The Jakarta Conference Week
The Indonesian economy was almost ended abruptly, the protest had grown and the socio-cultural dynamics of the nation seemingly had turned for the worst. Manifest from the national perspective, Indonesia ought to reflect within and amend herself. The vertical relationship of bureaucracy had been destructed by the Nusantaran State Republic with the Federal Republic of Indonesia. Fortunately, both parties had decided on a negotiation. It took a week, nearing the end of the year holidays, but the government officials compromised on talking about this pressing issue.
The Jakarta Conference Week was, as stated, a week of talks by both conflicting sides regarding the Nusantara Republic’s Labour Law of 1986. The Labour Law had been extremely controversial, not only it took harsh measures on companies, it discouraged them from effectively working. However, it also encompassed the dire issues most craftsmen, labourers and farmers needed the most; insurance for their hard work. The idea of business relaxations against the protection of the proletariat had become the dividing opinion of the Republic, it would continue to do so for the upcoming decades. This conference, unfortunately, was the background of why it evolved into a nationally political declaration for parties to proclaim.
The location was selected from the proposal of then-District Secretary Sudomo Hendarto. The common perception of that time was Hendarto was supportive of the federal government. Yet, he had a cordial relationship with the State Deputy President
Aang Kunaefi Kartawiria.
Kartawiria was a local Bandung resident who was appointed as Mohamed Rahmat’s Deputy President. He was from the PRD, the militarist party who had been leaning towards the Melayu Bersatu Faction of the PPP. As for the perks of being a close companion, Hendarto had been defended by beret bodyguards. As a result, he was a proper mediator for this current predicament. His building later chosen to be the place for the negotiation to be commenced.
The first day of the conference was opened with a slightly less heated debate about the corporate regulation regarding any of the workmen’s insurance. However, the negotiation was slightly unexpected as the debate had turned into undismayed slander from both parties that opposed each other. The federal government opposed the local jurisdiction to hold the power of indicting corporates and sentencing them. Meanwhile, the State Republic of Nusantara expressed insecurity which the worker’s protection would be simply just like in before, unmanageable and entirely on the hands of the corporate’s grace. The example of the growing forest fire, the Kampar Incident [1], burned almost 15 hectares of reserved forest illegally as incidental, or the Pawan River Conflict [2] that the corporate bulldoze native land for the forest they lived. At the end of the day, the negotiation fruited bitterness for both sides. They evaded reporters when exited the building, both sides neither gave comments nor body language for the conference.
In the night, the condition and this conference’s urgency worsened as the United States’ market value was hit by the ongoing national malaise. When the stocks were opened on the morning, the shares in Dow Jones immediately shrank by 15%. Public panic ensued and businesses declared an emergency. Meanwhile, due to the high printing rate, the dollar also lost value significantly, weakened by almost 10% of its initial value. As Indonesians slumbered on their beds, the Americans rushed for immediate solutions for this impending downturn.
This may seem sudden, but the crisis had been anticipated by many economists since the early 1980s. Under the Carter Presidency, public spending had been extremely high and offices were heavily controlled under numerous laws and rules, both at the state and federal levels. In addition to the pension benefits and unemployment grants, the government had been giving more money by printing more, thus gradually losing value in the currency. Also, business was discouraged and one by one they were closing. Small business, which was Carter’s main campaign target, was ironically damaged the most in this economic initiative. In 1981, a dollar devaluation had occurred to boost business as export would be better. Although inconsequential unlike 1973 that had damaged the economies of other countries, this devaluation was a warning sign to most scholars that the government will continuously do so.
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A photo of poverty in California, dubbed to be one of the most 'liberal' regions after Reagan's gubernatorial career.
For months, the American economy had been reliant on exports to the outer nations. In reality, the situation domestically was terrible that unemployment slowly rose. In addition to it, the unemployment grants were entitled to have better long-term credits than usual occupation does, the poor then deliberately exited work to have those grants. Glenn’s pensions started in 1985 had been the final strain of the American economy. Since then, America had weakened significantly with the Presidency announcing a second devaluation in the 80s.
The special fuse that began the cycle of downturn occurred with Indonesia taking a drastic hit from defaulting companies. While American imports were halted from lack of corporate demands, American exports slightly struggled. Quotas, which shrank a mere 4% of normal circumstances, was enough to propel the snowball of economic downturn.
