The Republic of Indonesia By
Michael W. Willis, Fairfield University 
A beautiful sunset on the coast of Indonesia.
Natural beauty exists everywhere in the country.
(state.gov)
| Indonesia is one of the most significant nations in the world. Many may not know for example that it is home to more Muslims than any other nation in the world. Moreover, the nation has some of the most diverse terrain in the world with its rolling mountains, jungles, seasides and large urban centers. Also, the history behind this young nation is full of significant violence and events. Some may not realize that it is also one of the most discriminatory nations in the world and one of the most socially improving nations. Lastly, Indonesia is vastly improving also in terms of its economy. These are all significant reasons as to why Indonesia should not be dismissed as "just another small nation" because it is not that. Truly, Indonesia is one of the most interesting nations in the world as well as one of the most significant. Thus, it deserves much attention, which is the purpose of the following discussion. |
| Indonesia is a vast country covering hundreds of thousands of square kilometers of land and tens of thousands of square sea miles. Throughought this vast place one could climb steep mountainous terrain or enjoy the beautiful sunset from the long Indonesian coastline. The terrain is, thus, sure to surprise any tourist or visitor in more ways than one. Theodora.com describes the nation's area, location, climate, terrain, land usage, and environment. They report the total area encompassing 1,919,440 square kilometers, of which 1,826,440 square kilometers is land. Relatively, the nation is about three times the size of Texas. Hence, Indonesia is quite a large nation in terms of its geography. The coastline, which is familiar to millions of tourists, is composed of a monumental 54,716 km (theodora.com). This large mileage is the result of Indonesia composing of many islands. For example, state.gov states that, in total, Indonesia is composed of more than 17,000 islands and that only 6,000 of these islands are inhabited, leaving 11,000 isolated. This information makes it clear that Indonesia is certainly not a geographically boring nation. Other information regarding the nation's climate also supports the argument that the nation is far from boring. Indonesia encompasses a vast spectrum of climates. Theodora.com explains that the climate of Indonesia and its many islands ranges from tropical (hot and humid) to some more moderate climates in the mountainous areas. They add that these mountainous areas in Indonesia exist mainly on the larger islands, but in general, Indonesia is mainly a coastal nation. This coastal nature explains much of the devastation that was caused by the 2004 tsunami. Moreover, Indonesia is also interesting for its diverse terrain. Theodora.com explains for example that Indonesia is composed of arable land (8%), permanent crops (3%), meadows and pastures (7%), other (15%), and a large percentage of Indonesia is forest and woodland (67%) which is due to the vast rain forests that span the nation. In terms of the environmental problems of Indonesia, Theodora emphasizes that the common and current problems include those of deforestation, sewage and industrial waste pollution throughout its vast coastlines, and air pollution that has been exhausted from many of Indonesia's urban areas such as the largely-populated city of Jakarta (Theodora.com). |
Below is a physical map of
Indonesia. Clearly,
Indonesia includes countless
islands and a great coast.
The mountainous terrain
is also evident by the peak
names (i.e. Leuser, Dempo,
Puncak Jaya) that litter the map.
Map courtesy of Encyclopedia Britannica World Atlas
| Indonesia is a nation
that encompasses a complex and eventful history. Even being the young
nation it is, Indonesia has an impressively active history. The history
of the past fifty years, in particular, is incredibly complex. International
war, intranational violence, and political tension have all been experienced
by the young nation. State.gov states that Indonesia was under possession
of the Japanese for three years during the second world war. They
add, however, that the nation gained its independence on August 17, 1945
from the Japanese. This was due in large measure because of two rebels
named Soekarno and Mohammad Hatta who lead Indonesia to its successful
independence (state.gov). Up until 1950, however, Indonesia was still
warring and negotiating with the Netherlands who tried to occupy the region
after the Japanese (state.gov). In 1950, when the Dutch finally recognized
the sovereignty of the Indonesian people, the U.N. recognized Indonesia
as the 60th nation in its assembly (state.gov). State.gov adds that
the Republic of Indonesia shortly afterward developed a parliamentary form
of government that had the duty and task of organizing the executive branch.
