East Java Province by 1.73 A preliminary study on the points. This shows that efforts to improve Mediterranean region in Turkey shows equity and improve the performance of that people in the region did not feel that tourist destinations other than Bali still they were competing with the main need to be adjusted. tourism area (Seckelmann, 2002; Burak et The above conditions show the al, 2004). This has led to differences in government’s lack of attention to behavior between communities in the peripheral tourism. Okech et al. (2012) coastal zone and communities in the main study on Kenya show that the tourist destinations. government has done very little to boost Research on peripheral area rural tourism and justified by lack of tourism in Indonesia is still rare. Lew tourism offices in various provinces. Thus, (2011) explored the Indonesian peripheral the role of government is enormous in region in Manado and Lembeh straits in developing peripheral tourism areas. Indonesia and stated that tourism in the area was still disguised and had not yet

140 Digitalization in the Community-based joined the global tourism network. Sumbermanjing Wetan are faced with Primadany et al. (2013) conducted a study communication inconsistencies that are tour in Nganjuk, Indonesia and showed still concentrated in the core region; this that optimizing regional tourism harm tourism destinations in the development faced obstacles in the lack of peripheral region. Digitalization of the funds for the development of facilities and tourism sector has so far been built infrastructure to support tourism activities. downstream, this has led to the promotion Khotimah et al. (2017) in a study related to of peripheral tourism areas that have not the study of Trowulan cultural tourism in been able to be received in full and Mojokerto, Indonesia explained that detailed by tourists. Tourists do not know limited funds, limited promotion and in detail the accessibility of tourist supporting facilities and infrastructure for attractions to interpret tourism products tourism activities were obstacles in such as cultural attractions, souvenirs, developing cultural tourism sites. language and customs of the people. Therefore, the pattern of setting up tourist Sumbermaning Wetan is part of destinations is needed in optimizing peripherally located far from the city peripheral areas. Local Government, as center of. Malang. Sumbermanjing Wetan the leading sector has a strategic role in has tourism potential which is a Chinese developing the facilities and infrastructure Cave Beach tour; unfortunately, this is not needed. widely known by the general public. So, Tourism 4.0, in its development that tourism has not been able to increase also became a significant concern in regional income (Supriadi, 2016). The developing peripheral tourism areas in tourism sector which is located in Indonesia. The results of the study Sumbermanjing Wetan is seen as not conducted by Hakim (2018) related to the being able to benefit the local community. rise of cyberculture in the tourism sector Tourism development must provide indicates a significant change in tourism economic, social and cultural benefits to ecosystems, where the strategy of the communities around the destination. developing tourist destinations and Therefore, the community has a role in the tourist attraction will be influenced by development of Sumbermanjing Wetan digital information developed and tourism. obtained. This phenomenon explains that Community-based tourism is an the era of tourism 4.0 is an excellent approach in optimizing tourism opportunity for the development of development, especially in the digital era. tourism, especially the peripheral region. Local communities take the initiative to However, technology and build, own and manage tourism facilities information development in tourism 4.0 is and services directly so that the still hampered by the lack of supporting community is expected to receive direct infrastructure in the peripheral region. economic benefits and reduce Journal of ASEAN Studies 141

urbanization. Community-based tourism and development. They can be divided is expected to be an instrument into two types of approach; First, is developing tourism digitalization in supply approach, the supply approach Sumbermaning Wetan. There are four focuses on developing tourist destinations. principles in the development of tourism Second, is the demand approach; the digitalization, namely: (a) sustainability of demand approach focuses on tourist potential tourism, (b) the development of spending. Utami et al. (2016) estimated the local community institution and function of tourism demand in seven partnership, (c) digital education in tourist destinations in Indonesia. The society (d) tourism digitalization strategy study shows that tourism prices are the plan. primary determinant of tourist spending.

The problem is that there are still a This phenomenon shows that the few local people who have the financial factors influencing the development of ability and expertise in utilizing supporting tourist areas in terms of technology and information in supporting supply and demand include four main the tourism digitalization. The issues. First, attractions of tourist formulation of the problem in this study is destinations, defined as tourism product 1) How is the community paradigm components that can attract tourists related to digital-based tourism include natural wealth, developing development by the Sumbermanjing culture and special events or interests. Wetan Malang area? and 2) How is the Potnov and David (1999) in the results of application of community-based tourism their study regarding the growth of conducted by the Sumbermanjing Wetan peripheral regions indicate that the community in managing digital-based attractiveness of migration of an area regional tourism? This paper finds that affects the growth of a sustainable tourism digitalization is essential in regional population. In this case, the optimizing the Sumbermanjing Wetan ability of a region to attract new tourists tourism sector. The tourism sector is and maintain the number of tourists is a believed to be able to improve the welfare significant factor in developing peripheral of local communities. Communities areas. Second, accessibility in reaching paradigm related to digitalization is the tourist destinations, these factors include; basis for building a community-based terminals, ports, airports, systems and tourism digitalization strategy. transportation routes, travel costs, travel time and frequency of transportation to Review of Related Literature the destination. Third, amenity, Supply and Demand in the Tourism supporting facilities for tourism, Sector including; accommodation, food and beverage, shopping, entertainment and There is growing literature money changers, and tourist information discussing the relations between tourism centers. Four, institutions. These can be

142 Digitalization in the Community-based institutional elements, partnerships or planning. Fifth, peripheral tourism areas supporting organizations in developing that are developed must be able to and marketing tourism destinations and stimulate business in supporting regional activities of local communities. development. This is supported by regional and local policies in accelerating Based on the study of the drivers the formation of peripheral tourist areas. of the development of the tourist area, a Sixth, business activities with government strategic plan is needed in tourism and non-profit attractions can be development. The tourism development integrated through system. This is written strategy has implications for three things. in the form of the realization of the First, improvement of existing products. attraction business planning policy In our case, the potential for peripheral (natural and cultural) which is supported tourism is increased through the by travel and accommodation business. development of potential areas that will be used as tourist destinations. Second, Peripheral tourism identification of opportunities in Peripheral tourism can be defined determining new markets. In this case, as tourism in an area that is not a major internal and external factors in the destination. Peripheral tourism can be in a peripheral region determine the tourism less strategic area (Chaperon & Bramwell, development strategy. Third, the existence 2013). The relationship between core and of the local industry as a priority in the peripheral tourist destinations has been long term. discussed in various previous studies. Regional and local policies are Kurnianingsih et al. (2014) explain that as expected to be oriented towards the the relationship between rural and urban growth of the peripheral tourism sector. areas, exploitation can be carried out by Policy orientation refers to six principles the core region to the peripheral region. of developing the peripheral tourism Core tourism areas usually have a higher sector. First, tourism development economic level, high innovation and are strategies are oriented towards improving equipped with infrastructure and quality growth. The approach aims to amenities. Widodo and Lupiyanto (2011) develop potential locations and the explain that the lack of attention to quality of tourist area attractions. tourism development in the periphery of Secondly, digital-based promotional the region precisely in the Bantul Regency activities are part of the development of of Yogyakarta had an impact on the tourism areas. Third, cooperation in the waning of the region’s superior potential form of public and private partnerships is and environmental degradation. This a form of interaction between phenomenon shows that development in stakeholders. Fourth, tourism the peripheral area are needed in development at the destination level must improving people's welfare, optimizing its be actualized in regional and local policy potential, preserving the environment, Journal of ASEAN Studies 143

strengthening community participation in tourism businesses, 3) tourism strategies developing peripheral tourism oriented to political empowerment and destinations. democratization, and 4) a form of tourism that makes the people of rural areas Peripheral tourism activities are prosper. Thus community-based tourism believed to have an impact on the is an approach to tourism development economy of Bukit Tinggi City. The that is oriented towards local communities activities also create multipliers effects on (both those who are directly involved and the hospitality industry with the not involved in the tourism industry). increasing number of tourists around Community-based tourism provides tourism objects (Arianti, 2016). This access in planning, building and phenomenon implies that Indonesia's developing tourism based on community tourism development strategy is oriented empowerment and equitable distribution to increase the socio-economic of benefits to the community. sustainability of peripheral tourism areas. This has implications for the reallocation Community-based tourism has the of the Government's financial budget in following basic principles: a) recognizing, encouraging the acceleration of peripheral supporting and developing community tourism development. The strategy for ownership in the tourism industry, b) planning peripheral area development can including community members in the be realized in four strategic steps, planning stage, c) developing community including; (a) establishment of tourist pride, d) developing community quality destination clusters based on evolving of life, e) guaranteeing environmental geographical, economic, social and sustainability, f) maintaining the cultural characteristics, (b) financial uniqueness of character and culture in the concentration of the central and regional local area, g) developing learning of governments on potential area cultural exchange in the community, h) development, (c) active promotion by tolerance of cultural differences and involving the private and public, and (d) human dignity, i) distributing benefits land use limitation regulations in the core equitably to community members, j) region (Potnov, 1999). playing a role in determining income distribution processes (Suansri, 2003). Community-Based Tourism These basic principles are the essence of Community-Based Tourism is implementing development in local defined into three perspectives, among communities. Community-based tourism others; 1) form of tourism that provide implements ten basic principles by space for the community to actively establishing a balanced relationship participate in planning, developing and between local communities and tourists in controlling tourism development, 2) form terms of community ownership status, fair of tourism that benefit the community distribution of benefits, mutual respect, both actively and passively involved in

