The ore export ban: What would Soekarno do?

THE HELL WITH YOUR AID. Soekarno jokingly pinches a nose of a foreign journalist on the sidelines of a press conference. The first president of Indonesia was known for his ultra-nationalist policies and for his excessive hatred towards foreign firms, notably those coming from the West. 

(photo courtesy of Life)

If Soekarno still lives and leads the country now, perhaps he will have banged table in a Cabinet meeting in fury, screaming his frustration right on the face of his ministers on how they had been so weak and bowed to pressure exerted by foreign mining firms in the new mining law.

The law, which will ban exports of raw mineral ores starting Jan. 12 next year, was initially introduced to help Indonesia to curtail the dependency towards raw natural resources through promoting the development of value-added industry, at the same time stopping the country’s highly-priced raw minerals to be “exploited” by foreign mining giants.

The 2014 raw ore export ban has been on the table for years, long enough for foreign mining firms operating here to prepare themselves, yet they have been kicking the can down the road, crying foul over the obligation to build mineral-processing smelters because such an idea, in their view, was not commercially feasible.

Truthfully speaking, the foreign mining firms have taken the issue lightly. Perhaps the perception that all Indonesian bylaws are negotiable, that all government officials would be easy to persuade, that this country might need foreign investors more than the other way around, have made them to think that such a ban might be no more than a bluff.

So when the deadline is due and the House of Representatives shown their seriousness to enforce the law, the foreign mining firms were shocked. They then did everything from lobbying top economic ministers, to giving counterbluffs in the media over the potential layoffs and huge economic losses that could materialize if the ban of raw minerals took place.

What foreign mining companies like Freeport-McMoran Copper & Gold Inc. forget is that an Indonesian law is still a law. No matter how seemingly weak the country and its officials who enforce it, and now matter how powerful and influential your company is, an Indonesian law is something that all firms operating in this country’s soil must comply to.

Imagine that today the 21^st century Soekarno surfed the internet through his gadget and unexpectedly bumped into the news published by Bloomberg newswire on Dec. 17, titling “Indonesia’s Cabinet to Discuss Ore Ban Amid Freeport Queries”.

What will Indonesia’s first president say to Coordinating Economic Minister Hatta Rajasa, Energy and Mineral Resources Minister Jero Wacik, Industry Minister MS Hidayat and Finance Minister Chatib Basri?

“I, together with the other founding fathers, sacrificed soul and blood for the independence of Indonesia…but now you lads allow this country to be dictated and steered by a US company like Freeport,” Soekarno might say. “What kind of ‘independent’ nation is this?”

In many cases during his presidency, Soekarno might be known for his overindulgence nationalism and excessive hatred towards foreign firms (especially to the US, he was legendary for his “go to hell with your aid” remark).

However, Soekarno’s nationalistic viewpoint couldn’t be more relevant to be applied today. This is because in the case of the new mining law, many foreign mining firms have crafted strong propaganda of how their contribution to the economy was so immense, and that Indonesia needs them more than they need us and our natural resources – while in reality, it may be the other way around.

Nationalism can breed both bad and good policies. For instance, nationalistic sentimentthat threatens to impede the plan to revise negative investments’ list (DNI) can be seen as bad, as it could limit the foreign direct investments inflows that Indonesia needs for a strong, sustainable economic growth in the long run.

But, the nationalistic plan to ban raw mineral exports next year is a good policy, as it could help Indonesia to climb up the supply chain by exporting more value-added goods, which eventually would lead to higher export earnings in the long-run, followed by other positive multiplier effects to the economy, such as higher absorption of skilled labor in the mining sector.

Of course, there shall be short-term pains if the law really proceeds. A potential loss from the implementation of the export ban would be $6 billion, which would add the country’s current account deficit by at least 0.6 percent of gross domestic product (GDP) next year, according to the World Bank.

But even the US-based organization acknowledged that the mineral exports ban would be beneficial for Indonesia in the long-run.

“From 2015, the ban would result in a relatively neutral impact on the trade balance, relative to the baseline, as..[..]..gains from higher value processed exports begin to offset the loss unprocessed mineral exports arising from the ban,” the World Bank wrote in its quarterly economic report released this week.

In other words, the implementation of the raw ore exports ban to Indonesia will be like a medicine injected within the body: it is bitter and painful in the near-term, but will turn out to be very beneficial for us in years to come.

