T

he upcoming term might possibly be President Susilo Bambang Yudhoyono's toughest challenge as head of state of the largest democratic Muslim-majority country in the world.

Not only is he expected to ameliorate the impact of the global economic crisis on domestic markets, but he must also rapidly and firmly respond to the terrorist attacks that have shattered Indonesia's prospects as a safe haven for foreign capital investment.

Furthermore, concern over the government's lack of effort in preserving and promoting indigenous cultures have currently reached a new pinnacle, causing disdain and heated public discourse among Indonesians. Contrary to these dreary outlooks on Indonesia, this might just be the turning point that signals positive growth and development.

These unfortunate events are ironically essential and perhaps needed at this stage of the country's development processes. What these uncertainties eventually lead up to are the questioning of the Indonesian identity and what it means to be a multicultural nation endowed with various national interests.

The need for an identity is hardly mentioned in modern economic textbooks. Students of macroeconomics today are thrown into the mainstream bandwagon and deal with models such as the Solow (1956) and Lucas (1988) growth models, without touching on the ambitions of the agents that drive economic activities. Economic theories simply assume that participating agents are utilitarian, like-minded and behave without any physical constraints.

Amartya Sen, Nobel laureate in economics, stressed the need to revisit the context of development into one that focuses on the well-being of the people, not indexes such as growth rates and per capita GDP that fail to capture the essence of progress. The truth is that these numbers only appear later in the process. But speaking about well-being without any preconception of what is at the core is like driving a car in the middle of nowhere without a proper headlight.

Identity is precisely the beaming light that guides the economic system and eventually determines the path to development. The importance of identity is not a new phenomenon; in fact, it is widely understood in political studies and the history of thought. One may reflect on the Meiji Restoration in 1867 that led to the "restoration" of imperial rule under the leadership of Emperor Tokugawa Yoshinobu.

The Meiji Restoration was a revolution to "enlighten" (thus the name Meiji) Japan with Western technological advancements while upholding traditional values. By the end of the 19th century, Japan was industrializing at a faster pace than any other country in Asia. Japan was no longer peripheral; it was then sitting on the same bench as other world powers.

China and South Korea also shared common initial conditions. China's Cultural Revolution sparked a new mindset and spirited the youth to embrace new ideas; consequently, this led to the adoption of a capitalistic market economy. Similarly, South Korea also found its momentum from 1960 to 1980. With a strong governing state, South Korea successfully transformed the working population into skilled labor to complement new production technologies as well as improve the infrastructure for communication and transportation. South Korea's growth rates reached 7 percent during that period alone.

How is identity related to these groundbreaking events? The answer is motivation. Identity is the catalyst that triggers action based on clear and uniform objectives. Indonesia once reached this point during the reform era in 1998, when Indonesians could no longer tolerate the relentless oppression of the Soeharto regime, and overthrew his 32-year rule. Yet this uprising failed to restore the belief that with unity and hard work, a brighter future is indeed foreseeable. Instead, those in power perceived the turmoil as an opportunity to expand their influence. The motivation of the people was in disarray, feeling hopeless and neglected.

A rooted identity is important on many fronts. First and foremost, it breaks the cultural barriers between diverse groups, thus enabling the implementation of anti-discrimination laws that guarantee greater equality and opportunity. Respect among different ethnic and religious groups can result in furthering political alliances that may not have been possible before. As a result, it clarifies the economic goals of a nation, which can then move forward by the proposal of effective policies suitable for the people. Most importantly, greater national unity boosts the morality and the confidence to compete in the globalized era.

It is the right time to reclaim that identity. Indonesians are beginning to realize their potentials. The international community has also shown its confidence, by, for instance, declaring that the recent election was successful, as described in "Indonesia Democracy: Beyond the Crossroads" (The Economist, April 2, 2009).

These accomplishments are less important compared to what is taking shape internally. The clamping down on homegrown terrorists has gained massive support for the fact that these attacks are groundless and do not represent most Indonesians, who firmly adhere to the five governing principles - Pancasila.

To move forward, one must look at the positive side of the issue. The concern about the future of our country is in place, the desire to fix our problems is burning furiously within our hearts, and the flaws are unambiguous; all that is needed now is the right attitude.

Part of every social transformation requires asking tough questions. And before we prescribe ourselves with remedies for our problems, there is the need to confront the truth about who we are as a nation and what we are all striving for in order for major changes to happen. This is the ultimate test for President Yudhoyono: Whether or not he can take advantage of the sentiment and unite the people under one universal slogan will certainly dictate his ability to steer the economy toward prosperity and stability.

As said beautifully by Minke, the protagonist in Pramoedya.Ananta. Toer's Child of All Nations, as he discovers his roots and love for his surroundings, "If you're willing to pay a little attention, a whole new continent arises, with mountains and rivers, islands and waters."

We are paying attention; now let's collectively find these wonders.