144 Digitalization in the Community-based and awareness in protecting the Therefore, community-based tourism is an environment. institutional approach involving community members. Community-based Community-based tourism is tourism also has implications for the developed in the community by creation of strong relationships at regional containing three dimensions, including 1) and national levels. Community-based economic dimension, explained through tourism bridges local communities with three indicators, among others; funds national or international markets so that available for community development, domestic and foreign tourists can enjoy employment in the tourism sector, local peripheral tourism areas. people's income generated from the tourism sector; 2) social dimensions Digitizing Peripheral Region Tourism explained through four indicators, among Digitalization of tourism has been others; the quality of life of the built up in the downstream region or the community, the emergence of pride in the main destination so that attention to community, the distribution of roles fairly peripheral tourist destinations has not in the community, the formation of been optimal. The digital transformation cooperative relationships in the of the tourism sector has resulted in major community; 3) cultural and environmental changes in the world. Foreign tourists dimensions are explained through four who visit Indonesia as much as fifty indicators, among others; community percent consist of millennial tourists with initiation for mutual respect for different an average age of 15-23 years. The digital cultures, the creation of close ties of era has also changed tourist behavior to be society with local culture, concern for more independent and individual. For environmental sustainability and the example, Chinese tourists who were existence of community rights in initially been famous for group tourism managing natural resources. Therefore, are now more into individual tourism. the local government, in this case, plays a This is the right moment for the role in assisting the community so that the development of Indonesian tourism. objectives of community-based tourism Human resources are the main key in can be carried out. Community-based building and developing digital tourism. tourism is an approach oriented to Therefore, the paradigm of local community participation to achieve the communities related to tourism goal of equitable distribution of benefits, digitalization is the main factor in efforts poverty alleviation and efforts to preserve to understand and build solutions to the the culture and the environment. problems faced by peripheral regions. Community-based tourism also has implications for strengthening local The paradigm of digital-based institutions, where the development of peripheral area tourism development is tourism businesses in rural areas is carried out amid the development of difficult to regulate by existing institutions. technology and communication. This is Journal of ASEAN Studies 145

done as a form of reducing the level of challenge in tourism digitalization. disparity between the city and the Digitalization is expected to bring positive peripheral region. The peripheral changes to the improvement of the community also needs accurate Sumbermanjing Wetan area. information in determining the right The community also understand solution in building the quality of the the digitalization of tourism as an effort to tourism area and the participation of the alleviate poverty and improve the welfare community. The results of Arifin (2017) of local communities. People put high study of tourism digitalization explain hopes in developing digital-based tourism, that digital-based tourism can provide a where the region will grow and economic positive image for regional tourism and productivity increase. The tourism human development. Hence, a change in development of Gua Cina in Malang the paradigm of peripheral tourism Regency is expected to be able to absorb development from traditionally based into large numbers of workers every year so digital-based needs to be done. The that it will have an impact on the welfare strategies that can be carried out in of the Sumbermanjing Wetan community. building a digital-based peripheral tourism development paradigm are as The strategy for improving the follows (Badri, 2016). First, building the quality of life of the Sumbermanjing website of village areas with desa.id Wetan community is through domains. Second, migration of open digitalization. Digitalization can source technology. Third, developing encourage infrastructure improvements in peripheral tourism partners with various the telecommunications and internet, online tourism service providers. Fourth, transportation and information sectors building regional interconnections that carried out by the Regional Government. support the development of the potential The paradigm of the digital-based of local tourist destinations. development of the Gua Cina beach can be identified as a form of positive public Discussion trust in economic and social A paradigm of Digital-Based Peripheral improvements. Tourism Development Tourism digitalization in the Gua Cina is beach tourism in tourism industry's supply and demand Sumbermanjing Wetan region that has perspective is a medium in integrating the developed from year to year, but in its behavior of tourism industry players and development, there are still many tourism tourists. Gua Cina beach still has potential potentials that have not been optimally problems, which are identified by three worked on. Accommodation and factors. First is accessibility. Public transportation facilities are still an transportation facilities leading to coastal obstacle for several tourists who want to tourism objects are still very minimal. The visit Gua Cina. This is certainly a road to Gua Cina Beach is still very

146 Digitalization in the Community-based limited in lighting, thus hampering in several stages. The first stage is to tourists' interest. Second is amenities. develop peripheral tourism information Promotion of tourism objects is still the networks by creating integrated regional biggest problem because there is no travel tourism websites on Malang Regency agent incorporated in the promotion of website. The second stage is to develop tourism objects. Tourism activities, the attractiveness of tourist destinations including the creation of souvenirs including local cultural attractions, local developed by local people, do not exist. crafts such as souvenirs and culinary This has implications for the lack of snacks that are promoted online. The third attractions that can be displayed to stage is to improve online promotion, not tourists. there are inadequate supporting only through Instagram, Twitter and facilities such as ATMs, lodging and websites but also various other digital health posts that are not yet available. platforms. The fourth stage is to establish Telephone and internet networks are not cooperation and partnerships with online yet available. travel agents, governments, universities and community social institutions. The above phenomenon is obstacles in the realization of Development of Peripheral Tourism digitalization of the Gua Cina Beach Community Based Tourism tourist destination. Therefore, it is Community-based tourism is a necessary to strengthen the form of approach in increasing communication and information community participation in regional technology infrastructure that is tourism. The perspective of community maximally integrated. Information, participation in tourism is classified into communication, and technology available two forms of local participation, first is make it easier for tourism industry players community participation in the decision- to access data such as destination making process. With the participation of promotion, destination development, local people, the benefits of tourism tourism industry growth, and tourism activities can be received by the local human resource needs. The central community. Second is the involvement in government has a role in supporting the process of determining and digital transformation so that the changes distributing profits derived from local are in the right direction. Regulations tourism development. The community is determined by the government will help directed in the process of identifying businesses and the local governments in needs, interests, and commitment to carrying out integrated digital planning tourism to improve the welfare transformation. of the local community. Thus, the The paradigm of the digital-based community is given the full right to development of the Gua Cina tourism manage resources and allocate potential built by local communities is carried out resources by regional characteristics. The Journal of ASEAN Studies 147

local people can get benefits according to entrepreneurial experience, and the use of resources. organizational experience).

Community-based tourism can be The third is diversification of developed using three approaches. The business products. Local communities are first is spontaneous community encouraged to initiate in creating potential participation (spontaneous participation). tourism business products such as making Spontaneous participation is defined as souvenirs, marine tourism education, community efforts to initiate ideas and homestays, and culinary businesses. The implement the ideas together. Thus, the community is not only directed to manage planning and tactics implemented are the tourist attraction but also creates other from the community (bottom-up). This is business products that are interrelated proven in the stages of building with each other. Thus, the variety of community commitment, where the business products that are raised, can Sumbermanjing Wetan Village provide many choices for tourists to enjoy community is aware of tourism a tourist village product. The community opportunities that can be developed and involved can feel and experience the are committed to developing them. economic benefits of China Cave tourism Spontaneous participation is also activities. implemented in the decision-making Conclusion process, where communities are involved as decision-makers in shaping the Digital-based tourism has indeed institutions and management of existing provided solutions for tourism tourist attractions. The second is the development in the Sumbermanjing establishment of tourism village Wetan region. The community also institutions, involving village officials, understand digitalization of tourism as an district governments, the private sector, effort to alleviate poverty and improve the and local communities following their welfare of local communities. The strategy roles and functions in developing for improving the quality of life of the Sumbermanjing Wetan tourism potential. Sumbermanjing Wetan community. The institution is needed as an effort to Digitalization provides positive trust in optimize the tourism performance of the peripheral community to get a better Sumbermanjing Wetan. Therefore, the life. involvement of community members in the institutional element is very necessary. Community-based tourism can be It aims to regulate relations between developed through three approaches. First, residents, resources, and visitors. community-based tourism can be Institutions can be strengthened by developed through mobilizing training and developing community skills spontaneous participation of local with the essential soft skills (including communities. This is an effort to build management, communication, community awareness and commitment

