University of Groningen. State-business relations in post-1998 Indonesia Hartono, I.

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1 University of Groningen State-business relations in post-1998 Indonesia Hartono, I. IMPORTANT NOTE: You are advised to consult the publisher's version (publisher's PDF) if you wish to cite from it. Please check the document version below. Document Version Publisher's PDF, also known as Version of record Publication date: 2011 Link to publication in University of Groningen/UMCG research database Citation for published version (APA): Hartono, I. (2011). State-business relations in post-1998 Indonesia: The role of Kadin Groningen: University of Groningen, SOM research school Copyright Other than for strictly personal use, it is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license (like Creative Commons). Take-down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. Downloaded from the University of Groningen/UMCG research database (Pure): For technical reasons the number of authors shown on this cover page is limited to 10 maximum. Download date:

2 APPENDICES

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4 Appendix I: List of Abbreviations and Words in Bahasa Indonesia o ABRI (Angkatan Bersenjata Republik Indonesia): Indonesian military force o AD/ART (Anggaran Dasar dan Anggaran Rumah Tangga) Kadin: Kadin statutes o AFTA: Asean Free Trade Area o API (Asosiasi Pertekstilan Indonesia): Indonesia Association for Textile and Textile Products o Apindo (Asosiasi Pengusaha Indonesia): Indonesian Employers Association o Aprisindo (Asosiasi Persepatuan Seluruh Indonesia): Indonesia Business Association for Shoes o Ardin (Asosiasi Rekanan Pengadaan Barang dan Distribusi Indonesia): the Business Association of Indonesian Suppliers and Distributors o Ardin-DKI: regional branch (Jakarta) of Ardin o Bappenas (Badan Perencanaan Pembangunan Nasional): National Development Planning Board o BPPN (Badan Penyehatan Perbankan Nasional), also known as IBRA: International Bank for Reconstruction Agency o Buka Puasa Bersama: collective breakfast during the Ramadan month o Bundaran Hotel Indonesia: a strategic location in Jakarta in front of the Hotel Indonesia, often the place where demonstrations are held o DEMMI (Dewan Ekonomi Masyarakat Muslim Indonesia): organization of Indonesian Muslims with economic interests o Deperindag (Departemen Perindustrian dan Perdagangan): Ministry for Industry and Trade o Dewan Penasehat Kadin: advisory board of Kadin o Direktur Pendanaan Bappenas: funding director of Bappenas o DKI (Daerah Khusus Ibukota): special status of Jakarta o DPR: House of Representatives or the Indonesian parliament o DPRD: regional council o DPRK: local district council o Dwi-Fungsi ABRI: the military dual function o FKAP (Forum Komunikasi Antar Pengusaha): communication forum for entrepreneurs o FSPSI (Federasi Serikat Pekerja Seluruh Indonesia): All Workers Labor Union o Gapensi (Gabungan Pelaksana Konstruksi Indonesia): National Indonesian Association of Construction Firms o Gapmmi (Gabungan Perusahaan Makanan dan Minuman Indonesia): Indonesian Association for Food and Beverages

5 210 o Golkar (Golongan Karya): the Functional Group (political party) o Gubernur BI: the governor of the Indonesian Central Bank (Bank Indonesia) o Gudang Garam: a well-known brand of kretek cigarettes o Gus Dur (Abdurrachman Wahid): the fourth President of Indonesia o Hipmi: association of young Indonesian entrepreneurs o HIPPI (Himpunan Pengusaha Pribumi Indonesia): association of native Indonesian entrepreneurs o Ikadin (Ikatan Pengacara Indonesia): the Association of Indonesian Lawyers o IMF: International Monetary Fund o Inkindo (Ikatan Kosultan Indonesia): National Association of Indonesian Consultants. o Iwapi (Ikatan Wanita Pengusaha Indonesia): association of Indonesia female entrepreneurs o Juknis (Petunjuk Teknis): Technical Guidance o Kabinet: the (President s) cabinet o Kadin (Kamar Dagang dan Industri Indonesia): Indonesian Chamber of Commerce and Industries o Kadinda Kalbar: regional branch of Kadin for Western Kalimantan (Borneo) o Kadinda-DKI or DKI-Jaya: regional branch of Kadin for Jakarta o Kadinda-Sulsel: regional branch of Kadin for South Sulawesi o Kamers van Koophandel en Nijverheid: Chamber of Commerce formed by the Dutch colonial administration before the Indonesian independence o Keanggotaan Luar Biasa: extraordinary membership o Keanggotaan Penuh: full membership o Kepmen (Keputusan Mentri): Ministry Decision o Ketentuan Peralihan: transitional regulation o Ketua Umum (Golkar): chairman of Golkar o KKN: corruption, collusion and nepotism o Kompartemen Kebijakan Publik Kadin Indonesia: Kadin Compartment for Public Policy o Kompartemen: part of Kadin with a specific function or responsibility, e.g. the forestry compartment or the compartment for public policy o KPPU (Komisi Pengawasan Persaingan Usaha): Commission Monitoring Business Competition o Mekanisme Tripartite Baru: (the new) Tripartite Mechanism o MPR (Majelis Permusyawaratan Rakyat): People s Consultative Assembly o MUI (Majelis Ulama Indonesia): Indonesian Cleric Assembly o Musyawarah Nasional Khusus (Kadin): extraordinary national conference of Kadin

