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Simultaneous regional head elections in Indonesia 2015

Igor Dirgantara

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Indonesia is one of the largest democratic countries in the world. Legislative elections and presidential election 2014 have passed quite well, although there are still many problems in terms of implementation.

Mass media is also one of the freest in the world. The General Election Commission (KPU) is now preparing the implementation of the Regional Head Election simultaneously in the first wave on December 9, 2015, for the regional head and regional deputy head towards the end of the term of service in 2015 and the first half of 2016. Registration of candidates for regional head election in the first wave simultaneously had started on July 26-28, 2015, provided that the candidate promoted by political parties with seat acquisition of 20 percent or 25 percent of valid votes, got a decree from the central leadership of the party, got the management Decree of political parties in Regency, City and the Provincial Level.

This simultaneous election modelis the first time in Indonesia, even in the world. Indonesia should be recorded in the history of world democracy because there will be 269 regions consisting of 9 provinces, 36 cities and 224 regencies simultaneously elect regional heads. That is, about 53 percent of the total 537 number of provinces and regencies / cities in Indonesia that will carry out elections simultaneously at the end of the first wave of 2015 into the ideal design, ie the simultaneous nationwide to choose the House of Representatives, Regional Representatives, the President and Vice President, as well as simultaneously to choose the regional heads and the DPRD at the provincial, regency and city level. After the elections simultaneously in 2015 in 269 regions, there will be followed by a second wave of simultaneous elections in February 2017 in 99 regions, the third wave in June 2018 in the 171 regions. Then another one wave will be implemented simultaneously again until towards the national elections in 2027.

Of course this is not an easy thing to do, because there are a lot of challenges to be faced. Some have suggested that the implementation of simultaneous elections should be postponed for various reasons, including budget issues, human resources, and handling disputes. Financial Supervisory Agency (BPK), for example, has issued a number of recommendations related to audit issues and the preparation of elections simultaneously in 2015 concerning, among others, about the unpreparedness of the budget, the signing of the regional grant agreement, plan budgets, grants account and security costs.

Nevertheless, the president Jokowi ensure the implementation of the first wave of simultaneous elections later remains on schedule, considering the preparations have been riped and in accordance with the stages. The Government and the Commission determined to rectify the deficiencies discovered by the CPC. Therefore, perhaps it is only natural disasters, social conflict, or war which could make simultaneous elections in Indonesia withdrew from the schedule. This paper saw eight crucial problems in the implementation of the first wave of simultaneous elections that will start on December 9, 2015.

1.   High Intensity of Conflicts

The elections simultaneously are heavier than the legislative and presidential elections. Competition of elections at lower levels is prone to security problems. The political dynamics in these areas are more difficult to predict. Because the strength of the local politicians have started immeasurable, both in terms of number of supporters, the distribution of influence, as well as the patronage of the party elite in central power. Approximately 827 pairs of regional leader’s candidates will compete in the first wave of simultaneous elections.

Based on data from the Ministry of Internal Affairs, the losses on recapitulation of the post-election in 2013-2014 at the provincial and regency and city level tend to increasingly high, the number of victims died are 59 people, injured are 230 people, damage to residential houses are 279 units, the damage to local government offices are 30 units, six police office units, and Election Commission (KPU) offices are 10 units, 159 public facilities in disrepair, also 11 offices of political parties, 3 offices of mass media, 25 vehicles, and also 1 shopping stores. Potential conflicts especially in areas that have a conflict-prone maps, such as in Sumatra, Madura, Central Sulawesi, Maluku, East Nusa Tenggara and Papua. Assault incidents of Eid prayer congregation and the burning of mosques in Karubaga, Tolikara, Papua, on July 17, 2015 can be a leasson to anticipate ahead of elections later. So effective coordination between the Central Government, Local Government, Election Commission, the Election Supervisory Body (Bawaslu), police, military, and also the State Intelligence Agency (BIN) is needed.

The main challenge for the holding of simultaneous elections later is to minimize conflicts in its implementation. Conflict pattern occurs mostly among election participants and supporters accompanied by anarchy and destruction of public facilities. Source of conflict is generally from unelected elite or who can not accept the victory of another candidates. Potential conflicts in 2015 elections is very high because it is done in areas involving various parties and only lasted one lap. No elections are devoid of conflict. Not neutrality of the electoral administration in the area is also a source of conflict.

