2nd Edition / Oktober 2010

Managing the Welfare State “ But you will only agree with me that we have to draw up a programme which is not exclusively socialist but also democratic. Otherwise we cannot claim the name of Social Democrats and think about a solution of the social question” (August Bebel, 1869) “ But you will only agree with me that we have to draw up a programme which is not Table of Content exclusively socialist but Greetings [4]

Editor in Chief: also democratic. The Network of Social Democracy in Asia sent Amir Effendi Siregar international observers to the Philippines 2010 National Election [5] Deputy Editor: Otherwise we cannot claim Ivan Hadar Facing a Political Lock-In Situation with the ACFTA: Editorial board: Which Option for Indonesia [8] Erwin Schweisshelm Martin Manurung the name of Social Democrats Charles Santiago Social Democracy and Distributive Justice Mian Manurung and think about a solution in South Asia [14] Steven Sim Chee Keong Political Solution to Gender Gap [16] Editor/Publisher address: Friedrich-Ebert-Stiftung of the social question” A Cure to the Country’s Housing Crisis: Lies in the Jalan Kemang Selatan II No. 2A Jakarta 12730 Arms of a Healthy Balance [20] Phone: +62-21-7193711 Fax : +62-21-717 91358 (August Bebel, 1869) Managing the Welfare State [22] Email: [email protected]

Public Transportation – The Way to Go [24] Publisher: *) Friedrich-Ebert-Stiftung Interview with Rieke [26] ISSN: 2086-3713 A Note of Concern for the Hollow Indonesian Economy [28] *) soft file available in www.socdem.asia Asian Social Democracy Journal >> from the editors

Greetings

The second edition of the Journal is tries, especially Indonesia, are not ready she is playing is close to the poor. As a poli- coming forth, continuing the first edition to face the situation. These circumstances tician, she often becomes the voice of the published in December 2010. It is hard to make the articles and the conclusions of poor and labors. She is consistently fight- consistently publish a Journal since there the conference especially interesting. ing for a law on social security for workers. is need for organizing, diligence and pa- It is also interesting to observe the Through this interview we can find out tience. This second edition is published political change in the Philippines in rela- about her opinion mainly about her com- after reviewing all the activities and dis- tions to the general election that was re- mitment in improving workers condition. courses that have been occurring in the cently held. The Philippines and Indonesia As before, this journal also provides last one year. are now known as the most democratic the readers with a book review that is writ- In the beginning we are publishing 3 countries in Southeast Asia. However, eco- ten from a social democratic perspective. articles from the conference in Penang 19 nomically they still lack behind some other The editorial board also welcomes an - 22 November 2009 with the topic “Ef- countries. According to World Bank data, important seminar that will take place this fecting Real Change in Local Governance: in 2009 Indonesia with a GNI per capita October. This seminar is titled “Growth, Perspective For Social Democratic Poli- of USD2,230 and the Philippines with Social Balance and Sustainability: Per- cies.” The interesting feature of the con- USD1790 are still far below Singapore, spectives for Social Democratic Policies in ference is that it is organized in Penang, a USD37,220 and Malaysia with USD7,230 Asia”. This conference is organized togeth- state in Malaysia that is led by the social or Thailand with USD3,760. At the same er by the Friedrich - Ebert - Stiftung, the democratic Democratic Action Party time, China has been growing significantly. Institute for Welfare Democracy and the (DAP) which won the election and be- Ten years ago China’s GNI was below Indo- Olof Palme International Center. The con- came the ruling party. It is hard to imagine nesia, now China manages to pass Indone- ference will mainly address the economic that in Malaysia, an authoritarian country, sia and Malaysia with a GNI of USD3,590. and business developments based on social the ruling party in the federal government The question is why the most democratic democratic perspective which accepts the is no longer the UMNO. Through this countries in Asia are economically weak. Is role of social market economy. A number article, the editors hope that the readers it perhaps because they are too liberal and of parties and figures will be presented in can observe and learn what a ruling social incorporates neoliberal ideas? It seems this seminar on 19 - 22 October 2010. In democratic party has conducted on issues that a more prominent role of the state is the upcoming journal (third edition) the ranging from public needs such as public still needed together with a set of regula- conclusions and papers of this conference transportation management and drinking tions that are pro the people and pro to the will become an interesting topic. water. In addition, it is interesting to ob- national interest. It is unacceptable that the After all, the editorial wants to invite serve its political position under the power free market regulates all because the de- readers to contribute for the next edition of the ruling federal party. pendency on capitalist entities will divert of the journal. The editorial will always try The Journal also publishes a number funds and resources abroad. to improve the content of this journal and of articles on ASEAN China Free Trade An article about the contemporary offer more interesting and varied articles. Agreement (ACFTA) about the confer- politics in Sri Lanka will also be published, We wish you happy reading. ence in Jakarta that was conducted on 22 followed by an article about Rieke Diah February 2010. The Agreement has been Pitaloka. She was a celebrity and now has From the editors, running effective since 1 January 2010, become a competent female politician. however it is obvious that ASEAN coun- Even though Rieke was a celebrity, the role << Asian Social Democracy Journal Report

The Network of Social Democracy in Asia sent international observers to the Philippines 2010 National Election

racy in Asia. Akbayan also took part in the election contesting in both the senatorial and congressional race. The Network del- egates joined 20 other international ob- servers from the United States, Europe and Asia. While it was reported that there were about 300 international observers during the Philippines election under different election watchdog organizations, the Net- work delegates were invited to be part of the COMPACT International Observers Mission (COMPACT-IOM). COMPACT or the” Compact for a Peaceful and Credi- ble Elections” is an independent watchdog consisting of 21 civil society organizations with the cooperation of COMELEC, the Philippines Commission on Election. The main convener of COMPACT is the non- governmental Active Citizenship Founda- IOM members and army and police tion (ACF). The 2010 Philippines election was seen as crucial to the country becuse the last national election in 2004, which saw Recently, on the invitation of COM- 3. Ms. Erna Andriyani, (PPR-Indonesia) President Gloria Macapagal-Arroyo return PACT-IOM, an election watchdog of the 4. Mr. Billy Franata, (IWD-Indonesia) to office, was plagued with allegations of Philippines, the Network of Social De- massive electoral fraud. This year, there mocracy in Asia sent a delegation of inter- The mission to the Philippines was were contenders for the seats in the local national observers to the Philippines 2010 ahead of a massacre believed to be elec- government, Congress, Senate up to the General Election. The Network’s delega- tion-related in Maguindanao just less than Presidency. tion consist of Steven Sim, the Network 6 months earlier. The dead include over As an estimated 50 million voters executive secretary and 30 reporters who were travelling with the prepare to cast their votes throughout actual targets of the gunmen. the country in May 10, there was serious 1. The Hon’ Charles Santiago, MP, The mission was in part by invitation concern of electoral fraud, violence and (DAP-Malaysia) of the Akbayan Citizens’ Action Party, a intimidation of voters. The concern was 2. Mr. David Marshel, (DAP-Malaysia) partner in the Network of Social Democ- aggravated by past events in the Philip- Asian Social Democracy Journal >> Report

network delegates Billy, Steven, Erna, David, and Charles pines election history and of course, the siastically exercising their democratic right some assumptions, observation missions massacre in Maguindanao. In addition, tosuffrage. Amid threats and actual acts are not only conducted in countries with there was widespread uncertainty because of violence, possibility of failure of elec- weak democracies. Increasingly, election for the first time, the whole country will be tions, fraud and outright uncertainty due observation missions are organized to cre- going through an automated election. to an automated election system widely ate important spaces for people of differ- The international observers were criticized, many Filipinos were able to cast ent nationalities to learn from each other deployed for the five-day mission to 24 their votes and choose new leaders. This in in their common advocacy to further municipalities in the four provinces of itself is an achievement and a clear testa- democracy. Maguindanao, Negros Occidental, Pasig ment to the Filipino people’s faith in the But while we join the Filipino people City and Pampanga. These areas were democratic process. in celebrating this important achievement, considered hot spots due to past history of As election observers, we are truly we also would like to present some of our election-related violence. honored and privileged to witness and/or observations concerning the conduct of Below is the statement of the COM- observe this amazing feat and we hope that the elections in particular areas we have PACT-IOM delegates at the end of the the country’s recently concluded national visited. In the spirit of objectivity and in mission on the conduct of the election: political process would lead to the fur- contributing to the development of the We, twenty-five members of the 2010 ther deepening of Philippine democracy country’s democracy, we see fit that these International Observers’ Mission from ten and the strengthening of its democratic observations are given national and in- countries and organized by the Compact institutions. ternational platforms. For the purpose of for Peaceful and Democratic Elections Election monitoring is increasingly the observing the conduct of this election, commend the Filipino people for enthu- norm throughout the world. Contrary to COMPACT’s international election ob- << Asian Social Democracy Journal Report

steven presenting team report to diplomatic corp

network delegates David Marshel from Msia

servers visited Pasig, Pampanga, Negros undermine the people’s right to vote. Occidental and Maguindanao. Also, technical problems besieged During our five-day mission, our group some of the vote counting machines we arrived at a consensus that numerous elec- monitored. From PCOS machines freez- tion rules, procedures and protocols have ing up to out-and-out breakdown, such in- not been observed and enforced. We take cidents together with the lack of BEIs and particular notice to the lack of voter secre- necessary support staff greatly contributed cy folders. This compromises the voter’s to slowing down the new voting process right to vote in absolute secrecy. This was that was supposed to bring comfort and seen and observed in almost all the places more efficiency. Steven speaking in a pc we visited and as such, opened possibili- Lastly, on peace and security: we ties for other people with vested interest to observed political tension in particular know how particular voters have voted. areas which resulted in heavy military and It was also observed that in some police presence in order to maintain the peace and order, and voter education. cases, indelible ink was not marked on the peace. Threats and actual acts of violence How a country conducts its elections fingers of people who have just finished also marred the conduct of elections in is a barometer of how mature its democ- voting. We could only assume that such in- some areas. In fact, violence was so real racy and institutions are. The Philippines’ cidents could have contributed to election and serious in those areas that fellow ob- conduct of its recent elections shows that fraud such as multiple voting, aside from servers were forced to abandon observa- it is willing to tread that path. However, incidents of votebuying and vote-coaching tion missions in some municipalities and treading the path alone is not enough. That which we also have observed. barangays. difficult journey requires the active partici- Furthermore, we observed that bal- Thus, we strongly encourage the new pation of Filipino people willing to push lots cast in several precincts were rejected government as well as other important for and realize these much needed elec- without providing voters adequate mecha- stakeholders to givepriority to improv- toral reforms. nisms to appeal or at the very least be pro- ing the general conduct of elections. Need- We are confident that the Filipino peo- vided with concrete explanations of why ed and swift reforms must be realized in the ple are ready for the challenge of further their votes were rejected. We are deeply areas of right to suffrage, polling center effi- electoral reforms. concerned that such incidents could lead ciency, ballot security measures, technical to a significant disenfranchisement and capacities, electoral laws, voter education, Asian Social Democracy Journal >> The Journal

