Speech at The World Economic Forum on East Asia
TRANSCRIPTION SPEECH BY
DR. SUSILO BAMBANG YUDHOYONO
PRESIDENT OF THE REPUBLIC OF INDONESIA FOR
WORLD ECONOMIC FORUM ON EAST ASIA
“RESPONDING TO THE NEW GLOBALISM”
Jakarta, 12 June 2011
Thank you Professor Schwaab for your kind introduction.
Bismillahirrahmanirrahim
Assalamu’alaikum Warahmatullahi Wabarakatuh
Peace be upon us,
Prime Minister Lee Hsien Loong,
Prime Minister Sukhbaatar Batbold,
Professor Klaus Schwaab,
Excellencies,
Ladies and gentlemen,
Let me begin by expressing a very warm welcome to Indonesia to all the participants of the World Economic Forum.
When I spoke in Davos last January, I drew attention to the various power shifts sweeping our world today, and called for a 21st century globalism as a necessary response to new realities.
I am glad that you picked up on the theme of “globalism” at this Conference.
A 21st century globalism should be different than the 20th century internationalism.
In our time, globalism should be inclusive rather than exclusive. It should be pragmatic rather than dogmatic. It should unite rather than divide. It should be directed at addressing common global challenges rather than directed at certain group of countries. It should be driven by the imperative of cooperation rather than confrontation; by collaboration rather than conquest.
Asia must be at the center of this new globalism. For Asia today is not the same as Asia decades - let alone centuries - ago.
Modernization, development, democracy, open society, connectivity - these are all dramatically changing the face of Asia.
Asia certainly has the resources, opportunity and, most importantly, confidence to shape the international system.
The world is not short of ideas - in fact, we have too many of them. What we lack – and sorely need - is consensus. A global consensus is still missing in the climate debate. A consensus is still missing in the Doha round. A consensus is still missing in reforming global institutions. A consensus is still missing on how to rebalance the global economy.
We are ushering in a new global era which do not yet have a name, and whose precise features are only coming to form. There are still some tensions, some pushes and pulls, between the old world and the new world.
Which is normal. Every transition, every transformation takes time and toil.
This is something that we in Indonesia know only too well.
Against the backdrop of constant change, and against all odds, Indonesia has been rather fortunate to be where we are now.
If I am asked what is the best way to describe Indonesia, I would say this: uniquely resilient, and remarkably adaptive.
Indonesia has survived many trials and tribulations. Financial crises, political instability, riots, avian flu, constitutional crisis, ethnic conflicts, separatism, terrorist attacks, and natural disasters.
Today, Indonesia stands proud as the world’s third largest democracy, Southeast Asia’s largest economy, an emerging economy with political stability, with independent and active foreign policy, and as member of the G-20, and as founding member and, this year, chairman of ASEAN.
I am particularly pleased that the Indonesian economy is going stronger. Of course, we still have plenty of problems relating to poverty, inequity, corruption, infrastructure, and bureaucratic inefficiency. Still, our Purchasing Power Parity GDP is approaching USD$ 1 trillion, and we aim to be in the world’s top 10 largest economies in the coming decades. We have a balanced budget, owing to prudent fiscal policy. Our debt to GDP ratio is 26%, the lowest in history. Our trade volume and foreign reserves are at record high. Foreign investment is rising sharply.
In recent years we have implemented what is arguably the largest anti-poverty pro-poor program in Indonesia’s modern history, which is part of our “growth with equity” development strategy. We have recently launched a Master Plan to accelerate and expand the Indonesian economy in the next 15 years.
Professor Schwaab has asked me to share with you some lessons from Indonesia’s transformational story.
Well, my answer would be several things.
To begin with, during the entire roller coaster ride, we always had faith in and clung to the essentials of being Indonesian: freedom, diversity, harmony, tolerance, tradition, and unity. Without these essentials, Indonesia would not be Indonesia. In recent times, democracy has come to be part of our national DNA, all the way to the grassroots. Even when our politics and the economy were under duress, we never stopped believing in these essentials.
Another reason for our progress is that despite the sea of uncertainty, we will not, we were not shy to change, to adapt and to reinvent Indonesia. Sure there were questions. Doubts. Anxieties. Fear. But every turning point, the leaders and the people made the courageous step forward. Time and again, Indonesians did not resist but sought and embraced change as a matter of necessity.
Of course, none of Indonesia’s transformation was possible unless there was a change of mindset. Indonesians now have a confident attitude about our country and our place in the world. We are no longer stigmatized by our colonial past, and are eager to claim our place in the global future. We are driven by opportunity, not fear.
I notice that this newfound confidence is not particular to Indonesia. You can see it throughout Asia.
In my heart I do believe that Asia’s moment has come, and that a much brighter future lies ahead. But we cannot take these things for granted.
Let me suggest several ways by which we can make Asia the continent of the future.