From within the parliament many parties developed so that it became difficult
for one particular party to gain domination over the system (state.gov).
Thus, it's clear that Indonesia is only a youth in terms of its age from
independence. However, as will be further discussed, the youthful
age of the country does not mean that it has had an uneventful short history.
One such aspect of its history that makes the nation so eventful was its relations with the Dutch. Relations with the Dutch became the center of attention to Indonesia again in 1961, as state.gov points out. It was at this time that Indonesian and Dutch soldiers battled one another for possession of western New Guinea (state.gov). State.gov further adds that the next year the two sides reached an agreement that Indonesia would possess Irian Jaya and the following year Irian Jayas voted and by referendum decided that they would continue to be encompassed by Indonesia. However, problems and violence did not end there. Since then the guerilla presence of the Irian Jaya, or the Papua, have rebelled against the Indonesia government in order to gain its independence (state.gov). This is just one such example of the constant violence that has occurred in the nation. Again, the youthfulness of the nation does not mean that Indonesia has not been exposed to many significant events. Besides violence, Indonesia has also been exposed to an interesting governmental history. This governmental history entails much violence and competition for power. State.gov explains the desire of Indonesia's first president, Soekarno, for absolutism. They explain that his administration evolved into a dictatorial regime which was know as the "Guided Democracy." Soekarno's policy was one that emphasized a limit to official alliances with both the Western and Soviet world (state.gov). This policy was strengthened by Soekarno's establishment of the Non-Aligned Movement, which convened Indonesia with other Eastern countries who wanted little or no alliance with the Western and Soviet world (state.gov). State.gov explains that in the '50s and '60s, however, Indonesia employed a communist policy through the Indonesian Communist Party (PKI), which controlled intranational policy. So, surely Indonesian ideology was more on par with the Soviets than the West. The PKI then caused controversy when it gave firearms to supporters of its party (state.gov). However, state.gov adds that leading officials of the military were strongly opposed to this PKI action, which lead Soekarno supporters to kill six military leaders. The leading commander of the miltary retaliated and monumental bloodshed continued in Indonesia out of the military's desire to regain control (state.gov). State.gov reports that, in total, the approximation of the total death count ranges from 160,000 to 500,000. This is further evidence of an eventful and violent national history. In fact, such violence is comparable to death numbers of the American Civil War. 
President Soekarno photo from Wikipedia As a result
of the disgust directed toward the PKI and fear of returning to a similar
conflict, the communist party was expelled from the country (state.gov).
As another result, from 1965 onward, Soekarno's political support and power
dwindled until 1967 (state.gov). It was at this time that the same
commander that lead the military campaign against Soekarno, General Soeharto,
became president (state.gov). Soeharto was a powerful figure in the
country, who established a dynasty of his own. State.gov explains
that Soeharto would remain president for more than thirty years in which
his administration spanned seven terms and lasted until 1998. Soeharto's
first concern was breaking with Soekarno policy through his "New Order,"
which emphasized more military power and more relations with the West (state.gov).
However, in 1998 Soeharto was influenced by demonstrators to resign due
to Indonesia's drought problems, its falling prices on exports, and inflation
(state.gov). Thus, like Soekarno, Soeharto considerably failed in
terms of maintaining the support of Indonesians near the end of his term.
|
(religious photos from altreligion.about.com)
Some of the religious symbols of
the Indonesian faithful.
