Please check out the new blogs:
"Indonesian Nationalism is Essential," By Asep W, November 2013.
"Ubud Writers and Readers Festival: Reflections Part Two," By Paul Dudley, November 2013.
"Not the First Australian Intervention," By Thomas Reuters, November 2013.
Please feel free to comment on this article. As Indonesians democratise, a long suppressed history of violence and political warfare will be retold. This version contains some contentions. What do you think?
Suggested reading:
Sick of spying? Let's move on. Indo youth subcultures, anarchy, and nihilism. Those punks are up to something...
Charteris Lecture: What the new government thinks (or says it thinks) of Asia.
And lastly, I will publish a new photo each week on the blog. Please send me your classic/ funny/ arty/ relevant/ Indonesian photos to: info@indonesia-institute.org.au . Include where the photo was taken and give it a caption.
Have a great week,
Lauren.
Sunday, December 1, 2013
Indonesian Nationalism is now Essential
By Asep W.
Today’s buzzword in regards to Indonesian investment is “nationalism”.
This is generally seen as favouring Indonesian companies over international
companies, characterised by the lack of a fair playing field. However it is
worth looking at some of the background.
“Dutch Disease” is metaphorical affliction arising from large
increases in a country's income, primarily associated with natural resource
discovery and exploitation. Indonesia founded Royal Dutch Shell and has certainly
suffered significantly from Dutch Disease. Decades of resource extraction have
not only caused extensive environmental damage, but also disenfranchised local
communities and the nation as a whole. Few have benefited at the expense of
many.
Resource development and extraction was overwhelmingly
undertaken by international companies who came in, profited mightily from
resource exploitation, and left little for the local population but crumbs and environmental
wastelands.
For example PT Arun in Aceh was the world’s largest LNG
exporter for over 30 years, yet outside the barbed wire fences that protected
the camps, airbases, production facilities, golf courses, medical centres, and schools,
nothing of substance existed. No dentists, leaking thatched rattan schools with
mud floors, and a ferocious civil obedience order to ensure the locals’
compliance in their exploitation.
South Sumatra has produced more oil daily than many in the
Emirates, but at great cost to those living there; widespread pollution, near
total destruction of ground water resources and very few local benefits. The only
asphalt roads for years led to multinational company facilities.
Tangguh in Papua, produces billions of dollars of gas per
year despite the still uncertain future of those forcibly moved from villages
like Kampong Merah without adequate compensation other than perhaps a small new
house and a single family member employed during the initial construction phase.
Freeport McMoRan PT is observable from space. It is the
world’s largest mine, yet it has divested entire communities and eco-systems of
their resources without effectively contributing to local development. Advertisements
displaying smiling faces of the few token locals who were educated and employed
by the company are used as propaganda to show the value of the mine’s business
to the local communities. In reality the lucky few who obtain degrees pales in
comparison to the masses killed in order to perpetuate these extractive
enterprises.
Foreign companies’ exploitation of vast acreages of peat and
rich farming land for palm oil plantations and other agriculture has been
highlighted by commentators focusing on environmental devastation, but discounts
the dire economic burden such agriculture places upon current and future local
populations. In many cases villagers have become de-facto slave labour as
foreign companies lobby to keep wages super low. Not much has changed since
colonial times in regards to villagers’ economic prospects.
The wonder of modern communications now lays bare these
inequities but many argue it is too late, by 2018 Indonesia will be the World’s
largest importer of Oil. So who benefited from these systems of economic
extraction over the last 50 years? Certainly not those living in South Sumatra,
East Kalimantan, Madura etc.
Domestic gas consumption will soon overtake gas production
and supplies will be significantly diminished within 20 years. Again, who has
benefitted? A large percentage of the country is becoming a barren wasteland,
annually set-on-fire for plantations or open cast mined, water resources
poisoned, wildlife decimated and villagers forcibly moved at gunpoint to meet
big businesses’ demands.
Now imminent trade treaties lacking any real form of
reciprocity will strip out manpower and labour opportunities for Indonesians by
allowing foreign nationals to provide unlimited services and labour throughout
the Republic. Nifty names like Comprehensive Equal Partnership Agreements sound
good, but equal partnerships I think not. An Australian or Dutch national can
get a visa on arrival, yet how many hurdles and costs do Indonesians encounter
prior to getting a visa for their countries? How competent in Bahasa Indonesia
does an Australian need to be to work Indonesia compared to the level of
English competency required from Canberra?
The reality is that Indonesia has been and continues to be
on the losing end; looted and pillaged mainly by foreign national companies
with no concern, interest, or benefit for the majority of the local populace. Well
prepared colourful mission statements, and reassuring corporate policies in
regards to health, safety and the environment, environmental assessments, and
ISO Certifications are just pieces of paper not worth the environmental damage
their raw material production caused. Corporate social responsibility is an oxymoron
if ever there was one when there are few examples of multinationals sticking by
their obligations to socially responsible operations. Not to mention the contested
role of capitalism in development where central and local government, state companies
and the international lending bodies such as the World Bank, ADB and international
Aid are concerned.
Agencies have and continue to be instrumental in this dire
state of affairs, but where was the moral guidance of the large foreign
companies, their funding partners and foreign governments in overseeing the
legitimate implementation of such policies of corporate responsibility?
Nationalism, it could be argued, is now the right thing to
do, indeed the only way forward, in
order to let Indonesians as a whole benefit from the sliver of resources that
remain.
Asep is a university student and a member of the Indonesian Student's Association in Melbourne.
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