http://www.antara.co.id/en/seenws/?id=22080

Two years of "SBY" : Bouquet for Aceh, brickbat for economy
Jakarta (ANTARA News) - As he heads into his third year as Indonesia's 
president on Friday, Susilo Bambang Yudhoyono enjoys respectable popularity, 
but is struggling to ignite Southeast Asia's largest economy, analysts say.

The 57-year-old former general, who was nominated for a Nobel peace prize for 
overseeing a peace pact with separatist rebels in Aceh, has crafted a respected 
image abroad, but at home the battles he faces are more complex.

"SBY" was the nation's first directly-elected head of state, taking power on 
October 20, 2004 amid widespread optimism that he would battle Indonesia's 
infamous corruption and breathe change into the administration.

Two years later, presidential spokesman Andi Mallarangeng argues that the 
world's fourth most populous nation is "on the right track", despite of a 
series of catastrophes Yudhoyono has had to grapple with since his election.

Two tsunamis, two major earthquakes, a terror attack and the rapid spread of 
bird flu across the archipelago have conspired to put the brakes on the 
president's capacity to act on more mundane but pressing domestic issues.

Mallarangeng points to the "stabilization" of the two formerly restive extremes 
of Indonesia -- Aceh and Papua, where the president has pushed for a 
decentralisation law to be implemented -- and a recent poll which found that 
just over two-thirds of Indonesians are "satisfied" with Yudhoyono.

To his credit, the president slashed high fuel subsidies a year ago and fears 
that the move may have stimulated unrest were proved unfounded.

Indonesia has repaid its IMF debt, carried out an effective anti-terrorism 
campaign and launched a crackdown, if limited in its impact so far, on 
corruption.

On the international front, Jakarta has repaired its military ties with 
Washington and played host to a series of Western leaders keen to promote 
amicable ties with the world's most populous Muslim nation. US President George 
W. Bush himself is expected to visit next month.

Indonesia has just been elected to the UN Security Council as a non-permanent 
member, and will send a peacekeeping contingent to Lebanon.

Black marks

Two black marks however have emerged in recent weeks that have the potential to 
sully Yudhoyono's reputation on the global stage.

In a shock move, the Supreme Court overturned the conviction of a pilot for 
murdering one of the country's most respected human rights activists. And three 
Christians convicted of violence against Muslims in cases criticised by 
activists for being unfair were executed despite a papal plea for clemency.

On the domestic front, the economy remains far from rosy despite the 
president's overhaul of his economic team last December.

With nearly 40 percent of the labour force unemployed or underemployed, and 39 
million people in a population of some 220 million estimated to be living in 
poverty, Indonesia is lagging behind.

Its economic growth rate of just under six percent is considered too low, with 
inflation expected to clock in as high as eight percent in 2006.

"We have all these international business communities talking to us, (telling 
us) very good things about democratization, moderate Muslims, about this and 
that," said Sofyan Wanandi from the Indonesian Employers Association.



"But in the end they are going to China, they are going to Vietnam -- not to 
Indonesia to invest."

Proposed tax and labour law reforms have been put on ice, with the government 
showing signs of disunion, and the deplorable state of infrastructure has also 
discouraged development.

"The bureaucrats are not spending the money because they think it's not like in 
the old days where money could be corrupt" and used to line their own 
pockets, Gadis Arivia, a feminist academic at the University of Indonesia, was 
quoted by AFP as saying.

Some argue that Yudhoyono is playing it safer as his term progresses.

"Like a pro tennis player, he becomes more conservative as he wins more 
points," political analyst Wimar Witoelar wrote in the Jakarta Post this week.

"The problem is, the points he scores are mainly for himself rather than for 
the nation."

Yudhoyono has three years left to prove his worth to Indonesian voters before 
they head to the polls again. (*)


Copyright © 2006 ANTARA

October 20, 2006


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