Perhaps the most dramatic love story this year has been Netflix’s love-hate relationship with the Indonesian government.

The streaming service was ditched by the Communications and Information Ministry and was even at risk of getting blocked, yet at the same time was openly received by the charming and charismatic education and culture minister. The communications ministry threatened to block Netflix for offering fewer Indonesian movies on its platform than imported original products.

Thus, the government wants Netflix to increase the percentage of Indonesian movies on its platform. Regardless of whether the argument is true, we can see the government’s efforts to protect Indonesian products, which constitutes an intervention in the market mechanism.

On the other hand, the education minister, Nadiem Makarim, has opened the door wide for Netflix and considers it a partner of the government. Nadiem has invited the on-demand movie streaming platform to collaboratively improve the quality of Indonesian filmmakers through joint capacity-building programs, such as sending Indonesian filmmakers to Hollywood. The platform has even mulled disbursing US$1 million to fund the collaboration program.

The contrasting responses of the two government officials to Netflix have corroborated the common perception that the Indonesian government never really has a clear stand on its economic paradigm. At a glance, Indonesia under President Joko “Jokowi” Widodo is in favor of neoliberalism but on the other hand shows its protectionist face.

No need to go into a deep analysis, the government’s development priorities on infrastructure and education over the last five years underlines its aim for market expansion. This is supported by the appointment of Nadiem, former chief executive officer of tech unicorn Gojek, to create a link and match mechanism between education and the market.

Not to mention the efforts in de-bureaucratization and streamlining of regulations to lure investors, including the controversial omnibus bill on employment creation. These reflect what The Economist stated in January 2010 that in the period of technological revolution, the government should only contribute to creating conditions for business to invest, such as in education and infrastructure. Other than that, the government should stay away.

The line is mainly anchored by Keynes’ famous statement that the importance of government is not to do things that individuals are already doing, in a better or worse way; but to do things that at present are not being done at all.

The efforts are not in vain. People as consumers clearly enjoy the benefit of this open market system. Consumers have more options in indulging themselves and easing their life. The rapid growth of e-commerce and on-demand transportation has generated a trickle-down effect on small and medium enterprises. Spending is given a boost and spurs growth.

With the great power of the market yet comes less state responsibility. As the highest power and the supposed gamemaker, this is definitely not a satisfying situation for the state. Thus, the government attempts to elevate its bargaining position, including with regard to Netflix.

However, this is the state of this relationship. The public as a major consumer is already happy with the current market relationship. Thus, interrupting their interests clearly affects their support. This situation is worsened by the common stigma that the government is unproductive, corrupt and easily captivated by personal interests.

In this relationship, Netflix is an innocent kindhearted person (with all the services it offers) being bullied by an old corrupt player, the state. In the context of behavioral economy and the utilitarianism principle of neoliberalism, unsurprisingly protests have emerged against the government due to its treatment of Netflix.

This situation is even more obvious if we look at the characters of the two ministers. The communications minister is a politician and is part of a group that people hate the most for their corrupt image. In contrast, the education minister is a young and successful entrepreneur who is believed to be bringing positive social and economic impact.

Therefore, in this love-hate relationship drama, what the government should learn is to take a bold measure in accordance with its economic paradigm. The choices are to keep forging the neoliberal principles that they have been pursuing or going back to its ambiguous gray zone.

This also does not mean the government should abandon the neoliberal economy either. What is more important is whether it will realize its market intervention when it comes to Netflix. The government can actually do more to improve the quality of Indonesian movies or solve the problems facing the broadcasting industry, like censorship, rather than blocking Netflix.

Just like in a normal relationship, you need to be bold to be attractive. Once you make a fatal mistake, it is difficult to have an apology accepted, particularly with the past negative stigma you carry on your shoulder. Real action is more important in rebuilding a relationship.

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Intern at the Institute of Asian Studies, German Institute of Global and Area Studies (GIGA), Hamburg, Germany, and development researcher and practitioner

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