148 Digitalization in the Community-based to tourism opportunities that can be Arianti, D. (2016). Pengaruh Sektor developed and encourage the community Pariwisata Terhadap in making decisions in the process of Perekonomian dan Keruangan establishing tourism village institutions. Kota Bukittinggi (Pendekatan Second, community-based tourism can be Analisis Input Output). Jurnal achieved by establishing tourism village Wilayah dan Lingkungan, 12(4), 347- institutions by involving Sumbermanjing 360. DOI: Wetan community members as https://doi.org/10.14710/pwk.v12i4. administrators. Institutions function in 13502 regulating relations between residents, Badri, M. (2016). Pembangunan Pedesaan resources, and visitors. Therefore, Berbasis Teknologi Informasi dan institutional strengthening is done by Komunikasi (Studi pada Gerakan training and developing community skills Desa Membangun). Jurnal with the necessary soft skills. Lastly, RISALAH, 27(1), 62-73. DOI: community-based tourism can be 10.24014/jdr.v27i2.2514 developed through the creation of a diversification of the potential of tourism Badan Pusat Statistik. (2019). products. Diverse business products can Perkembangan Pariwisata dan provide many choices for tourists to enjoy Transportasi Nasional Desember a tourist village product. Thus, the people 2018. Berita Resmi Statistik. 12(2), 1 - involved can feel and experience the 16. economic benefits of Gua Cina tourism activities. Burak, S., Dogan, E., & Gazioglu, C. (2004). Impact of urbanization and About the Author tourism on coastal environment. Ocean & Coastal Ayu Dwidyah Rini was born in Management, 47(9-10), 515-527. Jombang, East Java. She had been studied Master of Economic Education at State of Chaperon, S., & Bramwell, B. (2013). Malang University. Prior to working at Dependency and Agency in State of Malang University, Universitas Periheral Tourism Development. Ciputra, East Java, and in 2017 until now Annals of Tourism Research, she became a lecturer in economics at Retrieved August 17, 2019, from Universitas Trilogi. https://www.researchgate.net/publ ication/256987123 References Hakim, I. N. (2018). Pergeseran Budaya Arifin, S. (2017). Digitalisasi Pariwisata Siber & Visual di Sektor Pariwisata Madura. Jurnal Komunikasi, 11(1), Indonesia. In Seminar Nasional Seni 53-60. DOI: dan Desain UNESA. http://dx.doi.org/10.21107/ilkom.v1 1i1.2835 Kurnianingsih, N. A., & Rudiarto, I. (2014). Journal of ASEAN Studies 149

Analisis Transformasi Wilayah carbon cycle. Geophysical Research Peri-Urban pada Aspek Fisik dan Abstracts, 15, 71-85. Retrieved Sosial Ekonomi (Kecamatan August 17, 2019, from Kartasura). Jurnal Pembangunan https://www.researchgate.net/publ Wilayah & Kota, 10(3), 265. ication/258777106

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Lew, A.A. (2011). “Adjectival, Specialty Suansri, P. (2003). Community based tourism and Niche Tourisms”, Retrieved handbook. Bangkok: Responsible August 17, 2019 from Ecological Social Tour-REST. http://alew.hubpages.com/hub/Adj Supriadi, B. (2016). Pengembangan ectival-Tourism. Ekowisata Pantai sebagai Okech Roselyne., Morteza Haghiri., & Diversifikasi Mata Pencaharian. Babu P. George. (2012). Rural Jurnal Pesona, 18(1), 1-20. Tourism As A Sustainable Utami, R. C., & Hartono, D. (2016). Development Alternative: An Analisis Daya saing Harga Analysis with Special Reference to Pariwisata Indonesia: Pendekatan Luanda Kenya. Cultur Revista de Elastisitas Permintaan. Jurnal Cultura e Turismo, 6(3), 36 -54. Kepariwisataan Indonesia: Jurnal Potnov, A., & Pearlmutter, D. (1999). Penelitian dan Pengembangan Sustainable Urban Growth in Kepariwisataan Indonesia, 11(1), 93- Peripheral Areas. Elsevier, 52(4), 118. 239-308. Widodo. B, dan R. Lupyanto. (2011). Primadany, R., Mardiyono., & Riyanto. Pengembangan Kawasan (2013). Analisis Strategi Pinggiran Kota dan Permasalahan Pengembangan Pariwisata Daerah Lingkungan di Kampung Seni (Studi Kasus Dinas Kebudayaan Nitiprayan Bantul. Jurnal Sains dan dan Pariwisata Daerah Kabupaten Teknologi Lingkungan, 3(1), 31 - 51. Nganjuk). Jurnal Administrasi Publik, 1(4), 135–143.

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Reinventing Place-identity and Embracing New Economic Opportunities: Promoting Creative Economy of Sanur Through Public Participation

I Nyoman Gede Maha Putra Universitas Warmadewa, Bali Ida Bagus Gede Parama Putra Universitas Warmadewa, Bali

Abstract

Every place on the planet has unique characters that make it distinguishable from other sites. Place-identity is the term widely accepted to explain this phenomenon. It is argued that the place-identity could not only strengthen the sense of belonging of the locals to a place and improve social cohesion but, in the age of global tourism, it could also increase the attractiveness of the place to visitors. Therefore, it contains economic values if managed in a proper way. But places are transforming. The dynamics of contemporary activities where tradition is seen as outdated, new government system, new economic activities, and new actors and their roles challenge the stability of place-identity. Unfortunately, the transformation of a place may benefit some actors but may trouble other groups. Some places, however, maintain their place-identity for the social and economic values it holds. Collaboration among different actors in managing the transformation of such place could maintain the place-identity of a place which ensures its attractiveness to visitors, sustains its economic values amidst rapid changes. The collaboration confirms no one is left behind. The case study research conducted in Sanur showed that the sustained place-identity could economically benefit all actors.

Key words: place-identity, economic opportunities, tourism, role of local actors

Introduction of the place and the perceptions of the locals, as well as the visitors (Watson & The construction of place-identity Bentley, 2007). Both tangible and involves many dimensions and is not a intangible components are not static but in simple process. It is dynamic, consists of a state of constant change. Nevertheless, tangible components, such as the built and each place has enduring quality upon natural physical components of the place which its place-identity is mostly in which daily life takes place and its associated with. It ensures the stability of morphological transformation; and place-identity amidst rapid changes in its intangible components, such as the history components. However, stability is

Journal of ASEAN Studies, Vol. 7, No. 2 (2019), pp. 150-160 DOI: https://doi.org/10.21512/jas.v7i2.5751 ©2019 by CBDS Bina Nusantara University and Indonesian Association for International Relations ISSN 2338-1361 print / ISSN 2338-1353 electronic Journal of ASEAN Studies 151

challenged when immediate and community (Watson & Bentley, 2007). significant transformation occurs. This Therefore, place-identity is the may happen when a new governance understanding of humans with the place system takes over or dominate the in which they are living in (Proshansky & management of a particular place Kaminoff, 1983). A deeper meaning of formerly administered by traditional place-identity is about what a place means society members (Bourdier & AlSayyad, to people. Meaningful places are often 1989). Powerful stakeholders may control content with a sense of stability. This can the decision-making process and lead the be understood because the meaning of the transformation to fulfil their needs. place is important for the inhabitant’s life both as an individual or a member of the On the other hand, some people community. Given that they convey a may feel powerless because they could not sense of stability, the place-identity of a participate in the process (Santos, 2004; particular place often associated with Madanipour, 2013). This may increase the authenticity. By most standards, feeling of insecure because their life is authenticity is considered to be the quality threatened. Most importantly, large scale of a building or landscape developed with changes could also lessen the local materials and construction methods attractiveness of a place to potential following local building traditions visitors craving for authenticity. (Watson & Bentley, 2007). Authentic Human identification with a place places are often attracting visitors who presupposes that a place has a character bring economic benefits to the locals. which consists of physical components, Tourism is nowadays considered as one shapes and concrete things that create the among many businesses that dominate atmosphere of the place (Norberg-Schulz, global economic development. It provides 1980). Vernacular building processes of jobs, increases family earning and boosts the traditional people in the pre-industrial local and national revenue. Therefore, era, where materials were gathered from place-identity attracts investment, job surrounding areas and construction seekers and is favored by the local and processes were locally developed, made national government as part of their the settlement familiar and blended in development strategy. with the occupants. The locals created a A particular place, however, may deep process of identification with the be occupied by different people and physical components of their built- different groups. Each person or group environment from which people could may develop a different relationship with differentiate their village from another. the place because the association to a The relationship between the people and a place is largely influenced by experience particular place builds place-identity that and perception. Different ways of helps them define who they are as experiencing and perceiving a place are, individuals and as members of a in turn, creating a distinctive human’s

