State Palace, Jakarta, 21-12-2009

Speech in Front of Stanford Graduate Business of School

 

TRANSCRIPT
SPEECH BY PRESIDENT OF THE REPUBLIC OF INDONESIA
IN FRONT OF
STUDENTS FROM STANFORD GRADUATE BUSINESS OF SCHOOL
STATE PALACE, DECEMBER 21st 2009



<i>ismillahirrahmanirrahim,</i>
Ministers,
Prof. John Robert,
Students from Stanford Business School,
I would like to firstly welcome you to Indonesia. I am pleased to have the opportunity to meet you all and I am hoping that with this visit, you could understand better about Indonesia. Many people say that Indonesia is the least understood country. Of course, by visiting us, by having friends and networks after your visit to Indonesia, I believe very strongly that you will be understanding us better and with that we could build better cooperation and partnership.

I am pleased that you are all wearing Batik this afternoon. You know that Batik is one of the intangible world cultural heritages. And we are proud of having this Batik to be adopted as one the world cultural heritages.

I believe that you have been following Indonesia, the development of the situation. You have met as well several leaders and our national figures while you are here in Jakarta. Therefore, I just want to highlight several important issues related to Indonesia, to our reform and transformation as Prof. John Robert just mentioned.

Yes, Indonesia is nowdays in the process of reform and actually transformation. Of course, reforms always take times. Reforming our system is becoming unfinished agenda. You know well that Indonesia was hit by deep severe crisis around 10 to 11 years ago. Our economy almost collapsed. We are not only in countering economic crisis but as a matter a fact we face also political crisis, social crisis even the crisis of our national security. And we have worked hard to recover our country. We have been more united when we are facing so many challenges and difficulties. Remember also that Indonesia was hit by tsunami and the serious of national disaster that caused many lives of the Indonesian people.

And with the crisis that hit Indonesia, we can take many lessons from it, how to improve our system, how to have a better freedom, how to bring the people on board to be part of the process of the decision making and many things that we could take those lessons from our best crisis.

In the field of economy, we realized that a growth of our economy itself is not enough until we could actually on the one hand stimulate our growth but on the other hand, we could bring more equity to the people. That’s why we adopt new economic strategy that is in essence growth with equity.

I launched the so called triple track strategy in our economic development. There is pro-growth, pro job and pro-poor economic strategy. It means we have also to adopt pro-business strategy. Why? A government can not really create jobs, the business can do that. The business can add our revenue, pay taxes and others. Though with that revenue, we could do a lot of things, to generate our education, our health care, our infrastructure building and other tasks that we have to accomplish. Remember, Indonesia is a developing country. Our challenge is to reduce our poverty, to create more jobs and to improve the welfare of the people.

And the by conducting lots skill of reforms, <i>alhamdulillah</i> in the past few years, we are able to consolidate our economy. We have now better macro economic situation, we have now having stronger fundamental in our economy, better banking systems, and others that in todays global economic crisis, Indonesia can prove that we are able to minimize the impact of the crisis. It means that after experiencing severe economic crisis and we realize, we identify what went wrong with our economic policy, with our economic development. And after conducting several corrections in the form of reforms, we are now I could say in the right direction to continue developing our economy across the country.

Professor, Students,
We are now in the process of recovering our global economy. Yes, we all know that this global economic recession hit almost every economy in the world. And we especially the leaders of the G-20 have met several times, at least we firstly met in Washington DC, secondly we gathered in London and the latest one we met again in Pittsburgh. Our collective tasks is to one, stabilize our financial market, second, to ensure that the global hit investment can be normalized and back to normal. We have to of course reform our architecture, global financial architecture to be more responsive in facing many challenges of todays world. And less but not least, we after having several meeting realized that we have to develop new growth model, global growth that is more inclusive, more sustainable and of course stronger. To ensure that with the global economy with new architecture, we are able to drain global poverty down that finally can improve the welfare of the people around the world.

This the essence of we, all leaders especially in the group of G-20 have to do in the years to come by energizing our effort, by coordinating our national policy and to work together in recovering a global economy and hopely next year, we could go to the acts of strategy and we could to do normal business in terms of normal economic development for developing countries and normal a global economic interaction.

On the subject of democracy, I am pleased to inform you even Indonesia is a young democracy. Remember that 10 years ago, before that we, I should say practiced the authoritarian type politics, types regime of the government and after conducting democratization, I could say now that our democracy is more consolidated now. We have launched of three peaceful and democratic elections including direct presidential election. And I am also pleased to inform you that our democracy goes vocal now, all governors, mayors, and regents are elected directly. It means that our democracy is getting more alive, we respect human right and also freedom. You could see now freedom of the press is here in Indonesia, freedom assembly and any kinds of freedom based on our constitution that has been amended for four times.

Of course, our challenge is now to ensure that freedom can live together with rule of law, with rules very important that freedom must be go in pararel with rule of law. And one of the characteristic of democracy is governance, good governance. We are also working very hard to build good governance in this country across the region not only in Jakarta but in all parts of Indonesia. And we launched anti-corruption campaign, the most aggressive one in our history. It is very challenging. I could say that it will take baggage to totally clean up our system but I am pleased from time to time I could feel that the fear of being committed to corruption is increasing well, good for prevention, and we will to do so to ensure that 10 years from now Indonesia can be a different country with good governance as a rule and not as an exception.