First, Asia must be part of the solution to address the global imbalances. The world economy cannot afford to rely on strong growth in emerging economies alone. We need healthy growth globally, including in the developed world. One way or another, we all need to make structural adjustments to correct the global imbalances. Asia – more than any other region – can help achieve a strong, sustainable and balanced world economy. Asia must also lead the way to keep markets and societies open.
Second, Asia needs to anticipate and address the growing pressures that will come from food, energy and water insecurity. Of the 7 billion people that now inhabit our planet, 60% live in Asia. As their economies grow, they will seek and compete for finite natural resources, as pattern that in previous centuries led to wars, conquest, exploitation and untold suffering.
In our time, these issues need not lead to conflict. Be it in the Mekong River or in the South China Sea, we can find creative ways to turn potential conflict into potential cooperation. Given the proportion of the population in Asia and therefore its use of resources and needs for food, Asia should also lead by example in terms of sustainable growth.
Third, Asia must do all we can to become the center of global innovation. Technology, more than ever, will be the key driver of change in the 21st century. With all the problems of poverty, marginalization, inequity and degradation that are still prevalent throughout Asia, technology may well be the key to resolve them.
Asia should not just to try to catch up, it can leapfrog into the future. And these days, innovation and technology can come from anywhere. There is a growing force of innovators and techies, from Bangalore to Bandung, from Singapore to Shenzhen that can produce home-grown innovation with global application.
Fourth, Asia must tap into its best emerging resource: the youth. The youth today are becoming a generation unlike any other before them. They are much more connected, more open, more creative, and more active. Through the internet, and social media networks such as Facebook and Twitter, the youths are developing a sense of trans-generational consciousness, a feeling of mutual empathy and shared hopes.
We need to encourage this rather than resist it. The youth also feel strong entitlement for their future, and want to be agents of change -as we have seen in the Middle-East.
It is therefore important for Asian countries to provide them with the skills and opportunities, so they can become the most dynamic and productive part of society. If these youths grow to be entrepreneurs, innovators and pioneers in their fields, the rewards, the reward for Asia will be incalculable.
Finally, the fifth, Asia needs to preserve and build on what is best about Asia: a rich diversity. Asia is home to the world’s oldest civilizations and religions. It is also the continent with the greatest number of ethnic groups and dialects. In the age of globalization, it would be most ironic if Asia were to fall behind others in creating a peaceful multi-cultural world. Asia’s future lies in our ability to preserve the condition of culture, civilizational, I could say of cultural and civilization religious harmony that for centuries and millennia have been part of the Asian way of life.
Ladies and Gentlemen,
If we can do all this, then we shall be able to claim our time as the Asian Century.
And we can be sure that Asian Century means a century of progress and peace, and one of cooperation and collaboration.
I thank you.
Bismillahirrahmanirrahim
Assalamu’alaikum Warahmatullahi Wabarakatuh
Peace be upon us,
Prime Minister Lee Hsien Loong,
Prime Minister Sukhbaatar Batbold,
Professor Klaus Schwaab,
Excellencies,
Ladies and gentlemen,
Let me begin by expressing a very warm welcome to Indonesia to all the participants of the World Economic Forum.
When I spoke in Davos last January, I drew attention to the various power shifts sweeping our world today, and called for a 21st century globalism as a necessary response to new realities.
I am glad that you picked up on the theme of “globalism” at this Conference.
A 21st century globalism should be different than the 20th century internationalism.
In our time, globalism should be inclusive rather than exclusive. It should be pragmatic rather than dogmatic. It should unite rather than divide. It should be directed at addressing common global challenges rather than directed at certain group of countries. It should be driven by the imperative of cooperation rather than confrontation; by collaboration rather than conquest.
Asia must be at the center of this new globalism. For Asia today is not the same as Asia decades - let alone centuries - ago.
Modernization, development, democracy, open society, connectivity - these are all dramatically changing the face of Asia.
Asia certainly has the resources, opportunity and, most importantly, confidence to shape the international system.
The world is not short of ideas - in fact, we have too many of them. What we lack – and sorely need - is consensus. A global consensus is still missing in the climate debate. A consensus is still missing in the Doha round. A consensus is still missing in reforming global institutions. A consensus is still missing on how to rebalance the global economy.
We will need these consensus, if we are to withstand the political, strategic and economic turbulences which are bound to come our way in the future.
We are ushering in a new global era which do not yet have a name, and whose precise features are only coming to form. There are still some tensions, some pushes and pulls, between the old world and the new world.
Which is normal. Every transition, every transformation takes time and toil.
This is something that we in Indonesia know only too well.
Against the backdrop of constant change, and against all odds, Indonesia has been rather fortunate to be where we are now.
If I am asked what is the best way to describe Indonesia, I would say this: uniquely resilient, and remarkably adaptive.
Indonesia has survived many trials and tribulations. Financial crises, political instability, riots, avian flu, constitutional crisis, ethnic conflicts, separatism, terrorist attacks, and natural disasters.
