By: Prasetijono Widjojo MJ, Economic Observer
A sense of concern was etched in my heart when I heard the Minister of Finance say that economics is no longer useful, especially responding to what the President of the United States (US) Donald Trump did, with his slogan America First. A concern that should certainly be of concern to all economists, is this really the case?
Is the condition so severe that the science developed over hundreds of years is completely useless. A concern that must be responded to with a wise and prudent attitude because we are talking about the survival of the nation, about the development of civilization, about running the administration of the nation and state. The statement of the Minister of Finance is a “wake up call” to all economists to jointly participate in thinking about the best solution for the state and nation.
Trump has actually talked beyond economics but more about political practices based on economics. Trump is talking in the context of politics and power changes in world geo-politics. Who says that an economic decision that concerns the lives of many people is not a political decision? Mr. Mar’ie Muhammad once said that all economic decisions that concern the livelihood of many people are political decisions. Responding to Trump’s move is a political move.
Ir. Soekarno once said that as a framework we have Trisakti: sovereign in politics, self-sufficient in economy, and personality in culture. Politics-Economy-Culture cannot be separated from each other in nation building, in civilization building. Politics without culture will lead to democracy for power, and allow for the dictatorship of the majority or the tyranny of the minority. It is difficult to realize equitable welfare, unless we have a fair and wise leadership.
Leadership that thinks of all the people. Economy without culture can lead to greed (greedy) and also development malpractices that benefit themselves, groups, or groups. Economy-Politics-Culture is telu-teluning atunggal (three things that become one whole). Economics remains useful and beneficial as long as its politics are for the benefit of all people and by maintaining a culture with personality.
If economists only think sectorally then it will certainly be difficult to solve the nation’s problems which are believed to be nothing that is not cross cutting. The problems of poverty, inequality, education, infrastructure, security, let alone national development are all cross cutting. Across countries, across nations, across time, across generations, across sectors, across development gatras.
All these cross-cutting issues are crystallized every year in a document called APBN (State Budget) and a five-year document called RPJMN. Currently, with the advancement of science and interdependence in the life of the nation and state, all issues or problems, both nationally and globally are increasingly showing Inter and Intra-related between all aspects, there is no issue that is not interrelated, or cross cutting.
The steps taken by Trump can be a momentum to evaluate Indonesia’s free and active foreign policy. Is it still “on track” in line with the values of Pancasila and has it actually elaborated what is contained in the Preamble of the 1945 Constitution? Has foreign policy synergized with its economic politics, with socio-cultural development? Is foreign policy imbued with the spirit of “implementing world order based on lasting peace and social justice”? Has foreign policy led to “protecting the entire nation and the entire homeland of Indonesia”.
The Preamble of the 1945 Constitution clearly outlines that Indonesia follows the principle of an open country, a country that supports international cooperation, freely and actively. The Non-Aligned Movement, which is a concrete effort of the Bandung Tenets as a result of the 1955 Asian-African Conference, seems to need to be seen again whether it is still “on track” with the thoughts of the founding fathers.
The framework of thinking that is sequential and coherent starting from Pancasila – the Preamble of the 1945 Constitution – KAA (Bandung Precepts) -RPJPN-RPJMN-RKP and APBN needs to be seen again whether it has been elaborated properly and clearly in state documents as guidelines for national development. Economic theory and practice do not exist in a vacuum, not stand alone, but together with other disciplines or fields. This is where the people expect strong leadership by the captain who carries the ark of this nation towards its ideals.
Economics is also a social science and contains ethics and morality (Mubyarto). Economi theory is an Art and Social Science. Ethics and morals are the factors that drive the economic mechanism whether it will follow the free market or more to the planned economy, will prioritize individual needs or prioritize the public interest (all people).
In the world, it is the ethical and moral factors that drive the economic process towards an equilibrium. What is currently happening is more visible as conditions that have changed both geo-politically and geo-economically and are in the process of reaching a new balance in the economy. This is where the Trisakti concept becomes very relevant: having a personality in culture. Economics without ethics and morals is a win-win situation. Free fight liberalism, a model that Neo-liberals believe is the most ideal.
Donald Trump is practicing liberal-style Jingoism to try to find a new balance that has been shaken by the presence of China as a new economic power and BRICS as a new economic coalition. What about the Non-Aligned Movement? How will Indonesia behave? This will certainly provide “new hope” for all the people.
As a people, we certainly hope that the captain of the Indonesian ark is able to face the storms and shocks faced in sailing towards the ideals of the nation. Pragmatism and best practices will only lead to things that are momentary, but there is no fundamental change because it moves on a “track” whose position is a “sub-system” of the existing dominant system, and positions itself as a follower.
In the current conditions, there needs to be “measured courage” in carrying out economic-political-social-cultural policies so as not to get further away from the ideals of the nation. Hope this is useful. Walahu’alam bishowab. (*)
