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The Heritage Foundation
April 10, 2009

Indonesian President Yudhoyono's Big Decision

By Walter Lohman

WebMemo #2393

Indonesian President Susilo Bambang Yudhoyono (SBY) is a clear
winner in his country's April 9 parliamentary (DPR) elections.
Indications are that SBY's Democrat Party has increased its 7.5
percent support from the 2004 DPR elections to approximately 20
percent. Whether his party clears the legal 20 percent threshold
of seats required to name its own presidential candidate does
not practically matter: Either way, SBY will need to form a
governing coalition. The most important part of the coalition
will be his choice of a vice presidential running mate.

The Islamist Failure

The other major outcome of the election is the considerable
setback dealt to the Indonesian Islamist parties. PKS, the
ideology's standard bearer, failed to improve substantially from
its 2004 share. Throughout the last year, PKS held firmly to a
goal of garnering 20 percent of the vote. That was probably
never in the cards. But they outwitted themselves on the 15
percent they might have reasonably hoped for. To expand their
base, PKS sought to appeal to Indonesian nationalism and
downplay their Islamism. They portrayed themselves as members of
the political elite, ingratiated themselves with SBY at every
opportunity, and floated coalition balloons with each of the
mainstream parties.

The PKS campaign failed. If Indonesians voted out of a sense of
nationalism, they went with more trusted sources: a president
who has largely led the country in the right direction and older
parties with which voters are more comfortable.

At the same time, PKS failed to pick up defections from the
other Islamist parties. Two of these parties went below the 2.5
percent threshold for representation in parliament. And the
fourth, the PPP of the Suharto era, continued its long decline,
presently hovering around 5 percent of yesterday's vote total.
It is unclear where all these voters went—although given its
poor performance, it seems certain that they did not go to PKS.
Maybe they were as confused by PKS's appeals to non-sectarian
nationalism as everyone else. Polling before the election also
indicated the possibility of migration from the Pancasila-based
Muslim parties—PKB and PAN—to PKS. This also does not appear to
have happened.

No political victories are permanent. In 1999, PKS itself failed
to make the threshold necessary to contest the 2004 elections.
It changed its name to qualify and emerged in 2004 with 45 seats
and three cabinet posts. They turned the name change to their
advantage, using it to obscure their previously more explicit
ideological agenda. They have been running from those roots ever
since to good, steady effect—until now. Their loss will
exacerbate infighting and likely lead them to rely more on their
missionary political work, which continues apace whatever this
week's national election results.

Unfortunately, however, there is one other possibility that
could save PKS from its defeat and pending turmoil.

Vice Presidential Lottery

The Indonesian electorate's attention now turns to the
nominating process for president. Only nine of the 38 parties
contesting the parliamentary elections qualified for
representation, and only a handful of them will field
presidential candidates. The system will force them into
multiparty coalitions, each representing at least 20 percent of
the seats in the DPR. Even if SBY's Democrat Party ends up with
the 20 percent of seats necessary to nominate him without a
coalition, he will still require a coalition of supporting
parties to compete effectively in July.

SBY would seem to be in the driver's seat for the coming
presidential election. His party finished far ahead of the
others, virtually tripling its 2004 total, and the big
parties—Megawati's PDI-P and Golkar—lost votes. But the
situation is complicated. If PDI-P and Golkar—the second and
third place finishers—manage to come together, SBY would be left
with few choices for a vice presidential partner. He could
preempt that possibility by resurrecting his partnership with
Golkar, either by patching up political affairs with his current
vice president or running with another Golkar candidate (the
sultan of Yogyakarta, for example). He could reach out to PKB
and PAN, but given their declining fortunes, that is unlikely.

The other real prospect for vice president is Hidayat Nur Wahid,
the former president of PKS and the speaker of the joint
assembly and holder of three degrees from University of Medina
in Saudi Arabia. Eight percent may be far below what PKS had
hoped for, but it did hold its own, and it has strong
organizational capacity. Securing a spot a heartbeat away from
the presidency would more than salvage their poor performance in
the parliamentary elections.

The Future of U.S.–Indonesia Relations

SBY has clearly done some things of mutual importance to
Indonesia and the United States. On his watch, Indonesia has
prosecuted the war on terrorism quite effectively: Indonesia is
now going on its fourth year without a major terrorist attack.
Under SBY's leadership, Indonesia is reasserting itself in East
Asian politics, and speaking aloud about the importance of
values in its foreign policy. On this basis—and on the basis of
the positive political model Indonesia serves for other
predominantly Muslim countries—the Obama Administration is
rightly committed to taking the U.S.–Indonesia relationship to a
whole new level of partnership.

On the negative side, SBY has sent mixed signals about an
Islamist agenda diametrically opposed to both Indonesian
tradition and American interest in liberal democratic
governance. The most recent example is the remarkable commission
he offered Shari'a financing at the World Islamic Economic Forum
this past March: "Islamic bankers should therefore do some
missionary work in the Western world to promote the concept of
Shari'a banking, for which many in the West are more than ready
now." While Shari'a financing is a complex subject for another
paper, suffice it to say that most Indonesians in the market are
indifferent to it, and those inclined to examine their options
would find more than enough authoritative religious opinion
approving of interest-based banking services. Plus, Shari'a
financing constitutes a bare 3 percent of the Indonesian market.

No one accuses SBY of being an Islamist. And the DPR election
results are evidence that he is a good political tactician. But
from the perspective of U.S.–Indonesia relations, his political
maneuvering may ultimately bring him into the cross fire of
American politics. Careless statements extolling as a role model
Indonesia's most influential Islamist[1] and calls for Islamist
missions to the West could have the effect of choking off the
tremendous potential in U.S.–Indonesian relations.

A Telling Choice

SBY's election victory should give him the confidence he needs
to develop and assert his own vision for Indonesia. With his
choice of a vice presidential candidate, he will tell the world
something about that vision. There are many factors to consider
in his choice—political calculations top among them—but if SBY
cares about establishing a deeper, mutually beneficial
relationship with the United States, he will consider the way
his choice will be received outside Indonesia. Throwing PKS a
lifeline by giving them the vice presidency will effectively
kill any effort to take the U.S.–Indonesia relationship to the
next level.

Walter Lohman is Director of the Asian Studies Center at The
Heritage Foundation.

[1]Walter Lohman, "Indonesian President's Praise of Natsir
Raises Questions," Heritage Foundation WebMemo No. 2181,
December 31, 2008, at
http://www.heritage.org/Research/AsiaandthePacific/wm2181.cfm
(April 10, 2009).

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