Indonesia becomes a success story model whereas a stable transition of democracy works along with development. During the process of reformation in the last 12 years, Indonesia emerges from two crisis; economy and politic, and succeeds to stand at the same level with other big economic countries within G-20. These are the points of panel discussion entitled “Emerging Indonesia: Development and Democracy in Southeast Asia’s Largest Middle Income Country”, held in cooperation with the World Bank and US-Indonesia Society (USINDO) at the Auditorium of World Bank in Washington DC on February 23rd, 2011.

The forum is attended by around 200 participants on Indonesia. The panelists are, among others: Dr. Dino Patti Djalal (Ambassador of the Republic of Indonesia for the United States of America), Prof. William Liddle (Political Science, Ohio University); David Merril (USINDO); Scott Guggenheim (World Bank), and Endy Bayuni (Fellow at East West Center).  Sri Mulyani, Managing Director of World Bank opened the forum and delivered her remark on the success of Indonesian reform process and the future challenges. She argued that development becomes one of the important aspects in that process, turning Indonesia to be one of the middle income countries.

In line with Sri Mulyani’s remark, Shubbam Chaudory (Lead Economist of World Bank) presented his overview as well as future projection on Indonesia. He argued that as a middle income country, Indonesia has a lot of potential, mostly in relation to natural resources and the potency of agriculture. He argued that service sector of development in Indonesia as it is in China, is very promising. However, this potency still needs to be more optimized and should be followed by infrastructure development, in particular with regard to transportation, development of social security, mostly to anticipate “aging generation” within the next 30 years, and the development of effective bureaucracy as well as good governance.

Meanwhile, Dr. Dino Patti Djalal, stressed his idea that democracy in Indonesia is a basic foundation and the best alternative for development which is also believed by more than 85% of the population. Recently many developments have been achieved by Indonesia. This progress take over all previous concern and doubt arguing Indonesia would become a broken state like Balkans as well as argument that Indonesia as  'a country which is difficult to govern'.

Future Challenges

Indonesian future challenges become one of interesting topics during discussion. Shubbam remained Indonesia not to ignore any development that has been achieved. Indeed he expects that the reform process in Indonesia will continue in particular with regard to law enforcement and eradicating corruption. For that reason, Dr. Dino Patti Djalal stressed his point on the importance of keeping spirit of reform, including bureaucracy reform.

The other speakers, Liddle and Guggenheim, underlined one of their points on the importance of Indonesian policy to be more focus and to have guidance in order to keep momentum of economic development, mostly among issues nowadays such as scarcity of food price.
From political perspective, Liddle stressed his point on the importance of anticipating radical views. He argued that this element could create a distance for Indonesia from principles of democracy and pluralism.

Discussion is part of the programs focusing on Indonesian. On 1-3 of March 2011, the Indonesian Embassy and the World Bank will also organize an Indonesian Food Festival at the World Bank. Indonesian cuisines will be served during the event. The cuisines are a joint-work program between Chef from Indonesia and Chief of the Chefs of World Bank Restaurant.