2.   Neutrality of Regional Election Organizers

The regional head office in autonomy era is so attractive in the eyes of search powers for extraordinary authority to manage the full regional head of each region. That position could make a regional head like a little king with great power. Organizing simultaneous elections is the biggest celebration in the reign of President Jokowi, which can create an aura of competition and passion of the candidates to contest.

The organization of elections in the regions are mostly technical work, such as the nomination of candidates, ballot paper making and ballot boxes, sending results of the voting on the national committee, counting, distribution of seats and so on. The existence of the impartial or independent election organizing committee greatly determines the quality of democratic elections. The General Election Commission (KPU) and the Election Supervisory Body (Bawaslu) is the institutions established by the government and given the freedom to organize the stages of the election. From the data of Election Honorary Council (DKPP) until now there are 207 electoral organizers who had been fired. DKPP has received 740 complaints related to codes of conduct of legislative elections and the presidential election in 2014, which contains 3,960 names of election organizers, both of the KPU and Bawaslu at the level of the central, provincial, and district and city.

Election organizers simultaneously in the regions later should be neutral in carrying out each stage of the election, instead of ‘collusion’ with the local bureaucracy or into a successful team of competing candidates of regional heads. Neutrality of the election organizers will make the elections simultaneously be qualified, credible, and avoid conflict. The responsibility of organizing regional elections should be able to increase voter participation and minimize potential fraud that might occur, such as inflation and the reduction of noise, phantom voters, multiple voting, or voters who eliminated their right to vote.

3.   List of Permanent Voters

List of Permanent Voters (DPT) will remain a crucial issue and the object of the dispute. Moreover, polling stations (TPS) are very vulnerable in the intervention, especially in remote areas. The most crucial is the population data that until now have not been able to cover the entire population, especially those living outside the area. Ministry of Internal Affairs has submitted a list of Potential Voters in Elections (DP4) to the Commission which are used as data in arranging voter registration of simultaneous election. The number of voters have been recorded in the Ministry of Internal Affairs until now has reached 102 068 million people. The amount represents the total number of potential voters in the list that will follow the election of 269 Regional Head and Deputy Regional Head on December 9, 2015. Total registered voters exceeded 50 percent of the voters that gives right to vote on the 2014 Presidential Election. Total 269 regions that hold elections have exceeded 50 percent of the total of 514 regions in Indonesia.

Unfortunately, the election system in Indonesia do not consider the mobility of the population that is already very high. Residences are still statically defined. In fact, many people are outside the official address, including overseas, because of jobs and education. Governments need to create the population administration system and Pilkada system that can accommodate the mobility of people who are very varied. There is injustice to the voters in the regional election system. Article 56, paragraph 3 Perppu No. 1/2014 on the election of Governors, Regents, and Mayors, said if voters have more than one residence, the voter must select one residence listed in the voter list based on E-ID Card or certificate of domicile from the village chief. But there is a different treatment if a person wants to run for governor, regent or mayor. The candidates can run in an area that is not domicile. For example, when the election for Governor of Jakarta in 2012, Joko Widodo (Jokowi) was still served as mayor of Solo. Someone is possible to be a candidate for regional head in areas that is not domicile. It means, residential status can be more than one place. However, this flexibility does not apply to voters. Another problem is that not all people have e-ID Card because it is outside the eligible categories such as bums, beggars, migrant workers, domestic workers, and the like. They do not have an e-ID card so they can not involve in the election. It means, not all people have the right to vote because of their poverty. Not to mention also a matter of voters who have died but are still registered as voters, or voters who are registered at two different locations.

4.   Dualism of Management of Political Parties

The General Election Commission (KPU) had to revise Commission Regulation (PKPU) Number 9 of 2015 on the nomination by adding a ‘reconciliation limited’ for the sake of allowing the party who has’ double management, such as the Golkar Party and the United Development Party (PPP) to nominate candidates for regional heads together. In addition the candidate must submit the same pair, the two camps double management of political parties must also file the candidate pairs at the same time. Before the revision, regional head candidates must come from the political parties whose staff are recognized by government or have the Decree of the Minister of Justice and Human Rights (Menkumham). Dualism of leadership in the Golkar and PPP can also cause serious problems for vulnerable civil suit and of interests of each camp. Actually, the laws on political parties does not recognize dual management. While the stages of the elections are still running, the conflict in the body of Golkar and PPP whose legitimacy will be decided later in the court that had the legally enforceable decision (inkracht).

