Indonesia may have agreed to a dose of harsh economic medicine from the International Monetary Fund, but it will take more than the IMF's prescriptions to cure the country's woes. Distortions in Indonesia's economy cannot be addressed in isolation from distortions in its political and institutional life. This is why the IMF's rescue package must be complemented by broader reforms which strengthen the rule of law,government accountability and respect for human rights. President Suharto's New Order government has brought Indonesia a veneer of prosperity and stability. it has pointed to these achievements to legitimize its authoritarian rule, justifying repressive measures and the abuse of power and position. But, as the current crisis has shown the new order's transformation of Indonesia has been fundamentally flawed. The Suharto government may have overseen decades of high economic growth, but its legacy also includes a repressed political culture, institutional weakness and entrenched corruption.The pastweeks have brought unprecedented calls from within the Indonesian establishment for political change to accompany economic reform. Indonesia's own national human-rights commission has joined in the chorus, arguing that the government's failure to resolve fundamental political problems is aggravating the current economic crisis.
These critics have good reason to worry, Indonesia's last major political transition, in 1965, was marked by massive turmoil and bloodshed, an experience the New Order continues to use as a pretext for its heavy handed rule. Yet as Indonesia moves into another uncertain political period, it remains ill-equipped to deal with the pressures that have mounted with rapid social and economic change.
These pressures will be exacerbated rather than allayed by implementation of the IMF package. The benefits of Indonesia's economic growth have not been evenly shared-and neither will the pain of its economic adjustment. Poverty levels may have fallen, but they have also become morelocalized in terms of geography, occupation, gender and other factors. The IMF package is likely to deepen the marginalization of the poor and vulnerable groups and contribute to further violations of their human rights. The impact of the recession on Indonesian migrant workers in other countries will add to their plight. With economic hardship may come increased social unrest. Denied adequate channels for peaceful expression, discontent threatens to spill over to violence. The past weeks have already seen riots in east Javanese towns and cities protesting against rising prices. The Chinese community, with its prominent position in the local economy, and other minority groups are especially vulnerable to attack.
The government's likely authoritarian response to these tensions carries with it the prospect of increased violations of human rights. Over the past year there has been a widespread crackdown on all forms of dissent, as elections and the leadership transition enter other critical stage. TheIndonesian authorities have once again resorted to the draconian Anti-Subversion Law and other law protecting them from criticism to suppress opposition and stifle dissent. They responded to both peaceful demonstrations and more serious civil disturbances with excessive, sometimes lethal, force. Recent criticism of the government's economic management has already provoked a similarly hard-line response. military officials publicly equated currency speculation and food hoarding with "subversion"- a crime which carries the death penalty in Indonesia. The media, under attack for "negative' reporting, finds itself accused of inciting panic buying - and under existing press laws the license of an offending publication can be revoked at any time. Respected economists have been issued a summons by the military intelligence services for their outspoken criticism of the government.
As Indonesia struggles to maintain competitiveness and attract foreign investment, economic judgement is bound to bring downwardpressure on wages and working conditions. With workplace tensions increasing, the government will probably clamp down even harder on independent trade unions, already officially banned and with many of their leaders imprisoned. Economic and social problems may also bring an upsurge in crime, and with it the hardening of official attitudes. Last year, the number of criminal suspects shot dead by police in Jakarta doubled, amid official statements of a 'shoot on-sight' policy.
None of this will be effective. If the Indonesian government is serious about relieving strains on the economy, it must also vent pressures mounting in the political environment by creating space for free expression of dissent. Indonesia's long-term stability and development would be better served if tensions in society were aired and addressed rather than bottled up to the point of explosion. Allowing discontent to be freely and peacefully expressed is a far better guarantee of security and confidence than the prison cell, baton andbullet. A starting point would be to stop using the Anti-Subversion law, pending its repeal, and to review the cases of those political prisoners now held under its provisions. While the IMF package tackles problems of transparency and accountability in the economic sphere, reforms must also be extended to other aspects of Indonesia's legal and institutional life. It is particularly important to reinforce the independence of the judiciary and ensure the military's accountability before the law. And while Indonesia lets the IMF look over its books, it should take the advice of other experts in other fields, and open up to suggestions from the United Nations' human-rights mechanisms and from its own national human-rights commission on ways to strengthen protection for human rights.
Averting a human-rights crisis in Indonesia is in the interest of everyone-including governments, international financial institutions and businesses who seek to put Jakarta on the road to economic recovery. For years, the worldhas largely ignored Indonesia's human-rights record. That is no longer possible. Just as Indonesia is being urged by the international community to acknowledge the necessity of economic discipline and reform, it should be encouraged to bring other aspects of its national life into line with international norms and standards.
By arrangement with The Wall Street Journal
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
