Friday, 27 June 2014

Why Prabowo is the president Indonesia needs today


'Prabowo is no angel, but he is the lesser of two evils. Jokowi's approach will work only once our democracy has matured.'

Prabowo Subianto is the leader Indonesia needs today. Yes, he may have come from the old order and he does have questionable human rights records, but only he can offer this nation the stability and direction that it needs. Joko “Jokowi” Widodo is a man of the people and, yes, he is approachable, but if we are to draw a lesson from the past 10 years, approachable leadership alone does not solve this nation’s problem. A president who listens will only get so far before the tough time of policy making and implementation comes. Jokowi is not the president Indonesia needs today.
Anti-corruption statistics
Focus on the statistics and ignore the myths. The only Indonesian political party whose members have never been implicated in – let alone convicted – for bribery or graft is Prabowo’s Great Indonesia Movement Party (Gerindra). Being implicated in corruption alone is a sacking offense in Gerindra, while other parties wait for a formal indictment or even conviction before disciplining its members (Look at how the ruling Democratic Party waited to discipline members involved in a massive graft case involving the IDR2.5 trillion Hambalang sports complex construction).
No Gerindra lawmaker has also taken part in the parliament’s controversially expensive, taxpayer-funded foreign study trips because Prabowo prohibits it. And a recent Transparency International survey points out that Gerindra's party finances are the most transparent, accountable and clean. This shows that Prabowo has a tight grip on the party his political machinery. But more importantly, Prabowo will not hesitate to axe one of his own if he proves corrupt or incompetent. After all, he is not beholden to any vested internal interest.
Strong leadership
Strong control and iron-fist style leadership is what this nation needs. We are a young democracy and our institutions are not yet mature. The grassroots have no meaningful mechanism to hold accountable the underperforming, overpaid clowns and crooks that sit in the parliament bar waiting for the next election. In the absence of this engagement, we need a strong top-down leadership to keep the elected in line and our public officials performing. So far, only Prabowo has shown that capacity.
It is perhaps a sweeping generalization, but the next president must lead by conviction, not consensus. President Susilo Bambang Yudhoyono tried to build a cabinet of consensus, but despite his best efforts, it is clear that such leadership cannot produce the long-term vision that this nation needs. Case in point: we have no roadmap for our mineral resources and oil and gas industries. Incoherence in our regional autonomy and mining laws have landed the nation in a US$2 billion lawsuit in the International Centre for Settlement of Investment Disputes tribunal. Infrastructure development grinds to a halt because of regulatory overlaps, since lawmakers and regulators are driven by their own short-term agenda.
Indonesia today needs a streamlined and unified leadership. The next president must lead by conviction. Not consensus.
Jokowi may seem approachable. But a friendly face and sympathetic ears alone do not solve this nation’s problem. He needs to operate independently of his party leadership but lacks the means to do so. He has no solid political machinery of his own to counterbalance his party’s chair, Megawati Soekarnoputri (Indonesian Democratic Party of Struggle or PDI-P). This means he would need her blessings to pursue his own agenda. I am not comfortable with Megawati or PDI-P because of their track record. In the 3 or so years Megawati was in power, we lost two islands, privatized our state-owned enterprises, sold our national assets at undervalued prices. We also inherited from her administration unworkable labor and regional autonomy laws. In short, her leadership was a mess.
Neither has Jokowi shown that he would or could stand up to Megawati. When declaring his candidacy in March, Jokowi publicly said he had secured Megawati’s blessing. Securing blessings? A president leads his party not follow it. A president is in charge of his own political destiny, not serve at the pleasure of others. I do not agree that he serves his party or has to conform to its structure; it is too convenient. The more appropriate description is that he follows his party because he is unable to steer it in the direction he wants. Fact: he could not even channel donors’ moneys to his own cause. He needed his party’s approval even for this. In turn, PDI-P will dictate what Jokowi can and cannot do. He will be a crowd-pleaser, no more than a pawn in the political chessboard, a face to present to the public to paper and smooth his party's policy.
Economic Policy
Prabowo’s idea on the economy, led by agriculture strengthening, sounds dull but it is realistic. The average laborer spends between 30% – 50% of his income on food and board. Food price rise erodes living standards, negating wage increases. The upward spiral of price raise and wage raise will eventually erode our competitiveness, thus undermining the fundamentals of our economy. We need to stabilize food prices if we are to prosper as a nation, not just book impressive GDP growth. Yes Jokowi’s plan to empower street peddlers sounds appealing, but street peddlers need affordable produce to work with and eat.
Prabowo’s plan to plug leaks in the state budget is equally accurate. Indonesia needs to staff its government with the cleanest, most competent individuals. It can only do so it if pays its officials a competitive wage. The government also needs to spend on economically beneficial but financially unsound infrastructure. Public-private partnership infrastructure initiatives are excellent but cannot be relied on for financially unattractive projects. In the absence of private sector interest, the government must spend its own money to fill the gap. Jokowi, on the other hand, talks loudly on both but has not detailed how he will raise the extra cash to top up Indonesia’s pressured budget.
Jokowi’s original ideas while serving as Jakarta governor paints a man removed from reality. He plans to raise property base prices indiscriminately, supposedly to bolster public finances. This is good in theory except for three points: (1) the rise applies to all property types, thus disproportionately affecting first-time home owners (the aspiring, young middle class that sustains Jakarta’s economy) and pensioners (the ones whose sweat and toil built the city), and poor tenants (who will inevitably pay higher rents); (2) Jakarta has accumulated unspent reserves equivalent to 40% of its annual budget and it is growing (why tax more when you can’t even spend what you have?); and (3) to cushion against excessive harshness, he will provide an appeal procedure. But this means hard-hit appellants must navigate the bureaucratic maze. The bureaucracy, however, is not known for its cleanliness, transparency or efficiency. Clearly, Jokowi cannot appreciate the finer points of policy.
Human rights
With regard to allegations of human rights abuse allegations, Prabowo has never been formally indicted or charged, here or abroad. But for argument’s sake, let’s assume he committed it. He was a soldier and a soldier follows orders, written or spoken. He may have been dismissed for unsanctioned acts, but this reflects systematic failure within the military leadership more than his own failings. The very generals that dismissed him must also account for what happened in East Timor and in 1998, starting from the chief of staff at the time. At any rate, playing the blame game will not heal the nation. A politics of reconciliation is the way forward. Prabowo has taken steps towards that. His superior should do the same.
Business interests
Prabowo does have business interests, however there is no question that his wealth was legally gotten. Strong finance is a necessity in the politics of Indonesia today – another Megawati legacy. Prabowo’s financial capacity enables him to fund his own campaign. In turn he would need not answer to any paymasters once elected. Can Jokowi do the same? Unlikely.
Prabowo is no angel. But he is the lesser of two evils. His character, source of finance, and political machinery allow for a strong presidency and unified leadership. Jokowi, by contrast, is a consensus seeker. His approach will work only once our democracy has matured, our institutions are strong, and the gap between the rich and the poor has diminished.
Indra A. P. is a graduate of the University of Warwick (LLB Hons.), UK, and the University of Pelita Harapan (SH), Indonesia. He currently works at a Jakarta-based law firm, specializing in infrastructure works and foreign investment.

