Realism has been the dominant conceptual approach to studying Indonesian foreign policy. This article, however, considers realist analyses to be insucient since their emphasis on the struggle for power and security in the system of states has led to the neglect of the importance of perspectives which focus on order. To ll the gap it then intends to apply the English School perspective which focuses on the concept of international society to trace the nature and function of Indonesian foreign policy. Two cases are examined, including the Asian African Conference and Association of South East Asian Nations, to demonstrate the relevance of international society for policy ideas and action. The central argument is that the Indonesian elite worldview indicates that the creation and maintenance of order in international societies are ones which are prominent objectives legitimizing the conduct of Indonesia's external relations.
This paper tries to discuss diplomatic governance study on Indonesian decision-making and implementing foreign policy. Diplomatic governance is a concept that is adopted from democratic study on how to manage transparent and accountable decison-making policy. The discourse on diplomatic governance is expected to improve effectivity and efficiency of Indonesian foreign policy in achieving its national interests. Foreign policy that will be the focus of this paper is Indonesiaan foreign policy of administrative–based economy. In the last 10 years, this policy have been constractedserious problems such as corruption, lack of protection of Indonesian citizen abroad and crisis on law-politics issues such as dispute resolution in International Court of Justice in the case of Sipadan and Ligitan Islands.This paper considers that the lacks of effective and efficient of Indonesian foreign policy in articulating Indonesia"s national interests in international fora are closely related to the low governance negotiation discourse in the formulation and implementation of Indonesia's foreign policy.
The 2007 Indonesian investment law granted national treatment for foreign investors, establishing a transparent 'negative list' for out-of-bonds investment sectors, and has been considired as a reformative regulation in Indonesia's economic strategy. However, decentralized systems give autonomy to local governments to manage their projects and infrastructure themselves. This leads into increasiig investment burdens through their opaque measures that are creating perceptions of risk for foreign investors. As a result, lack of legal certainty, inconsistent regulations and judiciary system would hamter investments. This article argues that law 25/2007 should be supported by a comprehensive investment policy to attract more foreign investors into Indonesia. A key element in establishing a competitive region is a free and open investment regime, This article addresses policy impediment to private investment in Indonesia as well as in the ASEAN region. Indonesia and ASEAN should have non-discriminatory treatment extended to foreign investors including ASEAN-based inveitors, as the establishment of ASEAN Economic community (AEC) will cornmence in 2015. Legal certainty of international business transaction by private investors is fostering investments by both direct investment and indirect investment (portfolio). Parties to investment agreements include individuals, small, medium and large multinational corporations, and countries. In this centralized global atmosphere, the Indonesian agovemment has to provide guarantees to leverage private investments.
Budgeting for a state or a country seems to be the most important part to handle administration and government policy in term of socio economic reason. In practice, a lot of government tends to subscribe a balance budget whereby it is striving to balance between revenues and expenditures accurately. Unfortunately, this balancing post uses a debt and foreign aid charged by interest to cover any shortage in revenues. In the real context, the budget deficit management based on debt is still controversial and considered inappropriate with developing country conditions which their economies are unstable and fluctuated. Unfortunately, many countries in the world including Muslim-populated countries subscribe budget deficit system whereby the sources of its fund are backed up by debt. The focus of this paper is to analyze two main sensitive issues of the Indonesian economy in the light of Maqasid Al Shariah. This study employs a method of literature review and combined with data analysis. Actually, Islam has a very rich literature legacy in administrating public sector economy and it becomes important theory and framework as a stance or point of view to analyze the prevailing system. The high interest rate payment is the main issue of public sector expenditure. Indonesian government seems no choices to resolve its public sector economy and relies too much on debt management. For social welfare expenditure there has been a misallocation in emphasizing budget expenditure whereby oil and petroleum subsidy consume almost majority of the total welfare expenditure in Indonesian public sector economy
