statement of civil society coalition for economic justice

8/3/2019 Statement of Civil Society Coalition for Economic Justice

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StatementofCivilSocietyCoalitionforEconomicJustice

PresidentSoesiloBambangYudhoyonoPresenceontheG20ForumwillbeinVain

IFonlyGenerateNewDebtandUnabletoFightfortheInterestofIndonesianPeople

G20 High Level Forum will be held on 34 November 201, in Cannes, France. This meeting will

discuss several global issues toward global economic crisis and legitimacy of global financial

architecture that has been shocked by its failure on solving global economic crisis problem. Under

France leadership, the agenda of G20 is setting out pathways to cope with the unfinished global

crisis by reforming global economic system, strengthening financial regulation, getting over the

food price fluctuation, encouraging job creation, fighting against corruption, and strengthening

development agenda.

Though, developed countries on G20 tried to aim the priority at financial crisis solution faced by

Greece and Spain, which is predicted to give impact to European countries. With this situation, it

seems G20 forum will be used by developed countries (especially European Union and United

States of America) for rescuing their position from economic bankruptcy. On the other hand, G20

ignored the interest of global people majority who become much poorer and more slumped by

global economic system that has failed to fulfill their wealth.

The High Level Forum of G20 is held in the middle of economic crisis in Europe. The beginning of

the crisis is the accumulation of government debt burden and it becomes more deeply. One of G20

efforts to maintain the sustainability of economic order is by conducting fiscal consolidation to keep

government financial endurance from the next crisis.

Eventhough G20 is called as a the most influential world economy forum replacing G8 that has lost

its legitimacy, but the whole commitments still refer to global economic scheme which put market

and financial sector liberalization as the priority, accommodating international financial

institutions, and giving new debts for poverty alleviation. Alternative problem solving initiated bynonG7 on G20, BRICS (Brazil, Russia, India, China, and South Africa), has not yet broken down

domination of economy global power that using Washington Consensus way as the main solution.

Agreements achieved on G20 tend to give benefit for G7 countries and closed the opportunity of

developing countries to formulate its own economy policy on settling poverty problem and welfare

distribution.


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There will be no much changes that could be expected from G20 forum in Cannes on the upcoming

34 November 2011. There will be no policy penetration that could give new hope for global people

and poor countries in preparation for domino effect of US and Europe financial crisis.

In the globalized world economic system, mitigation of global financial crisis as the main agendafrom series of G20 forum will put into effect if G20 could support and give a democratic space and

also freedom for countries in the world to implement economic system that take sides on their own

national interest, but still get maximum benefit from every global advancement.

Some of national economic policy adopted from G20 agreement has worsened gender inequality in

Indonesia. Policy on trade liberalization and privatization of public service increasing workload

and worsening women and child health degree, and also violating equal opportunity principal for

every people, man and woman, to enjoy their civilpolitical and economysocialculture rights.

One of the concrete ways of privatization public service that has been conducted in Indonesia is

water privatization. World Bank and Asian Development Bank always put Indonesia in onthetrack

position for clean water and sanitation goal on MDGs, but privatization and financing through

publicprivatepartnership as solutions from those international financial institutions keep away

the poor people from access to right of clean water and sanitation.

Economically, Indonesias position is a developing country (middleincome country), but its

presence on G20 Forum does not fight for developing countries interest seriously, including

Indonesia national interest itself. Pragmatically, Indonesia takes G20 Forum as an arena to get new

negotiation on foreign debt, on behalf of poverty alleviation or handling climate change. Ironically,

eventhough the last two years of Finance Ministerial Meeting of G20 recommended debt reduction

but the government of Indonesia stays still to increase new debt with safe debt ratio as the excuse.

Indonesia tends to use its position on G20 as an image tool. Indonesian pride as a Chair Working

Group on Development Agenda and CoChair Working Group on AntiCorruption is not reflected on

its effort to fight for those agendas in national level and G20 forum or other international forums

level.

On the development agenda, Indonesia looks reluctant to fulfill global commitment on poverty

alleviation, the Millennium Development Goals. Indonesia put the ambitious agenda on Masterplan

of Economic Development as the priority, which does not integrate with Road Map to Accelerate

Achievement of MDGs in Indonesia. Therefore, it is not surprised that hard for Indonesia to achieve


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the whole targets in MDGs. Moreover, according to Human Development Report 2011 launched

today, Human Development Index of Indonesia is declined drastically from 109 th rank (position in

2010) to 124th rank (position in 2011).

On this G20 Forum, President Soesilo Bambang Yudhoyono will deliver a speech on development indeveloping countries and promote PNPM (National Program on Community Empowerment) as the

best practice for development of developing countries. For us, that is very ironic. According to

critical study on PNPM, so many problems are found on PNPM. PNPM is a poverty alleviation

program using debt as one of the main financial sources. Several studies conducted by civil society

showed that most of financing for PNPM, especially PNPM for Village, used for infrastructure

development, such as village road and irrigation, and very minimum on people empowerment.

PNPM also created new institutions, for instance Womens Saving and Credit Institution, when the

people actually has had and built their own institution. The construction of this new institution hasdestroyed the existing institutions that have established before. PNPM also creates conflict among

people because the programs are not directly on target. The main cause is most of program

receivers are not poor people but villageelite people.

The fact is PNPM is not significance for village development in Indonesia. Moreover, it becomes new

burden due to debt that should be paid by Indonesian people. PNPM is also a development model

that not coming from peoples initiative but from donors initiative, which is the World Bank.

Planning of PNPM does not integrate with the existing national development planning, which is

Musrenbang, but it developed its own planning system.

In corruption eradication, the result is more astonishing. Today, media served various news on

political corruption on three pillars of government: executive, legislative, and judicative. Many

corruption rank institution put Indonesia as the champion in corruption.

Another thing that should be fighting of on G20 diplomacy is the abolition of deathpenalty faced by

Indonesian migrant workers in Saudi Arabia and China. Saudi Arabia and China are two members of

G20 and many Indonesian migrant workers facing deathpenalty in those countries. Why should

we put deathpenalty problem on G20 Forum? For the information, on the G20 meeting in France in

the end of July 2011, France as the Chair of G20 officially stated protest to Saudi Arabia on Ruyati

execution. From this, it is clear that actually France leadership could be used by Indonesia to

release Indonesian migrant workers who faced deathpenalty.


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According to those situations, Civil Society Coalition for Economic Justice stated that President

Soesilo Bambang Yudhoyono presence on G20 Forum would be in vain if Indonesia could not fight

for Indonesian interest itself and developing countries on G20 Forum. Being a member on G20 only

caused new problem and disaster for Indonesian people if the government persistently using global

economic agenda that has failed to give people welfare.

Jakarta, 2 November 2011

CIVILSOCIETYCOALITIONFORECONOMICJUSTICE

INFIDKoalisiPerempuanIndonesiaKAPALPerempuan

MigrantCAREICWKruHAYAKKUM - ELSAM

statement of civil society coalition for economic justice

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