152 Reinventing Place-identity

association with a place. One place may be The physical components of a explained differently by different people particular place are in a state of constant because each person has personal feelings. transformation. The evolution may Moreover, the same person may also influence how it is experienced and explain the same place in different ways perceived; therefore, bring impact to the in different timeframes as their experience place-identity of the place. Because every with the place grows. place is in a state of constant change, its place-identity should be managed in order Different place’s narratives of to avoid its negative impacts on social and different person or group of people may economic potentials of the place (Putra, raise tensions of representation. This may 2017). This paper investigates the occur if those whose representation is not management of place-identity of a included in the narration of the place. For particular place rooted in tradition, based example, when the government makes on agriculture, but in contemporary plans to advertise a city in order to attract situation is ruled by the national tourists, the most attractive and visually government, who offers non-traditional appealing parts may dominate the economic activities, and rapidly change. It narrative. In contrast, urban activists may explores the roles of local inhabitants who expose the poorest parts of the city in consolidate their power in order to have order to gain sympathy and hide the more significant roles in the transformation prosperous areas. This means that access processes. to shared meanings is political (Appleyard, 1976). The political problem of who tells Methodology the story and what purpose the story Case study research is relevant to serves may cause disputes and conflict. inquire about the place-identity because it Those whose voices are not represented is place-specific. In order to do so, Sanur, may feel a sense of powerlessness. This in Denpasar Bali-Indonesia, was selected sense could be reduced by involving all as the case for this study. Sanur is one of community members in developing a many settlements that construct the City consensus to construct place-identity of Denpasar in Bali. It is located in the (Hague & Jenkins, 2004). Public easternmost part of the city, next to a participation mechanism, where different beach. Originally, the local people worked voices are accommodated, is believed as a as farmers, but nowadays tourism sector means to reduce tensions of dominates economic activities. The shift representation in place-identity from traditional economic system to a construction. Moreover, the inclusive creative-based economy of tourism has process may strengthen the sense of transformed the place-identity of the area. communal control over the place in question (Putra, 2017). The investigation of the area was started by evaluating the components that construct the place-identity and how those Journal of ASEAN Studies 153

components have transformed. In this grouped into four dimensions of analysis: case, urban morphology method was used. cosmological transformation, socio- By employing urban morphology, the political and economic transformations, physical components of the case study are spatial and physical transformation, and analyzed. Firstly, the transformation of architectural transformation. the overall layout of the village is Results investigated. To do so, development plans and their implementation in different The evaluation on socio-political timeframes which causes the place to and physical transformation showed that transform are investigated. Maps to carry Sanur has gone through several out morphological analysis were derived morphological periods from pre-colonial from google earth. In order to understand to post-colonial. In each period, the how the case has been transforming, governance structure has been shifted interview data were translated into spatial from one system to another. This has analysis. This spatial analysis was impacted the social, economic, and, in superimposed to see the pattern of turn, the spatial and physical arrangement physical transformation. From the of the village which makes its place- document analysis, the physical identity to transform. Analysis on the four transformation of the area is revealed. dimensions of transformation shows that This will be presented in morphological the cosmology is the most resistance to maps and images. On the second stage, change while architecture is the most the roles of different institutions in the vulnerable. Paragraphs below show the development of the area are also studied. analysis of transformation of the village. This included analysis of different political systems and decision-making The pre-colonial period processes from which the logic of space The majority of the villagers were planning in relation to socio-economic and work as farmers to support their family. culture could be understood. Furthermore, Wet rice was the most importance crop since the place-identity is also constructed not only in Sanur but Bali in general. Wet- from people’s perception, it is also rice farming has formed the basic important to appreciate the voices of the cosmology for the Balinese including the people and to look at their creative ways people of Sanur. Water, the main element of managing the place-identity. Therefore, of the farming activities is important. in-depth qualitative interview was also Therefore, water sources are protected conducted. and seen as the source of wealth. In order The morphological analysis is to protect the sources, the mountains and conducted to analyze different actors in highlands were respected. These areas are different periods of development as well also believed as the residences of the as local perception analysis were ancestor spirits. On the other hand, areas compared and related. The results are that are less fertile were less valuable

154 Reinventing Place-identity

although are still respected because these derived from the beach. Moreover, local locations are believed as the dwelling of builders also developed regional impure spirits. With this duality, the construction methods. As a result, the people develop a sense of location where village’s lay out and the physical they live between the two distinctive components of the area fit with its locations of highland and sea. In Sanur, environment and occupants. rice fields and temples are located on the The traditional cosmology, mountain-ward of the village and areas agriculture, local governance system and around the sea was avoided. The locals the physical components formed the occupy area in the middle. This place-identity of the area. cosmological-based lay out was implemented since the pre-colonial until The colonial period the colonial era when agriculture dominated the cultural landscape of Sanur. In the colonial period, there was a The inhabitants defined and associated shift in the governance system of Sanur. In themselves as farmers and agriculture. the first decade of the 20th century, the island of Bali fell under the control of the A traditional village governance Dutch Colonial Government. The was responsible in managing the traditional way of managing the area of operational of the place. Originally, the the Island of Bali was impacted by the village was established by a priest family new system. In order to consolidate the and their supporters. The supporters were, powers of many traditional governments then, divided into five hamlets. At this all over the island, the new government level, democratically-elected leader led formed a centralistic system. The island each hamlet. In higher level, the village, was managed under one residency led by the leader was elected among the priest a formal leader. The main motif of the family members. Although the village new government was to get economic leader held the highest position in the benefits from local resources to be sold to local governance system, the hamlet international market. Two important leaders were also important because they features of the colonial city were area with were the ears of the top leader. This shows rich natural resources and harbor from that in the traditional period, the local which the resources were sent to inhabitants had full control over the area. international market. In this period, Sanur Independently, they manage all village’s with relatively small agriculture lands rituals, economic activities as well as daily offered little opportunity although it is life. located in close proximity with Denpasar as the City Centre. Therefore, the colonial Access to natural resources was government paid little attention to this also in the hand of local people. This village. This situation, however, open enable them to build the village using another opportunity. Its close proximity local materials such as local wood, stone and its traditional life attracted foreigners Journal of ASEAN Studies 155

to visit and stay. A Belgian born artist, this strategy was believed would diminish Adrien Le Mayeur, preferred to stay in the feeling of powerlessness. Sanur than in the city center. Furthermore, With its political power, the central some other foreigners also came and stay. government constructed a new hotel in New government system brought Sanur in 1963 with the hope that it will little impact to Sanur but economically it host hundreds of guests. The guests were had become a tourist destination. People hoped to introduce Indonesia to the world were started to invest in commercial after staying in the hotel. International bungalows and homestays. Local people style of modern architecture was the norm and some foreigners managed these at that time and the hotel was designed facilities where buildings were designed with it. It was built in a boxy building in traditional architecture. Because the with white cladding ten floors above the colonial government had little interest, the ground. This would invite a massive traditional leaders maintained their number of tourists. The building was the domination over political landscape of the tallest structure on the island and its form area. was strange in the eye of the locals. Following the government strategy, to The Post-Colonial era attract tourists, private investors also built After the independence of similar facilities but with different styles. Indonesia was declared, Bali joined as one Knowing that the markets were craving of its provinces. The intention of the for authenticity, facilities that were built newly born government was to introduce by these groups of developers employed the country to international audiences. traditional building styles. They believed Tourism was seen as an effective means to that the place-identity of Sanur is the main fulfil this aim. In order to do so, the features that attract tourists and, therefore, central government evaluated the should be strengthened instead of being potential of Sanur as it already known by replaced with the newer building styles. the westerners. Many hotels, which were designed In addition to introducing the new and built in the early Indonesian country, the Government of the Republic independence, were following the path of of Indonesia also would like to show the the early investors. Along the coastline of word that this country is not lagging Sanur, hotels and homestays with behind. They believed that employing traditional styles dominated the cultural modern architecture would make landscape. The new style was the Indonesia known as part of the modern antithesis of the government intention to world. Moreover, modern architecture introduce modern building style to was also used to raise the pride of the develop pride. This shows that the central people of Indonesia who were stigmatized government and the investors saw place- during the colonial period. Furthermore, identity from two different perspectives.

156 Reinventing Place-identity

On one hand, the central government strongest role they played. Therefore, the would like to employ it as a means of Yayasan Pembangunan Sanur has introducing the country as the new anticipated the domination top down modern nation. On the other hand, the decision-making process that may impact investors saw that place-identity could be their life. employed as income generators. Today, all planning schemes and Although the locals praised the building permits will only be getting new government strategy and the approval after being reviewed by the investor’s effort to provide new economic Yayasan Pembangunan Sanur. This does not activities, they locals felt that both could mean that they hold full control over the impact their place-identity. New actors development of the area. They role is to potentially outweighed the roles of local ensure that any new development and people in maintaining their area. Manuel activity will not offend or obstruct the Castells argues that when a group people place-identity of the area. The role of under the domination of another, they Yayasan Pembangunan Sanur is to may consolidate their power to build coordinate the needs and intentions of trenches and protect their identity different actors in the development of the (Castells, 2009). In 1964, the people of Area. Sanur established a new foundation Contemporary period named ‘Yayasan Pembangunan Sanur’ or the Sanur Development Foundation. The The success of Sanur in locals would like to play important roles maintaining their place-identity continues. in the development of the areas so that Areas on the beach keep attracting tourists they voice could be heard by both the and also investors. Investments grow at a government and the investors. Moreover, neck-wracking pace. One could not find the locals also would like to develop any place along the beach without tourism businesses so that they could enjoy the activities. Hotels, restaurants, villas and benefits of the attractiveness of their other leisure facilities occupied the place-identity. Supplying raw food coastline. Working on tourism industry is materials for hotels and restaurants, also offering better income if it is providing laundry services, opening compared with being a farmer. school specializing in tourism Agriculture no longer attractive and, management, and establishing micro therefore, is declining. This has finance for the locals were among the influencing job market where young early activities of the foundation. In generations are leaving agriculture to addition, nowadays, the foundation also work on leisure industry. Not only local manages some hotels and villas. However, people, tourism industry also attracts managing the overall landscape of the workers from other places, creates the village, including physical component and phenomenon of urbanization. Tourism activities accommodated by it, is the industry necessitates large amount of land Journal of ASEAN Studies 157

to build facilities as well as housing for agricultural site. Ruled by land market, their worker. This leads to spatial the spatial arrangement of Sanur shows a transformation. division between three different groups. The first group is the traditional people The beach is transforming from an who occupied the traditional part of the avoided place with little economic values area. The second group is the investors to the most attractive area. The who control lands that offer economic government, investors, and the locals alike value in relation to tourism business and nowadays favor the beach. Therefore, its the third group is the migrants who get value is increasing. Therefore, the price of the benefit from the declining attraction of lands close to the beach is higher than the agriculture.

