Will the Spirit of Reform Survive Indonesia’s Upcoming Elections?

Will the Spirit of Reform Survive Indonesia’s Upcoming Elections?

By Damien Kingsbury on 11:23 am January 18, 2014.
Indonesia’s democracy is being increasingly tested by the triple challenges of anti-reform actors, a high-level political malaise and popular disenchantment with the electoral process.One indicator of this has been an increasing tendency by the Indonesian military (TNI) to reassert itself into the political debate. Indonesia is heading into legislative elections in April and presidential elections in July on the back of poor performance by the country’s politicians, turning off voters in droves. Against this backdrop, one of Indonesia’s most senior army generals has raised the specter of the army’s return to involvement in politics.

Indonesia’s army strategic command (Kostrad) head, Lt. Gen. Gatot Nurmantyo, has criticized Indonesia’s democracy as “empty” and said that popular will expressed through elections is not always right. As a panacea, Nurmantyo has called for a reassertion of the nationalist ideology of Pancasila (five principles), which underpinned Suharto’s three decades as military-backed president.

Nurmantyo’s comments, made to a Pancasila Youth (PP) rally in October, reflect an increasing confidence by TNI hard-liners in challenging restrictions on military contact with politics. It was this hard-line faction of the TNI that helped end Indonesia’s military reform process around the time that President Susilo Bambang Yudhoyono began his second term as president.

Yudhoyono’s second term has been widely viewed as, at best, lack-luster, and his Democratic Party-led government has been plagued by a series of corruption scandals. With other political parties fairing little better and “money politics” dominating local electoral contests, popular support for Indonesia’s democratic process is in decline.

Surveys have shown that Indonesia’s forthcoming electoral participation rate may slump to below half. There is even an appetite among many voters for a return to “strong” leadership, with a preference for candidates with a military background.

In a political environment in which one of the two front-runners for the presidency is former military hard-liner Lt. Gen. (ret.) Prabowo Subianto, Nurmantyo’s breaking of over a decade of military silence on domestic politics signals a potential alternative to Indonesia’s democratic path.

Prabowo’s popularity is behind that of Jakarta Governor Joko “Jokowi” Widodo in the presidential polls. But Jokowi, himself a populist, does not yet have the backing of a major political party that is required for presidential nomination. Political support — if it comes — will be from former President Megawati Sukarnoputri’s Indonesian Democratic Party of Struggle (PDI-P), which has also demonstrated pro-military leanings at times.

Democracy in developing states tends to be vulnerable to reversal, particularly where the military remains primarily focused on internal rather than external threats.

While Indonesia’s electoral system will very likely be retained, the potential for it to be restricted in ways that render voting more or less meaningless, as under Suharto, cannot be ruled out.

Nurmantyo’s controversial address to the PP was explained away, unconvincingly, by a senior politician as not contravening a ban on military personnel being involved in politics as it focused on the state ideology of Pancasila. The PP itself was founded by the TNI in 1959, soon after the military became directly involved in domestic politics.

Initially a civilian front for the military, the PP quickly degenerated into an organization of thugs and criminals who often undertook dirty work on behalf of the Suharto regime. It has more recently been involved in violent turf wars with other gangs and remains associated with particular factions within the TNI.

Nurmantyo’s comments are not just the ravings of a military extremist, as he has been viewed as a rising star in the Indonesian army. His hard-line views saw him recently passed over for the position of army commander, but with a more conservative president in office following the July elections it is possible that Nurmantyo’s military career could again rise.

Indonesia’s neighbors are already concerned over the outcome of July’s presidential elections and a possible lurch toward a more assertively nationalist orientation.

Set against growing voter apathy, generals such as Nurmantyo are well positioned to push Indonesia even further away from its recent path of reform.

Jokowi is a populist and has not enunciated a clear policy position. He may not be as pro-military as Prabowo, but his views on the military and the nature of democracy are largely unknown. If he was put forward by PDI-P — which is not looking hopeful at this stage — he would be required to follow PDI-P policy, such as it is, which is “preservation of national unity” above all, which in turn is code for a greater role for the TNI.

The likelihood of Indonesia further entrenching its democratic credentials will require a win by a convincingly reform-oriented presidential candidate. Scanning of Indonesia’s political field just months away from the elections, however, holds out limited hope.

East Asia Forum

Damien Kingsbury is director of the Center for Citizenship, Development and Human Rights at Deakin University in Australia. He has published a number of books and articles on Indonesian politics and the TNI.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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