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Jakarta Post

A shifting international perception of Indonesia

Seven months into the era of President Joko “Jokowi” Widodo, international perceptions of Indonesia are slowly evolving

Dino Patti Djalal (The Jakarta Post)
Jakarta
Wed, May 6, 2015

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A shifting international perception of Indonesia

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even months into the era of President Joko '€œJokowi'€ Widodo, international perceptions of Indonesia are slowly evolving. These perceptions may or may not be accurate, but they do exist and need to be seriously considered by Jakarta. Perception, after all, determines reputation and, in politics, economics and diplomacy, reputation is everything.

What are these emerging perceptions?

The first is the perception that Indonesia is becoming inward-looking and self-absorbed.

Every government in the world, of course, conducts international relations on the basis of national interests, but excessive questions of '€œWhat'€™s in it for us?'€ run the risk of creating a '€œme, me, me'€ foreign policy that does not measure up to a country that has built a credible reputation as a regional leader with global responsibility.

Imagine if the Finnish had asked, '€œHow does this benefit us?'€ before deciding to help Indonesia resolve the Aceh conflict.

It may also lead to a simplistic approach to complex external challenges that usually require a strategic, long-term view and do not always provide instant returns.

Questions over our inward orientation are pertinent because the international community has strong expectations for Indonesia to continue to play a leading and credible role on critical issues concerning ASEAN, the G20, regional architecture, conflict resolution, terrorism, climate change, international trade, the post-2015 development agenda, etc. What they expect is not so much change in foreign policy but enhanced continuity.

The second perception has been of concern to the international community since last year: the rising tide of economic nationalism.

Indonesian diplomats, myself included, argued that this was mostly due to election fever and would subside once the new government was in place.

Yet the members of the corporate world, despite their obligatory polite smiles, would tell you in private conversations that they have not been reassured and continue to see worrying signs. They do see an administration that is probusiness, has ambitious plans and wants to get them done fast.

They also applauded President Jokowi'€™s decision to further reduce fuel subsidies.

But they are at times confused by policies and rhetoric that seem to reflect antiforeign, market-unfriendly sentiments that are often couched in political jargon.

Of all the perceptions or misperceptions, I would say this is the most important for the government to address, especially at a time when our economic growth may risk declining to below 5 percent in 2015 and other ASEAN countries '€” i.e. the Philippines, Vietnam and Myanmar '€” are looking increasingly attractive to investors relative to Indonesia.

The last thing we need is declining confidence on the part of the business community '€” domestic as well as international.

Remember: in recent years, emerging economies such as Brazil and Argentina paid dearly in terms of economic costs for pursuing policies that undermined confidence in the government.

The third perception is that of rising populism. Populism, of course, was the most important product of the 2014 elections and will continue to be relevant all the way to 2019. The market understands that.

The question is how we adjust the balance between policy and populism. In India, Prime Minister Narendra Modi has somehow managed to find the right mix, but in Indonesia it seems that we are still searching for it.

The recent wave of high-profile executions, the public burning of foreign ships, the cynical comments about imports, the requirement for foreign workers to speak Indonesian (while the same is not required for most Indonesians working abroad) are seen by outsiders as signs of excessive populism.

A friend from a neighboring country confided to me his impression that '€œIndonesia now likes to kick friends in the shin'€.

The fourth international perception is the prospect of the slowing down of reforms and messy politics. (In 2000, The New York Times columnist Tom Friedman called Indonesia '€” and Russia '€” '€œmessy states'€). The optimism is still there, but less so compared with the exceedingly high expectations surrounding the transition in October 2014.

These days, governments and investors are closely watching if, amid all the noise and smoke surrounding political maneuverings, a real spirit of reform is still alive and guiding policies.

What they fear is the prospect of things becoming transactional and the erosion of governance. They are also monitoring if promising policies will be properly implemented.

The Indonesian government would be ill-advised to dismiss these perceptions. We should take them more as helpful warning signs than as voices of nuisance. From my conversations with them, I know that some of our ministers are aware of these growing impressions about Indonesia.

The good news is that these perceptions have not crystallized and many still adopt a wait-and-see attitude, but they are not giving Indonesia much time. I suspect we have until the end of the year '€” if not sooner '€” to send the right signals and promote policies that would rectify these perceptions before they become reputational, since by then they would become much harder to undo.

Foreign Minister Retno LP Marsudi is a seasoned diplomat with a steady hand. She has a clear view of our national interests, is not given to narrow nationalism and is keen to uphold Indonesia'€™s internationalist posture.

During the recent row with Brazil over the unfair treatment of our ambassador, she skillfully orchestrated the right measure of protest without making the situation worse.

Yet addressing the above international perceptions will need coherent Cabinet actions across the board. The Cabinet needs to craft clear and consistent message points for the world (this is true for the domestic audience as well) and devise a way to ensure that ministers stay on message.

There is still time, but complacency is not an option.
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The writer is a former deputy foreign minister, former Indonesian ambassador to the United States and founder of the Foreign Policy Community of Indonesia.

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