The Bali Democracy Forum and our own problems

Today political leaders representing 21 countries attended the launching of the Bali Democracy Forum (BDF). This was initiated by the Indonesian government to promote regional cooperation in the field of democracy and political development in Asia.

There are at least three coincidences which explain why the Indonesian government took this initiative to establish BDF.

First, it coincides with the 60th anniversary of the Universal Declaration of Human Rights. Despite some setbacks in the area of human rights promotion the Indonesia government is confident enough to declare that it has at least respected people's political and civil rights.

Second, Indonesia has just ratified the ASEAN Charter whose principles include the promotion of democracy and human rights. Indonesia seems to deliberately inviting the participants from outside Southeast Asia in order to avoid a direct confrontation with the principle of noninterference.

The critics argue that the democratic members of ASEAN -- including Indonesia -- have failed to prevent the centrality of the noninterference principle in the ASEAN Charter. Thus, BDF can be seen as Indonesia's strategic agenda to spread democratic values at the regional level.

On top of that, the Indonesian government is aware of the fact that as far as the promotion of democracy in Asia is concerned, Indonesia is in the best position to do the job. Japan has its political sensitivities with China and India has a conflictual relationship with Pakistan.

Other democratic countries in Southeast Asia such as Thailand and the Philippines are still struggling with the setbacks of their respective democracies and are not large enough to have the necessary political leverage at the regional level.

Third, the choice of Bali as the location for the launching of BDF is not without political significance. Since his election in 2004, President Susilo Bambang Yudhoyono has developed an obsession to portray Indonesia as a moderate voice of Islam in many arenas of world politics. He seems to have appointed himself to be the main author of this idea and on the basis of this political credential he wants to mobilize international support for his second term in the 2009 presidential election.

Regardless of Indonesia's sincerity in this initiative, there are some critical comments about the future effectiveness of BDF.

First, Indonesia does have some democratic credentials which might be attractive to other countries. For instance, Indonesia may share with others its experience in the peaceful resolution of the separatist conflict in Aceh.

However, the setbacks of democracy in Asia -- including Indonesia -- have much to do with the weak commitment of domestic political elites. Thus, the political energy to develop democracy should come from within the country itself. For the most part, moral persuasion or exhortation from outside usually falls on deaf ears.

Second, if BDF is seen as a tricky follow up to Indonesia's ratification of the ASEAN Charter, people might ask why not focus on the strengthening of the security regime within the framework of the ASEAN Security Community.

One of ASEAN's embarrassing ironies is related to the fact that its success in requesting the major powers to sign the Treaty of Amity and Cooperation (TAC) is not followed by the willingness of some of its members to renounce the use of military power in resolving their border conflicts. The latest example was the exchange of fire between Thai and Cambodian soldiers in settling their territorial dispute.

Third, the realistic interpretation of international politics is correct that in the final analysis the effectiveness of diplomacy is mainly determined by a solid basis of material power. Immaterial power such as ideas, experience or best democratic expressions produces an ineffective influence upon the actual behavior of nations.

Fourth, it is very much expected that the planned, regular meetings of BDF will not be confined to formal interactions among government officials. The constraint of diplomatic procedures will limit the capacity of government officials in reaching out to the potential democratic forces of a targeted country. BDF needs to encourage the participation of the transnational networks of civil society organizations as the social foundation of democracy.

Last but not least, whenever there is an initiative to conduct international programs which require financial commitment there is always a problem of who is going to pay the bill. In the midst of a global financial crisis it is not easy to mobilize resources unless it is really urgent.

We just hope that the participants of BDF -- especially the wealthier ones -- are willing to allocate the necessary funds so that the forum might be able to accomplish all its intended goals.

The writer is a professor of international politics living in Bandung.

White-collar workers begin to feel the heat

The Jakarta Post , Jakarta

White-collar workers have enjoyed relative safety from the current trend of layoffs sweeping the country, with dismissals largely hitting medium- to low-level workers in some manufacturing companies.

Until now.

Stock brokers, who have benefited from years of bullish stock market performance, are now feeling the heat — a sign suggesting the economic hardship will leave no stone unturned.

Securities companies here are being forced to lay off workers — joining dozens of manufacturing firms who have announced the dismissals of thousands of workers — in an effort to cut costs following a recent revenue rout that has hit local and regional markets.

Included in this group is the nation’s largest security firm, PT Trimegah Securities, which is likely to dismiss up to 40 workers this month. It has a total work force of 400.

Since early September, equity markets in emerging economies, such as Indonesia, have been facing massive sell-off pressure from investors in need of liquidity amid the global financial crunch.

“It (the layoffs) is a normal thing, because it is a global phenomenon that we cannot avoid,” Trimegah president director Aviyasa Dwipayana told The Jakarta Post in a recent phone interview.

The latest data from the Indonesia Stock Exchange (IDX) shows profits of 121 securities houses listed in the bourse declined by a whopping 70.2 percent to Rp 864 billion (US$80.35 million) from January to September this year from Rp 2.9 trillion in the same period last year.

The drop in the daily transaction value to only Rp 1 trillion a day from the normal average of up to Rp 5 trillion has also worsened the situation for securities houses which in part collect fees from transactions.

Foreign brokerage companies are also taking a hit to their revenue, which could lead to dismissals.

