The fight against corruption in Indonesia
In Bali, corruption is structural and the very low salary of civil servants is undoubtedly a contributing factor. So, it is important to know that in case of a problem, even if it seems unsolvable, many people opt for the envelope. It is often unavoidable, as Indonesia is regularly ranked among the most corrupt countries in the world. Suharto's New Order regime saw an explosion of corruption and what has been called "crony capitalism", based on embezzlement of public money and widespread nepotism. During his reign, Suharto, his family and close associates (the "clan") amassed fabulous fortunes by appropriating the country's wealth: it is estimated that between 15 and 25 billion dollars disappeared into the hands of the clan. This has resulted in a political culture that is highly influenced by this state of mind. Corruption also became widespread after the decentralization movement that began in the late 20th century. Previously, only Suharto's family was lining their pockets," some people sigh, "but now everyone else has to be paid...
Susilo Bambang Yudhoyono, president from 2004 to 2014, promised during his first election campaign that the fight against corruption would be the first of his challenges: a few months after coming to power, he began to initiate arrests and trials, such as that of a former governor of Aceh province, considered one of the most corrupt. A corruption eradication commission was also set up.
The current president, Joko Widodo, has also made the fight against corruption his top priority. But the fight is difficult, because corruption is commonplace, really rooted in the customs. He has been unconvincing so far, but he did bring the issue to the forefront during his last election campaign.Political issues
Since Timor's independence in 2002, relations with Australia have soured. Canberra sent troops to the border between the two Timor states under the United Nations flag, a gesture seen as an insult by Indonesia, which is suspicious of Australia's power. Relations became even more strained after the Bali bombings. On October 12, 2002, 202 people, mostly young Australians, died in a bomb attack on a Kuta nightclub. In October 2005, it was mainly Indonesians who fell victim to bombs that hit a hotel and restaurants in Jimbaran simultaneously, killing about 20 people. Things then calmed down and Australians are returning to Bali in force even though diplomatic relations between the two countries deteriorated in 2015. Two Australian nationals were executed for drug trafficking in April 2015. Today, the relationship of these two neighboring countries in spite of themselves is of the order of a good figure.
The biggest challenge for Bali: tourism, a financial windfall for decades
In 2001, before the bomb that tore Bali apart, 5.15 million tourists visited the archipelago, bringing in 5.4 billion dollars in foreign currency. During the month of August alone, Bali received an average of 1 million visitors! The crisis hit hard in Bali, where 90% of the inhabitants lived, directly or not, from the tourist industry: from waiters in restaurants to cab drivers, fishermen or farmers whose production mainly fed the big hotels and restaurants, or artists who sold their works to tourists... But the consequences of the 2002 bomb showed (and at what price!) the dangers of an economy based only on a sector as versatile as tourism. For a year, the streets of Kuta were empty, and the number of unemployed multiplied - creating tensions between the Balinese and some Javanese, who came to Bali to find work in the tourist industry. Today, after the second bombing in 2005, Bali is diversifying its sources of income, encouraging service companies to set up shop here. What could be more attractive for an executive than moving to Bali, where, after all, you are only an hour and a half by plane from the capital Jakarta? But tourism remains at the heart of the Balinese economy. The number of visitors continues to increase and the record is exceeded every year. In 2019, nearly 6 million foreign tourists and 10 million Indonesians visited Bali.
A return to the north for some Balinese
The Covid-19 pandemic resulted in mass layoffs, reduced wages and hours of work, especially among workers in the tourism sector. In fact, Balinese from the rural north of the island, who had moved to the south to work in the tourism industry, which represented 50% of the island's economy at the time, were forced to return to their villages to support themselves. They have therefore taken up agricultural work, less remunerative, such as harvesting fruit or fishing. It should be noted that a quarter of the income from transport and food is linked to the tourist activity. In other words, with the decline in tourism, there is less need to call on service providers to supply hotels and transport various orders. This rural exodus has nonetheless proved beneficial to the northern region, which was short of labor. With the return of tourists when the borders reopen, there is no doubt that these Balinese will return to the south.
Faced with this economic imbalance caused by the collapse of a sector that provides the main resources (the textile sector remains the leading sector in Indonesia), on June 13, 2021 the Indonesian president approved ten proposals requested by the governor of Bali to revive the island's economy. These include hosting more major events in Bali, a training program for new skills for local residents, and soft loan programs for the tourism sector. To be continued.