Why did the Commission need to accommodate the participation of Golkar and PPP in the simultaneous elections of 2015? The votes of both parties (Golkar and PPP) reached more than 26.5 million votes in the 2014 election. That is, the two parties accounted for more than 21 percent of valid votes in the election. Achievement of seats from the two parties reach 130 seats. This means exceed the number of seats of the Struggle Indonesian Democratic Party (PDIP) as the winner of the election that is only about 118 seats. At the local level, PPP as a whole has 1,400 seats, while Golkar has about 3,000-seats. Judging from these data, Golkar and PPP are quite significant in political and legal decision-making, at the local level and the central level.

PKPU revision is done not only to facilitate the dualism of leadership in the party of Golkar and PPP alone to participate in the elections, but also to comply with the decision of the Constitutional Court (MK). Thus, the revision also includes rules to permit family of incumbent to advance in the election, and requires that members of the parliament (DPR / DPD / DPRD) resigned their positions when they have been determined as candidates by the Commission. Previously, members of parliament (DPR / DPD / DPRD) are only required to report to the leadership of each institution. Of course this affects the political map of the nomination from all the political parties participating in the elections simultaneously in 2015. Many parliament members who subsequently withdraw as candidates for regional heada, otherwise a lot of the family members from the incumbents, even former inmates come forward to compete in the simultaneous elections next December 9, 2015.

5.   Doll Candidates

Another problem is the possibility if there is only one single candidate in an region. Commission Regulation No. 12 of 2015 set the whole stage of regional elections are stopped and postponed on next simultaneous election in 2017, if there is only a single candidate for the regional head after the extension of registration for 3 days. Steps must be done because the elections are held simultaneously in December 2015. Automatically, if there is one region that stage is only delayed, it will affect the overall implementation. However, the goal of the simultaneous election of regional heads is simultaneously inauguration, so that the end of their services are also simultaneous. There should be no regions that followed, except participate again in 2017. The Commission does not want to wait until the region has additional candidates for regional heads for a limited time. If the elections in an region later have to be ‘put on hold, then the position will be filled by the regional head of the temporary officials, or officers while being taken from staff transfer. There are 15 regions that potentially have only a single candidate in the simultaneous elections in the first wave.

Incumbent candidates are too strong making the whole political parties carry the same pair to run for regional heads. But it could happen in regions with strong incumbent do stratagem in order registering candidates not just one pair, namely by generating candidate pairs for regional head doll (false) as a challenger, could be independent pathway or request some political party that carried them. Legally regulation doll candidate is not problematic in the Commission if it meets the requirements. However, from a political education, it is a setback to democracy.

Single candidate is likely to occur in simultaneous elections later. This is evident from the higher minimum support candidates from political parties to 20 percent of parliament seats, or 25 percent of valid votes of the election results last year. Conditions that make the coalition become more stringent. In addition, individual candidates from independent pathway will also a difficulty become competitor, because of time constraints and the severity of a support condition. Especially against the strong incumbent supported by political parties it is tantamount to wasting the cost.

Until recently, most political parties chose to support a strong candidate to win. In this simultaneous regional election, coalition parties of supporting the government, namely the Superb Indonesian Coalition (KIH) is very liquid with balancing coalition parties of government, or the Red and White Coalition (KMP) in proposing candidates for regional head. However, ‘political dowry’ that is raised each political party is also still looks like the tip of the iceberg that is difficult to remove. Many unscrupulous parties will utilize the elections to gain political dowry from the prospective regional heads. Instead, many pairs as regional head candidates that offer dowry can be able to qualify the support of 20 percent. The issue is initially exists in poor political party cadres and the weak party funding. People can only vote for candidates who submitted it. If the incumbent is qualified and well developed, it deserves to be reelected. The problem is that no quality incumbent but also prepare candidates for a doll that can be defeated in the next election. Prospective doll could be the choice of strategy for winning in the simultaneous elections. It is also the solution to anticipate a strong candidate for the regional head to remain chosen without delaying the implementation of the next elections in 2017. Candidates ‘dolls’ can also appear with the only aim to break down opponents who are considered the dominant voice in an region, especially in the region of three pairs of prospective candidates. But if the elections take place with only one candidate it could be a bad precedent for election implementation in other regions, because there are local leaders who have the power to monopolize the political parties in the regions. There is no choice of candidates, certainly not democratic.