Indonesia’s economy has stagnated in the middle-income level for a really long time, and critics have pointed out that only bold, out-of-the-box policymaking mindset could help this country to jump up to the manufacturing level and thus avoid the “middle-income trap”. For our policymakers, now may be the right time to do just that.

If mining firms complain that smelters to process raw minerals cannot be completed until 2016 or 2017, then it’s their fault for underestimating the issue – Indonesia has given them enough time, now it’s the need for them to think on how to expedite the smelter’s building process, if they want to avoid incurring bigger economic losses.

It is important for government officials to maintain credibility in its policymaking and law formulating process, because what’s at stake here is our country’s reputation in the eyes of foreign investors.

Were Soekarno still live, there’s no doubt that he would have shouted to his ministers to go ahead with the law, and then motivating the people to rally behind the government. 

Afterwards, the whole international community shall know that a law in this country is non-negotiable and Indonesia can get really tough on that – hence, they will never take any issues with the government lightly again in the future.

This article was published in The Jakarta Post on Monday, December 23 2013

The Youth Pledge Revisited: It's Time to Bury the Hatchet

E PLURIBUS UNUM. The experience from my high school times has redefined my view of nationalism, with my Chinese-Indonesian friends acting as the unlikely teachers who taught me the true meaning of Unity in Diversity.

Could anyone be able to mention any nation in earth whose diversity is greater than Indonesia?

No one could. With more than 17,000 islands scattering across the archipelago, in where around 300 local tribes roaming around with each of whom speaking their own local languages; the diversity of Indonesia is definitely unrivaled.

Indonesia’s vast diversity, however, is a two-edge sword and sometimes becomes the major constraint for its citizens to unite and have a mindset as one nation. Since the arrival of the first colonialist –that was the Portuguese in 1512–, it took more than 400 years for Indonesia’s massively-diverse citizens to unite as one nation and declare its independence from the colonialists.

Certainly, the key to our unification was the declaration of Sumpah Pemuda (the Youth Pledge) on October 28 1928, where jongs or youths from various ethnic and cultural backgrounds (Jong Sumatranese, Javanese, Bataknese, Ambonese, and even Chinese) gathered together and vowed to eliminate the great divide of their racial barriers and all declare themselves as Indonesians.

It is the oath that became a keystone in uniting Indonesia’s massively-diverse citizens and later proved to be pivotal for Indonesia to finally unshackle itself from colonialism.

Fast forward eighty two years, it is worth reflecting the values of Sumpah Pemuda once again when we look upon the situation of Indonesia at present.

Violence on behalf of the interest of specific religion and racial groups erupts in many parts of the region, with hatreds and resentments toward each other eclipse the aphorism of “unity in diversity” that is tightly gripped by the Garuda bird as one important part of Indonesia’s national symbol.

While in the past Jong Ambonese worked hand-to-hand with other Indonesians regardless of which part of Indonesia they came from, today there seemed to be no love lost between the Ambonese and Flores people at the street of Ampera when they exchanged blows and spilled each other’s blood.

And while in Merah Putih movie we can watch how a Moslem school teacher fought the Dutch colonialist shoulder-to-shoulder with a Christian farmer and an obedient Hindu soldier, today the religion intolerance in this country can only grow larger than ever following the stab of two church leaders at Bekasi, allegedly did by Moslems who opposed the presence of the church’s activities in the area.

If only our founding fathers who proclaimed Sumpah Pemuda could see what we are doing at the moment; they would surely be very ashamed to have us as their descendants.

Why, as I am deeply puzzled here, do such racial barriers and differences have to matter? During my high school times, my school was mostly dominated with Chinese-Indonesian students with very rich family background, yet in reality they never look me different despite the fact that I am a Moslem Javanese who merely come from middle-class family background.

And regardless our racial, religion, and social status differences; we are still Indonesian at heart.

“You know, I was very impressed by the way you guys enthusiastically sang your national anthem together,” said an Irish teacher who taught high-school students in United States, as he paid a visit to our school.

“In the United States, young people in your age don’t even memorize [the lyrics of] their own national anthem,” he added.

Indeed, it is ironic why those ethnic-group people should look down against each other’s roots, while back then in high school times all my friends always identified me as “Indonesian”, nothing else matters. During that time, my Chinese-Indonesian friends frequently offered me ride home, jovially invited me to their houses, and on occasions even introduced me to their parents who later cooked me dishes so we could have dinner together.