Ivan Lim, Philipp Kauppert, FES Jakarta, March 2010

Since 1 January 2010, the ASEAN1- China Free Trade Agreement (ACFTA) • By signing a Free Trade Agreement with China, ASEAN has become fully effective in introducing zero tariffs on 6682 tariff posts in 17 sec- expects to strengthen its bargaining position for interna- tors, including 12 in manufacturing and 5 tional trade. Being one of the key members of ASEAN, in agriculture, mining and maritime sec- tors. This has triggered a lively public de- Indonesia has been promoting ACFTA proactively. bate in Indonesia; some voices emphasize • For the supporters, ACFTA creates better opportunities the opportunities, while others consider it for local business to export more goods to the important as a threat to the Indonesian economy. The concern seemed plausible: the statistics Chinese market and increases bilateral trade and invest- of the Ministry of Trade showed that al- ment across the region. For the opponents, ACFTA has though the amount of total trade between Indonesia and China has more than tripled the potential to seriously damage domestic industries and from US$ 8.7 billion in 2004 to US$ 26.8 lead to mass layoffs. billion in 2008 with a usual record of sur- • The Indonesian Government is urged to take preventive plus, it indicated a deficit of US$ 3.6 billion for Indonesia in 2008. measures in anticipating and compensating the negative The political situation is unlikely to impacts of ACFTA. Those efforts include renegotiating allow a complete renegotiation of the several tariff posts, granting fiscal incentives for the ACFTA. So facing the initiated upcoming affected industries, improving the national infrastructure and reforming the deficient Social Security System. 1 The Association of Southeast Asian Nations (ASEAN) comprises Brunei-Darussalam, Cambodia, Indonesia, Lao PR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Viet Nam. << Asian Social Democracy Journal The Journal

of the free trade agreement, this article the ten member states of ASEAN and Chi- other world regions. This is supposed to will try to answer the following question: na. It is predicted that the establishment boost productivity and economic welfare Is a win-win solution for Indonesia ac- of the ACFTA will create an economic as well as attracting more investment into tually possible? By beginning with the region with 1.7 billion consumers, a re- the region. introduction of ACFTA, its origins and gional Gross Domestic Product (G.D.P.) motivation from both China and ASEAN of about US$ 2 trillion and a total trade The Origins of ACFTA perspectives, this article will approach its volume estimated at US$ 1.23 trillion. The The idea of a free trade area between initial question. It then follows with the removal of trade barriers between ASEAN China and ASEAN was first proposed perspective of Indonesia, focusing on its and China is expected to result in lower by Chinese Premier Zhu Rongji at the government, business organizations and costs of produc-tion through economies November 2000 China-ASEAN summit. trade unions. The conclusion shows some of scale, expanded intra-regional trade In October 2001, the China-ASEAN Ex- possible solutions offered by experts from and increased economic efficiency. Simu- pert Group on Economic Cooperation various backgrounds and the government lations conducted by the ASEAN Sec- issued an official report recom-mending for those fearing the negative impacts of retariat using the Global Trade Analysis a “WTO-consistent ASEAN-China FTA the ACFTA implementation.2 Project (GTAP) suggest that an ACFTA within ten years”. A month later, at the ACFTA, the third biggest free trade will increase ASEAN’s exports to China November 2001 China-ASEAN summit, area be-sides the European Union and the by 48% and China’s exports to ASEAN by the relevant leaders endorsed the ideas Northern American Free Trade Agree- 55.1% and could probably raise ASEAN’s of the Expert Group and the negotiation ment (NAFTA), is an agreement among G.D.P. by 0.9% or by US$ 5.4 billion while process officially commenced. Then, at China’s real G.D.P. could expand by 0.3% the Eighth China-ASEAN Summit in or by US $2.2 billion. The governments November 2002, the ASEAN leaders and support-ing this initiative hope that with Chinese Premier Zhu Rongji signed the 2 Ivan Lim is an International Business student at the German Swiss University of Jakarta and has the formation of an ACFTA, enterprises “Framework Agreement on Comprehen- worked for FES Jakarta during an internship. Philipp in ASEAN and China will become more sive Economic Cooperation”. As laid out in Kauppert is Deputy Resident Director of FES Jakarta. The opinions expressed reflect the views of efficient and further promote specializa- the framework agreement, a free trade area the authors. tion in order to be more competitive than covering trade in goods be-tween China Asian Social Democracy Journal >> The Journal

and the original five ASEAN members es, the demand for ASEAN exports might that the implementation of ACFTA was (Indonesia, Malaysia, Singapore, the Phil- even still increase in the near future. As a expected to strengthen bilateral trade and ippines and Thailand) is to be com-pleted further advantage of the ACFTA, ASEAN investment across the region. This is yet by 2010. The remaining five ASEAN mem- countries can benefit from a growing another impor-tant element of the context bers are expected to fully join by 2015. number of Chinese tourists due to the rise of the strategic partnership between Indo- of Chinese middle class. In any respect, nesia and China. 1. The Perspective of China ACFTA could be seen as a bulwark against The Minister of State-Owned En- China’s new diplomatic strategy seeks potential hostile behavior from China terprises (SOEs) explained that ACFTA to capitalize on globalization to accelerate towards the Southeast Asian region. Nev- created higher opportunities for three Chi-na’s economic development in order ertheless, despite a closer relationship be- industrial sectors for exports, namely to cope with the growing demands and to tween the two parties, China might remain maritime, food and beve-rage, forestry and hinder so-cial conflicts. In Southeast Asia, a concern for ASEAN countries. China’s agriculture products. To anticipate nega- the “peaceful rise” is promoted through defense expenditure rose from US$ 6.06 tive impacts of the ACFTA, SOEs planned an FTA agenda reflecting geopolitical and billion in 1990 to US$ 14.6 billion in 2002. to engage in the domestic steel industry. economic objectives - cultivating goodwill This development alone constitutes a key Hereby, the Minister requested to apply among neighbors, maintaining regional rationale for the Southeast Asian govern- more stringent regulations on im-ported stability, and securing key markets and raw ments to seriously further engage them- products from China. materials needed for China’s economic selves with the growing power of China. But there are also voices fearing a growth. China sees ACFTA as a tool to negative impact of ACFTA within the respond to challenges posed by competi- 3. The Perspective of Indonesia government. Based on the field research in tive regionalisms in the world economy, Being the largest country in Southeast Tanah Abang Market and Cibaduyut, the to consolidate growing eco-nomic ties Asia and rich in resources, Indonesia is of State Minister of Cooperatives and SMEs with Southeast Asia, to secure the access strateg-ic importance for the development informed that local garments and shoes to raw materials, and to ensure a peaceful of the whole region. As one of the key industries are basically fitted to compete environment to support China’s growing member countries of ASEAN, this coun- with foreign industries in ACFTA. How- influence to counterbalance American and try has been a major player in promoting ever, he asserted that the ACFTA might Japanese power. ACFTA which has been carried out since cause some damage to a high number of January 1 of 2004, through an Early Har- Medium Enterprises (SMEs) which play 2. The Perspective of ASEAN vest Program reducing tariffs on many an important role in Indonesian overall By signing a Free Trade Agreement agricultural products. business, quoting data from the Central with Chi-na, ASEAN expects to improve Statistics Agency (BPS). its bargaining position in the international a. Government, the Supporters of The consequences for the public fi- arena. Moreover, increased trade between ACFTA nancial situation also seem ambiguous. the two sides since the normalization of President Susilo Bambang Yudhoyono Finance Minister Sri Mulyani Indrawati ASEAN-China bilateral relationships in ex-pressed his opinion that the Free Trade estimated that ACFTA could cause gov- the early 1990s has fuelled the confidence Agreement between ASEAN and China ernment to lose Rp 1.6 trillion in import of ASEAN policy-makers, who now feel (ACFTA) would not threaten Indonesia’s duties on the one hand, but on the other that ACFTA could provide a much needed in-dustries, but would rather create a high- hand these losses should be compensated economic boost to a Southeast Asia still er amount of opportunities for local busi- by increasing value added tax on imported weakened by the 1997 economic crisis. As ness to export more goods to China. goods, estimated to rise by more than 50% China’s economy lacks of natural re-sourc- The Ministry of Trade emphasized from Rp 66.3 trillion to Rp 102.2 trillion. 10<< Asian Social Democracy Journal The Journal