At this turn of events, the federal government, who had panicked, dreaded with no hopes of resurrecting the growth. Still, the regional government also suffered as less capital meant any subsidies, insurance, or supplementary cost by the implementation of the 1986 Labour Law will definitely ruin the locals. They progressed slowly on Tuesday, opening a friendly relay between each other. As Wednesday confirmed the American malaise, the urgent necessity of communication was apparent.
Ir. Soesmono Martosiswojo, the state treasurer of Nusantara, drafted an outline of proposals for the first compromise between the federal government and Nusantara. Initially,
Soesmono wrote a memorandum for the previous discussion regarding the state of law for corporate mismanagements. In his memorandum, the federal government shall hold the power to held charged business but the local jurisdiction, the related region where transgression was committed, shall oversight and consult with the federal court regarding how to proceed.
Soesmono constructed this appease on Tuesday morning, and both Mohamed Rahmat and Musa Hitam declared agreement on this understanding.
Truthfully, the regional government were also losing supporters as the economy drastically worsened. In fact, while the DPR Building had been filled with protestors (PPNU, SOBSI and FPI) arrived, more protestors had arrived in the Nusantara government complex in Surabaya. As they testified in national news, they assumed both local and federal government had wasted too much time on this issue and they demanded rapid change for the better. Eventually, Nusantara’s official cabinet announced that it would relent other points of negotiation to the federal government, declaring farmer’s livelihood to be their priority. This would hurt popularity in craftsmen, labourers and other industrial-focused works, but the farmer’s adversity was what Mohamed Rahmat prioritized after.
On Monday next week, the memorandum of Soesmono had evolved into a Soesmono proposal, a myriad of trade-offs between the federal government and local government to solve the pressing issue. The Soesmono proposal was interim, it would resolve several issues while a committee shall be established for revision of the 1986 Labour Law.
The Soesmono proposal encompassed fifteen main points. These points then ratified as Government Regulation in Lieu of Law [3] of 1986. These fifteen points are as follow:
The first three points solved the judiciary issue of any misdemeanours. Capital exploitation, unfair inside the corporates would be treated as lawfully as possible. The next seven points, contributed to the ailing farmers who had been suffering from a lack of manpower and money to sustain production. The State Republic were also worried that they lose population towards Federal Districts, therefore losing power gradually. An additional statement was given to balance the State Republic’s needs.
For the workers in the factories, Mohamed Rahmat reluctantly agreed on 4 points to momentarily stop this freeze in the economy. From slightly increasing the minimum wage for the regional state (as opposed to no raising by the Premier), supplement several protections for the labours, a balancing proposal to soothe the business and further guidelines for future changes.
28 December 1986
Myrtle Beach, South Carolina, USA
Deputy Ambassador Ganjar Kartasaswita has just returned his American home in Myrtle Beach, South Carolina. Ganjar, a distant noble of Surakarta descent, was able to find an affordable house near the coast of South Carolina. Mr Ali Alatas, his superior, decided to stay at the embassy as many should do, but Ganjar determined to at least experience what an American dream feels like.
South Carolina, as far as Ganjar remembers, was a deeply conservative state with extremely relaxing economic laws. That has caused many benefits, one of them being outstandingly low house prices. Strangely, the economic prospect of this state contributed a lot to the rising immigrants and migrants. This movement is obvious in the many Southern States, even newly admitted the Caribbean States, as the land value was still low. Ganjar noticed, by the early 2000s, there would be a massive power transition from the northern states to southern states. If the Democrats continued to control the predictable political path, they would waste the Southern States new population growth that the Conservatives will benefit from.
Public approval for John Glenn plummeted as the Christmas Panic [4] of 1986, as they called it, destructed many of the economic strength of the States. Their national currency was also weakened more, despite already lower in value than the Deutsche Mark. Unemployment rose to 10%, the highest since the Great Depression, caused the administration to lose public confidence.
The Conservative Party, as one opposition could be, has started to prepare for the ascension. As a newly made party based on conservative principles of its founders, the party revolved mainly around the personification of Nixon-Reagan staunch extreme American patriotism. The high demand for conservative morality and family views. The idea of rollback policy of Communism, instead of containment. Deregulation and strong law and order. However, the Conservative Party, as it has become the substitute for the GOP, would grow too big to unify as one faction. In response, three new factions emerged from the party.
