infid statement: 100 days into the sby-boediono - a continuance of the state's failure to serve...

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( NGO in Special Consultative Status with the Economic and Social Council of the United Nations, Ref. No : D1035 )

Jl. Mampang Prapat an XI No. 23, Jakar t a 12790- Indonesia * Phone (62-21) 79196721, 79196722, 7901950 * Fax (62-21) 7941577 * E-mail : infi d@infi d.org * www.infid.org

INFID Statement on SBY-Boediono’s 100-day program

100 Days into the SBY-Boediono AdministrationA Continuance of the State’s Failure to Serve the Best Interests of the People of Indonesia

The 2nd

United Indonesia Cabinet under SBY-Boediono’s leadership approaches the end of its first 100days in office. It is politically correct for any newly elected administration to introduce its initial work

agenda through a 100-day program which serves as preliminary evaluation for subsequent programs.

In terms of its political formation, the 2nd United Indonesia Cabinet is fairly similar to the composition of

the first cabinet, and also with the same choice of development ideology. Although SBY-Boediono’scabinet line-up is drawn from a coalition of political parties presumed to have their own constituency

base, the development policy of the 2nd United Indonesia Cabinet remains oriented to measures aimed at

boosting fiscal-based macroeconomic performance, and not on the real and social sectors that directlyconcern public interest. These macroeconomic policies based on financial performance reflect the

economic policies of international financial institutions, hence government programs will continue to be

swayed and financed by both international financial institutions and global economic forces, centered on

investment and the free trade of goods, services and financial resources that merge with the internationalsystem. Policies that look more toward the free market economic system of advanced countries are further

augmented with Indonesia’s own trade and investment policies that have wiped out all forms of protection

toward the Indonesian people, removing all investment and trade barriers and relinquishing all control tothe free market mechanism.

Social agendas on health, clean water and sanitation, education and poverty eradication have been turned

into peripheral programs which must remain open to the free market economic scheme. Povertyeradication measures such as the National Community Empowerment Program (PNPM), Family of Hope

Program (PKH) and School Operational Aid (BOS) will therefore continue to be implemented but fundedby foreign debt. In addition, as a consequence of opting to merge with free market forces, Indonesia since

1 January 2010 is bound to the China-ASEAN Free Trade Area agreement which will most likely result in

the demise of local products and the bankruptcy of national industries due to inconsistencies between

Indonesia’s international trade policy and its domestic industrial and trade policy.

The 100-day program of the current administration is indeed based on this politico-economic option. The

program was brought to widespread public attention during the National Summit forum held immediatelyafter the induction of the 2nd United Indonesia Cabinet. In the 100-day program matrix of the newly-

elected ministerial cabinet, it was clearly evident that the SBY-Boediono administration places moreemphasis on economic growth, notably through foreign investments and free trade. Hence, initialpreparations for the first 100 days of the government’s agenda were focused on turning Indonesia into a

foreign investment market by priming the investment climate, and ensuring land availability, cheap and

flexible manpower, and adequate supply of energy and infrastructure. Other sectoral efforts associated

with the nation’s welfare and poverty eradication agenda remain to be merely cosmetic measures.

The cabinet’s 100-day program should draw from the reality and actual needs of the people of Indonesia

SBY-Boediono administration must also take into account the fact that the people’s ability to ride out thecrisis was not due to a sound macroeconomic foundation, but attributed more to the resilience (tenacity

and alacrity) of people-based economic sectors.



( NGO in Special Consultative Status with the Economic and Social Council of the United Nations, Ref. No : D1035 )

Jl. Mampang Prapat an XI No. 23, Jakar t a 12790- Indonesia * Phone (62-21) 79196721, 79196722, 7901950 * Fax (62-21) 7941577 * E-mail : infi d@infi d.org * www.infid.org

Looking back at the work performance of the 1st United Indonesia Cabinet under SBY-Kalla’s leadership,

key lessons should have been drawn from the cabinet’s list of failures, and an agenda drawn up to push

for remedial actions for the first 100 days of the SBY-Boediono administration.

The following are some of the major failures:

1. Failure to uphold the sovereignty of state with regard to the economy which has in turnundermined the country’s political sovereignty. This is illustrated in Indonesia’s dependency on

development financing sourced from foreign debt. There is lack of political will to desist from

incurring foreign loans. In a time when the global financial market is in a state of turmoil, thegovernment has instead raised its sale of debt securities which will likely increase the state’s real

debt, leaving the people saddled with this burden in the future.

2. Failure to implement fundamental human rights instruments in Indonesia. This is apparent in the

continued violations of human rights with regard to the people’s economic, social and culturalrights as well as their civil and political rights.

3. Failure to provide guarantee of the people’s right to feel safe and be protected, particularly for

women, children, indigenous societies, migrant workers and minority groups on the basis of theirreligion and sexual orientation.

4. Failure to build the necessary economic fundamentals which should be oriented toward improvingthe people’s welfare. The SBY-Boediono administration is persistent in its reliance on

macroeconomic forces driven by the financial and global markets, and pays less heed to a socially

responsible macroeconomy through appropriate development policies and strategies geared at

improving social well-being. The incumbent administration seems bent on transforming Indonesiainto a goods and services market catering to global market players while sidelining domestic

players including farmers and people-based informal sectors.

The first 100 days of SBY – Boediono’s leadership has in fact been ineffectual in offering any satisfactory

solutions to the four major failures of the preceding regime. Within the entire span of these crucial 100

days, the SBY-Boediono administration has instead went on to perpetuate these failures.

Jakarta, 27 January 2010

Sincerely

Don.K. Marut

Executive Director

For more information, please contact: Wahyu Susilo: Head of Network and Campaign Division(08129307964)

infid statement: 100 days into the sby-boediono - a continuance of the state's failure to serve...

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