Wednesday, 25 June 2014

High confidence in Prabowo camp


At Mr Prabowo Subianto's campaign headquarters in East Jakarta, an endless stream of people turn up to declare their support, fuelling growing optimism in the presidential candidate's team that he will overtake front runner Joko Widodo by the July 9 election.

Supporters from all over Indonesia take turns on stage under a tent set up in the garden of the historical house to perform dances, offer prayers or simply read out their reasons for backing the former general and his running mate, Mr Hatta Rajasa.

"Rumah Polonia was to be shut by Saturday but we extended till June 25 because we are seeing so many pledges. I am not sure how we will cope beyond that," Ms Diana Widiastuti, 42, who coordinates the declarations of support, said. The house will remain open as the headquarters but pledges will stop by the fasting month.

Every day, Ms Diana records more than 400 pledges from individuals and groups, making Rumah Polonia a key morale-booster for the team. Even as the Prabowo-Hatta team sees a surge in support from opinion polls and on the ground, it is going all out to secure the country's top job.

Latest surveys show the Prabowo-Hatta team fast closing in on its rivals as Mr Prabowo's Gerindra Party and its coalition partners tap grassroots networks in guerilla-like operations.

A campaign team adviser, Mr Eggy Sudjana, said: "For each polling district, three cadres of coalition partner Prosperous Justice Party (PKS) are tasked to canvass for votes during campaigning."

PKS has mobilised 20,000 cadres for a "knock on one million doors" initiative in Yogyakarta to rally support. Local leaders are pitching in. At least 11 governors and seven vice-governors have submitted their leave to campaign for Mr Prabowo, says the Election Commission.

Mr Prabowo and Mr Hatta are campaigning at a whirlwind pace, appearing in as many as three provinces in a single day. While campaigning is most intense in Java which has the largest vote bank, Mr Prabowo has scheduled stops in eastern Indonesia, including Papua, said Dr Mahfud MD, the national campaign chief.

