Bismillah Hirrahmanirrahim
Assalammu’alaikum Warrahmatullahi Wabarakatuh
Selamat Malam
Salam Sejahtera
Prime Minister Jose Ramos Horta,
Excellencies Ministers and Ambassadors
Distinguished Business Leaders and Participants,
My good friend Dato’ Timothy Ong,
And Members of the ASEAN 100 Leadership Forum,
Ladies and Gentlemen,
Dato’ Timothy, I hope you remember this: the last time we met in Bandar Seri Begawan, we had an engaging discussion, where you talked about Brunei Darussalam's past, present and future transformations. You touched on a very important theme: how oil-rich Brunei could not be content with just being oil-rich and that she needs to always find creative ways to reinvent herself so that Brunei’s future would be secured even if her oil would run out one day--which it will.
This evening, Dato’, I wish to pick up where we left off in Bandar Seri Begawan. But before that, Excellencies, Ladies and Gentlemen, I am pleased to extend a warm welcome to all of you to Jakarta. This is the first "ASEAN 100" event held in Indonesia, and I hope it will not be the last. There is a huge reservoir of dynamic, talented and brilliant people in Southeast Asia, and we need to do more to inter-connect them. I count on this annual “ASEAN 100” forum to continue to bring together more bright men and women from all over Southeast Asia to brainstorm, to network and to interchange.
I have been invited to speak this evening about transforming Indonesia. It is a topic that captivates me because I have always believed that the mission of my Presidency is to help advance Indonesia’s peaceful transformation, which is bound to have a positive and stabilizing effect for the region.
However, with your permission, I would like to expand the topic a little bit.
Since the beginning of the Indonesian Reformasi, soon after the crisis, I have been part of this national reform. I remember when I was tasked to draft the blue-print of military reform in Indonesia. But of course, in my capacity now, I am tasked to continue leading and managing the Indonesian transformation. While managing and leading this big transformation in my country, I continue to spend my time to observe, to learn, from many countries in doing their change, reforms, and transformations because there are lessons to be learned from the success and failure of many nations in conducting their change and reform.
This evening, I wish to share with you some thoughts and observations about the challenges faced by transforming societies in general, drawing from the examples of several successful transformers, and I will also relate some of these thoughts to Indonesia’s experience. I will speak about probably the philosophy, the fundamental principles, and of course the lessons to be learned in conducting a transformation. I do hope as future leaders, members of the ASEAN 100 can also learn really well on many things related to the agenda, the strategy and the direction of reform and transformation.
Let me begin by saying that I believe every society must at one point or another reinvent itself. You may do it at different time, at different pace, and in different ways, but reinvent you must. Remember: three quarters of the countries in the United Nations today did not exist 50 years ago, and conversely, dozens of national flags that existed 100 years ago have now vanished.
The world now spins much faster than ever, especially with the forces of globalization. The ability to adapt to this ever-changing world will be critical for nations that wish not just to survive, but to advance ahead of the rest. You may be relevant today, but if you do not adapt, you may not be relevant tomorrow.
There are those who say that the world’s most successful nations are the most competitive ones. I do not dispute that, but I would take that point further: I would argue that the world’s most successful nations are the most ADAPTABLE ones.
Transformation involves change, but it is more than change itself. It is an ability to redefine yourself, to shift into a new paradigm, to reorder your priorities, to develop new skills, and to reassert your relevance in a changing world.
Think of Arnold Schwarzenegger. You all know him, of course. He grew up an average, skinny boy in Austria. Then he got into body building and became Mr. Universe. Then he went to Hollywood to become a movie actor and became a mega-star. Then, he became Governor of California. Arnold did not just change. He transformed himself, over and over. He developed new skills--from muscles, to acting, to politics-- and in the process not only redefined himself but also gained a new relevance each time.
Well, it is not just individuals that do this. Countries also change and adapt and transform.
