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It was a volatile seven days in Indonesia last week.
Influenced by the stock-market roller-coasters around the world, the
Jakarta stock market had its own fall and recovery. In another realm, a
Garuda pilot was sentenced to 20 years for Munir's murder but Gus Dur
reflected the views of many when he said the real killers were still at
large.
The unnecessary development of the week, however, was General Djoko
Santoso's comment that Indonesia wasn't ready for democracy.
Ever since the measurement was introduced three years ago, the Roy
Morgan Good Governance monitor has reflected the people's resounding
vote for democracy.
Since that time, around 70 percent of the population have consistently
said they believed "democracy is working". The military general is
obviously among the 30 percent who disagreed.
Ten years ago, the wisdom of Indonesia's generals facilitated a smooth
transition of power from dictatorship to democracy. Since then, the
collective efforts of the world's fifth largest population have made it
a beacon for the Islamic world. The current President is a true
believer of democratic principles, a conviction he often reiterates.
The conflicting view of his chosen commander, expressed and explained
in public, is more than confusing. It has raised eyebrows, not just in
Indonesia.
Several institutions and many of their associates make strenuous
efforts to promote Indonesia to prospective investors around the world.
One of the new attractions is Indonesia's successful record as a
ten-year-old democracy.
If the armed forces are seen as anything other than a defender of
democracy today, they will send shock-waves across the business
community, internationally.
Not because businesses care too much about democracy itself, but
because they know there is no going back to authoritarian rule again.
The people would not accept a breach, endlessly. The turmoil in
Pakistan today is living testimony.
Public servants accustomed to years of total authority can find the
behavioral adjustments required by a democracy, difficult.
Though the armed forces are not public servants in the same way
bureaucrats or politicians are, they cannot ignore the fact that their
own welfare is also dependent on the efforts of the people. Everybody
has a role, and a responsibility.
As Indonesia continues to consolidate its position in the free world
and the global economy, the pain is being felt most of all by the
humble worker. That includes the small business owner.
The necessary removal of subsidies and the impact on the price of fuel
created an even greater burden on the vast majority of breadwinners.
While the 17 percent inflation that was triggered in September 2005 is
currently hovering around 6 percent, the price of essentials is
continuing to hurt almost all Indonesians.
Most people have always led a modest life in Indonesia, but the
struggle in recent times has become even harder.
Based on the national average, the Main Income Earner was barely able
to meet the needs of his/her household, even before September 2005.
Though many more are doing more than one job nowadays and there is a
noticeable increase in the average earnings of Main Income Earners,
they are still unable to take care of all the needs of their families.
Other members of the family, or the extended family, are now compelled
to contribute. That is because the average household expenditure has
also crept up at a level higher than income.
The two graphs are beginning to merge again, after two years. The two
trendlines met at the Rp 800,000 mark in September 2005, crossed over
and grew apart while they climbed. They merged again for the first time
in September 2007 at around Rp 970,000.
The next few quarters will offer a better understanding of the
alleviation, if the gap doesn't adversely widen again.
These observations are based on Roy Morgan Single Source, the country's
largest syndicated survey with over 27,000 Indonesian respondents each
year. The results are updated every 90 days.
While it is easy for affluent homes to take luxuries off the weekly
shopping list, it is difficult for everybody else to eat less tahu. The
longer term easing of the proverbial national belt can only happen with
more jobs and higher earnings.
Investments, from within the country and from without, are essential
prerequisites. Political stability is an equally important backdrop for
investment.
In a democracy, the people expect the armed forces to be in a permanent
state of readiness, a last resort in quelling disturbances or attending
to emergencies beyond the capacity of the police.
To say or do anything that contradicts that role cannot be good for the
stability of Indonesia's current democracy, its businesses or jobs.
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