Did those specific ethnic groups say that they did it merely for retaliation, because of one or two things which some Bataknese or Ambonese did in the past? Then they really should learn to forgive and bury the hatchet: When I sat with my friend’s parents around the dining table, I was sure that they had not forgotten how the Javanese people brutally treated their Chinese relatives during the 1998 riot either.

Revenge is never-ending; forgiving each other and living together in such harmony look to be a life more comfortable living. For massively-diverse citizens of Indonesia, it is indeed a better option to choose rather than fulfilling your revenge now and living life full of insecurity later.

Amidst recent clashes involving religion and ethnic groups in Indonesia, this is the day when I miss the moment when a foreigner was in awe and felt really timid seeing Indonesian high-school students from different religions and ethnic groups singing Indonesia Raya sincerely together.

Ask the then Dutch colonialists at this date eighty two years ago, and that’s the same feeling which went through their spines when those Jong Sumatranen Bond, Jong Ambon, Jong Batak, Jong Java, as well as other Indonesian youths from different backgrounds, all ignored their differences and stood as one to sing Indonesia Raya with all their heart.

This article was published in The Jakarta Post on Thursday, October 28 2010

Building Integrity of Indonesia's Future Generations

When my father was defiant to throw me to study at Kanisius Senior High School, at first I just could not comprehend his seemingly confounding decision. Despite realizing the fact that I will study in a Catholic school while actually he had struggled so hard to build an obedient Muslim environment in my family, or knowing that both he and my mother must take turns to wake up very early in the morning to drive me to school (it was located about 20 kilometers from my house); he stood firm on his decision. “The school will shape your mindset,” he argued.

During my three-year high school times there, in fact it did not take as long as three years for his argument to be proved dead right. Inside I discovered that the school was very strict in various matters, particularly in terms of its commitment to produce Indonesia’s younger generations with honest character, which can be considered somewhat hard to find these days.

And it was somewhat surprising how the school takes this simple matter very seriously. I was astounded the moment I found out that the all-boys school has one major rule for its students: that every student who is caught up in the act of cheating, beyond any reasonable doubt, will be shown the door out from the school.

The rule was not mere words. It was three weeks before the national exam, and the school was not so lenient when two of my friends –who both were third-year students at that time–, were caught red-handed when cheating during the class. As the consequence, they had to undergo the agony of dropping out from school as because of their wrongdoing.

After I graduated from high school and enter a whole new environment in university, I realized that unfortunately not everyone in Indonesia is on the same frame of mind. When I was still in my early sophomore year in the university, one of my peers was very surprised on how I could score so high on the national exam without cheating.

“I wonder how you guys achieved an almost-perfect score on national exam like that without bocoran soal (test’s answers). I simply wouldn’t even have passed the national exam if I were you,” he said.

“Back then, I and most of my friends in my high school chip in together to pay millions to insider in the education ministry, thus we can get the bocoran soal and very much relied on that to pass the national exam.”

That’s not the only one. While many were surprised by plagiarism cases that have been dominating newspapers’ headlines in recent weeks, yet for me the news was far from shocking. In actual fact, even here in one of the best universities in Indonesia, students who just do a copy-paste job from the internet for their tasks and conduct such act of plagiarism can still be found.

We can see that dishonesty practices, as they have always been, can be considered custom entrenched in Indonesia. Eventually as more and more people get accustomed to it, such ignominy turns out to be something rational thing to do: since everyone does thing the same way, it’s the people who don’t do it who will be considered wrong among their society.

As I grow up and can see Indonesia in a bigger picture, only now I can understand why my high school decided to pay intense attention to the word of “honesty” on its foundation of learning. For too long various dishonesty conducts, such as corruption, have been the root of evil that hampers Indonesia from reaching its full potential. While Indonesia inherits the land of rich natural resources which makes foreigners to see us with full envy, very frequent many of the resources are utilized to fulfill someone’s greed rather than the interest of this nation as a whole. Corruption practice like that, unfortunately, flourishes very well here in Indonesia.

Every student must be taught that deceitful things like cheating and plagiarism are the most disgraceful thing to be put into practice as it can become the origin of future corruption acts. Such mentality, therefore, should be planted in the mind of all Indonesia’s younger generations from the very beginning of their development.

