Why Indonesia outperforms RP
By Eduardo Climaco Tadem
Philippine Daily Inquirer
Posted date: October 30, 2010
NOT TOO LONG ago, Indonesia was Southeast Asia’s basket case. Within the region, it was the hardest hit by the 1997-1998 financial crisis and subsequently plunged into a cycle of political and social unrest and economic decline. Today, however, under its current political and economic setup, Indonesia has attained levels of stability and prosperity few would have imagined possible just a decade ago.This was the conclusion reached by scholars of Indonesian studies at a recent First Indonesia Forum held at the Kyoto University Center for Southeast Asian Studies.
Political recovery
Historian Takashi Shiraishi, Japan’s most distinguished Indonesianist, attributes the country’s remarkable recovery to three factors: (1) a successful decentralization program (2) the containment of religious and ethnic conflicts at the local level and (3) a strong nationalist imprint traceable throughout the country’s history.
Economist Kosuke Mizuno, on the other hand, notes the ability of the Indonesian economy to weather the worst effects of the 2008-2009 global economic meltdown by keeping a balanced financial and current accounts while increasing employment.
The devolution of political power saw the channeling of 60 percent of public works funds to local governments. This has resulted in the proliferation of local governments through the creation of new districts and an increase in the number of local political parties.