Today, Indonesia stands proud as the world’s third largest democracy, Southeast Asia’s largest economy, an emerging economy with political stability, with independent and active foreign policy, and as member of the G-20, and as founding member and, this year, chairman of ASEAN.
I am particularly pleased that the Indonesian economy is going stronger. Of course, we still have plenty of problems relating to poverty, inequity, corruption, infrastructure, and bureaucratic inefficiency. Still, our Purchasing Power Parity GDP is approaching USD$ 1 trillion, and we aim to be in the world’s top 10 largest economies in the coming decades. We have a balanced budget, owing to prudent fiscal policy. Our debt to GDP ratio is 26%, the lowest in history. Our trade volume and foreign reserves are at record high. Foreign investment is rising sharply.
In recent years we have implemented what is arguably the largest anti-poverty pro-poor program in Indonesia’s modern history, which is part of our “growth with equity” development strategy. We have recently launched a Master Plan to accelerate and expand the Indonesian economy in the next 15 years.
Professor Schwaab has asked me to share with you some lessons from Indonesia’s transformational story.
Well, my answer would be several things.
To begin with, during the entire roller coaster ride, we always had faith in and clung to the essentials of being Indonesian: freedom, diversity, harmony, tolerance, tradition, and unity. Without these essentials, Indonesia would not be Indonesia. In recent times, democracy has come to be part of our national DNA, all the way to the grassroots. Even when our politics and the economy were under duress, we never stopped believing in these essentials.
Another reason for our progress is that despite the sea of uncertainty, we will not, we were not shy to change, to adapt and to reinvent Indonesia. Sure there were questions. Doubts. Anxieties. Fear. But every turning point, the leaders and the people made the courageous step forward. Time and again, Indonesians did not resist but sought and embraced change as a matter of necessity.
Of course, none of Indonesia’s transformation was possible unless there was a change of mindset. Indonesians now have a confident attitude about our country and our place in the world. We are no longer stigmatized by our colonial past, and are eager to claim our place in the global future. We are driven by opportunity, not fear.
I notice that this newfound confidence is not particular to Indonesia. You can see it throughout Asia.
In my heart I do believe that Asia’s moment has come, and that a much brighter future lies ahead. But we cannot take these things for granted.
Let me suggest several ways by which we can make Asia the continent of the future.
First, Asia must be part of the solution to address the global imbalances. The world economy cannot afford to rely on strong growth in emerging economies alone. We need healthy growth globally, including in the developed world. One way or another, we all need to make structural adjustments to correct the global imbalances. Asia – more than any other region – can help achieve a strong, sustainable and balanced world economy. Asia must also lead the way to keep markets and societies open.
Second, Asia needs to anticipate and address the growing pressures that will come from food, energy and water insecurity. Of the 7 billion people that now inhabit our planet, 60% live in Asia. As their economies grow, they will seek and compete for finite natural resources, as pattern that in previous centuries led to wars, conquest, exploitation and untold suffering.
In our time, these issues need not lead to conflict. Be it in the Mekong River or in the South China Sea, we can find creative ways to turn potential conflict into potential cooperation. Given the proportion of the population in Asia and therefore its use of resources and needs for food, Asia should also lead by example in terms of sustainable growth.
Third, Asia must do all we can to become the center of global innovation. Technology, more than ever, will be the key driver of change in the 21st century. With all the problems of poverty, marginalization, inequity and degradation that are still prevalent throughout Asia, technology may well be the key to resolve them.
Asia should not just to try to catch up, it can leapfrog into the future. And these days, innovation and technology can come from anywhere. There is a growing force of innovators and techies, from Bangalore to Bandung, from Singapore to Shenzhen that can produce home-grown innovation with global application.
Fourth, Asia must tap into its best emerging resource: the youth. The youth today are becoming a generation unlike any other before them. They are much more connected, more open, more creative, and more active. Through the internet, and social media networks such as Facebook and Twitter, the youths are developing a sense of trans-generational consciousness, a feeling of mutual empathy and shared hopes.
We need to encourage this rather than resist it. The youth also feel strong entitlement for their future, and want to be agents of change -as we have seen in the Middle-East.
It is therefore important for Asian countries to provide them with the skills and opportunities, so they can become the most dynamic and productive part of society. If these youths grow to be entrepreneurs, innovators and pioneers in their fields, the rewards, the reward for Asia will be incalculable.
Finally, the fifth, Asia needs to preserve and build on what is best about Asia: a rich diversity. Asia is home to the world’s oldest civilizations and religions. It is also the continent with the greatest number of ethnic groups and dialects. In the age of globalization, it would be most ironic if Asia were to fall behind others in creating a peaceful multi-cultural world. Asia’s future lies in our ability to preserve the condition of culture, civilizational, I could say of cultural and civilization religious harmony that for centuries and millennia have been part of the Asian way of life.
Ladies and Gentlemen,
If we can do all this, then we shall be able to claim our time as the Asian Century.
And we can be sure that Asian Century means a century of progress and peace, and one of cooperation and collaboration.
I thank you.
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