A buddhist temple. Buddhism is just one of the many religions in Indonesia. Photo from http://tblogs.bootsnall.com/evonkrogh/archives/009943.shtml Indonesia has had significant problems in terms of internal inequality. As data from the World Bank and state.gov report, the nation is certainly not a strict meritocracy. Reports by state.gov illustrate that it's not necessarily merit that distinguishes the poor from the rich, but other factors play a part as well. The World Bank (1996) offers information regarding the distribution of wealth in Indonesia. They report that the poorest 20% of the nation owns only 8.7% of the total wealth, compared to 12.3% in the second quintile, 16.3% in the third quintile, 22.1% in the fourth quintile and 40.7% in the richest 20%. This means that the richest 20% owns more than 4.5 times as much wealth as the poorest 20%. To get a greater idea of the distribution of wealth, those in the richest 10% own 25.6% of the total wealth compared to 3.9% owned by the poorest 10% (World Bank). In effect, the tenth decile makes more than 6.5 times as much as the first decile. These numbers may seem like drastic differences, however, Indonesia is much more internally equal than its neighbor to the north, Malaysia. World Bank reports that the poorest 10% in Malaysia have only 1.9% of the total wealth compared to the 37.9% of the total wealth owned by the richest tenth. Singapore and the Philippines also have much more of their wealth in the hands of the rich (relative to the poor) than does Indonesia (World Bank). Other countries that surround Indonesia have numbers similar to Indonesia. Vietnam is more similar by income distribution to Indonesia than are Malaysia, Singapore, and the Philippines (World Bank). Vietnam's richest tenth owns 29% of the wealth and its poorest owns 3.5% compared to 25.6% and 3.9% respectively in Indonesia (World Bank). Clearly, Indonesia needs improvement, but it's condition is much more positive than its neighbors. Indonesia is surely a religiously diverse nation. Home to more Muslims than any nation in the world, the country is also home to many other faithful communities. Thus, Indonesia is a land of great religious diversity. However, the religious relations are not good. This is more apparent when examining inequality between religious groups. State.gov makes it quite clear that some of the religious have it better than other religious groups. Indonesia extends rights to only citizens of certain religions. State.gov explains that the only officially recognized religions are Islam, Protestantism, Roman Catholicism, Hinduism, and Buddhism. They add that the faithful of these religions are given more rights because they are recognized by the Ministry of Religious Affairs. In contrast, the faithful of other religions are only regarded as social communities because they are recognized only by the Ministry of Domestic Affairs (state.gov). State.gov further notes that, "These groups experienced official and social discrimination." These groups include animists, Confucians, and those of the Baha'i (state.gov). The types of discrimination that these groups encounter are numerous. Examples of the discrimination that these groups face include refusal by federal officials to grant them marriage rights, divorce rights, and birth certificates (state.gov). Clearly, being a person of a particular religion may come as a disadvantage or advantage. State.gov explains that this poses problems because birth certificates are needed in order to receive education, scholarships, and opportunities for government employment. Moreover, State.gov adds that Hindus, even though they are officially recognized, often have to travel far before receiving federal recognition of marriage and birth because of officials refusing them the right. Clearly, only Muslims, Protestants, Catholics, and Buddhists receive full rights. It's clear that those of the Hindu, animist, and Baha'i faith, as well as atheists, are not treated with the same respect and are treated as second-class citizens. Because of better opportunity and education, the more respected religious peoples are surely bound to be better off economically. It's likely that those of oppressed faiths are disproportionately located in the poorest twenty and ten percent of the economic hierarchy discussed earlier. Furthermore, even though Christians are generally treated well relative to the majority Muslim group, many Christians claim that they are more often denied enrollment in public graduate universities than Muslims (state.gov). Again, differences in opportunities also mean expected differences in economic status. Indonesia's problems with religious freedom have attracted the attention of world leaders. So, clearly, the problem is significant. For example, the problems of religious inequality were highlighted by President Bush's meeting with Indonesian officials in 2003 (state.gov). At the meeting Bush emphasized America's concern for religious freedom (state.gov). Bush and other U.S. officials encouraged the Indonesian government to strive for greater religious freedom (state.gov). However, certain religions are not the only victims of discrimination. People of Chinese ethnicity are also denied many rights and thus don't deserve the same social prestige as the majority (state.gov). It's clear that