6 o Musyawarah Nasional Pertama Kadin: Kadin s first national congress o Musyawarah Nasional: national conference o Ormas: mass organization o Otonomi Daerah: regional autonomy o Pancasila: Indonesia philosophy consisting of five principles o Panja (Panitia Kerja): committee that drafts a bill o PDI-P (Partai Demokrasi Indonesia Perjuangan): Indonesian Democratic Party of Struggle o Pelelangan: auction o Pilkada: election of the head of the local government o PKI (Partai Komunis Indonesia): Indonesian Communist Party o PLN (Perusahaan Listrik Negara): national electrical company o Poros-Tengah: Middle-Axis o PPP (Partai Persatuan Pembangunan): United Development Party o Pribumi: native Indonesian o Rapat Konsultasi Nasional Kadin: Kadin s national level consultation meeting o Repelita (Rencana Pembangunan Lima Tahun): Five Years Economic Plan o Rupiah: currency of Indonesia o RUU (Rancangan Undang-Undang): bill o SBSI (Serikat Buruh Sejahtera Indonesia): Indonesian Welfare Labor Union o Sekretariat Kabinet: cabinet secretariat o SMEs: small and medium enterprises o SOEs: state owned enterprises o SPSI (Serikat Pekerja Seluruh Indonesia): All Indonesia Workers Union o Surat Edaran Bersama: policy documents issued by government offices o Surat Presiden: President s (formal) letter o TNI (Tentara Nasional Indonesia): Indonesian Military o Undang-Undang Dasar: state constitution o Undang-Undang Perlindungan Konsumen: act on consumer protection o Utusan Golongan Ekonomi: representatives from the economic sector in the People s Consultative Assembly (MPR) o UUD 1945 (Undang-Undang Tahun 1945): constitution of 1945 o WTO: World Trade Organization o Xin-Wei: television news program in Chinese o Forum Kerja Tripartite Nasional: national tripartite forum Yayasan: foundation 211

7 Appendix II: List of Presidents/chairmen of Kadin (1968-present) : Brigjen Usman Ismail : Brigjen Sofiar (passed away during his presidency) : Marsekal Suwoto Sukendar : Hasyim Ning : Sukamdani Gitosardjono : Sotion Ardjanggi : Aburizal Bakrie 2004-present: Mohamad Hidayat 212

8 Appendix III: List of vice-presidents/chairmen of Kadin ( ) Vice-President co-ordinating Organization, Regional Chambers, Industries and Entrepreneurs Associations Development Vice-President co-ordinating Small and Medium Enterprises and Cooperatives Development Vice-President co-ordinating Investment Vice-President co-ordinating Foreign Relations Vice-President co-ordinating Human Resources Vice-President co-ordinating Metal, Machinery, Chemical and Agro Industries Vice-President co-ordinating Textile, Electronic and Multifarious Industries Vice-President co-ordinating Trade Affairs Vice-President co-ordinating Transportation Vice-President co-ordinating Telematics (Telecommunication and Information Technology) Vice-President co-ordinating Construction and Real Estate Vice-President co-ordinating Mining and Energy Vice-President co-ordinating Agriculture, Fishery and Livestock Vice-President co-ordinating Forestry and Plantation Vice-President co-ordinating Tourism Vice-President co-ordinating Financial Services, Organizational Vice-President co-ordinating Social Welfare Vice-President co-ordinating Environment Vice-President co-ordinating Trade, Tourism and Investment Promotion 213

