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Final-Indonesia-Background-Guide

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					Indonesia
A Letter From Your Chair
                                     Dear Delegates,

                                    It is my distinct pleasure to be the first to welcome you to the
                                    ICCE Crisis Simulation for fall 2011. My name is Cambridge
                                    Lestienne and I will be serving as your Chair in the Indonesia
                                    Committee this year. My family resides in Chapel Hill, NC,
                                    however I don’t claim the South owing to the fact that I am
                                    originally from Longmont, Colorado. I am a junior here at Elon
                                    University and am pursuing a double major in International
                                    Studies and Political Science and a double minor in Spanish and
                                    Latin American Studies. I have studied Human Rights abroad at
                                    the Universidad Latina de Costa Rica and while studying there
                                    had the unique opportunity to meet and speak with the
                                    President of Costa Rica, Óscar Arias (see above photo).
                                    Though Latin America is the region in which I specialize and
                                    focus my studies, I have dedicated plenty of time to researching
                                    and becoming familiar with the state of Indonesia and the region
as a whole. It is my current plan to attend Law School after my graduation from Elon University
and focus my study on International Human Rights Law. In my spare time I enjoy doing Ashtanga
yoga, watching horror movies, and eating delicious foods of all sorts.

Now that you know a little bit about me I can say that I am eagerly anticipating meeting you all and
hope that you are as excited about this semester’s simulation as I am. I would just like to urge you
all to intensively research your appropriate representatives and their positions as that is the only way
a simulation such as this one is able to be successful. By this time you should all have received the
background guide in order to supplement your own research and give you a general background of
the Republic of Indonesia and the aspects of it its politics, culture and relations with the surrounding
region that substantially effect both its internal and international policy in addition to its responses
to crisis situations. If for some reason you have not or if you have any questions regarding the
simulation or Indonesia specifically, please feel free to use the following contact information to get
in touch with me. Again, I can’t wait to meet you all and have a successful simulation. Please don’t
hesitate to contact me with any questions, concerns, comments or even just to say hi!

Best Regards,

Cambridge Lestienne

Committee Chair

The Republic of Indonesia

clestienne@elon.edu
Indonesia
         With the close of the Suharto era and the extensive reformation of Indonesian political
structure (known as Reformasi to Indonesians), Indonesia has transformed itself into a regional
power. Under the business-friendly stewardship of President Susilo Bambang Yudhoyono,
Indonesia began to further establish itself through economic and political liberalization, improving
trade relations with its regional neighbours and business accessibility. Economic progress has been a
focus of Indonesian economic strategy, as well as fighting the corruption that has often been
identified as one of the main crutches to Indonesian progress. Through these actions, Indonesia has
become an exception to what many Muslim-majority states in Asia are perceived as by the Western
world, with a leadership role in ASEAN and an emerging middles class. In 2014, Yudhoyo stepped
down and was succeeded by the former vice-president Boediono, who was swept into office on the
momentum of three consecutive years of 8-10% economic growth under the ruling coalition party
and the discovery of rare earth metals off the coast of Indonesian islands. Continuing on the same
tack as his predecessor, Boediono has approached his term with the aims of improving the economy
and social reform. During his first year of presidency, Boediono facilitated a business partnership
program in which foreign companies would partner with Indonesian corporations in the interest of
resource extraction towards the end of improving Indonesia’s industrial and manufacturing sectors.
Through this program and other business reforms, Indonesia was able to crest the rising wave of
information technology capital in the following year, further bolstering its economy.

        However with countries like Japan, China, South Korea and India already extracting timber,
earth metals and gas from the archipelago, several groups in Indonesia grew to oppose the foreign
partnerships. They worry that foreign companies might take profits out of the country, slowing the
expansion of the middle class. These groups are represented by political parties that traditionally
support populations in the less developed provinces of Indonesia. The parties soon formed a
coalition in opposition to the ruling Democratic Party coalition, made up of Muslim parties such as
the PPP and Reform Star Party and minority parties with goals of increased autonomy for the
special provinces of Indonesia, many of which are the main sites of resource extraction. With
immigration of poorer citizens to port cities upon the arrival of foreign investment, the opposition
coalition soon gained enough momentum to challenge the ruling party and Boediono, creating a rift
in Indonesia both politically and socially. Beodiono had tapped the improved and expanded
Indonesian Navy to extend security in the trade zones and allay fears of increased foreign
involvement on the islands threatening Indonesian sovereignty. However with the threat of Chinese
naval expansion and an increase in trade traffic in Indonesian waters, the Navy has become more
aggressive in enforcing its boundaries, which has led to some tension between the Indonesian
government and its business partners.

        Despite measures taken by the Navy, Beodiono’s refusal to compromise on the business end
of foreign investment led to unrest in the special provinces primarily concerned. Things have most
recently come to a head with the assassination of a ruling party member by Muslim separatists in
Aceh, prompting the government to project an increased military and police presence in certain
regions despite resistance from the opposition groups and their representative parties. As both the
sites of major foreign investment and major unrest, the special provinces – especially Aceh - have
become a powder keg, and could threaten Indonesia’s plans for continuing prosperity.