Figure 1. Morphological change of Sanur in different development periods. Black areas show the built-form while green and blue signify rice fields and sea respectively

Source: Author

This situation is different from the cosmology. In physical arrangement, the pre-colonial period when cosmology ruled locals maintain and sustain the traditional division of land. part of the area based on cosmology. Traditional village arrangement is However, the locals maintain them preserved where the temple is still seen as believe that cosmology is important and the most sacred and respected part of it. should still be used as a guidance in At smaller scale, the building height is maintaining and managing the area. limited not be higher than 15 meters. Although the landscape has changed, the locals maintain the ritual that is based on

158 Reinventing Place-identity

Traditional architecture implementation is where tourism is the most important encouraged. feature.

The spatial transformation of the The spatial transformation of area in different time-frame could be seen Sanur is shaped by the transformation of from Figure 1. Six images show how power struggles among different actors. Sanur has grown from a small traditional Table 1 shows the shift in the governance village based on agriculture into a large system of Sanur and its socio-political area containing many economic activities impacts on the place.

Table 1. Shift Governance System

Governance system- Decision making Stakeholders/actors economic means process Pre-colonial Traditional society; Traditional Semi-democratic led Village republic-agriculture Village’s governance by village leaders Colonial government; Individual Colonial entrepreneur (small scale); Traditional Centralistic government Top down society; Traditional Village’s focusing on trading governance National government in national, Post-colonial provincial and municipal level; Centralistic government Private entrepreneur; Traditional Top down at national focusing on national society; Traditional Village’s level political agenda - tourism governance, Yayasan Pembangunan Sanur National government in national, Top down at provincial and municipal level; Contemporary municipal level and Private entrepreneur; International De-centralistic government - bottom up by the investors; Traditional society; tourism democratic process at Traditional Village’s governance, village level Yayasan Pembangunan Sanur Source: Author

Conclusion and future works limited power to manage and control it. Lack of access to the decision-making A place is both a product and a process might also lead to a feeling of process. It is shaped by power struggles being socially excluded because the goal and as a product it also shapes the power of contributing to managing change is not struggles that construct the place. Given always being accommodated. In this that the interaction between people and situation, willingness to participate in place contains evaluative instruments, developing the city may decline cities have changed and will continue to (Madanipour, 2013), leading to a change. Immediate and large-scale change weakening sense of attachment and sense imposed from outside may heighten fear of belonging, two essential features of and anxiety because the society has place-identity. Journal of ASEAN Studies 159

Nowadays, economic themes have tested in other areas with different socio- transformed many places in the world. cultural background to see if the actor Sanur is also experiencing similar trend involvement framework could be where focus on financial benefits have generalized. Furthermore, in local level, influenced the place-identity of the area the role of the locals in maintaining that is rooted in tradition that an active agricultural lands should also be studied. process of transmission, interpretation, This is important because agriculture is negotiation and adaptation of vernacular acknowledged as the original raison d'être skills, knowledge and experiences and, to of the area. This will reinforce the sense of be' socially accepted, it is often rootedness that support the strength of the commented on and even criticized. Thus, place-identity of the area. it is continuously renegotiated. The About the Author negotiation is often becoming they key to tradition to survive. This paper shows that I Nyoman Gede Maha Putra and the local people of Sanur is also Ida Bagus Gede Parama Putra are the renegotiated their tradition in order to Lecturer and the Researcher from maintain the place-identity of the area and Universitas Warmadewa in Bali, embrace new opportunity brought by Indonesia focusing on Architecture and tourism. Urbanism.

The place-identity dynamics of References Sanur shows that the involvement of local actors is significant. The local actors Appleyard, D. (1976). Planning a Pluralist succeed in consolidating their power in city: Conflicting Realities in Ciudad order to have significant role to participate Guyana. Cambridge: MIT Press. in development. Thus, they neither feel Bourdier, J., & AlSayyad, N. (1989). insecure nor powerless. Furthermore, they Dwellings, Settlements and roles also maintain the place-identity of Traditions: Cross-cultural the area and sustain the sense of Perspectives. Lanham: University of authenticity that attracts tourists and Minnesota Press. investors. Therefore, the place-identity of the area continues inviting visitors and Castells, M. (2009). The Power of Identity investors, ensures its economic values. Second Edition with a New Preface. West Sussex: Wiley Blackwell. This research is based on multi actor involvement in the construction of Hague., & Jenkins. (2004). Place-identity, place-identity dynamics. It revealed that Participation and Planning. London: the participation of the locals is important. Routledge. However, this paper has some limitation. Madanipour, A. (2013). The Identity of the The first limitation is its sample that is City. In City Project and Public Space, only one area and this area. It needs to be

160 Reinventing Place-identity

Urban and Landscape Perspective 14 (pp. 49-64). Dordrecht: Springer.

Norberg-Schulz, C. (1980). Genius Loci: towards a Phenomenology of Architecture. New York: Rizzoli.

Putra, N. G. (2017, September). Defining and Sustaining the Place-Identity of a Traditional yet Rapidly Developing City. Doctoral Thesis. Oxford.

Proshansky, F, A., & Kaminoff, R. (1983). Place-identity: Physical World Socialization of the Self. Journal of Environmental Phycology, 2 (31), 57- 83.

Santos, S. J. (2004). Cultural Politics and Contested Place-identity. Annuals of Tourism Research, 640-656.

Watson, G. B., & Bentley, I. (2007). Identity by Design. London: Architectural Press. The Predatory State and Radical Politics: The Case of the Philippines

Christopher Ryan Baquero Maboloc Ateneo de Davao University, Manila

Abstract

This paper examines why the radical approach to politics of President Rodrigo Duterte, halfway into his term, has not overcome the predatory nature of the Philippine state. The predatory nature of the state implies that politics in the country is still defined by vested interests. The struggle of the Filipino is largely due to the structural nature of the injustices suffered by the country. Duterte’s brand of politics is antagonistic. The president is a polarizing figure. Despite the declaration that he will punish corrupt officials, traditional politicians and elite clans continue to rule the land with impunity. The country’s political ills are actually systemic. Elitism is rooted in colonial history that is perpetuated by an inept bureaucracy. It will be argued that the strong resolve and charisma of a leader is inadequate to remedy the troubles in fledgling democracies such as the Philippines.

Key words: predatory state, elite democracy, radical politics, President Duterte

Introduction 2016, Rodrigo Duterte was elected by an overwhelming majority of the electorate What is the fundamental task of hoping that the radical approach of the every Filipino president? There can only tough-talking politician will alter the be one answer – to change the political fortunes of the Filipino people. In this new landscape in Philippine society. In order study, the author uses the interpretive to do so, Filipinos have to become mature method in textual analysis, using texts in terms of their choices. Yet, it is wrong and materials culled from various sources, to blame them for their situation. The including books, recent newspaper problems of the Philippine state are articles, and scholarly works on the structural in character. Political overlords subject matter at hand. control the lives of the people and manipulate political exercises to Democratic Paralysis in the Predatory perpetuate themselves into power. As a State result, millions have not escaped the John Sidel’s Capital, Coercion, and poverty trap and continue to suffer from Crime: Bossism in the Philippines explains the discomfort of an inept bureaucracy. In