The future of one nation lies in the hands of its younger generations, and we ought to invest in our younger generations if we want to fulfill our dream of seeing this nation to stride forward. Without doubt, in the future Indonesia needs leaders and government officials who are equipped by not only intellectual aptitude, but also integrity. And yes we really need to start thinking about implementing strict policies when it comes to the subject of reforming the mindset and mentality of our younger generations.

The tangible solution is clear: someone needs to do something to fix Indonesia deep from the root of the problem itself. Perhaps that was the thing which crossed into the mind of my high school’s executives when they established such stern rule; or what exactly my father thought by the time he insisted on putting me to study there.

This article was published in The Jakarta Post on Saturday, March 6 2010

The True Meaning of Youth Nationalism

It is a reasonable thing to say that younger generations of Indonesia are having difficulties on defining the real meaning of nationalism. “I can’t find any reason on why I should be proud of Indonesia” said one friend in a not-so-serious discussion. “If I am presented with a chance to live abroad and change nationality to gain a more stable life, I see no reason of not doing it.”

The sentence may sound bitter, but it is true. Not many young Indonesians these days share the same value as the patriots’ on the movies like We Were Soldiers and K19: The Widowmaker. Both films were inspired by true stories, and I was so moved watching how the American soldiers (We Were Soldiers) and the Russian submarine crews (K19:The Widowmaker) were so proud of their own motherlands and were even willing to sacrifice their lives for their own country.

My heart even pounded faster when I watched a scene from We Were Soldiers that shows a young American died while smiling and saying, “I am glad I could die for my country.”

How I dream me and other Indonesia’s younger generations can possess that kind of nationalism in our hearts.

Some of my friends, however, seem to have a very different idea. “When Indonesia has nothing to be proud of” he said. “Then why do we have to have such nationalism?”

Sadly, skeptical opinion like that really makes sense. One Indonesian may argue that it is even a privilege to be born as a citizen of United States or Russia which were used to be the belligerents of the world’s single dominant superpower. They have that proud feeling when they state their nationality as an American or Russian.

Conversely, talking about Indonesia, is our heirloom Red - White flag as worth dying as the Star - Spangled Banner?

It is said that nationalism is defined as a proud feeling of being a citizen of one country. Then what would be, if any, the reasons for young Indonesians to be proud of their own country?

Not surprisingly cynicisms always arise when young generations of Indonesia are asked about the future of their own country –most of them find that it is far much easier in finding the nation’s failings to be criticized rather than presenting tangible solutions or doing something to fix it.

I once watched television when one university student questioned the capability of our government and vehemently criticized its policies by revealing several facts of its failure to support the people.

Also, when the presidential election was in the offing, one friend of mine enunciated his skepticism of the election, “What’s the difference, mate. I don’t think there is any difference whether you vote or not. Indonesia is as poor as ever these days and many ill-fated Indonesians out there are still in a struggle for a living.”

Despite the fact that Indonesia has less to be proud of, I think nationalism should not be defined by only mouthing arguments and critics to express your concern to the country. Indonesia may still be mired in underlying problems like poverty, ramshackle bureaucracy, ingrained corruption culture, or, most recently, terrorism. Yet only few realize that many people in other side of this world have started to discern the progress of Indonesia in many sectors –thanks to people on the upper level of the government who have been working really hard to try to fix Indonesia for us.

A peaceful democracy prospers in Indonesia in only 11 years since its regime transformation, which is proved by our ability of choosing a president and house representatives directly in the previous election. And it is a privilege that not all citizens in this world can have.

Indonesia’s economy has been growing really well these days; despite the fact that global financial crisis has hammered many countries’ economies really hard, Indonesia is currently the third-fastest growing economy in the world and still manage to record a positive 4 percent economic growth amid the negative economic growth trend that occurs among most of the world’s economies –thanks to a nationalist like Sri Mulyani Indrawati, who gave up her previous job in IMF to serve the country as a finance minister where she actually earns only one fifth of the salary she received in her preceding office.

On the national security sector the Indonesian State Intelligence Agency (BIN) is well-known for its 100% successful rate of detaining every terrorist who ever dared on upsetting Indonesia’s national safety –Malaysian-born terrorist Noordin M. Top may be still wandering out there, but surely he feels worried by now as the BIN is coming closer and closer on the pursuit of putting him into the same fate as Amrozi and Imam Samudera’s.

