The Indonesian Economy Under Abdurrahman Wahid

Abstract

The honeymoon period following the election of Abdurrahman Wahid as president under a more democratic system was only a brief one. It ended with the announcement of the National Unity cabinet. Wahid's cabinet was a great disappointment to many. Firstly, it did not reflect the spirit of reformasi because it was not free from individuals that have been associated with the status quo forces. Secondly, it was regarded as a cabinet rather than a cabinet that can deliver the reforms because it incorporates all major political parties with diverse interests and agendas. Thirdly, the capability of the economic team is highly questionable as it consists of politicians from different parties (and some military officers) with no technocratic background. Abdurrahman Wahid, also known as Gus Dur, is fully aware of these short comings. He consciously made a political trade-off between effective govern ment, on the one hand, and national unity and reconciliation, on the other hand. Gus Dur has been of the view, even before assuming the presidency, that national unity and reconciliation should be given highest priority. He has been deeply concerned with the political polarization in the country. This moti vated him to run for the presidency himself in order to prevent a deepening rift within the nation between the nationalists, represented by Megawati, and the Muslims who are organized into different groups and factions that initially rallied behind Habibie. He has been worried about the weakening of the nation's social fabric. He is of the view, for example, that to punish former president Soeharto would tear apart this already fragile social fabric. It is somewhat puzzling that the problems of Aceh, Irian Jaya, and Maluku did not initially figure prominently in Gus Dur's agenda although they pose a serious challenge to national unity. Gus Dur delegated the task of resolving the problems of Irian Jaya and Maluku to Vice-President Megawati and reserved Aceh for himself. They both moved only slowly and gave the impression that they did not know what to do. However, this could have been a calculated move. On Aceh, Gus Dur successfully kicked the ball back to the Acehnese court as the ball was too hot for him to handle. He would only burn his hands