6.   Political Dynasty

The Constitutional Court (MK) removes the restriction clause on prohibition of incumbent family or political dynasty in the election law. According to the Court, the 1945 Constitution gives equal rights to all citizens to use their constitutional rights, namely the right to vote and be elected, including former inmates. The Constitutional Court’s decision could open up a gap of one family control of certain regions, because the political rights of the incumbent relatives in the election is not removed. In 2013 there were as many as 61 regional heads, or 11 percent of all regional heads in Indonesia having kinship political networks or political dynasty. Ironically, from experiences that occur in almost every contestation of the elections that followed by the incumbent, often found the game of local budgets to the needs of the campaign. PNS subordinates that are supposed to apply neutral are often the incumbent winning team. Mobilization and politicization of civil servants are inevitable. The potential for corruption and violations or abuse of power by local bureaucracy increases.

Because the Constitutional Court’s decision is final and binding, then today society need to be given the political aspects of socialization and education in order to more critically assess the regional head candidates who will compete in the simultaneous elections later. However society that has the rights to vote determine how the future of the regional head candidate who comes from a political dynasty. Moreover, the people of Indonesia are still many irrational voters. Gaetano Mosca once wrote in his book “The rulling Class”, that almost in every class or nation will always be a tendency to build a tradition handed down in reality, if not in law. Oligarchy is an inevitable Iron law. And political dynasty in Indonesia is a necessity in a democracy now because it comes from the old oligarchy and patrimonial culture. The emergence of dynastic politics is directly proportional to the unhealthy political competition. Increasingly unfair rules of the game in political contestation, promotes wider political dynasty.

7.   Money Politics

The democratic process in Indonesia raises many opportunities for corruption. Because the democratic process in this country requires a huge cost. Regional election always had negative tendencies, ie transactional politics. In fact as many as 346 regional heads and deputy regional heads tangled legal cases. A total of 11.45 percent of the approximately 500 regencies thick with dynasty politics. In addition, many of the elections results in the past were broken joint between the head and deputy head of the regions. Currently there is no criminal chapter on money politics and the criminal chapter on the political dowry thus causing dirty political practices in the elections.

Simultaneous Regional Election 2015 budget swell to Rp 7 trillion compared to the implementation of the previous elections. There are three factors that influence. First, the inflation factor that can affect the value of the goods in the regions. Secondly, amounting to 65 percent of the total budget for the elections will be used to pay salaries of Voting Committee (PPS), District Election Committee (PPK) and Voting Organizer Group (KPPS). Third, based on Law No. 8 of 2015 on Regional Elections, the local government is obliged to bear almost all participants of the election campaign costs in 2015. Only two types of election campaigns are borne by participants themselves, ie limited campaign and dialogue campaign.

Implementation of the simultaneous election is originally meant to reduce the high cost of politics and money politics turn out to be an illusion. Financing campaign charged to revenue and expenditure budget can actually increase money politics. Regional head candidates would have more funds in view of campaign financing that become the responsibility of Regional Election Commission. By doing so, the candidates will have more funds to carry out the practice of vote-buying. Money politics also can occur when optimizing campaigns at the limited meeting. They can take advantage of unlimited meetings, where money politics is packaged in such a way in the meeting. Simultaneous regional elections in 2015 will be rife of money politics, in addition to political dowry, voters buying, that are also used to bribe electoral administration in the regions.

In addition, the use of campaign funds would also be a vulnerable point for the implementation of simultaneous elections, and misused to improve electability of candidates. Election campaign is more widely used as imaging media, not apply for a work program. Also the ‘game’ between the candidates by state officials still leaves a problem in any election in Indonesia until now. Education and political socialization to voters take lack of decent places. Misappropriation of budgetary funds and state facilities can also occur, such as social grants (Bansos), school operational funds (BOS), and funds from the budget, as well as vehicle or building facilities into a campaign tool.

8.   Violations and Dispute of Election

Elections Supervisory Board (Bawaslu) is not given the authority to execute the offense. Therefore, Bawaslu action is limited to giving recommendations. If the violations are administrative, submitted to the Commission and forwarded to the police. Simultaneous handling of cases of electoral violations this year will refer to the two laws. In addition to using the Law of the Elections, a number of violations will be processed by using the Criminal Code, such as inflate the voices and the problem of money politics. Money politics will be charged under Article 149 of the Criminal Code concerning bribery in elections, under penalty of nine months in prison. Perpetrators of votes are subject to Article 263 of the Criminal Code on forgery penalties of six years in prison. If there is a criminal offense, the police soon take over. For administrative violations, the Provincial Election Supervisory Committee (Panwaslu) directly provide recommendations to the Local Commission. Statements relating to the code of conduct is directly forwarded to DKPP. For disputes between participants and the Commission, the case will be solved alone by the Supervisory Committee.

