RI’s Institution Development

The Indonesians hail Jokowi’s leadership style and by leading the poll he is tipped for 2014 presidency. His exemplary management which relies heavily on direct observation to the problems and solved them right away impresses people and gets so much credit. Is his approach good enough to bring prosperity to the Indonesians?

Let us scrutinize the origin of nation’s prosperity theory. Recently, debates pop up about what makes countries great what makes them fail. Great nations and civilization rose and faded away. The Romans, Mayas, Chinese, Egyptians are cases in point. And some nations have never stepped up to the modern civilization.

One convincing explanation about this is coming from Jared Diamond, American anthropologist, evolutionary biologist. He put forward that geography, the lay of land, matters. The first civilization was born in the Fertile Crescent, in near east area, and obviously not in Papua New Guinea. The rise of the first civilization is simply because of geography. The Fertile Crescent is blessed with the plants and animals which later can be domesticated such as wheat, barley, horse, cow, pig, etc. It was them who were the first to have settled in organized community and farmed. From this area, civilization spread out. Thanks to geography, the continent of Asia and Europe are so well connected each other that the ideas can be spread out and improved. In contrast, America’s great civilization Aztec and Inca are relatively isolated. The difference of development caused Spain’s conquistadors, Hernando Cortez and Fransisco Pizzaro with horses and superior technology of guns and steel easily conquered Aztec and Inca in sixteen century, respectively, not the other way around. These facts really satisfy geography-determine-progress-of-nation theory.

However the theory might serve well in ancient times, not in modern times. One compelling case is the different prosperity between North Korea and South Korea. They shared the same geography, ancestor, culture and language, but North Korea is still grappling with abject poverty while South Korea has ascended to become developed nation. Two American economists, Daron Acemoglu and James A Robinson have better account for why nations succeed. It is not geography, but inclusive political and economic institutions do matter. Economic institution must ensure entrepreneurs have incentives to innovate and materialize the ideas. And the state must protect the property rights, create a level playing field and encourage investment in new technologies. Political institution must ascertain the distribution of power in a pluralistic manner and enforce the law. This is the recipe for success. The British is the first who developed the inclusive institutions. That’s why they ruled the waves and ignited the industry revolution. This inclusive institution later is adopted by her colony in United States, who is the first nation to hold modern democracy and later becomes world’s superpower. To some extent, institution development is the cogent theory to explain the success of nation’s development.

This brings us back to RI’s institutional development. No RI’s president has succeeded in developing inclusive institutional development. Having founded the first emerging independent nation after the Second World War, President Soekarno failed to establish adequate political and economic system. His era ended in chaos. President Soeharto (and President Habibie) once ostensibly managed to develop inclusive economic institution though massive efforts in agriculture, industry and technology sectors. For some time, they brought self-sufficiency in rice and soybean production, they expanded strategic industries including aircraft production. But the success is unsustainable and ephemeral.

Similar to Jokowi in 1970s, Bang Ali Sadikin was the most popular governor in Indonesia, he solved people’s problem and was also highly admired. But after Bang Ali stepped down, Jakarta went back to business as usual and lost its charm.

The lessons learned are before Jokowi, Indonesia had many capable leaders. They shared the same pattern: first they came with the new approach and were praised, then they delivered results in their peak performance, and at last they were out of steam and declined.

The Indonesians must not depend on the existence of “great leader” or never crave for the arrival of Ratu Adil (the Just King/Righteous Prince). It’s better to ask for the development inclusive institutions which can be run regardless the leaders in charge. Leaders come and go, but the good institution stay. Some said United States is the nation designed by geniuses, so it can be run by idiots.

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Preventing Corruption through Happiness Understanding

The recent arrest of constitutional court chief is unbelievable and unacceptable. RI’s corruption is too massive, pervasive and done at all level as if corruption is not the exception, but the rule.

When a poor man stole money for making ends meet, this wrongdoing might be justified. But what if the man is obviously not hungry and has already had a good life, then consequentially that man would have been insane. And when corruptive behavior is done en masse and people are undeterred to the consequences, then the society and its culture might be sick as well.

What went wrong with our society? Why do so many public officers, included law enforcers, implicate in corruption? Why does everyone, ranging from execu-thief, legisla-thief to judica-thief, seem to break the law for money? Will the rest, who don’t corrupt included you and me, do the same as we have same opportunities?

Some identifies that something has been wrong with our education, especially in ethics. The present curriculum is not adequate to build anti-corruption characters. To solve this, our kids should be taught anti-corruption subject from the beginning. Corruption Eradicating Commission (KPK) and Ministry of Education and Culture have signed memorandum of understanding on anti-corruption curriculum. Moreover, Bandung Institute of Technology (ITB) and Paramadina University have kicked in anti-corruption lecture in class.

Certainly, these efforts must be appreciated. But the question is whether the corruption practice coming from the lack of anti-corruption knowledge. The police, public prosecutor and justice undoubtedly know and understand the law well. All corruptors of this kind know what they have done and its consequences. Besides, RI is a religious country. The practices are fanciful. The preachers perform the services wall-to-wall and tell us to do good. All RI’s kids know that the bad guys will send to and be burned in hell. So in terms of moral value and religion, the people’s understanding of misconduct is not the case.