Indonesia in the past 8 years changed to become the world’s third largest democracy. Malaysia changed from commodity-based economy to become a manufacturing base and first-class trading nation, with its trade twice larger than its GDP. Rwanda transformed from Africa’s poorest country, which suffered from horrific ethnic civil war and genocide in 1994, to become a stable democracy that she is today with an average GDP growth of 10% in the last 10 years, the second highest in Africa.
In each of these cases, you see a remarkable life-changing and future-changing experience. But unfortunately, successful transformations do not happen all too often in our world.
So how do transformations occur? What do the transformers have in common? What can we learn from the world’s transformation experiences?
Let me offer, Excellencies, Ladies and Gentlemen, 9 points of observation.
FIRST: For a start, I notice that many transformations begin with a crisis, or with a predicament. Crisis, indeed, can be a transforming experience. It can be a rallying point and a motivating factor to turn the country around.
It happened here in Indonesia: the financial crisis of 1998 sparked the powerful "reformasi" movement, which led to Indonesia’s democratic transition.
It also happened to India in the early 1990’s, when Prime Minister Narashima Rao was compelled to enact bold economic reforms to deal with the oil shock, which followed the Gulf War. Chile reformed rapidly after suffering from economic troubles in the early 1980’s, and the United States changed much after the Great Depression in the 1930’s.
In each of these instances, crisis marks the beginning of transformation.
But not every transformation begins with a crisis, of course. For some,
transformation is a necessary means to overcome built-in disadvantages by building new assets and new strength—and this is our SECOND point.
Singapore best exemplified this: a small island-state with a small population of immigrants, Singapore transformed itself into a trading center, then a manufacturing center, then a financial hub, and a magnet for foreign investment. With a population of only 4 million, Singapore now has a GDP per capita larger than Australia, and ranks third as the world’s most competitive nation. Singapore’s experience demonstrates that even small states lacking in natural resources can become great transformers.
THIRD: Transformations generally do not happen out of the blue. They are usually driven by leaders. It is leaders who craft the vision, set the agenda, open up minds, capture public imagination, fight the political battle, and energize the nation—without which no meaningful transformation can take place. It is leaders who make the big and small decisions that over a stretch of time would change a country.
FOURTH, transformations usually involve great soul-searching debates between the country’s leaders.
In China, after the death of Mao Tze Tung, the contest was between Deng Xiao Ping, who called for ambitious far reaching reforms through his "socialism with Chinese characteristics", and Chen Yun, who favored much more limited reforms. In the end, history sided with Deng Xiao Ping. But it took a great deal of intellectual persuasion, political maneuvering and populist appeal for Deng to win the critical battle. Deng’s philosophical and political victory over Chen Yun produced the “rising China” that we now know today.
The contests between Deng and Chen Yun are typical of transforming societies. You see it in different forms, different language, different intensity, and even different outcomes in other countries. Including here in Indonesia, I might add.
If you are following very well the development of the Indonesian politics, you would see, you would observe that here are also on-going debates, the battle of minds, the clash of so-called ideologies between thoughts on capitalism and socialism, nationalism and globalization and others. As a leader, I have to accept this reality. It is part of democracy. It is part of freedom of speech. But one thing: Indonesia has to focus in its transformation. The existing debates and the battle of minds should not be an obstacle for continuing our reforms and transformation.
FIFTH: transformations also require stimulus or catalyst. This stimulus can take many forms: new ideas, technology, investment, education, elections, governance.
India’s leap in the knowledge economy began when Bangalore was transformed into the software engineering capital of the world, India’s answer to Silicon Valley, which boasted names such as Texas Instruments and
Infosys.
Here too in Indonesia, we have recently undertaken measures to promote Special Economic Zones in Batam, Bintan and Karimun, and we hope to have more SEZs throughout the country in the near future that will change the way Indonesia works. Today, before the Dewan Perwakilan Daerah, Regional Representatives Council, which was also attended by all Governors, all Mayors, all Bupati from all over Indonesia, I made clear statements that Indonesia wants to build Special Economic Zones that can be used a model of regional economic development. And I challenged all Governors to do the same thing, to improve the climates in their region, to do more in having, say, legal certainty, local regulations, good labor situations and others because Indonesia has to move ahead with its better climate, better certainty, and better opportunity that conducive for having cooperation and investment in Indonesia.