the Muslim and Christian population has more opportunity and, thus, better economic status than the Hindu, animists, and Baha'i people. Sadly, Indonesia is not a country where religious freedom is a reality. Clearly, being one religion or another has social benefits, which ultimately lead to economic benefits. Unfortunately, inequality does not end at religion in Indonesia. Gender inequality, too, is a problem. Women are not granted with the respect that men receive in Indonesia. State.gov explains that men can have up to four wives and typically it is difficult for women to refuse marriage. Moreover, women do not receive equal job treatment. As state.gov discusses, "Women faced considerable discrimination in the workplace, both in terms of obtaining positions and in gaining fair compensation for labor performed. In 2003, the International Labor Organization's (ILO) Jakarta office reported that on average, women's earnings were 68 percent of that of men workers." Moreover, they also state, "there were reports that female university graduates received an average salary that was 25 percent less than that of their male counterparts." Clearly, men are more likely to be among that elite 10% discussed earlier. So, being a male Muslim free of Chinese descent seems to be the best condition in the country, as unfair as it may be. Conclusively, inequality is clearly one of Indonesia's great problems that many of its oppressed citizens still deal with. Religious minorities, those of Chinese ethnicity, and women are marginalized in the nation. However, the meeting with U.S. officials in 2003 can clearly be cause for optimism. Clearly, this is a sign that Indonesians recognize that there is a problem of inequality in the country. And, the first way to solve a problem is to admit there is one, which the meeting with the U.S. clearly implied. Moreover, Indonesia is much more equal than some of its neighbors, particularly Malaysia, Singapore, and the Phillipines. Thus, even though Indonesia has much to improve upon in terms of equality, its inequality situation should not be looked upon in complete pessimism. |
| Indonesia is a nation that has made monumental social improvements. Surely, Indonesia would be one of the contenders of a "most improved nation award" if such an award existed. One of most noteworthy social changes has been that of the improvement in the health of Indonesians. More specifically, infant mortality rate (IMR) and life expectancy (LE) are two of the most important measures in health and Indonesia has made major strides in both. Census.gov has examined and reported on the infant mortality rate and life expectancy of Indonesia from 1961 up until 2005. They report that in 1961 the IMR for Indonesians was 148.64. By 1980 however, the Census reports that IMR dropped by about a third of what it was initially. Still, in 1990 the IMR dropped by a third of what it was in 1980 (census.gov). This rate has fallen significantly so that IMR as of this year (2005) is now at a level of only 35.60 (census.gov). |
courtesy of International Futures
| With the decline in IMR, LE has similarly been improving at a rapid rate. The Census reports that in 1961 the LE of Indonesians was only 38.65 years. Twenty short years later, the LE in Indonesia shot up by almost fifteen years to 53.42 (census.gov). The Census reports that the life expectancy in Indonesia in 1990 and 2005 were 61.77 and 69.57, respectively. Ultimately, the Census has reported of more than a 30 year improvement in the life expectancy of Indonesians. Clearly, Indonesians are no longer plagued with the terrible health they had experienced previously. In terms of health, Indonesia is a totally different nation than what it had been in 1961. |
courtesy of International Futures
| The Census has reported that Indonesia has made greater improvements than most of its neighbors. For instance, they report that Malaysia, Indonesia's northern neighbor, had IMR of 42.00 and 17.7 in 1970 and 2005, respectively. The improvement in Papua New Guinea is also not nearly as dramatic as Indonesia. However, Singapore is the true success in the area. The Census reports that Singapore's IMR improvement is even better than that of Indonesia (43.72 in 1958 and 2.29 in 2005). In the last fifteen years, East Timor has made improvements more on par with Indonesia in terms of IMR (census.gov). In terms of improvements in life expectancy, Indonesia's neighbors (East Timor, Papua New Guinea, Malaysia, and Vietnam) have made similar improvements (census.gov). |
| Health measures are not the only
things that have improved in the country. Improvements have also
occurred in literacy and gender relations. The Census reports that
in 1961 the literacy of Indonesians ten years or older was at only 46.68.
They explain, however, that the number increased to 60.92 in 1971 and then
to 71.09 in 1980. A decade later 84.06% of Indonesians could read
and write (census.gov). This is a much greater improvement than Indonesia's
next-door neighbor, Malaysia, which increased in literacy from 50.84 in
1957 to 78.4 in 1990 (census.gov). Moreover, although Thailand's
literacy rate is greater than Indonesia's, like Malaysia, Thailand has
not seen as great of an improvement as Indonesia has. The Census
reports that Thailand increased from 81.81 in 1970 to 93.00 in 1990.