Journal of ASEAN Studies, Vol. 7, No. 2 (2019), pp. 161-175 DOI: https://doi.org/10.21512/jas.v7i2.6163 ©2019 by CBDS Bina Nusantara University and Indonesian Association for International Relations ISSN 2338-1361 print / ISSN 2338-1353 electronic 162 The Predatory States nd Radical Politics

that bossism is the “interlocking and profit-making ventures. This scheme is multitier directorate of bosses who use mutually beneficial for both but is their control over the state apparatus to dangerous to the basic welfare of the exploit the archipelago’s human and people. Nathan Quimpo (2005) thinks that natural resources.” (Sidel, 1999) The roots “bossism reflects a common conjuncture of bossism in the Philippines can be traced in state formation and capitalist to the American period. The Western development: the superimposition of the colonizers put the coercive and extractive trappings of formal electoral democracy power of the state into the hands of the upon a state apparatus at an early stage of traditional ruling class. Elected officials, capital accumulation.” State formation in untrained in the sophistication of the Philippines is the conspiracy between democratic governance, found at their two evil masterminds: the traditional absolute disposal the opportunity to politician and the oligarchs who continue manipulate the affairs of the state. The to subjugate, abuse and ultimately exploit systemic exploitation of the Filipino was the Filipino to the hilt. entrenched in the politics practiced in the Predation in the Philippine state is country. The landed class enforced the about the use of machinations to control monopolization of enterprises. the population. Understanding the Bureaucrats became tools of corrupt rule. political consciousness of the poor matters This is apparent in provinces and cities in this regard. But one cannot blame the that are dominated by political dynasties. masses. The poor have been forced into The Philippine state even after the People circumstances that influence the way they Power Revolt of 1986 is a paralyzed form think about and choose a candidate. This of democracy that has been subordinated explains why the masses still elect corrupt to the vested interests of traditional politicians. The traditional politician has politicians and corporate masters. successfully portrayed that for the masa Since the time of President Manuel (people), it does not really matter who L. Quezon, the traditional politician rules them. This fatalistic attitude is a remains to be the boss in Philippine consequence of latent as well as obvious society. Bosses, Sidel (1999) argues, “are forms of maneuvering from the barangay predatory power brokers who achieve up to the provincial level. Party bosses monopolistic control over both human hire starlets and celebrities, transforming and economic resources within given election campaigns into entertainment territorial jurisdictions or bailiwicks.” shows and public spectacles. At the root Business interests and the politics of cause of it all is the politics of money. money mix up in the Philippines. The In Sidel’s theory, the state is a businessman, who often monopolizes the Mafia-like enterprise that exploits with trading of goods of a locality controlled by impunity the natural and human resource a few, finances the politician because the of a political jurisdiction. The predatory former expects the latter to protect his Journal of ASEAN Studies 163 state feeds on the weaknesses of the poor, police, and public officials – divide the many of whom lack formal education. loot. They do not only paralyze the Having no decent means of living, the bureaucracy; their wicked ways also poor succumbs to dependency. Political destroy the future of the nation. leaders organize the poor in urban centers Culture and context will always as well as in rural areas into groups. matter. (Paredes, 2002) For example, the Leaders sell their votes wholesale. Folks value of “utang na loob” (debt of are made to attend fake seminars and gratitude) is negative when applied in the mass rallies. Even senior citizens are paid political arena. According to Oona to distribute election materials. The poor Thommes Paredes (2002), “in the case of see this as means to make money during the Philippines, it is clear that certain elections. The electorate will ignore cultural factors configure social and candidates who do not provide them with political relations between bosses and food packs or cash. In the end, the damage their supporters, as well as within a given that a predatory state makes is network of bosses.” People see their irreparable. The people are used as means political overlords as their first resort to perpetrate a systemic exploitation that when they need money during town is seemingly legitimized by dirty electoral celebrations, weddings, or baptism. In exercises. The politics of money paralyzes return, their sense of gratitude will democracy by influencing the outcomes of translate into votes. Paredes (2002) says elections. that for Sidel, “electoral democracy and Quimpo (2009) explains that in a bossism go hand-in-hand.” For this predatory regime, “clientelism and reason, the reality of bossism is inevitable patronage give way to pervasive in impoverished societies like the corruption, a systematic plunder of Philippines. Since the electorate is government resources and the rapid conditioned to think that they owe corrosion of public institutions into tools something to the traditional politician, the for predation.” Public officials only latter thinks that the people are no longer approve business applications after they entitled to anything. The boss dictates not are bribed with shares of stocks. Corrupt only the rules of the game but also the politicians also have a say on who must outcomes of the lives of the people. get the licenses in legal gambling like the Sidel’s analysis is important in Small-Town Lottery. Developers of understanding the type of leadership that subdivisions are forced to give padanlug usurps the state. The failure of any (grease money) to have their land government to protect the welfare of its conversion requests approved. In citizens may be due to the incompetence addition, there are politicians who are of technocrats but the root of the problem engaged in smuggling and drug is dynastic rule. In the Philippines, 169 or trafficking. The individuals who conspire 84% of the 200 elected members of in these evil schemes – businessmen, local 164 The Predatory States nd Radical Politics

Congress belong to pre-1972 ruling “lack of diplomacy, Duterte clearly families. (Tadem & Tadem, 2016) Senator comprehends the biggest dangers for his Manny Pacquiao, a Filipino boxing hero, nation (potential or existing) and acts thinks that “too much democracy is bad accordingly.” In fact, Duterte’s timid yet for the Philippines” (Elemia, 2019). realist position on the West Philippine Sea Pacquiao, who is also building his own issue is simply misunderstood. While dynastic rule in Sarangani Province, has some accuse him of selling the country off the highest number of recorded absences to China, the president is clear in saying in the Senate (Talabong, 2019). The effect that he only wants to protect national of dynasties is apparent – persistent interest by not instigating any potential poverty. The monopoly of power means military conflict against China. that people do not have the means to That Duterte is an autocrat is voice out concerns. As a result, the interest debatable, but what seems clear is that he of the public is not attended to by their has the tendency to ignore public morals. government officials. By limiting the field To his critics, he sometimes speaks like a of candidates to a few, dominant family, thug (Wood, 2017). Indeed, in his three national progress stagnates. But the bosses years in office, critics and admirers alike – mayors, governors, including the would remember his rape joke, his cursing president – become richer. of Pope Francis and President Barack President Duterte is a polarizing Obama, and above all else, his decision to figure. His brand of politics is disruptive. allow the burial of the late strongman But to put things into context, it is Ferdinand Marcos at the Libingan ng mga important to revisit the real reason why Bayani. The burial happened at early Filipinos put Duterte in Malacañang. D. S. dawn. It was a strategy that caught his Panarina presents a positive view on the critics by surprise. But as of the moment, Philippine president. Panarina (2017) protests on Duterte’s decision has since observes that “Duterte made a strategic subsided. But while the president is decision to start his domestic policy with projected negatively, he has also achieved reestablishment of law and order using unique accomplishments through his rather authoritarian and militaristic maverick ways. Duterte solved the “laglag methods, but at the same time rapidly bala” racket at the Ninoy Aquino earned him the abovementioned trust of International Airport, he made Lucio ordinary people.” Duterte does not seem Tan’s Philippine Airlines pay its seven to mind the opinion of the West against billion-peso debt, and the Bangsamoro him. A realist by heart, Duterte’s pivot to Organic Law (BOL) was passed by both China and Russia presumably is for the houses of Congress and ratified in a sake of national interest, arguing that the referendum. US is meddling over his domestic policies, especially his war on drugs. Panarina (2017) believes that despite the president’s Journal of ASEAN Studies 165

The Pejorative Term “Buang” reflective of the kind of bias that is still prevalent in Philippine society. Someone Senator Ronald dela Rosa, who led who is “buang” is not only an irrational Duterte’s “War on Drugs” then as head of man. The same is also considered as the Philippine National Police, was undesirable in society. This prejudice criticized for describing the death of Kyla might have come from the fact that there Ulpina, a three-year old girl killed in a are insane persons roaming the streets, the drug operation as “collateral damage” ones called “taong grasa”. They have been (Aurelio, 2019). Police operatives alleged abandoned by their families and are left to that the girl was used by his father as a scavenge for any leftover in garbage bins. shield, although the report of Human This reminds us of the politics of Rights Watch (HRW) indicates that the exclusion, in which the bad elements of latter was actually unarmed. The human society are to be separated from the good rights group said that the girl is a victim ones. Duterte characteristically portrayed of Duterte’s drug war (Conde, 2019). The the drug addict and drug dealer as vicious excessive use of force is the object of villains. For the president, both should be criticism. When Duterte mentioned that punished. Steffen Jensen and Karl Hapal he will protect law enforcers from legal (2018) in researching their paper, suits emanating from anti-drug interviewed a law enforcement officer operations, critics said it gave the police a who put it this way: “The people we put feeling of impunity. When the “right to down are not people anymore. They are due process” was raised by the Catholic demons that need to be removed from the Church and the country’s constitutionally face of the earth. We the police are like independent Human Rights Commission, angels that battle those demons. We know Duterte rebuffed his critics, saying that what is right and we know that what “your concern is human rights, mine is those criminals do is not right.” human lives” (Villamor, 2018). Critics were alarmed that murder has become a According to HRW, the Philippine national policy. The problem of the Drug Enforcement Agency (PDEA) has president’s statement is that human rights recorded 4,948 deaths of suspected drug and human life are not mutually users and pushers in police operations exclusive. To protect human lives, one since July 1, 2016 up to September 30, needs to value human rights. 2018. The same report indicates that 22,983 such deaths have been classified as But one needs to ask, what is the homicides under investigation (Human reason for the huge support for Duterte’s Rights Watch, 2019). Some critics say that violent anti-drug war? Arguably, it lies in Duterte only targets small drug dealers, the prejudice against drug pushers and although during the Senatorial Debate, drug users. Drug addicts, in the mind of then candidate Dela Rosa fired back at the Philippine president, is “buang” critics in defense of the president saying (crazy). Calling a person “buang” is that police anti-drug operations have 166 The Predatory States nd Radical Politics