With such achievements, I am not too comfortable with the fact that many young Indonesians prefer to disparage the government rather than appreciating the hard work.

Don’t criticize; ask what you can do. In my opinion, I think you are not permitted to mouth critics on your own country when actually you have never done anything to it.

I want to do something for my country, and consider this simple writing as the small act of my own promise. If you were in my shoes –a teenager who is still in his young age and is trying to make change on something–what tangible deeds can you do but writing a piece while hoping that such writing will influence people as they read it?

Let’s hope that my fellow Indonesian friends read this piece and get inspired by it, so it can emerge their sense of nationalism and stop them from being so cynical about Indonesia, a nation whose independence was redeemed by bloods and fleshes of our founding fathers 64 years ago.

Happy anniversary dear motherland, may I and my fellow friends of the young generation grow up to be the one who can raise you to a higher echelon in the not-so-distant future

This article was published in The Jakarta Post on Wednesday, August 19 2009

A Sense of Nationalism in FEUI

The last day of final exams for fist-year students at the University of Indonesia's Department of Economics (FEUI) took place on June 5, and as I put my exam paper on the front desk and walked out of the classroom, I knew that I had just completed my thrilling first year at FEUI.

Regarded as one of the best economics departments in Indonesia, I have discovered that studying economics at FEUI is not only about the knowledge, but also the inspiration and motivation from people who have dedicated their lives to Indonesia.

During my first year at FEUI, I have attended the classes of Sri Mulyani Indrawati, Miranda Gultom and Dorodjatun Kuntjoro-Tjakti, and I see a resemblance between all three, in that they all apply their knowledge to make Indonesia a better place.

For people like them, with their busy schedules, it is unfeasible they can attend classes and give lectures every week, and most of their lectures are given by other lecturers or teaching assistants.

Their attendance comes on rare occasions only and, therefore, is quite special.

The most remarkable moment for me was when Finance Minister Sri Mulyani Indrawati, taking time out of her busy schedule, lectured us on macroeconomics.

Yes, it has been three months since she came into the classroom and gave a memorable lecture to about 40 first-year students, but what she said still reverberates in my mind. During the class, her comprehension and experience in economics nailed me and my friends to our seats. Beyond that, we were dazzled not only by her intelligence, but also her ability to inspire us with her motivating words.

In a lecture that ran for more than three hours, she presented more than just economics knowledge. She taught us about nationalism; the gratification of being a servant of Indonesia and doing the utmost to surmount its problems.

For her, helping Indonesia to overcome its numerous predicaments is a challenging yet welcome task. She portrayed it by telling us about her various experiences as finance minister, which impressed us enormously. Asked why she chose the path to be a minister, she said it was just one tangible form of her dedication and devotion to Indonesia.

Being a mother of three and a minister at the same time is not easy, but she deems it a great honor. It is, she said, a call that has to be answered to fulfill her responsibility to the country.

"When you are young, you study. Then collect wealth, as much as possible, until the age of 40. Afterward, dedicate yourself for several years to the country in which you were born.

"After you have dedicated yourself to Indonesia, you will be relieved that you have already done something for your motherland and you can live your later life in serenity," she said.

The most striking moment was when she addressed us young students as the ones who are responsible for the future of the country. Given the complexity of the various problems in Indonesia, her words made me realize that in the future it will be our duty, as students of economics, to apply our knowledge to help Indonesia grow in prosperity.

The economics that I study at FEUI is not the science of greed; it is knowledge that can be applied to solve important social problems that Indonesia is dealing with at the moment.

Perhaps it is true that most of the younger generations of Indonesians are ashamed of their country, but count me off that list. This is because in my first year at FEUI, I was taught that nationalism is defined simply as: what makes you allowed to criticize your country when you have never done anything for it?

I share this feeling with other young Indonesians, so that we will have the willpower to roll up our sleeves and help Indonesia overcome its problems.

Although Indonesia is gifted with wonderful land, diverse cultures and plentiful natural resources, the country is currently in a situation it is not supposed to be in.

It is time for Indonesia to stand at the level where it belongs, and like Sri Mulyani Indrawati said, we hold the responsibility to make this a reality.


This article was published in The Jakarta Post on Thursday, June 26 2008