SIXTH: successful transformations are usually marked by reforming key institutions.
In China, the Chinese Communist Party, in view of the changing social and political landscape, recently adapted itself by promulgating the doctrine of the “3 represents”, which among others recognized the role of the private sector in the Communist Party.
Here too in Indonesia, we have transformed by reforming our institutions : the military is now out of politics, the Parliament is today rejuvenated, our electoral system have been reformed to allow for multi-party elections, and we now have direct Presidential elections—all of which changed Indonesia’s political landscape. My biggest task now is reforming the bureaucracy, to make it more efficient, more transparent, more competent and, yes, of course, more accountable.
SEVENTH: Transformation is delivery-dependent. The success of transformation is really dependent on whether at the end of the process you end up becoming a better, stronger and more prosperous country. Without clear deliverables, it would be hard to argue hat a country has been effectively transformed.
China was able to double its income per capita in the first decade between 1978 and 1987, and, miraculously, it doubled its GDP per capita AGAIN between 1987 and 1996.
EIGHTH: It must be said that transformation is NOT a one-stop but on-going process. You CAN reinvent yourself over and over again.
Take the United States as an example. Since she achieved independence in 1776, America has been transformed many times over. It transformed through the Declaration of Independence and Bill of Rights. It transformed again as a result of the civil war and the end of slavery. It transformed after the Great Depression with a mode of governance that became more humane, and more attentive to the welfare of its citizens. It changed again and again after World War II, after the Vietnam War and the civil rights movement in the 1960’s, and after the end of the Cold War, when it became the world’s only superpower. It remains to be seen what would be the next transformation of the United States—perhaps it will have something to do with the changing demographics of that huge country.
And finally: the best kinds of transformations are those that are homegrown. Even if the stimulus comes from the outside, ultimately, transformation must be driven by national players.
One successful example of homegrown transformation is, again, Rwanda. Rwanda too had a lot of outside help by way of generous international assistance after the genocidal civil war of 1994, which killed 800,000 Rwandans. But Rwanda today stands as a miracle only because its national political leaders from the Tutsi and Hutus were able to find a consensus, and learned from their fatal mistakes of the past, in order to build a new political, economic and social order based on democracy, good governance, and reconciliation.
So these are 9 lessons that I wish to share with you on transforming societies. They are hardly exhaustive, but some of these lessons can also be relevant to our region.
I do believe that we are fortunate to live in a region that is blessed with so much promise and potential. Southeast Asia indeed is one of the world’s most successfully transforming regions.
3 or 4 decades ago, Southeast Asia was host to intense wars, involving countries in this region and countries from outside the region. Today, no country in Southeast Asia is at war with its neighbor or with a country outside the region.
A few decades ago, Southeast Asia was a divided region. Today, all of Southeast Asian countries are members of ASEAN.
A decade ago, Cambodia was ravaged by an intense civil war that divided our region. Today, Cambodia is peaceful, stable and becoming more democratic.
A few decades ago, Southeast Asia was troubled by instability, poverty and ideological rivalries. Today, ASEAN is a dynamic market of 550 million with a combined GDP of over US$ 800 billion and bounded by a common vision of a Community.
Clearly, over the past several decades, Southeast Asia has experienced remarkable geopolitical and geoeconomic transformations.
But that transformation is hardly completed.
The countries in this region will grow and evolve in their own way. But they will
also have to evolve together. Despite the unique historical, cultural and political background of countries in this region, we can all realize the ASEAN Vision 2020, which comprehensively outlines a rich vision for Southeast Asia in all its dimensions.
