Public Debate on Issues Facing Indonesia, San Francisco (USA)
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In this era of reformation, every body seems wanting to be members of Parliament and also President of Indonesia. Well, that is good for many reasons. At the very least, we; the people of Indonesia know that they are eager to lead the nation and the country for a better future. That’s wonderful and fantastic. I hope it does work really well.
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Ironically, as the Presidential election is approaching very rapidly there is not even a single Presidential candidate that is courageous enough to openly and publicly speaks up about many critical and depressing issues facing Indonesia and to spell out what kind of changes he/she is going to make if elected to be President. To accomplish that goal, I drafted a 14 pages document addressing those critical issues. Even after receiving my 14 pages document, they do not seem to bother. This leads us to several possibilities, which are:
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1). Either those Presidential candidates do not care about the issue or,
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2). They do not know about the issue or,
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3). They know the issue but do not have the ability to resolve the issue or,
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4). Hey.., I am only 5 years in office why bother, thus maintaining status quo
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5). Or, wait and see and only talk when asked or confronted about the issue.
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None of those choices are acceptable in my view in the upcoming 2009 election. Democracy is about people and the people of Indonesia have the RIGHT to know and to be informed. If the people of Indonesia are left out and out of the loop, then these people shall not run for the highest office of the land to be the President of the country. That kind of secrecy and politics shall be abolished. These Presidential candidates must be challenged and questioned openly and publicly to address many depressing issues facing Indonesia at this very moment. Do not settle less than this.
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There are many critical issues facing Indonesia articulated in my 14 pages document. In short, below are the top 3 issues that I want to give the summary:
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1. Indonesia Massive Foreign and Domestic Debts.
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In 2002, its total foreign and domestic’s debts stood at 80% of its GDP. It was even worst in the previous years. In 1997 with South East Asia economic crisis coupled with Indonesia’s domestic banking disaster, Rupiah currency had lost 85% of its value against USD (US Dollar), Indonesia’s stock exchange index had fallen by 50% and in that one year alone, income per capita was reduced by 15%.
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By the end of 1998 early 1999, Indonesia’s debts became unsustainable stood at $143 billion, which was equivalent to its total GDP. In other words, Indonesia’s total foreign and domestic debts stood at 100% of its GDP. It was not only threatening fiscal sustainability but it made very difficult for the country to operate and let alone of financing the needed basic infra structure. As a result, poverty in Indonesia risen from 11% in 1997 to 50% in 2001. That was over 107 million Indonesians living under poverty.
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The $1.4 billion poverty alleviation program that was launched by the Indonesian government in 2007 did not even scratch the surface, if not missing the point addressing the underlying issue of poverty.
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Indonesia’s foreign and domestic debts are projected to stand at about $136 billion dollar by the end of this year 2008. This figure may change subject to oil price per barrel. That is a lot of debts!
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Now think about this! Indonesia’s massive foreign debts with 18 countries alone; members of PARIS CLUB will take 40 years to pay them off, with one condition that Indonesia will have to have over $4.5 billion year after year for the next 40 years to pay those 18 countries for principle, interest and commission.
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But how about other foreign debts with other creditors, such as: Asian Development Bank (ADB), Japan Bank International Cooperation (JBIC) and the World Bank? How long Indonesia is going to be in this massive debt trap? Will it take a generation or more? That sucks!
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With such a massive debt trap and no Presidential candidate mentions about this critical issue is mind boggling. It does not take a genius to figure it out that there is a direct correlation between government’s debts and its citizen poverty and prosperity. The more bankrupt the government is, the more likely their people will suffer and living under poverty.
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2. Indonesia’s central government wasteful spending.
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If you look at 2006-2007 SBY’s budget, the majority expenditures of Indonesia’s national 2007 budget approved by the Parliament on October 17 were pretty much sucked up by the central government.
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Out of Rp.763.6 trillion government’s total expenditures for the entire country, Rp.504.8 trillion alone was spent by the Central Government. That is over 66% of the total expenditures while the total revenue was projected at Rp.723.1 trillion based on average oil price at $63 per barrel. Even with this approved budget, Indonesia was projected to have about Rp.40.5 trillion in deficit (about -1.1% of its GDP).
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What excluded in the budget deficit calculation spreadsheet were the monstrous public debts, which stood at $144 billion US dollar in 2006. In that APBN figures only included the payment on interest and its principle. If those massive public debts are included in the budget’s calculation spreadsheet against revenue and spending, the figures look really bad if not outrageous!
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How many years will Indonesia be finally able to balance its budget? In other words, the projected deficit to stand at Rp.40.5 trillion (-1.1% of GDP) was a metaphorical deficit and not in a real sense deficit because much of the liability owed by the Indonesian government to Paris Club (18 countries), Asian Development Bank (ADB), Japan Bank International Cooperation (JBIC) and World Bank was not included.
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Now at the end of 2008 APBN, it shows that the deficit stood at $94.5 trilliun Rupiah where Central Government spent Rp.697.1 trilliun, which was 77.88% of total APBN. That is really crazy, if you think about it! (Source: Fiskal.depkeu.go.id)
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Are we being fooled? Why this budget presented the way it is? So unless we demand for a change, are they; central government going to spend that much money year after year?
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3. Indonesia’s weakening currency Rupiah for the last 30 years.
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If we think Indonesia as an automobile, the issue is not only with incapable driver, but it is also with the car itself that has been tangled with wiring and engine problem per say and make it difficult to run smooth and fast on the road, fast enough to compete with other moving vehicles on the same path.
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This chronology reflects and represents the value of Indonesia’s currency (Rupiah) compared to USD (US dollar) that has been weakening for decades. In the 80’s, $1 was equal to about Rp.650. Now 30 years later, it has been ten times (10 x) worse as in 2009, $1 (USD) equal to about Rp.10.000,- In 2005 it reached all time low, in which Rp.15.000 was equal to $1 (USD).
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This shows that the overall Indonesian’s economy compare to US economy is not getting better; it is 10 times worse since the 80’s.
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The fact that there is no significant economic policy by the Government of Indonesia from the previous and the current administration to address this significant issue is just unbelievable. The fact that there are many depressing issues facing Indonesia at this very moment and not even a single Presidential candidate addresses those issues is just unacceptable.
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Don’t let those future President offer you more of the same for the next 5 years and maintaining status quo. Don’t do it people! So, keep raising those issues and challenge your representatives and the Presidential candidates that you support. As a citizen of Indonesia, we have equal obligation and solemn responsibility to address and resolve those issues. So, do your part and be part of the solution.
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For more details about the issues, below is a link to my 14 pages document that has been openly circulated and sent out to many Indonesia’s media, political party leaders and the current Presidential candidates. I have not received any significant responses from any of these candidates, let alone of responding those depressing issues that affect millions and millions of ordinary Indonesia people.
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Those issues shall be the focus in the upcoming Presidential election in 2009 and those issues must be resolved if we want to see any significant change in Indonesia. Otherwise, regardless how genius and how brilliant politician this person might be, there is not much that he/she can do to make any significant change in Indonesia. I am that confident!
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Debts and details payment summary to 18 countries; members of PARIS CLUB.
Open letter on other ctitical issues facing Indonesia.
http://www.indonesiamatters.com/2431/presidential-debates/
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