neutralized ‘big fishes’ like the Parojinogs crime and punishment. For historian of Ozamiz City and Albuera Mayor Vicente Rafael (2016), the president’s Rolando Espinosa, the father of the violent ways are nothing but a suspected drug lord Kerwin Espinosa. manifestation of a principle of vengeance. However, in a survey conducted by the He writes that “for Duterte and the rest Social Weather Stations in December 2018, like him, justice means revenge.” Rafael it was shown that 78% of the public are argues that the president is using his worried about extra-judicial killings. In campaign against criminality as an excuse the same survey, 50% of the victims of for his dictatorial infatuations. summary executions in the country Randy David (2016) says that such belong to poor households. Only 3% come phenomenon of blind obedience and from wealthy families (Rappler, 2019). ultra-fanaticism is “pure theater – a However, the Filipino public has not sensual experience rather than the rational shown any massive indignation against application of ideas to society’s the president’s war on drugs. Even the problems.” David says that Duterte is members of the clergy are divided. Daniel using the coercive power of the state Franklin Pilario (2017) says that it is against his dissenters. The sociologist because “the official political machine thinks that Duterte is the “incarnation of a officially extols the success of the anti- style of governance enabled by the public’s drug project.” Beyond this observation, faith in the capacity of a tough-talking, however, is the feeling that the war on willful, and unorthodox leader to carry out drugs has made many communities safe drastic actions to solve the nation’s from criminal elements. persistent problems” (David, 2017). He Duterte’s mystique was reinforced calls such phenomenon, “Dutertismo”. when he met with the alleged drug Benjiemen Labastin (2018) explains that the kingpin Peter Lim of Cebu City. The idea “could be read as a prophetic president has warned that he would kill warning to remind the people not to be the Chinese businessman. So far, that has trapped again with the sweet promises of not happened. For some critics, Duterte’s authoritarianism as an easy path to solve war on drugs is morally troubling. They the country’s woes.” David believes that argue that it is an extermination program Duterte’s type of governance is nothing (Esmaquel, 2017). Violence is at the heart short of a demagoguery. Labastin says of this anti-drug campaign. For three that for David, the president is subverting years, scores of drug suspects have been the sovereignty of the Filipino people killed and then marked with a cardboard, (West Philippine Sea issue) and “Wag Tularan” (Do not follow). The bastardizing its democratic processes context is clear. It warns the public to keep (right to due process of drug suspects), themselves away from illegal drugs. suggesting that such an attitude is a Critics contend that Duterte’s radical characteristic of leaders who pay no approach revolves around a world of respect to the rule of law. Journal of ASEAN Studies 167

The paralysis of state and society system and distributed the resources in in the Philippines is manifest in the deaths the country to the elites in Manila. Since of thousands in the war on drugs. It is no the provincial elites were beholden to the secret that the violent means employed by national leadership and the oligarchs in the state through law enforcers have the capital, the American imperialists resulted in the murder of innocent lives. knew that all they had to do was keep The reason is simple. Police operatives are close ties with the ruling class in Manila. human beings who make mistakes. They Paul Hutchcroft and Joel can also be abusive and so by giving them Rocamora (2003) explains that “the logic the absolute blanket of authority to kill of Philippine politics became driven to a every drug suspect, such an approach will considerable extent by the politics of have far reaching implications that can patronage and the division of the spoils destroy Filipino families. Duterte, in this among the elite and the expansion of the sense, is not only ruining Philippine quantity of spoils available to the elite as a democracy, but is also obliterating the whole.” The EDSA People Power failed to future of children whose parents have not emancipate the Filipino from oligarchic been given the chance to reform. The rule. The elites used their status to death of thousands is a disturbing reality. influence policy. Post-EDSA II In this regard, critics contend that the governments promised to serve the president is a danger to Philippine society Filipino under the pretext of moral (Panarina, 2017). reform, but the predatory culture of Politics as Usual: The Corrupt Ways of corruption continued to stifle progress Post-Colonial Philippines and governance. The elites in the provinces too wielded great power and According to Michael Cullinane influence. The Philippine state had no real (2003), “bureaucrats who were appointed means to control them. Instead, national to implement the new laws more often leaders used local dynasts to perpetuate than not abused them.” The ilustrados their positions. In return, the bosses in the aggrandized themselves. Moreover, the poor provinces persisted in their greedy same cabals impoverished the Filipino and corrupt ways. While relative people. The incompetent brand of service economic growth was achieved during rendered to the people would be carried past administrations after EDSA II, this over decades thereafter. At the heart of the has not trickled down to poor households. ilustrado rule is centralized governance. The Spanish authorities instituted a The ascent of Duterte to power can system to administer the islands more be attributed to the discontent of the effectively, although the main motive of Filipino. Duterte succeeded in projecting the friars were land and the subjugation of himself as the right candidate for the job the local population. When Spain left the by building that image of an alternative to country, the Americans maintained the a lousy leadership. But Duterte is not 168 The Predatory States nd Radical Politics

someone who can be exempted from the The silencing of the voices from predatory nature of the Philippine state. the margins, including the media, the While Davao City can be showcased as a perpetuation of a neo-colonial regime, and success story, this success is not about the presence of a semi-feudal socio- good governance, but the kind of economic order, reveal the predatory discipline imposed on the people. It is the nature of the Philippine state. The real personality of Duterte, more than his problem of politics in the Philippines is principle of governance, which charmed that it has been reduced into the pursuit of the Filipino electorate. This makes personal interests. President Benigno manifest what Patricio Abinales and Aquino III campaigned on the promise Donna Amoroso (2005) calls “the slide of that he would reform Philippine society Philippine society from institutionalism by running after corrupt government into pure politics.” officials. Yet, as his administration started its mission, it has become clear that he Elite democracy only privileges the was only interested in prosecuting few. Its rent-seeking ways only benefit President Gloria Macapagal Arroyo. those at the top. In such kind of politics, Aquino’s government was also embroiled extraction and exclusion characterize the in many controversies, the most system. The Filipino, as a result, finds prominent of which was the Development himself serving two overlords – Chinese- Acceleration Program (DAP) where then Filipino tycoons and dynasts. Chinese Budget Secretary Florencio Abad was migrants effectively integrated themselves accused of re-aligning surplus funds from into Philippine society. While they were the national budget into discretionary unable to do so in Malaysia or Indonesia, projects without the proper authorization it was a different case for the Philippines from Congress as mandated by the (Kusaka, 2017). Filipinos of Chinese Philippine Constitution. descent control 60% of the non-land capital in the Philippines. Chinese tycoons Three years into the Duterte own the biggest banks, manufacturing presidency, it seems that it is “politics as firms, and malls. They have shares in usual” for corrupt politicians. Duterte infrastructure, mining, and in utility firms. understands what power means. For this A rising oligarch, Dennis Uy is of Chinese- reason, he has to make alliances with Filipino blood. Injap Sia, an emerging dynasts and the traditional politicians in tycoon who at a very young age became a pursuit of all his agenda. The senatorial billionaire, is also of Chinese descent. This elections of 2019 proved that the president is not to diminish the huge contribution of still has that charm, although some in the Chinese Filipinos to the development of political opposition would like to the country. What we this claim intends to insinuate that the exercise was rigged. show is that opportunities have been Clearly, the election of his Special scarce for the ordinary Filipino but not for Assistant Christopher Lawrence “Bong” those who live in gated communities. Go is a testament of the high trust and Journal of ASEAN Studies 169 confidence of the majority of the people cycle continues because no single man can on President Duterte. The Liberal Party’s reform this system. Duterte himself knows slate of senatorial candidates known as that he has to play his cards well and “Otso Diretso” that included the dance with the wolves if he wants his incumbent Senator Bam Aquino and agenda to push through. Change does not former Department of the Interior and happen overnight, not even after three Local Government Secretary Mar Roxas, years. The political machine has all lost in the election. The midterm embedded itself and the traditional ways election was simply a vote of confidence of politics have penetrated the deepest for Duterte. roots of Philippine society like a cancer. While roads and bridges have been built The LP slate represented the elite. in the countryside, poor houses occupy But the defeat of “Otso Diretso” does not the landscape. Without jobs, there is no also mean the defeat of the ilustrado class. way for the Filipino to overcome his In fact, many of the candidates who won situation. Politicians give people a reason in the 2019 midterm election are political to hope, but it is our choice of principles butterflies or turncoats. The majority of that would matter in the end. The the congressmen and senators who are traditional politician has none. now allied with Duterte formerly belonged to the Liberal Party. For obvious Moral Politics and the Radical President reasons, politicians change loyalties for Agonistic politics is grounded in political expediency. So, despite the strong the idea of struggle. Society is not a pronouncement of the president against homogenous set of identities. Antonio corruption, it still widespread. Indeed, Gramsci’s constructivist view of the world traditional politicians have positioned tells us that human society has no intrinsic themselves since time immemorial with nature. What becomes of society is a the ruling party to secure their place in the product of hegemonic relations. This is the hierarchy and the necessary funding for case for the Philippines. For instance, the pet their projects. Infrastructure projects ownership of vast landholdings by the are a potential source of kickbacks that ruling class during the colonial period range from 10 to 30 per cent. As a defined the economic as well as the social consequence, it is the people who suffer. landscape of the country. There remains to In fact, it can be said that Duterte has not be hierarchical differences that influence dismantled elite rule in the country. how citizens relate to each other The reason why the predatory politically. In fact, it is the case to this day. nature of the Philippine state remains is As such, after Duterte won, big apparent. Corruption in the country is businessmen from Manila came to see him systemic. Unless the people mature in at his temporary office in Davao. They all politics, there is no way to overhaul the wanted a big part of the action. But more elitist nature of Philippine democracy. The than anything else, they simply needed 170 The Predatory States nd Radical Politics