Rally against ACTFA in Jogja. Source: http://politik.kompasiana.com

materials or intermediate products promised to enhance the competitiveness b. Profit Organizations: Controver- from China. of the national steel industry if ACFTA sial Issues • It could happen that other ASEAN could be postponed for another two years. Research by the Chamber of Com- coun-tries get their products from In addition, he mentioned that the govern- merce has clarified that this trade agree- China and export them to Indonesia. ment should reduce the costs and guaran- ment provides benefits to certain sectors Although it is forbidden, it would be tee a reliable availability of energy. (i.e. rubber, minerals, machinery and difficult to prevent such practices. Indonesia Employers Association equipment products), but there are oth- • In general, multilateral agreements (APINDO) Chairman, Sofyan Wanandi ers that will experience pressure such as under the umbrella of ASEAN might claimed that the adverse effect could be leather, apparel and metal products. Nev- provide a better regulatory framework seen in the next three to six months after ertheless, the option to delay ACFTA is than different single bilateral agree- the beginning of the implementation of not a wise one because: ments among the engaged countries. ACFTA. He added that Indonesia, to- • The competitiveness of Indonesian The businessmen associated in the gether with India and China, is one of the prod-ucts would be eroded by other Indone-sian Iron and Steel Industry As- countries that have been able to withstand ASEAN countries whose products are sociation (USIA) complained that they the global crisis. Therefore, now could be cheaper for China. have been having troubles already with 5% the most powerful momentum to attract • The products of ASEAN countries in tariffs, and that a further reduction to zero more inward investment. gen-eral could be more competitive tariffs will likely cause serious consequenc- A basically optimistic view was felt because they could afford cheaper raw es. The General Chairman, Fazwar Bujang by the members of Indonesian Textile Asian Social Democracy Journal >>11 The Journal Associations (API). But, the Executive ral resources. He clarified that the ACFTA Another perspective on the anticipa- Secretary of API also hoped that the gov- would legalize more coal dredging, logging tion of the negative effects has been ex- ernment would provide protection to local and land acquisition activities where many pressed by Rieke Diah Pitaloka, member entrepreneurs that could be undermined if were hit by the flood yearly due to forests of the House of Representatives Com- there is no strict public supervision. around them that have turned into coal mission IX,. In a roundtable discussion on mining areas. ACFTA organized by the network of Asian c. Trade Unions and Other Social Democrats,3 she suggested that the Opponents The Political Lock-In Situation best solution would be a better implemen- The Indonesian President has made tation and a reform of the National Social According to the Indonesian Farm- clear that he is not willing to break an agree- Security System (SJSN), where the legal ers Struggle Front, about twenty trade ment at this stage that has been designed basis already exists since the formulation union organizations in a press conference and signed by all the ASEAN members of its laws in 2004. An effective and just in Jakarta held by the Labor Revolution- and China already years ago. Nevertheless, social security system could be a positive ary Command (KOBAR) expressed their he was aware that it is essential to protect public measure to protect the Indonesian rejection against the ACFTA implementa- public interest and prepare the relevant workers against the thread of potential tion that could cause mass layoffs. In this elements by working together with the dif- massive layoffs in consequence to the free occasion, the Secretary General of All In- ferent Ministers. trade agreement. donesian Workers Organization (OPSI), In order to help to protect the local In response to the anxiety among Timboel Siregar stated that the signing of industries, the House of Representatives’ workers over potential dismissals ACFTA the agreement would lead to an increase in commission VI overseeing industry and could cause, the employers’ organization unemployment and de-industrialization. trade has demanded the government to APINDO, together with a number of trade The Chairman of the Confederation of renegotiate a number of 228 tariff posts, unions, decided to form the National Bi- All-Indonesian Workers Union (KSPSI), covering garments, furniture and footwear partite Forum (FBN). “Everyone realized Mathias Tambing pointed out that the among others. The Minister of Industry that business continuity should be main- entry of Chinese products has a great MS Hidayat assumed that the ACFTA tained in order to pro vide job security for impact on the domestic market. Not only implementation could hurt domestic all employees of the company”, said Sofyan that they are cheaper, but their qualities firms, and expressed that the government Wanandi. FBN is supposed to build mu- are better too. Subsequently, he assumed has sent a letter regarding this matter and it tual trust among the employers and their that the implementation of ACFTA would would take some time to be processed. employees with the goal to create healthier be more suitable if domestic productivity Coordinating Economic Minister businesses and better working conditions could first be overhauled to achieve equal Hatta Rajasa confirmed the renegotiation that could generally contribute to social competitiveness. and mentioned that the government was welfare. Fearing the unfavorable result of willing to help bolster local industries’ ACFTA, the Director of Operation and competitiveness by providing more sup- Conclusion Service of the Jamsostek company, Ahmad port to improve the national infrastructure The guiding question raised at the be- Anshori calcu-lated that about 2.5 million as well as through fiscal incentives to those ginning of this article was whether a win- workers in the labor-intensive leather and actors directly affected by the ACFTA win-solution for Indonesia was still possi- garment factories and agribusiness indus- agreement. ble given the fact that Indonesia was facing tries could potentially lose their jobs. In “We support the implementation of a political lockin situation with regards to the worst case, the compa-ny has prepared the Indonesian National Standard (SNI) the implementation of ACFTA. To answer a budget of more than Rp. 1 trillion to fund as an anticipatory measure against goods this question, the different positions pre- employee termination claims. of below standards coming into the coun- sented in this article could be divided into Besides the different social and eco- try,” stated Manpower and Transmigration the three following categories: nomic effects for Indonesia, the environ- Minister Muhaimin Iskandar. In seeking a • The Government is generally sup- mental im-pacts of ACFTA might also be solution for dealing with global competi- porting the ACFTA implementation, quite negative. The Executive Director tion and anticipating possible layoffs fol- despite the fact that the Minister of of the Indonesian Environment Forum lowing the ACFTA implementation, he Industry showed his worries about the (WALHI), Berry Nahdian was certain announced that the gov-ernment would that the implementation of a free trade assign a special team to monitor and de- nd scheme like the ACFTA model could ex- tect layoffs that are not done according to 3 This event took place in Jakarta on the 22 of Febru- ary 2010. Find more information about the network ploit a larger amount of Indonesian natu- procedures and laws. under: www.socdem.asia 12<< Asian Social Democracy Journal The Journal danger of hurting domestic firms. the improvement of industrial relations in In a public lecture held at the University of • The Business Organizations are di- Indonesia. Indonesia on 9 February, he argued that in- vided into potential winners and los- A main problem for the Indonesian vestments into these capital goods would ers of ACFTA. Finally, it depends on industry is its deficient infrastructures, as be highly valuable for future development which industry is capable to compete the electricity crisis in 2008 has caused in Indonesia. Therefore, the trading bal- and there-fore might benefit or which the economy and business community to ance deficit could be regarded as a minor might rather be affected from it. suffer. That could be one of the reasons source of concern which could have some • Trade Unions and others actors who why Indonesia’s imports from China out- positive economic effects in the long term. are opposing ACFTA, especially those grew its exports to China. Based on the The Head of Research and Develop- work-ing in a ment of the eco- labor-intensive nomic and social industry which department from have a low the University of chance to sur- Indonesian Educa- vive the strong tion (UPI), Nana c o m p e t i t i o n Jiwayana con- with inflowing, cluded the threat cheap Chinese of ACFTA should products. not be viewed as a The current frightening specter; political situation in it would be more Indonesia indicates useful if it was that the govern- seen as a whip for ment is committed Indonesia to keep to the agreement pace with the im- and has no inten- provement efforts. tion to break it. Considering the However, both the potential opportu- supporters and the nities presented in op-ponents groups this article, perhaps are trying to design ACFTA could gen- some kind of pre- erate some positive ventive measures to effects for Indo- cope with the differ- nesia’s economic ent future negative development. The impacts of ACFTA. main challenges lie On the side of the in coping with the government, the potential negative renegotia-tion of effects such as de-in- some tariff posts dustrialization and with the Chinese unemployment. If government has those effects could been requested. be prevented by Another focus lies on the improvement of presentation by the former In-donesian public meas-ures such as an effective social the national infrastructures and the provi- Ambassador for China 2006-2009, there security system or higher investments in sion of fiscal incentives to the negatively was a significant increase in the imports of the national infrastructure and education, affected industries. On the employers and electric equipment from about US$ 400 to Indonesia might create a win-win solution trade unions side, some of them decided to 800 million, steam generators from about and be able to profit from the long-term, strengthen future collaboration by form- US$ 45 to 300 million and several capital positive effects of ACFTA. ing a national bipartite forum. Their hope goods that contributed the most to the is that this forum would find a solution for deficit in the balance of trade with China. Asian Social Democracy Journal >>13 The Journal

Social Democracy and Distributive Justice in South Asia Abid Hasan Minto

for establishment of a fully regulated eco- life of the people in the rural areas. They nomic system. run parallel judicial bodies (jirga & pon- Pakistan and indeed almost all coun- cho yat) and keep private jails. The local tries of south Asia are still far behind that state administration including the police stage of industrial and economic develop- remains subservient to them. Political par- ment which the industrial societies had ties depend on them for their support and achieved when they confronted the issues consequently they also grace the elected of socio-economic reforms and distribu- institutions thus influencing all law mak- tive justice. In Pakistan these issues are ing. They are exempt from paying tax on closely linked to the nature and character their income. of its predominantly agrarian economy Pakistan and India were locked up in which continues to be controlled by feudal armed conflicts and wars soon after inde- and big landowners. pendence. In Pakistan the states’ emphasis In spite of the process of urbanization was placed on achieving ‘security’ which Social Democracy and the concept which has been on during the six decades inevitably brought the armed forces into of Distributive Justice grew as a sociopo- since after the establishment of the state ascendency. Martial laws became a norm litical philosophy in market based econo- of Pakistan in 1947, more than 65% of starting from 1958. The last military mies of advanced industrial societies. Its its population is rural. Nearly 50% of the controlled political rule ended only in purpose was to regulate the market to a total labor force in Pakistan is directly 2008. In a semi-developed Pakistan rise certain extent so that some benefits of employed in agriculture. Those who work of the armed forces sucked in all revenue high growth and development are also on land comprise sharecroppers, landless resources, made it heavily dependent on shared with common people. It tended to peasants and small landowners; share of foreign loans and aids and turned it into present a human face of capitalism while bigger landowning families in the owner- a client state. That affected a smooth con- preserving and protecting the system from ship of land is above 65%. These landown- stitutional development, a normal demo- movements which advocated outright ers (the feudal, as they are called) control cratic polity and creation of a self reliant socialization of means of production and the entire economic, social and political economy. These circumstances seriously