Another important aspect is the matter of time limits of 45 days (including holidays) for the Constitutional Court (MK) in handling disputes of the election results. The Court will not be able to handle the dispute lawsuit of election results if more than 50 percent of the simultaneous election resulted in the Court, moreover there are 269 elections in the first wave later on December 9, 2015. The assumption, the Court had only 37 minutes to finish the one case. Therefore, it is quite natural that the Court then asks the number of days increased to 60 working days from receipt of the request. It also became one of the driving so that the revision of Law No. 8 of 2011 regarding the Constitutional Court is limited, because the Court has not set the authority in dealing with election disputes. To date the Court only handles election disputes. The Supreme Court (MA) – mandated to adjudicate election disputes in the regional election law – considered not ready to settle the dispute in 2015 simultaneous regional elections, because of its human resources.

Closing

The successful indicators of the simultaneous and massive regional elections in Indonesia later can take place peaceful and relatively free of the various modes of cheating. Credibility of regional election organizers is at stake in the regions, let alone a first test of the simultaneous elections held. Likewise with the Constitutional Court which was given the role of resolving disputes of regional election results, the future should be promoted for a special agency to resolve election disputes outside of the Constitutional Court or the Supreme Court. The government also needs to regulate population administration system that can accommodate a very varied population mobility to be put into list of legitimate voters. Therefore, updating the voters’ data is an absolute necessity.

Conflict, money politics and political dynasty, will still color the implementation of simultaneous regional elections on December 9, 2015 in Indonesia. Corruption Eradication Commission (KPK) has an important task to verify the entire State Officials Wealth Report (LHKPN) registered by the regional head candidates, to be opened and made known to the wider community at large. Public participation is essential to oversee and monitor the regional head candidates, misappropriation of funds related to social assistance and grants for the campaign and capture votes. Neutrality of Civil Servants (PNS) also must be enforced, by prohibiting engage in campaign activities, whether a member or involved in it. Ministry of Administrative and Bureaucratic Reform can open a complaint service about the involvement of civil society in influencing voters and give strict punishment for civil servants who become involved in the election. KPU through an independent auditor should audit all finance of political parties, especially concerning the funding of cadres and outsiders. Bawaslu from central and local levels should optimize their role to take action against the perpetrators of money politics.

In prediction, candidates of independent pathway has also difficulties in this simultaneous election. Due to increasing electability, there are more advantageous for the candidate promoted by political parties. Independent candidates must have a minimum requirement of 80 percent popularity. Moreover, if you look at previous experience, very few candidates were elected as regional heads coming from independent paths. Even if elected, they will also have difficulties when running the government program, because they have to deal with Parliament who comes from political parties. Problems can also arise if there is a candidate who is a cadre of a particular political party, but it was carried forward as a candidate by the other political parties because his own political party to support another candidate. Looking ahead to reform political parties should continue to be done in a comprehensive manner, especially concerning rules, campaigns and financial budget. Law also needs to be changed, do not need a quota of 20 percent of seats, but every political party that has seats in parliament could propose regional head candidates. Or political parties and coalitions of political parties can still register the candidate with the minimum quota of 20 percent of parliament seats, but with a maximum of 50 percent of the seats. Terms of candidates from independent pathway also needs to be alleviated. In addition, the recruitment process of political parties also need to be open and democratic. In the future, the General Election Commission (KPU) should continue to conduct a study for the implementation of electronic elections (e-voting, e-recap, e-counting) and build public confidence (trust) for these technologies. Of course, all have to start first with the integrity and independence of the electoral administration which is currently implementing in the first wave of simultaneous elections on December 9, 2015 later.

Igor Dirgantara is Lecturer at Faculty of Social Politics, University Jayabaya, Jakarta, and Director Survey & Polling Indonesia (SPIN).

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Indonesia’s new electric car may disrupt its relations with Japan

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Authors: Muhammad Zulfikar Rakhmat, Dimas Permadi, and Ramadha Valentine

President Joko Widodo has recently signed a presidential regulation on electric cars. The regulation instructed several things, including forming a coordinating team to support the implementation of the electric vehicle program.

Jokowi hopes that electric vehicles will be able to replace fuel oil vehicles.

Due to air pollution in large cities such as Jakarta which continues to increase, Indonesia sees it important to begin using electric cars for the general public.

