Monday, June 9, 2014

Susilo Bambang Yudhoyono's parting gift a sweet one as instability looms



In the final four months of his decade in power, Indonesia's President has given Australia a big, last gift.

Susilo Bambang Yudhoyono invited Prime Minister Tony Abbott to a meeting, and then to a dinner of Aussie beef, last week on one of Indonesia's many resort islands.

It was the strongest possible sign that he had forgiven Australia its transgressions and wanted to restore full co-operation.

"Australia should be very happy about that," says an Indonesia expert, Greg Fealy of the Australian National University. "Because if Prabowo were elected, it could be very unpredictable."

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Prabowo Subianto is one of the two leading candidates for next month's election to replace SBY.

The short-tempered Prabowo is a retired general, the former head of Indonesia's Kopassus special forces and son-in-law to the late dictator Suharto.

He is prone to inflammatory words and deeds. He said in a recent campaign speech that he didn't want to see "Indonesians being slaves to foreigners".

Says Fealy: "He’s a highly temperamental politician. If I were Tony Abbott, I would be quite worried about the prospect of a Prabowo presidency.

"It's good for Australia that SBY leave the relationship in good shape."

The alternative president and frontrunner in the polls is a more stable quantity, Joko Widodo. The can-do Governor of Jakarta is known universally by the nickname "Jokowi".

Prabowo today has a 40 per cent chance of winning, against Jokowi's 60 per cent, Fealy estimates.

Jokowi seems a clean and well-meaning politician. But he carries risks for Australia. The former furniture exporter has no policy experience beyond metropolitan governorships.

And some of the policies that he has started to announce in the approach to the July 9 presidential election are troubling.

He has said, for instance, that he wants Indonesia to phase out its agriculture imports.

This is not very practical. Yet any attempt to implement such an idea still represents a threat to Indonesia's status as a member of the open international system and a threat to billions of dollars a year in Australian farm exports.

But this sort of ham-fisted autarky is exactly what can happen when competitive nationalism is in play in an election campaign.

In short, Indonesia is entering a much riskier phase and Australia is losing its best tool of risk management – SBY. 

The outgoing President had no political incentive to close the rift with Australia.

No Indonesian politician wins popularity points for warm dealings with the country's much-resented southern neighbour.

And Abbott hasn't done much to deserve the gift. So why did SBY do it?

"It was about his legacy," a senior Australian official says. "He's invested too much in the relationship to leave it in a mess."

Fealy adds: "SBY is well and truly into lame duck territory. Half his cabinet ministers don't bother to turn up for cabinet meetings any more and he's complained about it in public. It's kind of pathetic.

"Foreign policy is one area where he can still make a difference and that includes fixing things with Australia."

An Australian official also points out that Indonesia's authorities have discovered pressing new needs to do business with Canberra.

One stands out – the newest incarnation of the terrorist threat.

Like Australia, Indonesia has found that it has citizens who are drawn to take sides and fight in Syria's civil war. On return, they are considered potential terrorists.

Jakarta, like Canberra, is anxious to get the best possible intelligence on the flow of fighters.

In their meeting last week, SBY and Abbott "agreed that it was imperative to strengthen intelligence and to create greater and deeper relations of trust, especially because of terrorism and Syria", according to an official present at the meeting.

In fact, Jakarta considers it so imperative that Indonesia's government is already co-operating with Australia's on this. It turns out it has been all this year, according to well-placed officials.

But hold on – didn't SBY specifically freeze intelligence co-operation last November?

Didn't he impose a ban in his indignation over the revelation that Canberra had tapped the personal mobile phones of him, his wife and his inner circle?

Yes, he did. And he had said that Australia had to complete a six-step process to restore ties. One of the steps was to sign a code of conduct on intelligence activities.

The code has not yet been signed. And Indonesia's Foreign Affairs Minister, Marty Natalegawa, specifically said last week that he was waiting for Australia to respond to the draft he had sent Canberra.

Yet Australia's Foreign Affairs Minister, Julie Bishop, tells me: "There's a high level of co-operation between Australia and Indonesia across about 60 different areas.

"Co-operation is continuing in the intelligence area, particularly as we both face challenges from our citizens travelling to Syria and running the risk of them returning to Australia and Indonesia with terrorist capabilities."

So the so-called code of conduct, which Bishop prefers to call an instrument of understanding, isn't the big deal we had been told it was.

In the six-step process, a summit meeting between SBY and Abbott was supposed to be the culminating step. Yet it's happened regardless of the absence of the code of conduct.

It looks suspiciously as if the six-step process and the code of conduct were invented as mechanisms to hold Australia.

Bishop says she expects the formal document to be agreed and signed when she and Natalegawa meet, probably in early July, as part of a joint meeting with their defence counterparts in a so-called two-plus-two ministerial meeting.

Fealy says: "SBY's intervention was exactly what was needed to stop this from turning into a complicated game played by Marty Natalegawa."

For Australia post-SBY, many more complications lie ahead.

Peter Hartcher is the SMH international editor. Illustration: Simon Letch.

 




 

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