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compromised the possibility of a peaceful development in Pakistan. Pakistan as a client state played a role in promoting cold war politics of its men- tors first as a part of regional cold war pacts and then actively in Afghanistan against the erstwhile Soviet Union. It was at that time that concept of religious war (jihad) was promoted and Pakistan (then under martial law) was turned into an active reli- gious state with militancy at its core — al- beit with the active support and assistance of the world powers. The current religious militancy and armed insurrections are a legacy of that time. In the foregoing background the task of social reform and change in Pakistan is formidable. Any successful movement for social justice in Pakistan therefore requires, as very first steps, the following: a) End of Feudalism - redistribu- tion of land among those who actually till the land. This will empower the rural Children from poor family in Pakistan. Source: http://johndierckx.wordpress.com majority and makes it possible for them to play their role in opening up and expand- ing the market and in building up a grass eign loans; avoiding loans which impose with regard to the role of religion in the root democratic society conditions seeking an end to state subsi- matters of state. A democratic state is es- b) Firmly establishing the rule of law dies and a raise in taxes, cost energy and sentially secular. A secular democratic by making the Constitution supreme and essential services state alone can effectively combat religious by suppressing all bonapartist adventures The above and similar policies have to militancy both ideologically and physi- c) Taking clear steps for the devel- be undertaken by the state alone. The state cally. In fact in today’s Pakistan those who opment of a viable industrial economy in that has hitherto depended on privatiza- manipulate and control the market are place of a consumerist neo-colonial and tion of public sector enterprises for its rev- quite often to be seen as sympathizers of subservient economy enue resources and budgetary gaps has to orthodoxy and obscurantism. In Pakistan d) Establishing a reformed tax re- reverse these policies. Privatization has not therefore, question of the role of the state gime with emphasis on direct tax on the added to resource and investment building. in building a democratic society where rich and by avoiding indirect taxation that On the other hand, it has added to unem- rule of law and social justice would prevail, affects the poor ployment and has increased monopolistic remains fundamental. e) By generating internationally tendencies. It has also added to the menace recognized rights to all working people of already rampant corruption. f) By reducing dependence on for- Pakistan needs to have a clear vision Asian Social Democracy Journal >>15 The Journal Political Solution to Gender Gap

Keynote Address by the Hon’ The Hon’ Madam Chong Introduction: Women In Malaysia Madam Chong Eng, MP Eng is a 3-termed Member In 1995, Malaysia ratified the United Nation Convention On during the Penang “Gender of Parliament from the the Elimination of All Forms of Discrimination Against Women Mainstreaming: Justice for Democratic Action Party (CEDAW) and in the same year also adopted the Beijing Platform For All” Conference held at the (DAP) for the constituency of Action. Both documents essentially emphasized on increasing wom- Paradise Sandy Beach Resort, Bukit Mertajam. She is the en’s participation in all areas of public and private lives, especially at Tanjong Bungah, Penang, advisor to the Penang State Malaysia from 31 July – 1 Government’s Women, Family the levels of decision-making. In addition, in the year 2000, Malaysia Aug 2010. The Conference and Community Development joined the global community to participate in achieving the Millen- successfully produced a Committee. Chong Eng is nium Development Goals (MDGs) by 2015, of which the third goal 1 Declaration which was then the Deputy Secretary General is “to promote gender equality and empower women”. handed to the Chief Minister of DAP and the chief of its A decade after the 1992 Wanita DAP Tanjong Declaration which, of Penang as a proposal to the Wanita (Women) Wing. She is among others, called for the establishment of a Ministry of Women’s Penang State Government to the founding President of 3Gs Affairs within the Cabinet2, the Government of Malaysia finally setup adopt gender mainstreaming Penang. the Ministry of Women Affairs in January 2001. By 2004, with the in their administration. The expansion of the Ministry’s role it was renamed as the Ministry for Conference was organized by Women, Family and Community Development.3 a friend of the Network, the This brief history of the development of women agenda in Malay- Good Governance and Gender sia should serve as a background for our present discussion. Equality Society, Penang (3Gs Penang). It was supported by the Penang State Government. 1 UNDP, Basic Facts About the MDGs, http://www.undp.org/mdg/basics.shtml ac- cessed on 15 July 2010 2 Democratic Action Party, DAP Wanita Tanjong Declaration 1992, http://goo.gl/r605 accessed on 15 July 2010 3 Women Family and Community Development Ministry, Background, http://goo. gl/OXio accessed on 15 July 2010 16<< Asian Social Democracy Journal The Journal