Foreign Policy

South China Sea
Indonesia historically holds generally good relations with its neighbours as well as regional powers.
A member of ASEAN and the G-20, it maintains healthy relations with other developing nations,
with the notable exceptions of East Timor and Papua New Guinea. As trade issues arose with
respect to foreign direct investment however, Indonesia’s trade relations with Japan, South Korea
and namely China began to suffer. Tensions in relation to resource profits, naval disagreements and
Indonesia’s developing internal strife threaten to come to a head going into 2015. Naval exercises by
the Indonesian Navy and harassment of foreign trade vessels are contributing factors, but the
sinking of a Chinese trade vessel allegedly mistaken by the Navy as a pirate vessel stands out as a
damaging incident. Indonesia’s alliance with the US will play an increasingly important role in its
foreign policy approach in the region, depending on how much help the US is willing to provide in
terms of military and political support.

Pakistan/Kashmir
The rise of LeT in Pakistan means a rise in Islamist influence for Indonesia, as it is suspected that
LeT may support the insurgency in Aceh and other Islamist elements within the country. Relations
with Pakistan consequently fell with the consolidation of LeT’s power. Indonesian military forces
have been reportedly cracking down on suspected terrorist cells as well as expanding operations
against piracy in the straits of Malacca, and the military’s increased presence in its special provinces
is seen as a move to stamp out possible terrorist elements. Support from the US will once again play
an important role, as it is an important player in Pakistan and has provided a large amount of
weapons and training to Indonesia’s counter terrorism bodies.

SWOT (Strengths, Weaknesses, Opportunities and Threats)

Strengths:
Indonesia’s strengths may be found in many different areas: It’s retention of healthy relations with
surrounding provides for strong trade and international support from powers like the US and India.
Indonesia’s size also plays a role: With a population of almost 260 million by the year 2015,
Indonesia will be the largest Muslim nation in the world, with a strong middle class and a sizeable
young workforce. Also, Indonesia’s geography plays to its advantage. A fertile, resource-rich
archipelago provides Indonesians with strong prospects for trade as well as strategic advantages.
In comparison to many of their Southeast Asian neighbours, Indonesians are well educated and
employ an alternative, capitalist approach to development which features a more competitive work
force than India or China, as well as a larger proportion of professionals in its workforce.
Weaknesses:
Indonesia’s population is incredibly large and diverse, and is scattered across numerous islands. This
means forging a sense of national identity has been a huge challenge for Indonesian leaders, as
evidenced by the many separatist groups operating within – and outside- of its borders.
Indonesia is incredibly susceptible to changes in economy, environment, etc.; tsunamis and
earthquakes are a constant threat, and educating the masses is difficult considering Indonesia’s
infrastructure and diverse population. Despite its bright economic prospects, poverty is still a huge
issue – health and sanitation remain major challenges before Indonesia can be considered a
developed country.

Opportunities:
Indonesia’s healthy regional relations combined its wealth of valuable resources place it in an
extremely advantageous position. The discovery of certain rare earth metals in Indonesia has
captured the interest of foreign investment from the regional powers of China, India, Japan and
South Korea. This provides Indonesia the opportunity to drive hard bargains and profit greatly.
Meanwhile, Indonesia’s good relationship with the United States has earned it a powerful ally in the
naval arena as focus tightens on the South China Sea. The possibility of attaining nuclear power
could arise as Indonesia seeks to solidify its status as a significant power, although resistance from
other powers in that scenario is expected.
Indonesia has to grow fast enough to sustain the expansion of its youth bulge working age
population

Threats:
     Unrest in the populous region of Aceh as well as on other islands has been a persistent threat to
national security for decades and remains so as the central INF government grows less popular with
its autonomous territories. The threat of Chinese territorial aggression has grown with China’s naval
advances. Recognizing this, Indonesia has expanded and augmented its naval forces to better
enforce maritime its borders. Terrorism also remains a threat as Islamist cells in the region persist,
some allegedly backed by Pakistan’s ruling LeT government.




Economy (2030):
    GDP (Purchasing Power Parity): $2.23 trillion
    GDP per capita: $2,000
      Export Commodities: Oil, gas, electrical appliances, plywood, textiles, rubber and rare earth
       minerals
      Major Export Partners: China 12%, Japan 15%, South Korea 9%, Singapore 8%, India 7.2%,
       Malaysia 5%
      Major Import Partners: China 15%, Singapore 13%, Japan 8%, South Korea 8%, US 7%,
       Malaysia 5%

Military (2030):
     Fiscal Budget: $10 billion
     Manpower fit for military service: 62,277,840
     Military expenditure: 5% of GDP
Army
     154 Pindad APS-3 APC’s
     40 FV101 Scorpion APC’s
     10 Puma IFV’s
Navy
     6 Ahmad Yani class frigates
     6 SIGMA 9113 class corvettes
     2 SIGMA 10514 class corvettes
     4 Fatahillah class corvettes
     12 Parchim class corvettes
     2 Cakra class sumbarines
     1 Kilo class submarine
     2 Type 209 Chang Bogo class submarines
     2 Type 214 submarines
     1 Type 1200 submarine
     3 Littoral class combat ships (2 Sea Fighter class, 1 Independence class)
Air Force
     20 KF-X multirole fighters
     24 F-16 multirole fighters (block 32)
     6 Sukhoi Su-30 interceptors
     6 F/A 50 Golden Eagle attack fighters
     10 EMB 314 Super Tucano fighters
     8 Yakovlev 130 trainers

				
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