On the foreign policy issue, I would like to say that we adopt so-called all direction foreign policy. Zero enemy, thousand friends. And Indonesia will do our best in using more soft power than hard power. I believe very strongly in soft power. In solving the conflict, I think it will be more less wrong if we conduct a peaceful way based on negotiation and not necessarily using hard power. We have done it in solving the problem in Aceh after three decades of armed-conflict we chose our path after Aceh hit by the tsunami back in 2004 and after five rounds of talk done in Helsinki. We finally achieved peace deal. And Aceh now is peaceful, the guns are silent. We could conduct post-tsunami reconstruction and rehabilitation. And now, we are in the process of reintegrating all elements in Aceh. We will continue to do so in dealing with all internal problems, I mean the security issues in Indonesia.

We also take part very actively in bridging the gap between all among civilizations, dialogue among civilization, inter-faith dialogue, inter-media dialogue. In my view is the solution. And I could say now that even when we are talking about west and Islam relation, all civilization must learn to live together, to live in peace and harmony, try to understand and try to overcome any differences easily.

That’s the spirit of Indonesia to be part of the global effort in avoiding the clash of civilization and in building harmony among civilization.

Less but not least, I would like to inform you on the Copenhagen Conference. I just arrived yesterday from Copenhagen after spending with other leaders almost 48 hours to be part of finding solution in Copenhagen. And I tell you that it is very challenging to see the deal, to reach the consensus. We all now that we have to work together in saving our planet. But when we have to formulate who does what, who is responsible for what, financing, sharing then we realized that it is really challenging my terminology to find correct, not correct, to find the possible consensus to achieve the agreement.

In 2007, Indonesia hosted together with United Nations, the UN Conference on Climate Change held in Bali. Bali Conference almost collapsed. But finally we did produce something. Secretary General of United Nations, Ban Ki-Moon and my self did interfere the process. And Alhamdulillah, finally we produced Bali Road Map, Bali Action’s Plan and actually that plan must be finalized in Copenhagen last week to draft a new protocol to replace the Kyoto Protocol before 2012.

Well, almost 110 leaders gathered in Copenhagen. Decided the formal track of the plenary session we all leaders tried to help the conference with a consensus, with agreement, with deep understanding on how to do we work together. 26 leaders gathered almost 24 hours to draft the so-called Copenhagen Accord. Obama is there, Sarkozy is there, Angela Merkel is there, Hatoyama, Lula, Kevin Rudd, Gordon Brown. Almost leaders are there. And of course even though we were there but it’s hard to really find consensus.

Before we gathered and produced Copenhagen Accord, all leaders made their statement at the plenary session. I remembered on be half of the Indonesian people, I addressed 5 plus 1 key points. One, Indonesia is in the position that we have to work together to ensure that by 2050 the global warming will not arise more than 2O C. We can not compromise on this thing. We can not negotiate the scientific finding. So 2O C is a must.

Second, the Indonesian position is we appeal developed countries really take lead by conducting deep cut of their emission around 40%. It is recommended by international panel on a climate change.

Third point, developing countries must also do more, even we are not, I should say even it is voluntarily basis but of course collective effort in saving our planet will not succeed unless developing countries are also doing on the part. So, Indonesia give the example, we will cut our emission by 26% by 2020 and it is achievable using our own resources. We have counted already one by one, our forest, our factory, our transportation and others.

And with the spirit of this, with the principle of common but differentiate responsibilities and respected capabilities, I believe very strongly that if developed and developing countries can do more in cutting their emission. And we will be able to achieve our objective.

So number three, developing countries must also do more including China, India, Brazil, South Africa, Indonesia and others developing countries.

Number four, of course many developing countries are really committed too and willing to do more in protecting our environment. But we are necessarily have the resource is to do so. That’s why support from developed countries are needed, support and the form of financial support, transfer of technology, capacity building and others as it was adopted at the Bali Conference.

And number five, it’s very important because before I made my statement I know that one of the deadlock is because of the refusal of several developing countries on the concept of MRV (Monitoring, Reporting and Verification). I spoke quite frankly and directly, developing countries must accept this MRV. Why? Because even Indonesia wants to ensure that our own endeavor will be achieving our own objective by monitoring, reporting and verification. We will ensure that all countries, developed and developed one will oblige to achieve their own target.

The pledging of support from developed countries by monitoring and reporting system can also be ensured that it will be delivered to developing nations.

That those five points that I addressed during my statement in Copenhagen and plus one, one is about forestry. Forestry is very important. Remember that Indonesia posseses quite big amount of our forest territory. And we need to protect them, we need to do work we can do in the future to ensure that forest can capture more carbon while can reduce the emission. But we want to do in the years to come 2020 is controlling and avoiding forest fires, avoiding deforestation, conducting reforestation, managing our pip lands and other things that we want to see aggressively in our forest.

And I could interfere in the chapter of the Copenhagen Accord because before my intervention the chapter says that their obligation of developing nations to protect their forest one, two, three, four. And I suggested to the floor of course, to do that developing countries must be given positive incentive. It is fair. And Alhamdulillah, my suggestion was accepted and now being part of the Copenhagen Accord.

So, Ladies and Gentlemen, Dear Students, even though we need to work hard next year at the COP-16 that is to be held in Mexico. And serious of talks will continue next year to really formulate new protocol to replace the Kyoto Protocol but Indonesia will not wait until everything is all set. We will continue our national action, we will continue doing what we can do to save our country, to save our environment, and of course we have to be thankful that Indonesia is assisted by developed nation to succeed our endeavor.

Those things that I would like to address in this very important gathering and I’ll be glad to answer your question you may have connected to Indonesia especially to those issues that I have explained already.

The floor is yours.


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Bureau for Press and Media Affairs
Presidential Household