Today, 15 years after CEDAW and 10 LFPR was 37.2%. 20 years later, in 1990, The Importance of Increasing Women’s years after the setting up of the Ministry of the women LFPR increased to 46.7%. Participation Women Affairs, women’s participation in Today, after another 20 years, the women The need to empower women to par- public life, especially as decision-makers is labour force participation rate dropped to ticipate in decision making is not merely an still very low. 45.7%. abstract human rights agenda. At the most In the Dewan Rakyat, the number of The point I am trying to make is that fundamental level, to utilize the presently women MPs was hovering slightly above while Malaysia has in place all sorts of in- silent half of the population whether in the 10% for the last 3 terms, with 10.4% of ternational conventions and an excellent political arena or in the economy is to tap women MPs in 1999, 10% in 2004 and National Women Policy with a women-fo- into a vast and powerful pool of human re- 10.8% in 2008. cused Ministry to ensure the implementa- source to drive our country’s growth. Compared to the Dewan Rakyat, there tion of women agenda, women in Malaysia Ultimately, empowering women to are more women in the Upper House is still lagging behind in many aspect of the enter and participate actively in the pub- where members are appointed rather than public life. lic sphere will benefit everyone, men and elected. In 2004, the percentage of women Overall, Malaysia’s ranking in the women. senators reached as high as 33.3% and in Global Gender Gap Index have fallen from Women not only bring with them new 2008, there were 16 women out of a total 92 in 2007, to 96 in 2008 and 101 in 2010. talents and skills but also fresh perspective of 60 senators or 26.7%. In a report by the Ministry of Women, especially in the field of politics. Women In the Cabinet, the number of female Family and Community Development in who traditionally are care-givers at home ministers has never exceeded three at a 2009, the Malaysia Gender Index (MGGI) have better understanding on the issue of time since our Independence. Currently, showed that while Malaysia scored well in family life including health, children and there are 2 women Ministers out of 30 the sub-indexes of education and health, education. Ministers in the cabinet. gender gap in the political and economic We ask different question when it The percentage of women elected into empowerment sub-index remained high at comes to looking at challenges the coun- the State Assemblies has never been more 0.58 in 2007 on a scale of 0 to 1, 0 indicat- try faces and usually, women place more than 10%, with 4.8% in 1999 and 8.0% in ing no gender inequality, and 1 indicating weight on ground level solutions. In other 2008. maximum gender inequality. words, we are more sensitive to the social In the civil service, women made up Here, as it is often observed, equality dynamics of a policy or a government an average of only 14% at upper echelon in opportunities, such as accessibility to decision, especially in terms of how such as secretary generals, director generals and education and better healthcare do not policy or decision can affect other women, chief executives. necessarily translate into equality in results children, the family and society. Women labour force participation where the elevation of women into deci- Women also adopt different approach rate (LFPR) has basically remained stag- sion making positions is concerned. in politics and governance as compared nant the last 20 years. In 1970, the woman to our male counterpart. We are less likely Asian Social Democracy Journal >>17 The Journal to be confrontational and are more likely What is needed, however, is much seats. to use diplomacy to achieve our targets. more than a broad address of the issue of As we can observe from the examples Often, women prefer negotiation and gender inequality. The Government must given above, gender quota and affirmative finding common ground. At a time when be deliberate in considering the implica- action work to fast-track the process of bal- people are often frustrated with the par- tions of its actions, in every area, for both ancing the social representation of gender tisan politicking in the country, women men and women. To do this requires a at decision making levels. leadership can indeed provide a political paradigm shift! The Government must It is a chicken-and-egg puzzle for us to breakthrough especially when we are in look into existing system and work to- determine whether the empowerment of need of bi-partisan reform in key areas of wards removing obstacles once and for all. women comes first or the participation of the administration. It may involve structural change and often women comes first. And perhaps a welcoming change for this will agitate the status quo. Instead of indulging ourselves in this us in Malaysia is that women are less likely But unless we in Malaysia are willing vicious puzzle, I strongly believe if we can to be involved in corruption. In 2001, a to wait for another 50 years to a century to increase women’s participation in public World Bank Report showed that corrup- see the ground being leverage for women life, especially at decision-making level, we tion cases are lower in the fields adminis- to compete fairly with men, especially in will soon experience the ripple effect of a tered by women. the political arena, gender quota and other more gender-balanced perspective in the Finally, a report by the Organisation affirmative action schemes must be intro- decisions and policies of our Country and for Economic Co-Operation And Devel- duced to reflect the urgency of building up therefore ultimately benefit more women, opment (OECD) showed that achieving a generation of women leaders today and and as well as men. gender equality has positive effect on the now. economy. It not only generates an increase In Malaysia, “quota” is often looked The Global Experience of workforce in OECD countries, but also upon as a “bad word”. This is due to the Gender equality and women empow- creates more sustainable growth in non- ruling party’s abuse of affirmative action erment are global trends. Today, all over OECD countries. policy to enrich cronies instead of empow- the world, people are advocating and pro- ering the needy. moting equality as the basis of human re- Political Will: The Missing Ingredient But in order to hasten the rise of lationship. Today, in most democracies in In Malaysia, as we discussed earlier, the women to decision-making positions, af- the world, equality is the rule, rather than low participation of women in the work firmative action such as gender quota or the exception. force and in politics is not due to the lack proportional representation electoral sys- Therefore, even as we in Malaysia pride of Government policies and awareness. tem should be introduced. I must stress, ourselves to be part of the global society The question then is why there is no however, any form of affirmative action and aspire to move towards being a first real breakthrough towards gender equality should be temporary in nature and they world Nation, we must position ourselves in Malaysia? should be complemented with programs together with the great global movement I think while we have all the excellent which empower the target group to allow towards gender equality. instruments and policies, what is lacking them to compete in the long run after the More than 100 countries in the world is the political will especially within the affirmative action policy expires. have some kind of mechanism to acceler- ruling party. A 2008 report from the Inter- To illustrate the effectiveness of af- ate and facilitate participation of women in Parliamentary Union (IPU) observed that firmative action in promoting women to Parliament. “electoral arrangements, together with po- decision-making positions, out of the top Some of these, such as Sweden which litical will, are among the most important 10 countries with the most women mem- is currently ranked second in the global factors” which affect women’s access to the bers of Parliament in 2009, 8 of them have top ten list of the most women MPs has Parliament. some forms of legislated gender quota. a four decade-long history of “sustained The other two countries use proportional pressure by political parties and women’s What is meant by political will? representation electoral system. group within parties and in society”. To- Without a real commitment to work In 2008 as reflected in the electoral day Sweden has 47% women in the Parlia- towards gender equality, all the gender results in Parliament throughout the world ment. Political parties in the country have instruments and policies will remain lip reported by the IPU, women won an aver- self-imposed gender quota to satisfy the service. Often, gender agenda is given a age of 24.5% of seats in Parliaments using strong demands of the electorate to have tokenism approach. It is just one of the proportional representation system while a more balanced gender representation in checkboxes to please pressure groups or those using the majority system, women the Parliament. Overall, public pressure the international community. only managed to secure about 18% of the and special measures in European coun- 18<< Asian Social Democracy Journal The Journal tries ensure that women on average hold cal change. We hear calls to change from ress and growth of our country”. about 21% of Parliamentary seats. narrow ideology to more inclusive and Leaders are worried about social dy- In African countries such as Rwanda, progressive ones, from autocratic to an namics and family structure which they Angola, Mozambique and South Africa, accountable government, from oppressive felt are threatened by the pursuit of gender post-conflict reconstruction of their po- regime to one which respect human rights equality. But we must understand that gen- litical systems allow the opportunity to and rule of law. der equality is not the battle of the sexes. integrate special measures within their le- I hope Malaysians will begin to see It is not about pitting women against men. gal and political system to enable quicker that our call for inclusiveness, for account- We are not striving to replace the domi- and more women’s participation. Rwanda ability, for justice and human rights will be nance of one gender with another. tops the list of the most women MPs in the inconsistent if we neglect the call to em- Gender equality is about both women world with 56.3% of its lower house be- power half of our populations, our sisters, and men. It is not a women’s agenda, but ing women members. Meanwhile, Angola the women of Malaysia. a social justice agenda. If there is indeed a (37.3%), Mozambique (34.8%) and South Recently, in the famed Atlantic Maga- natural social evolution towards a more fe- Africa (33%) have all reached the target zine, there was an article which analyzed male-friendly public life and marketplace, of 30% women representation in their re- the current trend in America where there is then men should realize from now that spective Parliaments. a gradual but steady reversal of social roles gender policy is important not only for Our neighbor in Indonesia has enacted between men and women. The article had women but for men as well. Gender policy laws to encourage party-based gender quo- an eerie title, “The End of Men”. Among is to achieve balance and fairness for both ta since 2003 with a further amendment others, it observed: men and women. in 2008 to strengthen such mechanism. “…woman…now hold a majority of The aspiration towards gender equal- Although the Indonesia gender quota laws the nation’s jobs. The working class, which ity therefore is not a new thing, if we con- have been criticized for being relatively has long defined our notions of mascu- template further; it is part of the whole weak and did not impose any real sanc- linity, is slowly turning into a matriarchy, package of the struggle for equal human tion on parties which do not comply, the with men increasingly absent from the rights. We are essentially standing in the introduction of such laws have resulted in home and women making all the deci- shadows of the equal rights advocates such increase of women representation in Indo- sions. Women dominate today’s colleges as Mahatma Gandhi, Martin Luther King nesia Parliament. In 1999, before the intro- and professional schools – for every 2 men Jr, Nelson Mandela. The proclamation for duction of the laws, women made up 8% who will receive a B.A. this year, 3 women gender equality is one that is as old as our of the Lower House. After the enactment will do the same. Of the 15 job categories first cry for social equality. But this call is of the laws in 2003, in the 2004 election, projected to grow the most in the next now being renewed globally, because as women membership in the Lower House decade in the U.S., all but 2 are occupied the world struggle for equality, it was con- increased to 11.3% and in 2009, the figure primarily by women…Men dominate just venient to forget about the mothers, sisters further increased to 16.8%. 2 of the 15: janitor and computer engineer. and wives. We are forgotten and passed- Women and Men at the Grassroots Women have everything else…” over because we were silent. I urge you, Must Make Gender Agenda an Election While the article described the trend sisters and brothers, break your silence, Demand in the USA, some leaders in Malaysia are because without gender equality, there is Politics is about the economy of num- worried as well. And there is a basis in their no social equality. Make the demand for bers. In order to ensure that our Govern- fear. After all, women in Malaysia made up gender equality a political demand. If half ment commit towards gender equality, the 62.3% of the undergraduates in public uni- of the population cannot fully live out electorate must make gender agenda into versities and 53.3% of the students in pri- their fullest potential, then not only we are an election demand. vate higher learning institutions. Women regressing in human rights, but we are also This was one of the reasons why 3Gs is are also fast catching up at post graduate risking regression of our country’s growth. actively organizing our Introducing Gen- level with 52.7% of Masters’ students in Until today, those who suffer the conse- der Equality workshops. It is part of our public universities are women. quences of gender inequality are women. gender sensitization project which aims at Recall earlier this year, the secre- But just like what is happening in America creating awareness in the public especially tary-general of CUEPACS (Congress of at the present, the trend may be reversed. among women, but also with the men, on Unions of Employees in the Public and We must mitigate the situation today be- the importance of advocating for gender Civil Services of Malaysia) expressed con- cause we want a fairer world where both issues. cerned that the “increasing dominance of men and women can have equal rights. Today, everywhere in the world, even female employees in the civil service will here in Malaysia, we hear calls for politi- have long term implications on the prog- Asian Social Democracy Journal >>19 The Journal A Cure to the Country’s Housing Crisis Lies in the Arms of a Healthy Balance*)

IVAN HADAR**)

families who are registered as owning a able to produce and repair (or upgrade) residence that does not meet eligibility their houses. The main role of government standards. Many of these housing situa- is to ensure that basic resources of hous- tions are a result of natural disasters. ing, such as land, building, infrastructure, In general, the housing crisis is marked facilities and funds can be accessed by the by slum housing, including sheds and ille- majority of communities, therefore not gal shelters in river floodplains and under being monopolized by a few people or bridges, that has expanded and reached companies. into most corners of large cities. The hous- The essence of social housing system ing crisis is also marked by social-space in- is to focus on the involvement of state, equalities resulting in the number of hous- private investor, including financial in- es occupied exceeding the capacity, a very stitutions, as well as the prospective ten- high housing density in certain regions, the ants/house owners in solving the housing unavailability of space for privacy, the loss crisis. Theoretically, the housing crisis and of public space and recreation and housing its solutions can be considered from the locations that are at some distance from perspectives of two major groups. The first the workplace. group views the housing crisis as a “capital As a member of Habitat International, and income issue,” whereas the second Indonesia has officially ratified the hous- group sees it as a “cleanliness, health and In 2007, the SBY-JK administration ing basic needs clause. The Constitution regulations issue.” proclaimed its “1,000 Towers” plan, the also clearly states that “the state is obliged For the first group, the housing crisis provision of one million high-rise apart- to help to provide proper houses for the is directly related to the high price of land ments, mostly in Jakarta and other large people of Indonesia.” Similarly, the 2000 caused by unproductive ownership, land cities in Java, to address a growing hous- Law on the National Development Pro- and building speculation, and the control ing crisis. According to official estimates, gram (Propenas) and the Building Act of of housing stock and land by only a few the demand for housing in Indonesia has 2003 also require local governments to people. This perspective has succeeded in reached at least 5.5 million units and will “empower the poor who do not have ac- “exposing” various negative behaviors on increase annually by approximately one cess to housing.” All these constitutional the part of housing developers. million units. The towers were originally directives aim to provide access to housing This criticism of housing and land scheduled for completion this year, but by for the people of Indonesia, especially for speculation is supported by many progres- the end of 2008 only 86 towers had been lower-income families. sive thinkers, urban planners and local built. Affirmative actions are needed in the politicians who, in several countries, have The official estimates of housing needs process of developing a system for social been successful in initiating the housing do not fully reflect the realities of the hous- housing. The actions are empowering and reform movement. ing situation. Missing are the millions of facilitating citizens and communities to be The solutions offered attempt to ad- 20<< Asian Social Democracy Journal The Journal