This improvement falls much short of Indonesia's.
Another important social change has occurred in the area of gender relations. More specifically, differences in educational achievement are decreasing. Population Action International reports that, in 1985 men had a gross enrollment rate in secondary education of 45% compared to women's 34%. However, they report that ten years later that difference reduced from eleven to eight as men had a gross enrollment rate of 52% and women had one of 44%. In comparison, Indonesia's neighbor, Papua New Guinea, has seen a greater increase in the schooling discrepancy between genders (populationaction.org). Other countries such as Singapore and Thailand have remained stable in the category due to both countries being educationally egalitarian initially and remaining so (populationaction.org). Thus, Indonesia seems to be making strides away from the Papua New Guinea situation and toward the situation in Singapore and Thailand. Indonesia has also seen a significant growth in its population size. In forty short years from 1960 to 2000 the population had more than doubled. According to International Futures, the population of Indonesia had grown from about 95 million in 1960 to almost 210 million in 2000. Thus, it's important to note that even though the population has increased dramatically, the standards of living have not been affected negatively. Conclusively, Indonesia's social changes may, perhaps, be its most dramatic and most positive of its changes. Indonesia is clearly on the right path in terms of its living standards, as they are increasing across the board. |
courtesy of International Futures software
| Similarly to the social changes of
Indonesia, economic changes in Indonesia have been for the better.
Indonesians have benefited from a great improvement in the economic improvement
of the nation. State.gov supports this statement, reporting that
"During the 30 years of Soeharto's "New Order" government, Indonesia's
economy grew from a per capita GDP of $70 to more than $1,000 by 1996.
Through prudent monetary and fiscal policies, inflation was held in the
5%-10% range, the rupiah was stable and predictable, and the government
avoided domestic financing of budget deficits. Much of the development
budget was financed by concessional foreign aid." They add that in
the years between 1987 and 1997, the GDP improved by about 7% each year.
They further add that, in 2000 the GDP increase was 4.13% anually.
Thus, it's clear that Indonesians can remain optimistic concerning their
financial improvement. This increased financial status may ultimately
be a deciding factor in the nation's improving standards of living and
life measures discussed in the previous section.
Much of Indonesia's financial improvement is linked to its resources and integrating its resources into world trade. An example of its involvement in world trade involves oil. For example, state.gov explains that Indonesia is the 15th greatest exporter of oil in the world and is the only nation within the Asian continent that is in the Organization of Petroleum Exporting Countries (OPEC). In 1999 alone, Indonesia pulled in $10.7 billion in their oil exports (state.gov). Surely, oil is no trivial market for the Indonesian economy. However, oil is not the nation's only important export. For example, state.gov further explains that much of the Indonesian economic growth can be attributed to an expansion in mineral exports. Previously, tin, silver, and bauxite dominated in the mineral exportation sector of Indonesia (state.gov). However, the sector has expanded in recent years in the production of copper, nickel, gold, and coal (state.gov). This expansion proved to be a good economic move for Indonesia. For in 1998 alone, Indonesia raked in $1 billion from gold and $843 million from copper (state.gov). The production of gold, copper, and coal attributed to an overwhelming 84% of the mineral-producing sector in the country (state.gov). Moreover, Indonesia's growth can also be explained by investment. As state.gov explains, many companies from the United States, Japan, the Netherlands, the U.K., Singapore, Hong Kong, South Korea, and Taiwan invested in the country's oil and mining sectors. However, the International Futures model reports that the majority of Indonesia's growth can probably best be explained not by oil or materials, but rather by its retreat from dependence on agriculture toward a greater dependence on manufactures and services. This can be seen in the comparison between Indonesian production by sector in 2000 with the projections of production division in 2025 and 2050 (see International Futures graphs below). |
| What does the far economic
future hold for Indonesia? A scenario analysis produced by way of
the International Futures software addresses this question. According
to the model, during the 21st century the trend in Indonesia’s gross domestic
product (GDP) per capita only gradually increases until 2050. From
2050 onward, however, Indonesia’s improvement rate in GDP per capita accelerates,
as displayed in the graph. For example, according to the table, the
GDP per capita between 2000 and 2050 increases from $986 to $4,207, a growth
of about 427%. However, the GDP per capita from 2050 to 2100 increases
much more dramatically, from $4,207 to $36,950. That’s an increase
of an incredible 878%, more than twice the growth of the first fifty years
of this century. Similarly, the GDP per capita for the Asia-Pacific
and the world both increase at a gradual rate at first, but then from 2050
onward the growth in GDP per capita accelerates.