Paradiplomacy is still relatively a new phenomenon for government activity in Indonesia. Paradiplomacy refers to the behavior and capacity to engage in foreign relations with foreign parties carried out by 'sub-state' entities, or regional governments / local governments, in the context of their specific interests. The term 'paradiplomacy' was first launched in an academic debate by Basque scientists, Panayotis Soldatos in the 1980s as a combination of the term 'parallel diplomacy' into 'paradiplomacy', which refers to the meaning of 'the foreign policy of non-central governments', according to Aldecoa , Keating and Boyer. Another term that was put forward by Ivo Duchacek (New York, 1990) for this concept is 'micro-diplomacy'. In this work, author explain the paradiplomacy into ten section such as: (1) Introduction; (2) Interaction Transnational and Paradiplomacy; (3) Paradiplomacy in the Indonesian Law Context; (4) Paradiplomacy in the International Law Context; (5) Diplomacy by Local Government; (6) Technical Regulation on the Implementation of Paradiplomacy in Indonesia; (7) International Cooperation by the Special Regional Province of Yogyakarta, Indonesia; (8) The Chronology of International Cooperation by the Local Government in Indonesia; (9) Inputs for the Revision of Indonesian Law on International Cooperation and (10) Epilog.
This study aimed to analyze the measures the Government in strengthening the sovereignty of Indonesia in the border region, which includes the strengthening in the areas of national defense, science and technology, as well as strengthening in the field of foreign policy. Indonesia's national sovereignty repeatedly at stake in the face of the world when it happens to border disputes with some neighboring countries, namely Malaysia, Singapore, and the Philippines. As for the problem within the borders of sovereignty is related to a claim made by Malaysia against some of the areas that became the border area between the Republic of Indonesia and Malaysia. There are at least three cases of border disputes that make the relationship between Indonesia and Malaysia heats up, the Ambalat case, Sipadan-Ligitan, and recently is happening is Tanjung Datu. Indonesia and Malaysia border disputes does not necessarily happen. Dispute Indonesia and Malaysia on the border line in the waters of Sulawesi following a change in the ownership status of the islands of Sipadan and Ligitan, the border line on the island of Borneo (Ambalat), and the latter case that has yet to be resolved by the construction of the stake by Malaysia in Tanjung Datu (West Kalimantan). It is a trigger factor rift diplomatic relations the two countries.In this regard, there needs to the appropriate strategy with regard to strengthening the sovereignty of the Homeland border region is the duty of the Government in an effort to protect the people and maintain the territorial integrity of NKRI. Some recommendations dispute resolution sovereignty border areas studied in this paper, including: (1) Establishing institutional aspects of defense and security by providing strong security of island-outer islands, (2) Establishing institutional aspects of science and technology to conduct training on the management and conservation of resources natural resources (SDA) and the building of infrastructure and transport, as well as (3) to strengthen aspects of foreign policy with increased foreign cooperation with neighboring countries, especially with Malaysia.Keywords: Dispute, Border, Defense and Security, Science and Technology
The purpose of monetary policy is to affect the economic activity through various channels of monetary transmission. One of the transmission channels Is via Islamic banking through financing to various sector of the economy. The change of monetary instruments certainly affects economic sectors differently Given the dual monetary system (Islamic and conventional) in Indonesia, it is interesting to see how those rates influence each of the economic sectors. This is important for the government in designing future economic programs by determining the specific sectors which must be prioritized. This paper aims to investigate the sensitivity of the economic sectors in response to the change in the Islamic and conventional monetary rate. The paper relies on the unit root test, the co-integration test, and impulse response functions, focusing on the period from May 2006 to February 2011. The data used is from monthly economic sectors for Islamic and conventional systems, Islamic monetary rates, and conventional monetary rates. The results show that Islamic banks play important roles in the monetary transmission process in the Indonesian economy. In particular, specific economic sectors react differently to both Islamic monetary instruments as well as conventional monetary instruments.
