Indonesia’s DOSCapital

What is happening in today's Indonesian politics is a confirmation to the DOSCapital theory from Thomas Friedman's Lexus and Olive Tree. The theory explains the must-existed tools in a country to succeed in globalization. Those are hardware covering free market system, democratic elections, etc. and software including rules of law, government officer's capacity, etc. Only if a country has both, the age of globalization will benefit its people. When the tools are lopsided then the globalization turns the democracy to be the kleptocracy (analogy: the state-of- the-art computer without software) or the system will collapse (analogy: the old computer with the state-of-the-art software).

Indonesia has all instruments of democratic system. The leaders are regularly elected by the most-advanced system. The balancing institution is working so well so that the executives cannot run the government well. We have all law enforcement powerful bodies such as Corruption Eradication Commission (KPK), Financial Transaction Reports and Analysis Center (PPATK), Constitutional Court (MK). But it seems useless. Elections do not reflect meritocracy. The singers, entertainers, comedians turned to lawmakers. Law enforcement is still dull. The corruptors' fightback is at alarming rate. The chief of KPK has been put into jail. The others are accused by fake evidence of bribery. In short we have the hardware of democracy but we have no software to implement it.

And after 12 years, we realize that democracy turns out to be just another system. Democracy is only a tool, just a tool that cannot ensure the result unless you fulfill the conditions. Our system and "the man behind the gun" are so weak that the free market system implementation does not favor the result. The corruption is still rampant. The economy is still sluggish. In terms of people's prosperity, Pak Harto was doing better than all his successors.

Back to Thomas Friedman. In developed western countries, the system encourages people to do their best and give them reward by what they produce. The people who win the races are Bill Gates, Andy Groove, Steve Jobs who create wealth and high quality jobs by using their own talents not by special license from government, or bribing the officials. In DOSCapital 6.0 (the highest of system ranking), meritocracy prevails, the advanced high added value goods and services thrives.

In the new comers of democracy, the first thing emerging is politics, while economy activities subject to politics. Instead of supporting economy, politics becomes the vehicle for economic victory. If you want to be rich don't try hard like Bill Gates just become politicians. In contrast with the stabilized democracy make the politics shrinks and economy grows.

So we see that the Indonesia's local government does not encourage business by imposing heavy tax and levies. The lawmakers does not concern with efforts to support and create business. They are occupied by trivial matters such as aspiration funds and now aspiration funds for housing. Both of them do not understand that their main task is to support businesses that create job for the people. The more added value business thrives the more prosperity comes. That has happened in the developed countries and we have to follow that path because there is no other choice.