dress the financial issues, such as the lack rooted in the fact that the housing problem Germany offers another example. Fol- of funding for the development of modest is closely related to a funding issue. Also, lowing World War II, in which the major- housing, the high interest rates for home the concept of self-help by the community ity of German cities were heavily damaged mortgage loans, mortgage manipulations will not, by itself, be able to overcome the by Allied bombing, Germany made the in order to speculatively auction the land problem from a larger perspective. development of housing a key engine of and the low level of community income. Several lessons from other countries economic development through the pro- Meanwhile, the perspective that is held could prove useful in finding a housing vision of tax incentives, cheap credit and by the second group reduces the housing solution for Indonesia. Singapore presents related incentives to those developers who crisis to only an issue of village renovation an example of the dominant role of govern- would build housing for the lower and and rejuvenation, a culture of poverty and ment in overcoming a housing problem. middle classes. the lack of country supervision due to the This city-state established the Housing Despite a relatively small profit margin, expansion of slum housing. These various Development Board in 1960, a time when there was almost a 100 percent certainty of views color the long history of housing a large number of people were still living the developers earning a profit from these policy in the country. in unhygienic, potentially hazardous slums building activities. Despite the corruption that comes with and crowded squatter settlements packed Thus, it should not be surprising that government-subsidized housing, there are in the city centers. With government sup- more than 60 percent of the housing in those individuals with high ideals who are port to acquire land at cheap prices, the Germany was built by developers under committed to housing development that HDB proceeded to build and rent houses, this government incentive program. Those is community-focused. However, it seems especially to those in the lower income who seek greater profits must, of course, that the various initiatives are increasingly strata. Presently, about 84 percent of Sin- face correspondingly greater market risks. far from a consensus, depend upon exter- gaporeans live in HDB housing. Singapore There are many opportunities to solve nal funding and have only resulted in a also has the Central Provident Fund, an the housing crisis in Indonesia. The politi- small number of pilot projects. old-age social security fund that collects cal will of the government and the willing- The funding required for adequate money from workers and employers and ness of all parties to find a healthy balance housing is beyond the financial capacity also supports housing development. to the various interests are the two key pre- of those who need housing. Thus, a kind of For Indonesia, land seized from big requisites for solving the country’s housing selection process eventually occurs, which developers who have problems with the problems. The rest is a technical issue. sacrifices those who are weak. The utiliza- Bank Restructuring Board (BPPN) could tion of high-rise apartments in Jakarta, for be utilized to build housing for the lower example, was initially conceived for those and middle-income groups, a demograph- who could not otherwise afford housing. ic that has often faced difficulties due to Yet in practice, this housing is often the high price of urban land. Meanwhile, *) This is a revised version of the same titled article controlled by those who turn the apart- the Civil Servants Housing Savings (Tape- published in Jakarta Globe, July 29, 2009 **) Ivan Hadar is an architect, city planner and co-chief ments into a business proposition by buy- rum) could be expanded to a wider scope editor of the Journal of Social Democracy in Asia . ing and then renting them. The dilemma is and assist with solving the housing issue. He can be reached at [email protected]. Asian Social Democracy Journal >>21 The Journal

Managing the Welfare State

By Budiman Sudjatmiko

are currently working on and the network is based on information an inventory of what the supply and real time developments which country needs for the next allows reducing the inefficiency in the use 50 years. of resources. What I mean are the Through social cybernetics, I imagine needs to establish and fi- that you will be more convinced to say: “In nance a complete social se- t time, because of an increase in oil price of curity system through tax 0,02 percent in t -1, Indonesia will increase collection, profit sharing X beds and Y medical equipments in dis- of revenues from national trict Z. These facilities are available for the resources, or else. people in t + 1.” In general the idea Social cybernetics has become more would look like this. The relevant, because since 2001 we have been production process and conducting decentralization and local consumption from all our autonomy. Therefore, we are faced by the economic sectors (imagine complexity of decision making including for instance the dynamic at the local level which is very limited if of crude oil price in Indo- conducted through traditional bureaucrat- The conception of the welfare state as nesia), the capacity and the surplus gen- ic approaches. In relation to welfare state, was aspired by our founding fathers must erated by these processes to finance the building the social security system must continue to flourish. The welfare state welfare state (for instance a rise in income consider the capacity to manage the sys- should encompass a modern attitude, ef- due to price changes in oil), decision mak- tem which includes among others, financ- fective, efficient but is still based on the ing at the lowest level (rice farmers in the ing capacity, service delivery, the capacity nation’s local wisdoms. villages, or the production chain of a food to monitor, evaluate and verify. Local wis- Because the pioneers established this factory), and other relevant factors (demo- dom is the basis of its management. Republic based on good will, we should graphic structures, and special distribu- not worsen the queue of their confused tion from poverty pockets in cities or vil- Local Wisdoms heirs and be inferior in facing the chal- lages for instance) will be organized in one The concept of the Indonesian wel- lenges. Right now there are a number of command cluster. This cluster is based on fare state will prosper if it is based on local young people who love this country and many networks working simultaneously, wisdoms in the country related to social 22<< Asian Social Democracy Journal The Journal

collaboration. I would like to show two ex- ing based on their individual interest could members which have been taking care of amples from these experiences. The first is result into a smaller per capita harvest than the boats. subak in Bali and the system of whale hunt- through a collective collaboration. This Other recipients are people who are ing in Lamalera which have been tested by structure of cooperation makes the farm- indirectly involved in the hunting. Finally a complex system. ers realize that they could be punished if the capture is also distributed to the origi- The subak system is more than 1000 reverting from the collaboration. This is an nal inhabitants of Lembata island as a con- years old. What is relatively unknown to us important lesson for the Indonesian wel- cession for land use. is perhaps how social dilemmas are solved fare state: how to make social cooperation This is a complex social system. So wittily there. These social dilemmas are beneficial for everyone, so that a dynamic what happens if a party is violating these closely related to the division of limited system can survive and is sustainable. agreed norms? There was a case when a resources, but can benefit every participat- boat drowned and did not receive any as- ing member. Social Solidarity sistance from the other fishermen. As we know, because of the topogra- The experience of whale hunters in La- If in Bali people rely on a common phy, the rice fields are designed in staircase malera, East Nusa Tenggara is also worth incentive, social collaboration, while in steps. Water is flowing to the rice fields mentioning. Lamalera people are using another form of from the upper to the lower streams, thus Hunting whales is not an easy matter. incentive, namely social punishment. Both creating the possibility that owners of rice It is dangerous especially when using tradi- of these social collaborations are based on fields in the lower streams lack water. In tional boats, and needs solid coordination hand on social solidarity mechanism (also addition the mice have become a serious and social collaboration. A boat dispatch known in Indonesia as gotong royong) and threat to rice farmers in the upper as well for whale hunting consists of a maximum on social reciprocity on the other. These as in the lower streams and have become a of 14 people, and often more than one two elements are crucial in establishing a threat to everyone. boat is involved. Sometimes a boat topples welfare state. The Balinese farmers have therefore to the sea and needs assistance. decided to water and to harvest their crops The most important part is how the Budiman Sudjatmiko simultaneously. As a result, the mice can- capture is divided. The mechanism has its (Member of Parliament PDI - P) not move from one subak to another and own norms of social collaboration. Firstly, began to extinct. the capture is immediately divided among The moral of the story is the coop- the fishermen involved in the hunting. eration among farmers to reach their com- They receive the most important parts of mon interest. Each farmer realizes that act- the whale. The next recipients are the crew Asian Social Democracy Journal >>23 The Journal

Public Transportation – The Way to Go

Talk at the Regional Conference of the Network of Social Democracy in Asia “Effecting Real Change in Local Governance: Perspectives for Social Democratic Policies” November 19-22, 2009, Penang, Malaysia

Michael Lim Mah-Hui

“We need to see public transport not as a technical means of transporting people from point A to B, but as a form of social justice.” Richard Burdett, Professor of Architecture and Urbanism, London School of Economics (2007).

America to foreign aggression in search tation, they are, nevertheless, quite ready of oil, and contributed greatly to environ- to embrace public transportation for eco- mental pollution and climate change. A nomic and personal reasons. one thousand kilogram machine carrying The first has to do with affordability. a one hundred kilogram person is not an Globally the depletion of petroleum re- efficient form of transportation invented sources has led to an escalation of oil pric- by human beings. In fact, it could rank as es – from an average of US$35 per barrel a one of the most inefficient and ecologi- few years ago to a high of $150 per barrel cally unsustainable form of human inven- in 2008. While prices have dropped to $70 tions – compared to bicycles, trains, ships per barrel in 2009, some forecast it could A. Philosophical and Conceptual and planes. rise to $200 in the near future. Before too Basis of Public Transportation Millions of cars, each car carrying one long, increased fuel costs will render pri- We need a whole new way of think- or two passengers on the highway, guzzling vate vehicles too expensive to operate for a ing about public transportation as shown non-renewable natural resource, spewing sizeable portion of Malaysian population. in the above quote. Transportation is not CO2 into the air, contributing to global An efficient and affordable public trans- simply a technical problem to be solved warming are generating major economic port system is a necessity rather than in by engineers who build more roads to externalities borne by the majority of inconvenient option. Transportation mo- carry more cars. It is a social problem, public who don’t own or use private cars. bility, accessibility and affordability should an economic problem and an ecological Seen in this light, it is a form of social and be considered a basic need of the people problem. economic injustice. While cars are here to and an objective of social equity. The car industry born in Detroit over stay, new and radical rethinking is required The second is uncontrolled private car a century ago has no doubt revolution- to address this imbalance. One of these is ownership and usage defeats the objective ized the world and left a lasting legacy for to impose economic surcharge on those of getting people from point A to B quickly better or for worse. In the United States, who wish to enjoy the comfort of their and efficiently. Massive traffic jams has it crowded out railway as a leading form private cars and subsidize those who opt reduced, not increased, the speed of travel of transportation, led to sprawling subur- to use public transportation. in cities. Most people in Malaysia are frus- banization and decline of cities, changed While Malaysians are still far behind in trated. Yet they have no good alternative the lifestyles of most Americans, pushed adopting such a vision of public transpor- public transportation system in the major 24<< Asian Social Democracy Journal The Journal

