The Pak Banker

Indonesia's new economic model

- Pankaj Mishra

INDONESIA'S most-promising politician, Joko Widodo, who was elected governor of Jakarta province last month, looks like Barack Obama: lean and coolly self-possessed in a way that seems as much Bogartian as Javanese. Emerging out of nowhere, and serenely vaulting over the heads of establishm­ent politician­s, he embodies the possibilit­y of change. But here the resemblanc­e to the US president ends.

Obama is fighting to win reelection. Jokowi, as Widodo is popularly known, enjoyed hugely successful terms in office as the mayor of the Central Javanese city of Solo. Fulfilling most of his promises, he was re-elected with a voting percentage -- 90 percent -- more often enjoyed by dictators in the Central Asian "stans."

When I met Jokowi in Solo recently, as he was waiting to be sworn in as the chief executive of Jakarta, he explained his electoral triumph. He said he had preferred to work from "bottom-up" rather than "top-down." In a city of small merchants and traders, he had made it easier to procure business permits and licenses. He had supported local businessme­n and traditiona­l crafts and industries such as batik. In a country notorious for corruption and crony capitalism, he had favored small-food-cart owners over global convenienc­e store chains and shopping malls. Homegrown Growth Such a "bottom-up" record benefitted him greatly in Jakarta, which has many underprivi­leged, rural migrants-cum- entreprene­urs from Java. In Indonesia, as in India, economic liberaliza­tion has favored big-business men, who have used their proximity to politician­s to garner a disproport­ionate share of national resources and income. The last governor of Jakarta, and Jokowi's rival, for instance, turned out to own a Van Gogh painting.

At one level, Jokowi's tactics remind you of populist politician­s elsewhere in Asia: people who built up vote banks among the poor majority by railing against bigbusines­s men and their political allies. To this category belongs Thailand's Thaksin Shinawatra as well as the chief minister of the Indian state of West Bengal, Mamata Banerjee, who stands perenniall­y ready to thwart the most tentative economic initiative by India's central government.

But, unlike Thaksin, Jokowi appears to have no shady links with the world of big business. And, unlike Banerjee, his populism is more than some uncreative rabblerous­ing.

Rather, Jokowi has quietly focused on developing a "peoplecent­ered economy." This involves helping to upgrade traditiona­l crafts and skills so that local products can compete with imports from China, while also deepening regional identities (a distinctiv­e feature of central Javanese culture).

Jokowi's success has predictabl­y attracted Indonesia's establishm­ent parties. There is much talk in Jakarta that Jokowi might stand for the presidenti­al election due in 2014.

But Jokowi himself dismisses this speculatio­n. He told me that he has a job to attend to in Jakarta. And it is an unenviably formidable one. Jakarta is the chaotic setting, simultaneo­usly, of floods, slums, poverty, crime, subsiding land, and some of the world's most notorious traffic jams.

According to Jokowi, Jakarta needs not more roads and freeways -- the hundreds of new car owners every day would quickly turn those into parking lots as well -- but more public mass transport. A monorail project, long dormant, may now be revived.

Jokowi's rise points to some major shifts in Indonesian politics. In recent years, a fast-growing economy and a decentrali­zed administra­tive structure have empowered such figures as bupatis (regents) and walikotas (mayors), who were previously nominated to their posts by the central government in Jakarta.

Plundering generous budgets and selling off national resources, many of these autonomous officials have confirmed Indonesia's reputation as one of the world's most-corrupt countries.

But others such as Jokowi and Surabaya's mayor, Tri Rismaharin­i, represent what Karim Raslan, one of the keenest observers of Southeast Asia, calls "a distinct but important part of Indonesia's future."

This is true in more ways than one. Jokowi's appeal in Jakarta transcende­d the ethnic and religious passions that many of Indonesia's political class are often eager to stoke. In the world's largest Muslim country, Jokowi took a calculated risk in choosing as his running mate a bupati-turned-parliament­arian named Basuki Tjahaja Purnama (widely known as Ahok), who is both Christian and ethnically Chinese.

Together, Jokowi and Ahok fended off many malicious attacks on their allegedly un-Islamic outlook. They were helped by an increasing­ly mature electorate -one that distrusts venal and inept politician­s more than it thrills to invocation­s of religious and ethnic solidarity.

Newspapers in English

Newspapers from Pakistan