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THE STRUGGLES WITH IMF IN INDONESIA

THE STRUGGLES WITH IMF IN INDONESIA. 1998, IMF Managing Director Michel Camdessus with senior officials of the World Confederation of Labor (WCL) and national labor leaders from Indonesia, the Philippines, and Thailand discussed the Asian crisis and IMF-supported adjustment programs.

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THE STRUGGLES WITH IMF IN INDONESIA

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  1. THE STRUGGLES WITH IMF IN INDONESIA

  2. 1998, IMF Managing Director Michel Camdessus with senior officials of the World Confederation of Labor (WCL) and national labor leaders from Indonesia, the Philippines, and Thailand discussed the Asian crisis and IMF-supported adjustment programs

  3. Structural adjustment loan from IMF, World Bank and ADB for Indonesia

  4. IMF’s recipes (1) liberalization, (2) privatization, and (3) government’s policy deregulation. • In order to pay US$ 43 billion bail-out in 1997, Indonesia have to re-establish balance of payment and implement policy reform, especially in public sector • subsidy cut, • privatization of state-owned corporation and • expansion of private sector.

  5. 40% from national spending for only debt payment • causing people’s suffering (landless, privatizing water resources, promoting environmental damage, and even losing people’s jobs and livelihoods. )

  6. Analysis of debt payment • bigger than budget for social service, or • 6 times bigger than health budget, • almost twice education budget, • 11 times bigger than public facility and housing, and • 33 times bigger than social insurance.

  7. 1998, Students at Airlangga University in Surabaya Two-thousand students from at least six universities, academies and high schools had gathered in Bandarlampung 220 miles northwest of Jakarta to protest against IMF austerity measures Some 10,000 students demonstrated in Jogjakarta. Protests also took place in Medan, Surabaya and Bandung.

  8. 1998- • 14 February 1998 • Riots break out across Java amid anger over rising prices. Ethnic Chinese businesses targeted. One person killed. • 23 February 1998 • Women's activist group Suara Ibu Peduli (Voices of Concerned Mothers) defy ban on street protests to demonstrate against the rising price of milk. Women arrested and interrogated for twelve hours before being released. • 24 March 1998 • Up to 10,000 students demonstrate at Yogyakarta's Gadjah Mada University, the biggest student protest yet. • 14 May 1998 • Three days of violence, burning and looting erupts across Jakarta and other cities. Ethnic Chinese targeted and scores of ethnic Chinese women raped. Foreigners flee the country. Jakarta shopping malls burned to the ground.

  9. Peasants’ struggle and alternatives • murder, poverty, process of wiping people right in Indonesia is a form of crime against humanity (according to Rome Statute and Explanation of Article 9 Constitution of Indonesia No. 26/200 about Human Rights Court). • six student demonstrators killed; At least 16 students and teachers were wounded in the attack

  10. Grant B. Taplin, assistant director at the IMF's Geneva office (2001) stated before the United Nations Subcommission for the Promotion and Protection of Human Rights that the Fund, in a strict sense, does not have a mandate to promote human rights. Nor is the IMF "bound by various human rights declarations and conventions."

  11. IMF policy (1) reduction of agricultural commodity tariffs, decision to reduce rice import tariff to 0%, • Import tariff was applied 0% (free) in year 1998 according to IMF’s LoI. • Article 3 (4), Government Regulation No. 68/2002. • The import also has to be managed properly so that it does not hurt the farmers, particularly small-scale farmers, and also to protect consumer’s needs, especially the poor household

  12. This policy ruled until 2004—and then Indonesia restrictedly impose ban on rice import because escalating-pressure from peasants organization. Federasi Serikat Petani Indonesia (FSPI) • peasants’ organization which exists in year 1998 G33 – SP/SSM

  13. (2) Feb 2004 • 3 NGOs filed a lawsuit against President Megawati Soekarnoputri (2001-2004) for issuing Presidential Instruction No. 5/2003 on an economic policy package with International Monetary Fund (IMF) monitoring. • argued that by issuing the presidential instruction, Megawati had violated the People's Consultative Assembly Decree No. VI/2002, which mandates the government to end all agreements with the IMF by the end of 2003.

  14. NGO/CSO • the Indonesian Debt Watch Foundation (DWI) • the Indonesian Independent Network of Civil Society for Development Transparency and Accountability (JARI) • the Jakarta Citizens Forum (Fakta) “providing the legal basis for Indonesia's post-IMF monitoring program with the Fund, the government had neglected the people's welfare and handed over the country's economy to "neoliberal forces" by continuing its relationship with the IMF.”

  15. (3) 2007 • The Investment bill 25/ 2007 – to be passed in March 2007 • The contents of the law fully favor the interests of the big transnational corporations. The draft of the law itself was made when Indonesia was still under the supervision of IMF • the current agricultural policy •   President rule (Perpres) No.36/2005 and its revised version Perpres No.65/2006 about the removal of land rights, water resources bill No. 7/2004, plantation bill No. 18/2004, Forestry bill No. 41/1999

  16. PROTEST • More than 28 CSOs, labor organizations, farmers’ federation and indigenous peoples of Indonesia oppose the draft of the law. • The draft of the investment law harms to the labor, farmers, fisherfolk and indigenous peoples. The rights of the labor, farmers, fisherfolk and indigenous peoples will be violated and the sustainable livelihood is under real threat.  • Postponed the draft of the law to be issued since the contents of the draft did not indicate at all to protect the interests of the people of Indonesia who were and are still struggling to get rid of poverty.

  17. The proposed bill • gives 100% freedom to the international or foreign corporations to operate in Indonesia • the government of Indonesia is obliged to provide incentives such as: tax holiday, infrastructure facilities, lands and access to domestic finance. • the international corporations are free to move their capital in and out Indonesia, and are free from tax in importing capital goods to Indonesia for their investment needs. • Direct pressure from British Gov.

  18. Mode of action • Media, CNN • Asian Peoples Declaration on ASEAN Summit • Influential figures (Joseph Stiglitz) • Demonstration / protest / solidarity • Awareness / knowledge empowerment • Policies / laws application

  19. SEACON (1999), Manufacturing a Crisis: The Politics of Food Aid in Indonesia.

  20. HR Instruments

  21. Farmers’ Rights

  22. Selected ASEAN Countries and their International commitments relevant to Farmers’ Rights.

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