assurance and security for their of rational consensus ignores the value of businesses. passion in the political. Indeed, the normal way of doing things will not work The thing that people call in a society like the Philippines where the consensus is no more than an ordering of situation is abnormal. The clamor for power. Prior to Duterte, those in the someone who is strong, even this leader capital dictated what was to become of the will bypass legal processes, becomes country. The idea of dialogue is nothing inevitable. but a disguise for the selfish motives of the powerful. The anti-establishment Thus, with his aggressive and strategy that Duterte employs is a type of adversarial style of leadership, Duterte antagonism. This type of conflict comes in may have inaugurated radical democracy various forms – Manila versus Mindanao, in the country. The moral vision of politics the educated versus the unschooled, the in the Third World is that ideal of rich versus the masa (people) (Kusaka, establishing an egalitarian society. There 2017). This is even clear in the reaction of is a true concern for the equal rights of the Mayor Sara Duterte, the president’s poor and the disadvantaged who have daughter, when she reacted against the been perpetually oppressed. The reason use of the song “Manila” during the for every desire for radical reform is that Opening Ceremony of the 2019 social inequalities are unjustified. Duterte SEAGAMES. Yet. It can be said that has always considered himself a Duterte’s rule is not defined by class progressive. He has endured having struggle. It is more of a disruptive type of embraced this principle, even with all the politics that uses to the fullest extent the political divergences, many breaking divisive situations of people in order to points, and splits in the country after control the state and its political EDSA I. But as a “contested democracy”, machinery. to use Quimpo’s term, Duterte’s style is of course subject to the judgment of history. The daily life of the people cannot It must not be forgotten that the kind of be separated from the dimension of their society Filipinos have is not a matter of communitarian soul. Nation-building as fate but a conscious act on the part of their the slow unfolding of history in political bosses to exploit the powerless. movements is something that the atomism of most liberals has never paid attention In modern democracies, it is to. Radical democracy maintains that the unexpected for a provincial politician to political cannot be limited to rational seize power from the ruling class of discourse because doing so is to tie traditional political families. Duterte is the politics to the narrow limits of logic and product of a society that has failed on its explanation (Mouffe, 1995). Indeed, the democratic experiments, the latest of notion of identity cannot be established which was grounded on Aquino’s moral without the reality of difference. Any form recovery model of reform. Even the Journal of ASEAN Studies 171 development-oriented model of President Filipino is really the way out of his Arroyo did not work in the country. desperate situation. Arroyo’s corruption plagued The above attitude is ingrained in administration gave legitimacy to Filipino political culture. Politics has someone who represents change. become some form of ritual for people President Aquino became that person wherein they worship their political idol. when his mother, the former president, Duterte is a political paradox. Many of his died. The second Aquino administration critics say that he is no more than a began with a great promise, only to suffer dictator who use his colorful language to from the same malady the Arroyo hide his true motives and ambitions of administration had. While President power. It is possible, for instance, that his Aquino may not be corrupt, he was not daughter will run in the 2022 presidential emulated by his fellow politicians as an elections given the weakness and lack of example. Aquino was a weak leader. But unity of his political opponents. But to his this weakness, it can be presumed, is not supporters, Duterte’s maverick ways can just a personality thing. It bespeaks of the help a society find the means and lack of concern of the ruling elite beyond measures to achieve change. While the their own kind. antagonistic nature of his politics will It appears that most Filipinos are require people to go beyond the limits of not against shortcuts if the same can bring rational discourse, Duterte thinks that a actual results and immediate benefits. The politician must distinguish his politics only problem is that the masses look up to from morality to realize the meaning of their idols like some kind of a demi-god the common good. Liberalism provides a who will solve their problems. Moral straight path in achieving the ideals of development, in this respect, is farthest democracy through discussion and from the mind of the electorate. What dialogue. But the dynamics in Philippine brings a poor man to City Hall is not the society, given the hegemonic relations desire to live the good life. Rather, it is rooted in an oppressive colonial past, about his daily survival, the problem that leads one to think that Duterte’s radical he is embroiled in, and that hope that the kind of leadership is necessary. politician-patron will be able to give him Limiting politics to the binaries of money to free him from his troubles. A morality misses the important aspect of poor man is not in search of virtue when it decision making which is crucial in all comes to politics. He is looking for realizing change. This should not mean attention from the politician who is also a that people must reject morality. It only caring father figure, one who is expected means that citizens have to make the to provide solutions to impossible distinction when it comes to the political. problems. Technical expertise may be For Carl Schmitt, politics refers to crucial to the success of the state, but the institutions designed to govern society. most immediate concern of the poor 172 The Predatory States nd Radical Politics

The political, on the other hand, is about is for him to bring out the agenda of the relations of power. Indeed, it is argued masses. On the other hand, as the boss he that the concept of a perfect consensus is also realizes the pragmatic reality of an illusion. The same is utopian and Philippine politics. The only way forward, unrealistic. Despite the criticisms, Duterte in this regard, is for the president to have is using well the card of hegemony to his the radical resolve to face the problems advantage. This is not to suggest that he that bedevil the nation. The norm is for an has the wrong motives in doing so. But elected leader to conform to tradition and what is obvious is that he has been able to protocol that befit the highest position of consolidate his powers to protect himself the land. But Duterte shows that in his from any threat from those who may have case, it is the other way around. The plans to challenge his position, including weakness of Philippine institutions the military. manifests the political and moral divide in society. Institutional decisions are based Radical politics may characterize on the choices made by people in the situation of the Filipino’s post-colonial authority in whom the electorate entrust struggle. But the ordinary Filipino still political power. As such, it matters how finds himself voiceless in the affairs of the people choose their leaders. People should state. This colonial legacy appears to give play a part in the formulation of policies some semblance of legitimacy to Duterte’s that are to affect their situation. It is radical leadership. But the death of elitism beyond question that the development of is temporary and the reason is often modern nations draws from the principles obvious. Duterte has not implemented of democratic governance because principle-based reforms to change the political maturity and economic progress socio-political establishment. In fact, the must go together. The political will of president is aware that the same cabals in Duterte is a good thing, but the Filipino Congress are still there. He has to depend people must also embrace the virtues of on the normal state of things in order to democratic governance and the rule of pursue his agenda. The president also law if the country must escape from the knows that he has to deal with the ills of the past. The Filipino people cannot oligarchy and the traditional elites in just rely on outside help because in the Philippine society. There’s the rub. first place, it is foreign rule that has Conclusion bedeviled this society and cemented the latent and obvious moral and hegemonic The history of the Filipino people divide among its people. Filipinos must is generally presented through the eyes of face their most pressing political problem Manila. Such shatters the voices in the – the absolute dismantling of a predatory margins of Philippine society. The radical state. The way forward is to overhaul a approach of Duterte is no less than his corrupt system and empower a people way of challenging the status quo. Duterte who have been deprived of their rights. as a father-figure knows how important it Nothing replaces institutional reforms Journal of ASEAN Studies 173 that are truly grounded in democratic David, R. (2016, May 1). Dutertismo. principles. Retrieved from Philippine Daily Inquirer: About the Author https://opinion.inquirer.net/94530/ Dr. Christopher Ryan Maboloc, dutertismo associate professor of philosophy at David, R. (2017, June 17). Where is Ateneo de Davao University, finished his ‘Dutertismo’ Headed?. 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Wood, G. (2017, May 2). The Thug Appeal of Duterte. Retrieved from The Atlantic: https://www.theatlantic.com/inter national/archive/2017/05/rodrigo- duterte-donald-trump/525072/ Copyright © 2019 Centre for Business and Diplomatic Studies ISSN 2338-1361 (print) / 2338-1353 (online) Volume 7 Number 2 December 2019 JAS Volume 7 Number 2 December 2019