An Indonesian Story
Author | Vikram Nehru |
Pages | 59-59 |
June 2018 | FINANCE & DEVELOPMENT 59
An Indonesian
Story
THE COVER OF Vasuki Shastr y’s Resurgent Indonesia
shows a Phoenix rising from the ashes —an apt
metaphor for Indonesi a’s remarkable tra nsforma-
tion since its catastrophic na ncial, economic,
and political crisis in 1997–98. e book’s release
coincides with a gathering of the world’s nancia l
elite at the IMF–World Bank Annual Meeting s in
Bali later this ye ar. It will serve as a useful rem inder
of how far Indonesia has traveled from the da rk
depths of the crisis to a stable, democratic, a nd
decentralized c ountry with a vibrant economy.
e book’s broad sweep of Indonesia’s spec-
tacular cra sh and subsequent rise is really a n
account of three crises —nancial, agricultur al,
and political—t hat serendipitously occurred at
about the same time and interacted in complex
ways. A journalist by training, Shast ry uses
anecdotes, personal re ections, and intervie ws
to illuminate the complicated causes and con-
sequences of the crisis and the fac tors behind
the countr y’s resurgence .
e rst half of the book ex amines the unfold-
ing of the 1998 crisis. Shastry’s account makes
vivid how a multitude of interests intersected to
shape events during that fate ful period: those of
internationa l and Indonesia n technocr ats with
little understanding of the political rami ca-
tions of their policies; the political, military,
and commercial elites intent on defending their
interests; and ordinar y workers, peasants, and
students who bore the brunt of the crisis and
demanded a change in t he status quo, including a
greater voice in government. Over just one week
in May 1998, the crisis came to a sudden and
unexpected clima x with riots in the streets, the
killing of four students at Trisakti University,
and the eventual depa rture of President Suharto.
e second half of the book focuses on the
noisy, often chaotic post-Suharto transition
toward democracy, a free press, and increased
emphasis on human rights and t he rule of law.
Shastry rig htly points to the pivotal role of
Habibie’s 18-month presidency during which he
trimmed the powers of the presidency, enhanced
the role of local governments, restored basic
freedoms, and allowed the East Timorese to
vote for independence—all t he while protecting
the country’s key institutions a nd the interests
of the elites.
Unfortunately, the book gives scant attention
to the next three presidents—Abdurrahman
Wahid (Gus Dur), Megawati, and Susilo
Bambang Yudhoyono (SBY)—but gives a
glowing account of President Joko Widodo
(Jokowi)’s meteoric rise. Disregarding SBY’s
10-year administration (200 4–14) is particularly
unfortunate, as it would have helped expla in
why Jokowi inherited a country with ra mpant
corruption, a large infra structure decit, unsus-
tainable fuel subsidies, a nd growing intolerance
toward minor ities.
Shastry, a self-confessed optimist, correctly
describes Indonesia as “an archipelago of possi-
bilities,” but in doing so glides over the country’s
many deep social, economic, spatia l, and religious
fault lines. To compound matters, the book’s
discursive style is of ten as choppy and turbulent
as the events it describes, a nd periodic digressions
describing the challeng es of other countries, espe-
cially India and Ch ina, do not help.
Its shortcomings notwithstanding, Resurgent
Indonesia is a useful addition to the literature on
an important countr y during a critical pa rt of
it s h is tory.
VIKRAM NEHRU, distinguished practitioner-in-residence,
School of Advanced International Studies, Johns Hopkins University
Vasuki Shastry
Resurgent Indonesia:
From Crisis to Confidence
Straits Times Press Books,
Singapore, 2018, 248 pp., $35
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