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The Conservative Party logo symbolized a rhino, 'fierce and brave like a Conservative'.
The Old Guard was the first and currently the largest faction in the Conservative Party. As named, the Old Guard basically originated and the forefathers of the party. From Senator
Barry Goldwater, Governor
Richard Nixon and Governor
Ronald Reagan [5] to Senator
Nicholas F. Brady, Economist
Donald Regan andDiplomat
George P. Shultz. The Old Guards were criticisms of the liberal Shafer's Republican Party which deemed ‘divisible’ for the party that later collapsed within. The Old Guard are extremely interventionist, staunch law and order with a slightly nationalistic tendency. However, the idea of the Old Guard being too radical was why they kept losing in 1972, 1976, 1980 and 1984.
The Young Reformers was the aftermath of the Old Guard’s failures despite establishing a new federal party. The Young Fours as their main star, the Reformers stressed one specific issue; the economic struggle of exaggerated government interventionism. With Carter basically regulated policies everywhere, the Young Reformers accused that the economic downturn was caused by too much regulation. However, the Young Fours were quite disunited anywhere else. For example, Congressman
Dick Cheney was unopposed to the sexual revolution of the Americans while Congressman
Dick Gephardt was extremely conservative on marriage and sexual life.
Joe Biden urged the conservatives to push harder against the Soviet Union while
Dan Quayle remained strict following Democrat’s containment measure. In essence, the Young Reformers were a broad coalition of young Conservatives who merely rejected economic intervention and regulation.
Lastly, we have the Northern Conservatives. The Northern Conservatives are a satirical response to President Jimmy Carter’s success in Southern conservative states. These politicians determine while Carter’s socialist policies were widely accepted in most Southern States, for what reason can’t the conservatives won in the North. Moreover, these politicians are mostly former Republicans that felt the Democratic Party was not suitable for his political views, especially after the sudden shift to socialized programs at the start of Carter’s 2nd term. Former Michigan Governor
George Romney became the creator of the faction. Currently, their faction icon has been
Jack Kemp, a New Jersey Representative. The Northern Conservative seemed similar to Young Reformists, but the Northern Conservatives had a more liberal attitude to economic and social spending.
Some of this particular type of politicians, notably New Hampshire governor
John H. Sununu, adopted an FDR approach in economical spending, yet remained opposed to Carter’s view on government spending. Unlike both Old Guards and Young Reformers who rejected any forms of regulation, Northern Conservatives agreed on little regulation for reducing inequality. All that is, Northern Conservatives had been vague on multiple issues, but mostly they tend for populist characteristics. These typical candidates, notable Real Estate billionaire
Donald Trump, thrives under a notion that the Americans are losing to Japan in terms of progress.
Julie Belaga, governor of Connecticut, was famous for protecting the coastline and college reform, the latter being one of the Democrat’s main agendas.
Ambassador Ali Alatas, who comprehended enough of American politics, showed optimism for the rise of the Conservative Party. Deputy Ganjar, meanwhile, presented cynicism to the party. For him, the party has three flawed factions, one being too rigid and radical, one being too implausible to unite, and the last being too sporadic to function.
Deputy Ganjar slouched on his newly bought chair. If he wanted to enjoy this Christmas break, he should at best refrain from thinking anything political. Especially to him, he should not think Indonesian political events, which for this time of being, remained chaotic.
[1] and [2] will be discussed somewhere in the future regarding Indonesia's environmental issues, but mostly it derives from capitalism.
[3] In Indonesia, we would call it Perpu. In this context, this was implemented as an addition to the Federal Law and a constituted law in the State Republic of Nusantara
[4] Unlike most panics [mostly on share prices], the Christmas Panic of 1986 was indicated first with a fall of demand in Christmas spending. Certainly, December spending should be high for a majority-Christian denominator of the US, yet high unemployment, less capital gain and weakening currency strength discouraged people to buy things. Then, it caused a fall in stock prices, thus solidifying the fall of the US economy.
[5] ITTL, Richard Nixon became Governor of California after the 1962 gubernatorial elections, reelected in 1966 and resigned in 1968 where he was elected President. His appointee and Lieutenant Governor had been Ronald Reagan (since 1966), who was reelected in 1970 and 1974 but lost [extremely slim margin] in the 1978 gubernatorial election to Jerry Brown.
The next chapter would discuss the situations outside Indonesia, mainly this map that I have not discussed.