Editorial: Indonesia Must Fight Reversion to the Past

Jakarta Globe, May 11, 2011

Capitalism and democracy have long been regarded as the twin pillars of progress – socially, politically and economically. Yet as the Asian century beckons, serious questions are being asked about whether Asian nations have fully embraced those two philosophies and systems.

In a recent article, Haruhiko Kuroda, president of the Asian Development Bank, noted that while it was true the global economic center of gravity was shifting to Asia, the continent’s rise was in no way preordained. Freeing the region from extreme poverty and marching toward prosperity will require more than simply high growth.

Kuroda argued that Asia’s ultimate challenge is effective governance — governance that provides quality healthcare and education; infrastructure to move goods and people; efficient, livable cities; stable banking and financial systems; and reliable, fair legal structures that protect citizens’ rights.

“In short, Asia must modernize its governance systems and retool its institutions to ensure transparency, accountability and enforceability,” he said.

Kuroda may have been referring to Asia in general, but his words could not be more applicable to Indonesia. In the past decade or so, Indonesia has seen a flowering of democracy, but its institutions are still weak and effective governance remains a far-off dream.

There are also fears that hard-won democratic reforms are being eroded by ultraconservative, hard-line religious groups. Civil society is under threat, and minority groups are targeted regularly. Having come so far, we cannot afford to return to the days when power was concentrated in the hands of a few individuals.

Consolidating and enhancing democratic reforms are not only critical to societal progress, they are also central to sustained economic growth. Without strong institutions, we will not be able to attain equitable growth. The rising middle class will not be able to secure assets and investors will not risk their money if they have no legal protection.

Therefore, much is at stake. As other regional countries push ahead, Indonesia cannot, and must not, fall behind. The country has come to be seen as a role model for successful democracy and been praised for its open society. It would be a tragedy if we allowed ourselves to taken over by our baser instincts.