Jokowi also views the opportunity for Indonesia to develop electric cars because Indonesia has the main raw materials to build them. In Jokowi’s statement, he stated: “We know that 60 percent of the key to electric cars is the batteries and we have the components to make them [such as] cobalt and manganese in our country,”

To implement the agenda, the Indonesian government is likely to collaborate with various partners, including China. Although it is still a prediction, this was indicated by China’s intention to move its electric car companies to Indonesia, namely BYD Auto Co., Ltd and JIC. Moreover, Chinese car manufacturer Dongfeng Sokonindo (DFSK) also intends to produce DFSK E3 Glory cars in Indonesia which will be marketed in ASEAN. This strengthens the possibility that China will play a role in Indonesia’s plan.

China’s entry into Indonesia’s plan for electric cars could be a reasonable move and may be welcomed by Jakarta. Nonetheless, there is a potential that it may disrupt Jakarta’s long ties with Japan as its largest partner in the automotive sector.

Japan: Indonesia’s long-time automotive partner

When it comes to automotive, Indonesia has been relying hardly on Japan. As reported by the Association of Indonesia Automotive Industry, the majority of cars used in Indonesia are Japanese ones. CNN’s polling also shows that Indonesians prefer Japanese cars more than those produced by Europe, Korea, and China.

Another case which exemplifies the strong automotive ties between Jakarta and Tokyo is the Indonesian-made car “Proton” which was made under a special collaboration between Indonesia and Suzuki.

Considering the position of Indonesia as a country that has just stepped in to the business of electric cars, Indonesia seems to be very careful in involving foreign investors. Indonesia sees goods from China as relatively cheaper and of comparable quality.

In addition, Chinese companies applying for relocation in Indonesia was also considered as a serious step to strengthen the relations that had been built by the two countries.

Indonesia’s plan, which was conveyed by the Deputy for Infrastructure at the Coordinating Ministry of Maritime Affairs, Ridwan Djamaluddin, to involve China in making electric cars is likely to disrupt the stability of its long-time cooperation with Japan.

This could be true, especially if we look at how Indonesia has increasingly become a battleground between Beijing and Tokyo such as in the recent bidding for the construction of a railway between Jakarta and Bandung, whereby China succeeded in winning the bid. Japan, which has made a number of preparations to obtain Indonesia’s permission to participate in the project, feels disappointed as expressed by its Chief Cabinet Secretary, Yoshihide Suga.

Looking at this, electric cars can be another battleground between Japan and Indonesia.

Indonesia may take careful steps

To this date, it remains unclear whether Japan or China who will have a considerable take in Indonesia’s move towards electric cars.

Nonetheless, in the midst of the potential rivalry between Beijing and Tokyo, Indonesia may take careful steps. The government in Jakarta will try to ensure that it would not hurt the two sides. It is likely to weigh the interests and opportunities of both parties.

On the one hand, it needs to maintain close relations with its long time partner in the automotive industry, while on the other hand it sees considerable opportunities in cheap Chinese raw materials.

The three authors are analysts on Indonesian political economy

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China-Indonesia relations are expected to grow during Jokowi’s second term

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Authors: Muhammad Zulfikar Rakhmat, Ramadha Valentine and Dimas Permadi*

The relationship between China and Indonesia seems to be increasing, especially in the field of trade economy, this is evidenced from the trade figures between the two countries which have reached 45.3 million. The relationship between the two countries is mainly focused on three sectors which include trade and business, politics and security, and people to people exchange. Some agreements also appear to have been agreed by both parties along with the increased visits of the two state actors in turn.

With the election of Joko Widodo in the second period recently, cooperation between the two countries is likely to increase.

Why?

To date, Indonesia has accepted 28 joint projects with a value of $ 91.1 billion, under the guise of the BRI. The projects include the Sei Mankei special economic zone; phase two for Kualanamu airport; clean energy development in the Kayan river in North Kalimantan; the construction of a special economic zone in Bitung, South Sulawesi, and Kura island in Bali. These projects were carried out by private parties from Indonesia and China.

The latest, Indonesia has also signed another BRI cooperation package in April 2019, which contains 23 cooperation packages in investment and trade projects. The cooperation package include the development of four economic corridors, the high-speed train and technology development project, and the development of education. The 23 projects have produced investment value of US $ 14.2 billion.

Several projects by China have not yet been fully realized in Indonesia. The projects that were initiated in the BRI collaboration still found obstacles such as budget and license. The realization of the budget in the amount of 50 billion USD has only touched the 3 billion USD figure, which means that some projects have not yet been implemented.