Accordingly, another approach is needed to sort out the mess. Let me introduce the long-known ideas of Mihaly Csikszentmihalyi (last name is pronounced chick-sent-me-high). The premise is the journey of mankind is invariably seeking for happiness. As Aristotle of Greek said that, more than anything else, men and women seek happiness. With many modern knowledge, system and contraptions which make life easier, healthier and more pleasure turns out not the sought-after answer. And Mihaly’s long-time research might have found the way.

He proposes optimal experience is the best way to reap happiness. And in contrast to our intuition, the chance of happiness is more in working rather than at leisure. And the best moment in our experience is when we stretch our capacity to the limit for certain goal. If the work is too easy we get bored, if too difficult we become anxious. This is called optimal experience. Mount climbing, music composing, writing, managing project or even our daily routines can be set for the optimal experience. Everything we do, we can make it so demanding that our minds stretch to their limits. Google guys have the motto for this: work should be challenging and the challenge should be fun. And to make the best of experience, Mihaly further suggests autotelic experience. It’s derived from Greek word; auto means self and telos means goal. We get the satisfaction in specific goal we choose and in the process we enjoy the journey wholeheartedly.

This brings us to our problem of corruption and the effort to cope with it. We are mistaken money or wealth for happiness, because we don’t know how to achieve happiness. And the fact is money never gives satisfaction. The evidence reveals that corruptors hardly stop making illicit money, even though they have got a lot of nest-egg and landed in top level and honorable position. Reversely, people, who enjoy continuously their challenging jobs and feel content, necessarily put aside ill-gotten money.

In my opinion anti-corruption curriculum which will be taught to the pupils/students is definitely not effective. Instead, they should have known and trained the idea and technique of optimal experience for the joy of life and autotelic experience for the meaning of life.

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Produce Our Own National LCGC

@The Jakarta Post

President Susilo Bambang Yudhoyono signed the government regulation on low-cost green cars (LCGC). The policy aims to reduce carbon emissions by decreasing fossil fuel consumption. This low cost emanates from the elimination of luxury-goods sales tax. And the types of green cars are electrical cars, hybrids, biofuel-based cars and compressed natural gas (CNG) cars. Can this policy expect any results? The answer is absolutely no. This policy is not only unable to reduce carbon emission, but will discourage our national automotive industry as well.

Preventing the Wrong Public Policy

@The Jakarta Post

One of the government’s main tasks is to develop and implement policy. Problems occur, the goals are set and the government has to tackle and achieve them through policy.

The ordinary route is: Decision makers collect and crunch data surrounding the problems and goals, analysis is carried out and the result is a policy. Some policies eradicate a problem or achieve the goal, but some do not. Worse, failed policies frequently weigh on the budget.

Fuel Consumption

Population and Vehicle

Share of Energy Consumption

Energy Consumption by Source

Premium Consumption vs Premium Price in Indonesia

Jokowi's Social Democratic Policies

@ The Jakarta Post

Since taking the helm several months ago, it is interesting to see what Jakarta’s Governor, Joko “Jokowi” Widodo, has done toward fulfilling his campaign promises. Some actions have already kicked in, and some are clearly envisioned. Interestingly, the pattern of his policies is attributed to social democracy.

Judging Performance of Reform Era

After 15 years, it’s time to judge the performance of reform era. Having toppled Pak Harto in 1998, this era ushered in democracy and offered sweet dreams. The New Order which traded development for democracy and freedom was deemed to have failed. The New Order itself was the antithesis of The Old Order. The New Order relied the development on high-skilled foreign-educated technocrats, whereas The Old Older on politicians. The Reform Era is déjà vu where the politicians attain power and politics is put in command, again.

Let's Support The KPK

@The Jakarta Post

A maelstrom of debate popped up in the wake of the corruption case that implicated the Prosperous Justice Party (PKS). The evidence includes a bribe intercepted by the Corruption Eradication Commission (KPK) worth Rp 1 billion (US$105,267) allegedly given indirectly to the former PKS chairman Luthfi Hasan Ishaaq by a private company to increase the beef quota.

The case ignited further debate after the KPK confiscated immense assets belonging to the suspects, including luxury cars, houses and gifts given to individuals, who were quick to disassociate themselves with the case.

Malaysia election a lesson for Indonesian parties

@ The Jakarta Post and @ Malaysia Insider

In the run-up to Malaysia’s general election on May 5, the Malaysian people have been offered two discerning choices. Either they let the National Front (BN) continue to govern for the next five years or they provide the opportunity for the opposition, People’s Alliance (Pakatan Rakyat), to take the helm. The voters know that if BN wins the election, Najib Razak will remain prime minister but if the opposition prevails, then former deputy prime minister Anwar Ibrahim will secure the top job.

Blusukan: Management by Wandering Around

@The JakPost

The Javanese vernacular blusukan (impromptu visit) has caught much hype thanks to Governor Joko “Jokowi” Widodo management style. In contrast to many Indonesian leaders who prefer to work behind a desk, Jokowi often visits unexpected places, such as river banks, traditional markets, slums and local public office. Through this blusukan style, he earned much respect as mayor of Surakarta, so much so he was elevated to the top job in Jakarta.

Likely inspired by Jokowi, President Susilo Bambang Yudhoyono (SBY) followed suit recently.

Bang Haji: An Unfiltered President?

@The Jakarta Post

Many people ridicule Rhoma Irama (Bang Haji) for his presidential candidacy. Bang Haji is deemed to have no skill or capacity or experience to be a president. His polygamist life also makes things worse.

But is it true that someone like Bang Haji could not lead Indonesia well?