"Papua may have one of the smallest numbers of voters but a visit there is symbolic to show no corner of Indonesia is forgotten," he told The Straits Times.
The Prabowo-Hatta camp has also won over prominent businessmen such as private equity tycoon Sandiaga Uno. "I share Mr Prabowo's vision of people welfare... and that's why I joined his team as an economic adviser," he said.

Despite allegations of past human rights abuse, supporters appear unfazed. One reason is the coordinated rapid-fire rebuttals by his team. Mr Prabowo, a former son-in-law of the late president Suharto, was dismissed from the military for links to the abduction of 13 pro-democracy activists in 1998. He has consistently said he was following orders. But a day after former army chief Wiranto's televised claims last Thursday that Mr Prabowo acted on his own initiative, his camp filed a complaint with the Election Supervisory Board (Bawaslu), arguing the matter has been settled in court.

Similarly, the team denounced as slander claims by former intelligence chief Abdullah Mahmud Hendropriyono, once Mr Prabowo's commanding officer, that their man is a "psychopath". Both Mr Wiranto and Mr Hendropriyono are in Mr Joko's camp.

"Those are just dirty tactics by rivals. It can only take a military man like Mr Prabowo to rule Indonesia, not a civilian," said vendor Caroline Ginting, selling Prabowo-Hatta campaign badges and stickers outside Rumah Polonia.

While analysts see the race as too close to call, the team's hard work and fervour lead some to believe it will go Mr Prabowo's way. Gerindra's vice-chairman and Prabowo campaign secretary Fadli Zon claimed that unofficial surveys put Mr Prabowo ahead of Mr Joko. "Read my lips: We will win this election," he said.

Silence of the polls as Prabowo pulls ahead in Jakarta race


Former military strongman Prabowo Subianto has for the first time pulled level or even slightly ahead of the previous favourite, Joko Widodo, in the Indonesian presidential race, credible polling apparently shows.
But in a twist, one or more of those polls has been withheld from publication, apparently for fear of disheartening the Joko camp and shifting more votes to Mr Prabowo.

A number of sources contacted by Fairfax Media have confirmed that three credible polling organisations have now measured the gap between the two candidates at either within the margin of error, or with Mr Prabowo in the lead.
It’s a remarkable turnaround. Until the campaign began, Mr Joko, the popular Jakarta governor, had a double-digit lead.

But Mr Joko has been flat-footed by his opponent’s populist rhetoric, bolstered by a big-spending advertising campaign, blanket media coverage from TV stations owned by Mr Prabowo’s allies, and a successful “black” campaign of racial and religious smears against Mr Joko.

In early June the Indonesian Survey Institute said his lead had narrowed to 6.3 per cent — down from over 20 per cent earlier in the year. And on Monday, another (less credible) polling company, the Indonesia Survey Institute, showed Mr Prabowo with 51.2 per cent compared to Mr Joko’s 48.8 per cent.

But Lowy Insitute research fellow Aaron Connelly wrote on Tuesday that Indonesia’s most credible pollsters — the international group CSIS, Saiful Mujani Research and Consulting, and Indikator — had now judged the race to be neck and neck.

“Prabowo Subianto must now be considered the favourite to win the July 9 presidential election, a result that was unthinkable just a month ago,” Mr Connelly wrote.

Fairfax Media has now confirmed with a number of sources that CSIS finalised a poll on June 15 showing a negligible gap between the two campaigns, but has refused for 10 days to release it.

Sources say the reason may be because all three have a foot — either financial or philosophical — in the Joko camp.  CSIS executive director Rizal Sukma, a respected international relations expert, briefed Mr Joko for his presidential debate last Sunday.

They fear that publishing the information may prompt even more support to flow to Mr Prabowo in a country where analysts believe a strong “back the winner” mentality exists.

Neither Mr Rizal nor Burhanuddin Muhtadi, of Indikator, responded to calls or texts on the subject, and Saiful Mujani of Saiful Mujani Research and Consulting was in hospital, according to a spokesman.

Rupiah Drops: Central Bank Support, Prabowo Closes Gap


The Indonesian rupiah fell to the lowest level since February today, trading at 12,135 per dollar this morning. The iShares MSCI Indonesia ETF (EIDO) fell 0.8%.

The decline is partly explained by Bank Indonesia‘s decision to temporarily “undervalue” rupiah to boost exports. But the newest election polls are also at play. Presidential candidate Prabowo Subianto is narrowing his lead and may even be slightly ahead of the frontrunner Joko Widodo, known as “Jokowi”, two weeks ahead of the presidential election on July 9.