For this reason, China is expected to make maximum efforts to meet the target projects that have been initiated previously. This will also help China in covering up the issue of project failure faced by Indonesia and published by several international and national media.

Moreover, China’s expected efforts to accelerating the BRI project is in line with its goal to realize the BRI in 2049. That year was chosen along with the 100th anniversary of the founding of the People’s Republic of China. Indonesia’s territory which is quite strategic has become one of China’s attractions in making Indonesia one of the important routes for its BRI.

With some of the above explanation that some BRI projects have not been fully realized, these two things reinforce the reasons for China in accelerating the BRI project in Indonesia.

In addition, Jokowi’s previous leadership period focused on infrastructure investments. This can be seen with several Infrastructure projects that are currently being implemented in several regions of Indonesia. Nonetheless, these infrastructure projects have not yet been fully achieved, especially during the recent transition period whereby the government has been occupied with other issues.

In this context, Jokowi may see the BRI as opportunities for the Indonesian government which has a vision of equitable development in the country. Collaboration under the BRI is seen to benefit the Indonesian government in realizing its infrastructure development in the near future.

Recommendations for both

2To reap the full benefits of the expectedly growing China-Indonesia relations, there are several steps that should be taken by Indonesia and China. The Indonesian government should learn how other countries in Asia, such as Pakistan, Sri Lanka, Bangladesh, the Maldives, Kyrgyzstan, Tajikistan and Laos. They are countries that received investment from China that ended in a debt trap project, whereby they all had to give up all assets that had been financed from the Chinese project.

One example is how Malaysia renegotiated the BRI project, because Malaysia felt disadvantaged by the BRI project cooperation agreement. As a result, the projects’ costs are reduced from the initial agreement fee. Studying Malaysia’s policies, the Indonesian government should be aware of Indonesia’s position in cooperation with China, that Indonesia has a fairly high bargaining position. Because China needs Indonesia to achieve its economic goals in the BRI project, which would not have been possible without Indonesia.

In recent years along with the commencement of the BRI, China has made several efforts as a self-branding tool that aims to build its good image. In Indonesia, China began to introduce its country through various ways, one of which is cultural efforts such as through media and cultural efforts. However, this does not seem able to change the sentiment because the efforts are still limited and not widely implemented. To this date, negative perspectives on Chinese foreign investment is still found among the people who are contributing to the policy making of the Indonesian government.

In fulfilling its vision, China is expected to be able to use soft-power in building its image in ensuring its investments provide benefits that can boost national economic growth.

*Ramadha Valentine and Dimas Permadi are analysts on Indonesian political economy

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Reducing gender gaps in Asia and Pacific essential to realizing region’s potential

Ingrid van Wees

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Over the past two decades, the Asia and Pacific region has made progress in reducing gender gaps in certain areas, most notably education. According to the World Economic Forum’s 2018 Global Gender Gap Report, 6 out of 25 developing Asian countries had attained gender parity in education. In 12 out of 18 Asia Pacific countries analysed in the Report, women outnumber men in tertiary education enrolment rates. 

However, these improvements in skills and professional training for women have not translated yet into progress towards equal economic and professional clout. 

Gender gaps persist in labour force participation, gendered-segregation of the labour market, financial inclusion, and representation in senior managerial positions across the corporate world. This is the only region in the world where the labour force participation rate of women is declining. Meanwhile, a growing body of research on the future of work in the region has highlighted the high concentration of women in informal and vulnerable work, and that the bulk of unpaid care work is disproportionally being carried out by women.  

Female participation in the labour force in 2018 ranged from 60.1% in East Asia at the top end of the spectrum to only 25.9% at the bottom end in South Asia, according to the International Labour Organization (ILO). When women do work, they are often segregated into “feminized” sectors, where wages are typically lower. Wages are not yet equal. In developing Asia, the gender wage gap (75%) is lower than the global average of 79%
    
Women’s share in managerial positions across Asia varies significantly. In the corporate sphere, three countries in this region are among the top 10 economies worldwide with women in senior management positions, higher than the global average of 25%. They are the Philippines at 39%, Thailand at 37%, and Indonesia at 36%. On the other hand, there are countries in the region at the lower end, for example Japan with only 7%.  

Women’s representation on corporate boards is even lower than at the managerial level.  This ranged from 11.6% in Indonesia to 1.9% in South Korea. In 2011, India and Malaysia established 30% mandatory gender diversity quotas for senior management and board positions in corporations. However, implementation has been slow. As of 2016, women accounted only for 8.6% on corporate boards in Malaysia and 5.2% in India.  