Moreover, although Indonesia witnesses a positive growth, the discrepancy between the GDP per capita of the world and Indonesia gradually increases throughout the 21st century. This is shown in the International Futures graph and table below. For example, the chart shows that the difference in GDP per capita in 2000 is $4,614, in 2050 is $15,102, and in 2100 is $26,971. Similarly, the discrepancy between the Asia-Pacific region and Indonesia also increases. However, the discrepancy grows at an even faster rate than that between the world and Indonesia. From 2000 to 2050 the difference in GDP per capita between the Asia-Pacific region and Indonesia grows from $1,835 to $12,052, and from 2050 to 2100 grows from $12,052 to $27,559. This is reported in the table and graph below. In fact, the growth rate of the Asia-Pacific region is so rapid that it actually passes the GDP per capita of the world in 2090. It appears as though Indonesia will not grow nearly as fast as its close neighbors and the majority of the world. This news is bittersweet. Although, the Indonesian economy is expected to improve greatly, the discrepancy between its production and that of the Asia-Pacific region and the world is projected to increase. This could pose problems in the future. |
produced via International Futures software
| The projected increase in the discrepancy of total production can probably best be explained by earlier economic diversification of the Asia-Pacific region and the world compared to Indonesia. This is shown in the Asia-Pacific production by sector graphs below (produced via International Futures). Compared to the Indonesia production by sector pie graphs above, we see that, indeed, the Asia-Pacific region is projected to diversify its economy much earlier. The importance of agriculture diminishes much earlier than that of Indonesia, while the importance of materials and technology come much earlier for the Asia-Pacific than Indonesia . |
| In summary, Indonesia's economy is surely on a great path. However, to use a metaphor, though it seems that Indonesia is on a great road of improvement, it also seems as though the nation is not traveling at the same speed as the rest of the world. There is no question, however, that Indonesia will be much more economically improved fifty years from now and that it has greatly improved its economic standing throughout recent history. GDP has greatly improved, greater involvement in world trade and investment is occurring, and diversification and more improvement is bound to occur in the future. |
| Conclusively, the future of Indonesia seems to be on a positive path. Examples of this positive path are evident in the discussions on history, internal inequality, social changes, and economic changes. Clearly, as reported in the "history" section above, recently Indonesian government has displayed a greater concern for instituting democratic principles. This is clear by the occurrence of recent democratic elections. Moreover, recent meetings with U.S. officials have exemplified Indonesia's new concern for religious freedom. At the same time more women are going to schools, thus decreasing the gap between men and women, as explained in section three, "social changes." Other social factors, such as infant mortality rate, life expectancy, and literacy have also been improving. Thus, the nation's social changes may provide the best hope for a great national future. Moreover, section four discussed the significant improvement of Indonesia's gross domestic product per capita, the nation's greater participation in global trade and investment, and the increasingly complex economy of the country. Some, however, could point to Indonesia's violent past and continuing religious intolerance as causes for a more pessimitic future. However, the improvements seem to largely outweigh the possible problems. Much of the social variables that are improving are likely to reduce violence and intolerance. For example, the rise in literacy ultimately means that people will more likely expose themselves to the truth about other religions, thus reducing intolerance and inequality. Improving health factors such as life expectancy and infant mortality are also likley to reduce frustration and, therefore, perhaps, the likelihood of violence. Thus, Indonesia is slowly on track to become a decent nation and even perhaps a nation that others can look up to. |
|
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