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Editorial: A blunt message for ASEAN

Indonesia under my administration is open to business

The Jakarta Post
Thu, November 13, 2014

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Editorial: A blunt message for ASEAN

I

ndonesia under my administration is open to business. But Indonesia, like other sovereign nations, must ensure that no harm comes to our national interests,'€ President Joko '€œJokowi'€ Widodo told Indonesia'€™s neighbors ahead of the full implementation of the ASEAN Economic Community (AEC) late next year.

Just one day after his disclosure that he would adopt blak-blakan (straightforward) diplomacy, the President honestly and openly shared his views about implementation of the AEC during the ASEAN summit in Naypyitaw, Myanmar, on Wednesday.

Given Indonesia'€™s lack of preparation and, more importantly, its reluctance to open its market, ASEAN neighbors are eager to get first-hand confirmation from the President about his commitment to the regional agenda. Indonesia is ASEAN'€™s largest economy, and its role in AEC is decisive.

'€œIndonesia will not allow itself to become merely a market,'€ the President warned. The stern statement was a very clear message to the regional grouping not to take Indonesia'€™s position for granted. But does it mean that the AEC, which has been fully committed to by all 10 members, is in jeopardy? Does Indonesia want a renegotiation and a return to square one?

The President needs to clarify his statement, which was also aimed at the domestic audience, who are in an inward-looking mood. There is serious concern in the nation that Indonesia will sacrifice much more than it could gain from the total opening of its market to its neighbors. Jokowi intended to demonstrate his strong leadership to his people.

No one expects Jokowi'€™s administration to betray Indonesia'€™s commitment to the AEC, a move which would backfire. But it is also true that neighbors such as Singapore and Malaysia need to be more open to Indonesia too. A common sentiment here is that Indonesia is too generous to those two countries'€™ banking industries, while Indonesian banks are very restricted in Malaysia and Singapore, for a number of reasons.

The President should follow up his position on the AEC, and clarify certain political and legal issues to Indonesia'€™s fellow ASEAN members. His statement should not be mere rhetoric to appease growing nationalism at home.

While Indonesia is crucial for the progress of ASEAN, we should remember that it could grow faster as a full part of the regional trading bloc, given mutually beneficial relations. Indonesia should not act as a big brother to other ASEAN members. As Jokowi noted, fellow members are also sovereign nations.

The President'€™s argument regarding the reciprocal principle has strong grounds. The nation will support his determination. But we must also look in the mirror. We cannot simply blame others for domestic problems. Our economy is far from competitive compared with Singapore, Malaysia, Vietnam or Thailand.

Jokowi'€™s administration should accelerate economic growth and restore Indonesia'€™s competitiveness. Otherwise Indonesia will be left behind in this region. In the end, it is up to Indonesia to determine its position in ASEAN.

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