Banking at the most senior management level in particular remains male territory in the region, since the share of female representation at this level reached only 6.9% on average, according to data gathered by the Financial Times.

While developing countries in Asia and Pacific are embracing new financial technology to make rapid progress on financial inclusion, the gender gap is felt here too. Women accounted for just 35% of bank depositors and borrowers in these countries in 2016. 

Increasing women’s participation in the workforce and closing the wage gap would have a tremendous growth impact for the region. ILO in 2017 estimated that this could add $3.2 trillion to Asia and Pacific region economies.

Increasing women’s access to finance can have life-changing impacts on not only their lives, but those of their families and communities. For example, women-led small and medium-sized enterprises in Sri Lanka are benefitting from facilitated access to credit to grow their businesses through an ADB project, which has been further supplemented by a grant from the Women Entrepreneurs’ Finance Initiative (We-Fi). Since last year, over 323 women’s businesses,  employing 3,934 people, have financially benefitted from the project. 

Financial institutions targeting female clients will be more successful at understanding and responding to customers’ needs if their personnel mirrors the market. Including female professionals and managers in research product selection and marketing will lead to better custom-tailored products.  That is one reason why ADB’s Trade Finance Program has been running a gender initiative to support its participating banks to improve its workplace gender equality/family-friendly policies.

There is growing evidence that gender equality in management and leadership results in higher productivity, more diverse decision-making, and better and more sustainable results. This is particularly true for female leaders in the banking sector. A study by the International Monetary Fund recently found that a higher share of female senior leaders is associated with greater stability and more prudent management. 

Moreover, it is true for any type of organization that effective women leaders provide positive role models and contribute to changing social perceptions about women and girls.  Policymakers and multilateral development banks like my own must lead by setting good examples, and work with the banking sector to address the gender gaps. 

On its part, ADB is committed to accelerating progress in gender equality in its developing member countries. And it is championing the cause within its own institutional structure and corporate culture.

Among other sectors, ADB supports various projects with a gender focus in such areas as technical and vocational education and training, urban and water, rural development, transport, and renewable energy. It has also provided technical assistance for legal and judicial reforms in support of gender equality, as well as women’s leadership within government and communities at all levels.

Last year, 56% of ADB’s sovereign and nonsovereign lending at entry had strong gender design elements. ADB is setting even higher standards for itself. In July 2018, ADB’s Board of Directors approved a long-term corporate strategy called the Strategy 2030. Under this, ADB aims to ensure 75% of its projects in the public and private sector will include gender designs by 2030. 

Strategy 2030 sets gender equality and women’s empowerment as one of its operational priorities for the next decade. ADB will promote women’s economic empowerment by expanding entrepreneurship opportunities for women and promoting their access to quality jobs in higher-paying sectors and the science, technology, engineering, and mathematics sectors where women struggle to enter. 

ADB’s approach is also informed by a recognition of the importance of tackling discriminatory social norms and institutions. It includes  supporting legal, institutional, and governance reforms at public level to explore measures are carried out to remove gender-based discrimination, enhance women’s participation in public resource allocation, and support leadership at all levels

Another major thrust is reducing the domestic responsibilities faced by women through improved water, electricity, and transport infrastructure. In the Asia Pacific, women spend from 2 to 11 times more time on unpaid care work (caring for family members, cooking, cleaning, fetching water, etc.) than men. That time spent represents an important barrier to pursuing economic pathways.

In 2016, ADB Management took bolder actions and set higher targets to improve workplace gender balance by enhancing recruitment of talented women, career management, training, development, and retention of female staff within ADB. ADB also has a gender target for various levels of management that is closely monitored and transparently reported upon. Leadership development programmes are now being conducted to prepare women for senior positions and enable senior staff to become better managers of diverse teams. 

Gender equality will indeed be at the heart of ADB’s priorities under Strategy 2030 and across the institution. 

On a wider scale, women’s empowerment is not just an objective in itself; it is essential to achieving inclusive and sustainable development in Asia and the Pacific. Given the economic, environmental, and technology challenges facing society in Asia and Pacific, it is about time to utilise the ingenuity, creativity, and energy of the region’s entire population. To do this, countries must fully engage women; and educate and empower them to allow for their contribution. At the same time, we should ensure we include, educate, and equip all men and boys for this transition to make this journey together and leave no one behind.

ADB

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