The PolComm survey, released yesterday, shows that the margin of victory for Jokowi has shrunk to just 3.1%. About 10.3% of voters were still undecided. Jokowi earlier in the year had a 20% lead.

Oddly, and unique in Indonesia, some of the election polls have been withheld from publication, for fear that Jokowi voters may shift away to Mr. Prabowo. The Sydney Morning Herald reports:
A number of sources contacted by Fairfax Media have confirmed that three credible polling organisations have now measured the gap between the two candidates at either within the margin of error, or with Mr Prabowo in the lead.
A Prabowo win may trigger capital outflow and put pressure on rupiah, which Bank Indonesia will tolerate anyhow, according to Nomura Securities:
This most recent increase in political uncertainty also raises the risk of capital outflows, especially given the considerable accumulation of foreign bond and equity positioning since end-2013. We note that foreign investors have invested about USD3.8bn in local equities and an additional USD7.5bn in local government bonds since the beginning of 2014. Having said that, there is a risk that Bank Indonesia (BI) could step up its FX intervention to arrest further IDR depreciation. However, given the relatively weak FX reserves adequacy ratios (about six months of import coverage, or 2x short-term external debt), we think BI is likely to adopt a relatively light-handed approach to lean against IDR depreciation rather than attempting to stem it. This is also consistent with yesterday‟s comments from BI officials that the central bank is comfortable with the recent IDR weakness, as it supports exports competitiveness while curbing imports demand.

Prabowo closing in on Jokowi as electoral gap narrows to 3%


The July 9 presidential election is set for an extremely tight race, as a recent poll indicated on Wednesday that only a 3 percent gap remained between presidential hopefuls Prabowo Subianto and Joko “Jokowi” Widodo.

A joint survey by the Washington-based International Foundation for Electoral Systems (IFES) and the Indonesian Survey Institute (LSI), which is affiliated with noted pollster Saiful Mujani, found that Prabowo had continued to gain in popularity.

According to the poll, which was based on interviews with 2,009 respondents in 33 provinces between June 1 and 10, Jokowi remained ahead with an approval rating of 42 percent, while Prabowo was on 39 percent.

Undecided voters, however, account for 19 percent of the electorate. The margin of error in the poll data is 2.3 percent.

LSI executive director Dodi Ambardi told The Jakarta Post that Prabowo’s gradual but steady rise in popularity reflected the drop in the number of undecided voters.

“It seems that some undecided voters have chosen Prabowo and it looks like he has netted support from the middle class,” he said.

Dodi added that Prabowo’s support actually surpassed that of Jokowi among middle-class voters with a gap of around 10 percent, while Jokowi was more popular with low-income voters with a 12 percent gap ahead of Prabowo.

He went on to say, however, that the LSI had been primarily responsible for the survey data, as IFES was focusing more on the election itself as opposed to the approval ratings of the presidential candidates.

Presidential electoral surveys arranged by Saiful Mujani’s affiliated organizations, such as the LSI, the Saiful Mujani Research and Consulting (SMRC) and Indikator Politik Indonesia, are highly respected for their independence and accuracy.

Kompas daily and the Centre for Strategic and International Studies (CSIS) are also included on the list of known and trusted pollsters.

While the CSIS has yet to reveal its figures, Kompas daily’s research and development division announced on Saturday that a 7 percent gap existed between Jokowi and Prabowo, with the former leading on 42.3 percent and Prabowo on 35.3 percent.

The Kompas survey, which was conducted between June 1 and 15, also found that undecided voters accounted for 22.4 percent of the electorate, far greater than the 7 percent gap.

Several analysts have said that the smear campaigns have chipped away support from Jokowi, who had enjoyed a hefty approval gap of more than 10 percent against Prabowo until early this month.

Eva Kusuma Sundari, a spokesperson from Jokowi’s campaign team, said on Sunday that her camp remained optimistic about Jokowi’s chances in the election.

She said party machinery and the two remaining presidential debates could be used as effective tools in the coming two weeks to win back voter support.

Separately, a recent study found that the two respective candidates had spent a combined total of Rp 38.5 billion (US$3.20 million) on advertising in just one month.

The report from election watchdog SatuDunia, which has been monitoring the media campaigns and spending habits of both camps, said Prabowo had spent Rp 19.1 billion and Jokowi Rp 19.4 billion on television and radio advertisements, as well as ads in print media.

The figures were derived from 2,821 advertisements across 78 media outlets in five major cities — Jakarta, Makassar, Medan, Surabaya and Banjarmasin — from May 22 to June 23.