9 Appendix IV: List of all compartments of Kadin ( ) Compartment of Organization Compartment of Regional Chambers Development Compartment of Industries and Entrepreneurs Associations Compartment of Membership Certification Compartment of Business Partnership Compartment of Funding Programmes Compartment of Management Small and Medium Scale Business and Cooperatives Compartment of Empowerment of Small and Medium Scale Business and Cooperative Compartment of Investment Compartment of Capital Market Compartment of coordination of Bilateral and Multilateral Committees Compartment of Sub Regional Economic Zone Compartment of Asia Pacific Area Compartment of Human Resources Development Compartment of Industrial Relations Compartment of Intern-Labor Institutions Compartment of Basic Metal and Machinery Industries Compartment of Chemical Industries Compartment of Agro Industries Compartment of Textile Industries Compartment of Electronic Industries Compartment of Multifarious Industries Compartment of Foreign Trade Compartment of Domestic Trade Compartment of Public Policies Compartment of Air Transportation Compartment of Sea Transportation Compartment of Land Transportation Compartment of River, Lake and Ferry Transportation Compartment of Multimode/Goods Forwarding Services Compartment of Telematics (Telecommunication and Information Technology) Compartment of Postal and Courier Services Compartment of Mass Media Compartment of Real Estate Compartment of Construction Compartment of Construction Design and Engineering Services Compartment of Consultancy Services Compartment of Oil and Gas Compartment of General Mining Compartment of Electricity Energy Compartment of Agriculture Compartment of Fishery 214

10 Compartment of Livestock Compartment of Forestry Compartment of Plantations Compartment of Hotel Industry Compartment of Tourism Supporting Facilities Compartment of Banking Compartment of Insurance and Other Financial Institutions Compartment of Funds and Facilities Compartment of Poverty Eradication Compartment of Entrepreneurship Socialization Compartment of Environmental Certification Compartment of Environment Compartment of Exhibitions and Conventions 215

11 Appendix V: Alternative policymaking models As was discussed in chapter 2 of this thesis, in the literature several types of policymaking models may be distinguished: closed versus open policymaking models, elite versus group-oriented policymaking models, and system versus structural models. In chapter 2 the closed versus open policymaking models have been discussed in some detail. In this appendix, we will briefly describe the alternative types of policymaking models that have been discussed in the literature. Elite versus Group-Oriented Policymaking Models An alternative way of distinguishing between policymaking models is by looking at the type of actors involved in the policymaking process. Depending on these actors, one may recognize elite-oriented and group-oriented policymaking. The elite-oriented model posits that public policy is a reflection of the dominant values and interests of the elite. According to this model, involvement in policymaking is not equal among the different groups in society. Instead, policymaking is dominated and carried out by small elite. According to Gaetano Mosca, the elite includes those who are dominant and superior in terms of politics, economic power, social status, culture, etc. The remainder of society (i.e. the dominated class) lack public policy information, and therefore policy decisions are taken by the more informed elite. Thus, this model assumes that policymaking is a top-down, rather than a bottom-up process. 553 The group-oriented policymaking model, on the other hand, states that policy is the result of interactions among different groups in society. These groups are assumed to be autonomous and self-organizing, at least to a large extent. David Truman argues that interactions of community groups can have political impact only if they aim their demands towards state institutions. Groups are seen as a bridge between individuals and the state. Thus, politics is seen as the attempts of different societal groups to influence government policies. Some authors argue that this model may only apply to more advanced industrial and emerging economies, since autonomous self-organizing societal groups are absent in many developing societies. 554 System versus Structural Models Yet another way of distinguishing policymaking models is by focusing on the mechanism of policymaking processes. Basically, two models of policymaking can be distinguished here: system and structural models. The system model, developed by David Easton, argues that decision making is a systemic process 553 Mosca Truman,

12 in which actors interact with their environment. 555 A system consists of input, process, output, and feedback. These different parts of the system are connected, creating a dynamic process of policymaking. Pivotal decision making is the process of converting input (i.e. discussions, bargaining, policy proposals) into output (i.e. public policies). Through feedback output is evaluated in terms of its ability to achieve certain goals. This model has a number of weaknesses, one of them being the fact that one may question whether input really comes from society, or whether it is manipulated by the bureaucracy. 556 This critical view of the system model is linked to the critical remarks with respect to the public choice approach of open policymaking models. The structural approach stresses the importance of the organization structure of the state in producing and implementing policies. 557 There are three types of organizational structure that may determine policy processes. First, the organizational structure of the state may be hierarchical. If this is the case, the organization of the state is characterized by a high degree of hierarchy with a rigid definition of tasks. 558 Second, the organizational structure of the state may be organic, which means that it is highly flexible and less hierarchical. 559 Third, the organization may have a matrix structure that tries to combine effective control and flexibility in policymaking. In essence, the system approach argues that the organizational structure of the state is responsible for the success or failure of policymaking and its implementation. 555 Easton, 1971, pp See also Easton in Verma, 1999, pp Easton, ibid, pp Rajawali, Ibid. 559 Ibid. 217

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