cities. This is a legacy of the Mahatir era 1. People centric – involving people at governments have few powers and sources when he promoted widespread ownership every step of the way from planning of revenue. The state government’s only of cars in order to support his dream of to implementation to feedback and sources of revenue are the sale of state land building Proton into a national car com- improvement and the levy of land taxes in the form of pany. As an example, in the state of Penang 2. Ecological sustainability and people quit rent. Local councils sources of revenue with 1.6 million people there are more friendly come mainly from property assessments. vehicles (cars, motor bicycles, trucks etc) 3. More public and less private Furthermore, they have no ability to raise than there are people. transportation funds (loans) from the public unless ap- 4. Affordability, accessibility, reliability proved by the federal government. The B. Implementation – From Vision to and integrated state government depends on the federal Action The PTC has recommended a series of government for loans and grants to build The present state government of Pen- actions for the state to take ranging from roads and other infrastructures. ang is keen to solve the traffic and transpor- short term (within 6 months), to medium Even local issues such as issuance of tation problem that has worsened over the term (6 months to 2 years) and long term transport licenses (bus and taxis), the years. After the Pakatan parties won the (more than 2 years) plans. regulation of bus routes, collection of traf- state elections in March 2008, it requested The short-term plans include decon- fic fines, collection of garbage etc. are all input from civil society to help tackle the gesting traffic, clearing illegal parking on controlled by the federal government. transportation issue. A number of persons streets, improving car park systems and fee The Pakatan political parties that form formed a group consisting of professionals structure, improve one-way traffic flows, the state government of Penang rule the from various walks of life with active inter- informing and engaging public in the state but are opposition parties at the fed- est in issues of transport in Penang. These projects. The medium-term plans include eral level. Hence they face a great deal of included planners, engineers, environmen- – starting the master plan process, improv- obstruction from the federal government. talist and activists in public transport. ing the bus and taxi systems, introduce bus Historically, the federal government dis- The group met from May 2008 on- and bicycle lanes and pedestrian paths, criminates against states in Malaysia that wards and first submitted a comprehensive introduce measures to discourage use of are ruled by opposition parties, as in the report to the state government on how to private vehicles through area road pricing, case of Kelantan and Trengganu. All kinds transform the Penang transport system. peak hours charges, higher parking fees of assistance are with held, even revenue After several meetings with various de- etc. For the long term, there should be a that are supposed to accrue to the state are partments and committees in the state and master plan that is integrated with the land cut off. local governments, the state government use and state and local master plans and an The federal government controls even finally officially set up a Penang Transport integrated public transport system involv- the bureaucracy. While all civil servants Council (PTC) to act as an advisory and ing bus, trains, ferries, taxis, bicycles etc. working at the state government level are clearing center for transportation issues paid by the state, they are federally ap- in the state. There are currently about 16 Challenges and Obstacles pointed and assigned to work in the dif- members in the council and they include The most serious challenges facing the ferent states. Hence most owe and display state and local government officials and implementation of this vision and plan their loyalty to the federal rather than the members of the public. All public mem- come from the political structure in Ma- state governments. bers work on a voluntary basis. laysia. Malaysia is supposed to practice a The state government of Penang has The new transport paradigm adopted federal system of government. In reality, it to work within these fiscal and political by the PTC has as its vision: Moving is a unitary system of government, where constraints. The challenge is to mobilize People Not Cars. practically all powers and revenue gen- enough public and civil support for them The emphases of this new approach eration capability rest with the federal gov- to carry out their vision and plan. are: ernment. The state and local (municipal) Asian Social Democracy Journal >>25 Interview What caused you to make the tran- sition from the world of art and enter- tainment into politics? I have never left the world of art to Interview enter the world of politics to begin with. I grow up with both art and politics. When I was young, my father would discuss poli- tics with us at home. In the 90s, I was part of the student activism in the University of with Reike Indonesia. But what about your career as an Everytime I visit the Dewan Perwakilan Rakyat(DPR) Republik Indonesia, actress? How was that political? the country’s Parliament, I cannot help but notice the bustling activities To me, art has goals not merely in itself along its hallways. The vibrancy of the DPR is for most part fueled by the but towards the society. In other words, art Indonesian consciousness of democracy. Such consciousness is not only is not merely to entertain, but to enrich the a matter of academic debate and far less a foreign concept rooted in the lives of the people. In this aspect, art needs Enlightenment tradition of the West. Instead, it is grounded in the found- politics. One can say that art is a form of ing philosophy of the country itself not least, expressed its Pancasila, the social message to the masses. Therefore official philosophy of Indonesia. responsible artistic expressions must have the wellbeing of the people in mind. If we My last visit to the DPR was on the invitation of Ibu Rieke Diah Pitaloka, are serious about art, we must empathize, an Indonesia legislator. and in the same way, politics must empa- I first met Rieke when she was a speaker at a roundtable discussion in thize. Therefore, as an actress and artiste, Jakarta entitled “Is A Win-Win Solution Possible?: The Pros and Cons of I was not detached from politics. Playing ACFTA” jointly-organized by the Network of Social Democracy in Asia Oneng for example, was an artistic depic- and the Jakarta-based Institute for Welfare Democracy. Even then, I was tion of the life and social reality of the la- impressed not only by her grasp of the issue at hand but also by her fiery bour class. passion for the fate of the labour class in thee light of ACFTA. Briefly about Rieke; before participating in active politics, she already crafted her name in Indonesia as an accomplished actress, artiste, theater practitioner and writer. However, any discussion about Rieke will not be complete without a reference to the lovable character “Oneng” whom she played in one of Indonesia’s longest running TV series, Bajaj Bajuri. While Oneng was a naive housewife of a bajaj (a three-wheeled motorized taxi) rider, Ibu Rieke is indeed far from such gender stereotype. Elected into the DPR in 2009, Rieke has a Master’s degree in Philosophy from the University of Indonesia. Her thesis explored Hannah Arendt’s concept of the banality of evil and the socio-political dynamics of the Indonesian soci- ety. The thesis was later published into a book entitled “Kekerasan Negara Menular ke Masyarakat” (State Violence Spreads to the Society). I took the opportunity of my visit to ask her a few questions regarding her life and work.