One of them is DBS, whose head office in Singapore recently confirmed layoffs, saying the move was part of the company’s work force reduction program, under which the company would reduce its work force by about 6 percent, or equal to 900 people, primarily targeting workers in Singapore and Hong Kong.

“Staff in other countries including Indonesia and our subsidiaries like DBS Vickers were similarly affected albeit in smaller num-bers,” a statement sent to the Post said without giving details.

Sources said the local office of DBS Vickers Securities had so far laid off 27 people out of a total work force of 77.

Other foreign securities companies are likely to face the same problems, although a confirmation is a rarity as news of a job cut would certainty hurt their image here.

Some laid-off workers are bound by contracts prohibiting them from publicly disclosing their dismissal.

Including Sari — an alias — who said her company had given her a considerable compensation package as an incentive to keep her dismissal private.

The IDX said it might request the Finance Ministry give tax incentives for mergers and acquisitions involving securities companies to help keep the industry healthy.

A Secret of Financial Management

A huge earning is usually considered for measuring the wealth of someone. However, why do so many people with huge income frequently end up running out of money in the middle or at the end of the month? What is the problem?

If you have a job now, do you remember the first one you ever had? Usually, the first experience on work is the most unforgettable experience.

Let's take an example. Anto was still living with his family until he got a job at the age of 23, as a clerk in a trading company. At that time, he had just graduated. Although he had to go through a probationary period, Anto was so excited when he knew that he would get his first salary. His salary was Rp 600,000, which he would receive on the 27th.

We can guess what he would want to do: he wanted to treat his family. He wanted to express his gratitude for getting a salary for the first time in his life, and he also wanted to show them that he was independent now.

Let's see: he received the salary on the 27th. On the 29th he took his family out for a meal in an all-you-can-eat restaurant, so each of them could satisfy their appetite. The pre-tax cost for one person was Rp 22,000, and after tax was Rp 24,200 per person. All of his family members were 7, consisting of his father, mother, one big brother and 3 annoying younger brothers. All was 6, plus Anto made it 7. It means that he had to pay the dinner bill of Rp 169,400. Which means, only 2 days after he received his salary, he had already spent 28% out of his salary for that month. So, he had only Rp 430,600 left for the rest of the month.

"No problem", thought Anto. "It's my own family that I treated, not other people. Besides, it's not every day I do that. Once a month is enough." Days went by. One week, 2 weeks, 3 weeks. "Hmm…that stuff in the mall looks pretty good. There is a very interesting looking shirt. Okay, it costs Rp 28,000. There's also this nice pair of trousers to wear for work. Very cheap, costs only Rp 65,000. It won't hurt to look stylish at the office". He then started buying things. "Okay", Anto thought, "one shirt and a pair of pants for this month. The rest of my salary would be used for transportation and food until the end of the month" .

What happened? On the 24th of the next month, just three days before his second-month payday, he had only Rp 50,000 left.

Anto started thinking. Okay...., such was because he spent most of his money to treat his family. Also this was his first time working. Within the coming months, his finance would be better.

The second month, he got his salary again. Still in the same amount. No raise yet. The difference was no more treating the family. Days and weeks went by. A few days before his third salary, he only had Rp 75,000 left.

Three months passed by, he was finally accepted as permanent employee. He got a Rp 150,000 raise to Rp 750,000. "Not bad", Anto thought. This meant that I would be able to "breath" and save a little. But strangely, a few days before even one month period ended, his still had only little money left. The sixth month, the seventh month, the eight month, although he got a raise, but he still ran out of money and could not put any into savings.

As a matter of fact, Anto is not the only one, whose income is under Rp 1m, with this problem. Even people with millions per month income still have trouble saving money.

What is really happening? Many people think that by getting a raise, they will not run out of money in the middle of the month and they can save for sure. Every month they hope that they will get a raise the next months. But after they really get a raise, they still run out of money.

It is clear that the solution here lies not on how big your income is. The amount of your income does not guarantee that you will not run out of money in the middle of the month. The size of your income does not guarantee that you will be able to save. The key here is not how much money you make, but how you manage your income so that it can be stretched in a one-month period.

There is no fixed way on the right method to manage your finance. However, based from experiences, there are several things that can help you manage your finance well each month:

1. Plan your income and outcome every month.
   
2. Carry out the plan strictly.
   
3. Have reserved fund.
   
4. Join insurance plan.
   

Allahu Akbar...Allahu Akbar..Walilla Ilham...

Hari ini kumandang takbir bergema diseluruh penjuru dunia.Semua umat Islam berbahagia menyambut datangnya hari lebaran Idul Adha 2008.Termasuk Indonesia yang mayoritas beragama Islam.

Untuk ketiga kalinya saya harus merayakan Idul Adha tanpa keluarga..Betapa sedihnya melihat orang berduyun-duyun bersama keluarga datang ke lapangan maupun mesjid untuk menunaikan sholat Idul Adha..Terasa air mata mengalir ketika mendengar takbir dan tahmid bergema diantara kerumunan umat manusia.

Mudah-mudahan pengorbanan Nabi Ibrahim ini menjadikan cambut buat seluruh umat manusia betapa cintanya Nabi Ibrahim terhadap perintah Allah walau harus mengorbankan putra satu-satunya untuk disembelih. Apakah ada sekarang ini pejabat mau berkorban untuk rakyatnya??? Wallahu Allam bisawab...