Southeast Asia’s NEXT GREAT transformation will be when all of us will become an ASEAN Community by 2020, 14 years from now, if not sooner. By that time, this region will transform to become a Security Community, an Economic Community, and Socio-Cultural Community—all at once.
That next GREAT TRANSFORMATION will also require us to work together to narrow the development gaps that still exist among the ASEAN members.
To make that vision a reality, ASEAN has already drawn a practical action plan, the Vientiane Action Programme (VAP). For that plan to succeed, we must ensure parallel progress on all fronts. Thus, progress in economic integration in tandem with progress on political-security as well as in socio-cultural fields.
In the final analysis, ASEAN can only be a true Community if it is built on the foundations of People-to-People contacts. This grass-root approach will be necessary if we are to make ASEAN’s integration much more relevant to the lives of our people.
In the past decades, Southeast Asia has been transformed through a number of ways: diplomacy, good-neighborliness, conflict resolution, cooperation, solidarity, regionalism, and something mysteriously effective called “the ASEAN way”. I am told by Dato’ Timothy that there was a hot debate on whether ASEAN is still relevant or not. Of course, I will not point my personal view. But remember: If we are seeing the ASEAN way, we have to look at the fundamentals, the principles, and the philosophy. Consensus building, the combination of direct and indirect approach in dealing with issues faced by ASEAN, and the style, the realization, could be changing as part of a big transformation in itself. It is not necessarily that we have to confront the ASEAN Way or non-ASEAN way. Rather, we have to ensure that the fundamental philosophy of the way can be adapted, can be transformed from time to time as a topic of our discussion this evening.
We will continue to need plenty of these ingredients. But I do believe that what is ultimately necessary to change this region is: governance—good governance.
When I am asked by journalist: What is your opinion, Mr. President, in transforming Indonesia in the decades to come? What are the fundamental issues, topics, and themes related that huge task and agenda? I mentioned, among others, three things. One is education that can change our human capital. Second, governance—a good governance, that can deliver the needs of the people by having responsive, transparent, and accountable type of administration. And last but not least, tolerance, a harmony, a unity in a so diverse country. So those three things in my own view are becoming the fundamental challenges and agenda of Indonesia’s transformation that we are undertaking now.
That governance means many things. It means competitiveness. It means transparency. It means anti-corruption. It means accountability and rule of law. It means professionalism and efficiency, and of course productivity. It means many other things that will change the way we work for the better.
When all is said and done, I do believe that “governance” is the call of our generation—the present and future leaders of ASEAN.
Experience has taught us that governance, irrespective of ideologies and political systems and historical background, is the key to success. With governance, we can resolve problems, unlock potentials, harness progress, settle conflict and enhance cooperation.
I still remember when I gave my speech before the United Nations Summit last year in New York, I stated two things when we were discussing about the achievement of the Millennium Development Goals. That is debate on the role of developed countries, on the one hand, and the obligations of developing countries on the other hand. My view is quite clear. To achieve the Millennium Development Goals, we need better and concrete partnership and cooperation. The developed countries must take part in helping the developing countries in achieving the Millennium Development Goals. 0.7 % of GDP, as it is “agreed” by global community has to be realize, to again, helping developing countries in overcoming their challenges. But, one thing for sure, that all leaders in the developing countries must also do their obligations. The leaders of the developing countries must build good governance, must have a clear strategy so our global goal in achieving the Millennium Development Goals can be realized well, say in, 2015, as it is stated in 2000 in New York.
And if each of us practice and advance governance, I have no doubt that Southeast Asia will one day be transformed to a point where it can truly live up to its promise to become, to borrow the words of the ASEAN Vision 2020, “a concert of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together in partnership, in dynamic development and in a community of caring societies.”
So, Ladies and Gentlemen, that concludes my presentation. I will be glad to hear your comments on this very important topic. And thank you for your kind attention.
I thank you.
PRESIDENT OF THE REPUBLIC OF INDONESIA
DR. SUSILO BAMBANG YUDHOYONO |