Interviewer: Steven Sim Chee Keong

26<< Asian Social Democracy Journal Interview What are some of the challenges you Migrant workers are some of the most Yang menilai itu orang lain (Let others face as a Member of Parliament? marginalized people in this country. The judge me). But labour is close to my heart, People don’t judge you by what you Government instead of appreciating their both domestic workers and migrant work- think, but they judge you by your appear- contribution to the country has turned a ers. We are facing with an unprecedented ance. Some members even call me Oneng deaf ear towards them. These workers did outsourcing and union-bustings which during Parliamentary sessions. They don’t not wait for the Government to provide weakened the position of workers. I work see me as someone to reckon with or as jobs in the country, instead they took the with anyone who shares the same passion their equal. In my former Party, even fel- risk of going far away from home to find to uphold the labour class of our country. low members questioned why as an actress work. This is indeed a commendable spirit, Labels are only as useful as the hardwork I should join politics. but unfortunately, the contributions of mi- put into the cause by those carrying those grant workers are often unappreciated and labels. There has been increase of women they are being oppressed. From July to Au- members in the DPR in this session, gust 2010 alone, we have received almost Thank you Rieke, on behalf of from 8% in 1999 to almost 17% in 400 cases of abuse, and every day, there’s the Network of Social Democracy in 2009. Does that strengthen the position report of death of migrant workers. Asia, I wish you all the best in your of women especially in decision-making undertakings. and policies formulation? Do you think the host countries More women in the DPR does not should be responsible? mean more empowerment for women. I think there’s no point if we start to What is more important than the quantity point fingers at others. No doubt there are of woman members is a change in gender others who should be held responsible, Biodata paradigm. For example, most of the wom- but the biggest problem is the Indone- en members in DPR actually rejected the sian Government itself. The Government domestic workers and migrant workers seems to have washed its hands on Indo- Name: bill. nesians who are working overseas. But Rieke Diah Pitaloka Intan Permatasari these are our citizens too, the Government Why is that so? has constitutional duties to protect them. Date of birth: I believe it is due to a feudalistic world- 8 January 1974 view. Some members endorse policies not What are some of the immediate ac- due to the value of the policies, but rather tions you think the Indonesian Govern- Place of birth: based on a blind obedience to their Party. ment should take? Garut, West Java, Indonesia That’s feudalistic. But I am an optimistic Firstly, the Government should get woman; I choose to believe that change serious about this issue. Take for example Education: is possible. In my course of work, I am the recent moratorium towards Malaysia. I MA (Philosophy), University of supported by many like-minded organiza- do not think it was observed strictly. When Indonesia tions. Their support carries me through our own Government does not take care the challenges I face. of our workers, how can we expect other Governments to care for them? Occupation prior to being I know you are a fierce fighter for I also believe that workers should be elected as MP: labour rights, why do you choose this given more training, not just in the skills Actress, writer issue as your cause? related to their jobs, but also awareness of I have been advocating for the rights their rights and safety. They should also be Political party: of workers, including the improvement accorded social security and work security. Partai Demokratik Indonesia- of work conditions, especially for migrant Migrant workers should also be accorded Perjuangan (PDI-P) workers. To me, work is not just to put legal protection from the moment they food on the table, but it is an extension of leave the homeland until their return. La- Family life: our being. Work is vital to our humanness. bour laws should be reformed to ensure all Married to Donny Gahral Adian, But sadly, many have to toil daily in bad these are implemented. a philosophy lecturer at the University working conditions without any certainty of Indonesia) for the future. For migrant workers, some Final question, do see yourself as a of them are treated as less than humans. social democrat? Asian Social Democracy Journal >>27 Book Review: izing the economy and increase the living standards of society. Therefore, the topic of A Note of Concern for the Hollow the book revolves around economic issues that Indonesian’s frequently hear about in Indonesian Economy the mass media. Furthermore, by placing the issues in a precise and systematic con- text, the book allows readers to clearly see the inter-connection and the roots of the economic issues. Readers of this book should feel con- cerned, not because the book itself makes sensational or extravagant arguments, but simply by the facts it presents to the reader. As we all know, reality sometimes is much more worrying than scathing arguments, because facts are something that we, like it or not, have to face. This book is using an analytical point of view using numbers and statistics to support the authors’ opinion, making it not merely a subjective-emo- tional argument. As such, the book is an effort to honestly present the fact without closing the space to have a dialog. Based on the facts, we will be able to see expla- nations that are contradictory with the government version of a successful Indo- nesian economy. The economic crisis 1998 is used as a reference or starting point of analysis in this book, because Faisal Basri and Haris Munandar believe that Indonesia has not in fact come out of the bad effect of 1998 Book : The Landscape of Indonesia’s Economy: economic crisis. Besides, there are various A Study and Contemplation on economic issues that Indonesia is facing Structural Issues, New Transformations that are inherited from the Suharto’s hol- low regime period and that have not been and the Prospects of Indonesia’s completely tackled by the post-reforma- Economy tion government. Compared to 1998, the Authors : Faisal Basri and Haris Munandar Indonesian economic situation clearly has Thickness : xxxiv, 622 pages; 26 cm gone through several fundamental chang- es. Therefore, to achieve a thorough analy- Publisher : Kencana, 2009 sis, the book also presents a comparison of the contemporary economic conditions with those of 1998. As the title suggests, The Landscape book, authors Faisal Basri and Haris Mu- of Indonesia’s Economy: A Study and nandar, hope to empower the citizen’s role The Problem on the Surface Contemplation on Structural Issues, in understanding the current economic Around 2008, there was a long debate New Transformation and the Prospect situation so that in the future citizens are on the governments success in eradicat- of Indonesia’s Economy, is a detailed and able to pay close attention and make better ing poverty. At the time, the government comprehensive discussion of the contem- judgments over whether the government claimed that the poverty index in Indone- porary Indonesian economy. With this is really serious with its promise of revital- sia had decreased to less than 15% of total 28<< Asian Social Democracy Journal Book Review: Indonesia’s population. However, this long grown up to 9.5%, while the tradable sec- because they do not have tax registration debate appeared because there is no agreed tor has only grown 3.2%. The implication number (NPWP-Nomor Pokok Wajib Pa- to standard of poverty line to be used as a of this imbalance economic growth is very jak) or permanent address so it is difficult threshold. The data that the government important: the little economic growth in to develop the business. In other words the used is a standard of those who live with the tradable sector led to a decrease in the role of the state in informal sector is very less than USD 1 per day. Meanwhile, if unemployment absorption as well as lower limited. we use a standard of those who live with the quality of economic growth. Because Besides, there are other issues in the less than USD 2 per day, the percentage is in the non-tradable sector there is only a economy such as the subsidy in oil and about 45.2% or almost half of the Indone- small number of employment absorption, electricity. The burden of oil subsidy to the sian population. and the export value is much smaller than national budget is very big, it could reach The issues of poverty and the high in the tradable sector. 223 trillion Rupiah in 2008. This has led unemployment rate are examples of the Meanwhile, the informal sector in to a cut in the budget allocation of capital reality and truth of the condition in the Indonesia is currently the sector that gets investment as well social welfare. More Indonesia’s economy, but they are often the most attention because of its remark- ironically, most of the subsidy is used to misunderstood. These two things are actu- able growth. In 2007 the number of people cover those who are able to afford welfare ally very closely connected with the issues working in the informal sector had reached payments themselves, because most mo- behind Indonesia’s economic growth that 69% of Indonesia’s population. Many argue torized vehicles owners are those who be- are often used by the government to tell its that this is a great achievement of Indone- long to the middle class and above. It is like success story. However, there are several sia’s economic growth that opens a broad horns of dilemma, any effort to decrease important notes from the authors that we business opportunity for more citizens. the subsidy is seen as non-popular policy have to know. There are at least 4 new is- However, Faisal Basri and Haris Munandar or giving a bigger burden to the people sues appeared behind the success of eco- argue that working in the informal sector because it will be followed by the price in- nomic growth, for example: is not an ideal condition because essen- crease of standard needs goods. tially informal sector is merely a survival 1) The deterioration of real/direct economy, or something of an emergency. The Root of the Problem investment. In other words the existence should be It is hoped that this 622 pages book in 2) The change of balance and on going only be temporary: not only a series of description regarding transaction composition. various economic problems in Indonesia. 3) The deterioration of national “Usually, when the economic sector con- There are a lot of examples of economic competitiveness. tinues to develop, there are a lot of players in problem that have been explained before 4) The decrease in the economic growth the informal sector that will be able to increase originated in the root of problem that quality. their business to eventually go into the formal causes it. This book explains that the main The relatively stable Indonesian eco- sector and have a formal and registered busi- source of Indonesia’s economic problem nomic growth is a factor that has saved ness place, have employees, have a neat cash- is nothing else but the structural problem Indonesia from the global economic reces- flow data, and pay tax…but if the informal that has already been discussed frequently, sion threat which began in the third quar- sector is increasing, it means that there is but the government has not been able to ter of 2008. However the existence of the something wrong with the economy. The more fix. Faisal Basri and Haris think there are four above mentioned issues are actually modern an economy, the smaller number of three major structural problems that have evidence that there are a lot of things to be informal sector, and vice versa” (Page: 67) to be fixed immediately, they are: human concerned in the foundation of the econo- resources, physical infrastructure and the my, especially in the long term. The issue There are several government pro- institutional or organizational frame. of the decrease of economic growth, for grams to empower the informal sector and The abundant natural resources of example, can be seen in the comparison of there are indeed those who are successful Indonesia and low level of development non-tradable and tradable sectors’ growth. in developing their business. But accord- that the country has achieved have been a The tradable sector consists of agriculture, ing to Faisal and Haris it is only happening continuous complaint that we have heard mining and manufacturing and is closely to a small amount of people, the majority over and over again in every discussion or related to production and trade in the con- of informal sector businessmen still hold seminar on Indonesia’s economy. The root ventional understanding. Meanwhile, the the following criteria: very low income of the problem is actually closely related non-tradable sector is the service sector, (it is often lower than Regional Minimum to the low Human Development Index which cannot be loosely traded. The 2008 Wage), the workers are not protected with (HDI), which generally means Indonesia data shows that non-tradable sector has social security, it is hard to apply for credit has a very low quality of Human Resources. Asian Social Democracy Journal >>29 What makes Indonesia’s HDI low is, first of judiciary, private and non-governmental tains tactical as well as strategic advise on all, the fact that there is no adequate health organizations is hoped to have the qual- the explanation of the existing problems. service, which is supposedly the funda- ity to improve the welfare of all its citizen. Furthermore, the authors’ analysis is not mental requirement for human quality de- However the tangled problems also in- only based on the macro economic calcu- velopment of a nation. Another important cluding our institutional frame in the form lations or Indonesia’s economic growth. thing is of course regarding education. The of defective government/executive role, The emphasized analysis of the citizen’s massive schools development and 20% the ineffectiveness of the rule of law, the welfare level as well as real condition in the allocation of National Budget for educa- inadequate democracy foundation, as well field such as unemployment and poverty tion, increased the quantity of Indonesia’s as a chronic problem that has to be eradi- makes this book a suitable reading mate- education, however there are still ques- cated; corruption. The corruption prob- rial for those who are hoping for an Indo- tions regarding the achievements in the lem within an organizational frame may be nesian economy that is directly affecting quality. Furthermore, the government is the first thing that we have to immediately the population. lacking attention for the development and eradicate, because should the corruption This book is also suitable for those who research sectors. This is part of the policy habit rooted in an organizational frame, it feel that the Indonesian economic condi- that does not put long-term investments is the same with counting down for the de- tion has been a dead end for a reformation. onto Indonesia’s economy output (such as struction of the nation. It is impossible for There are a lot of important solutions to education and research), but the myopic an organizational frame that has a mission be used as references for the government policies such as oil and electricity subsidy. for the people’s interest to have a corrupt or the citizen to support the improvement The very concerning physical in- mentality within itself. efforts. For example, Direct Cash Assis- frastructure condition in Indonesia has tance (BLT), should it be implemented in become the main obstacle for the devel- The Effort to Entangle the Tangled a more orderly and organized way (like the opment of Indonesia’s economy. Physical Yarns example of Bolsa Familia program in Brazil infrastructure of a nation is like a spine Of course what we can retrieve by created by Lula da Silva) then, it will be that is supporting the domestic economy, reading this book are not merely a series able to significantly decrease the poverty because the flow of goods and service can of concerns about the future of Indonesia’s rate. Because for those whose income is only be possible with the existence of the economy. Faisal Basri and Haris Munandar less than USD 1 per day it is very mean- infrastructure. The traffic jam in Jakarta, if also present important advice that needs ingful to make use of the capital to fulfill we may take an example, has caused ma- to be implemented to avoid the concern- their basic needs (the fulfillment of basic terial loss of IDR 17.2 trillion per year if ing forecasts from happening. There are at needs means that health as a fundamental there is no effective measure to overcome least three explanations that we hope will requirement for Human Resources is also it. Furthermore, other hard infrastructure be able to support our economic potential. fulfilled), as well as to start small business like the port, train system, clean water and The three things are tax reformation, em- to increase their income. The authors also sanitation, electricity, energy distribution powerment of State Owned Enterprises advise to focus on increasing Foreign Di- and public transportation seem to become and optimizing regional economic po- rect Investment (FDI) as the “nutritious a bunch of tangled problems that cannot tential. By making a reform on structural food” for Indonesia’s economic growth. be untangled. problems in these three sectors, high eco- Meanwhile, the informal sector has to Douglas North briefly explained that nomic growth followed by better welfare slowly be upgraded to become the formal the institutional or organizational frame for the citizen (pro growth, pro poor) will sector so it can give a real contribution for is the limitations created by human beings be able to become reality. However, once the economy. to form or manage interaction among hu- again, it needs the seriousness of the gov- After reading this book we will realize man beings, so it creates the foundation in ernment and our participation to monitor that behind the landscape of Indonesia’s the trading activity among human beings, and to be involved in it. economy that is full of success stories by politically socially as well as economically. It is very true that The Landscape of In- the government, it is in fact still hollow This book mentioned that the institutional donesia’s Economy: A Study and Contempla- inside. However, all this must not be seen frames in several nations are different, tion on Structural Issues, New Transformation as a great embarrassment. In the contrary, depending on the economic system that and the Prospect of Indonesia’s Economy does when a lot thing seems impossible, a hope they practice, like Sweden with its welfare- not merely serve as a popular reference on of certainty in changes will soon appear in state and United States of America with the contemporary Indonesian economic. the surface. It depends on how we want to its free market economy. The regulation This book can also be seen as a kind of welcome it. (Bramantya Basuki – PU- frame in Indonesia which is made and/or road map for Indonesia’s economy looking SIK UNPAR). implemented by the executive, legislative, at the details comprehensively. It also con- 30<< Asian Social Democracy Journal