THE RELATION BETWEEN STATE AND MARKET IN A DISCOURSE DEBATE ON DEVELOPMENT PHILOSOPHY AND NATIONAL DEVELOPMENT PLANNING SYSTEM

• Main Author: KUSWOYO (NIM : 24009002) ; Pembimbing:Dr. Yasraf Amir Piliang, MA , ADE
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/17760
• Institution: Institut Teknologi Bandung

Indonesia has Pancasila and UUD 1945 (the Constitution of the Republic of Indonesia) as their basic fundaments of development. It is said in the Preamble of the Constitution that the Republic of Indonesia aim to i) protect the whole Indonesian nation and the entire homeland of Indonesia, (ii) promote the social welfare, and (iii) promote the people education and intellectual capacity. The constitution also contains government’s obligations to the whole Indonesian society, which can be address by development of the country. Nonetheless, the history of economic policies and development in Indonesia were varied, from a highly interventionist policy, up to a very pro-market policies. As the result is a very dynamic and fluctuated role between the state and the market. In regard to this condition, this thesis objective is to study the correlation between state and market in the discourse on the philosophy of development particularly related to the national development planning system. The approach used in the study is a qualitative methodology through literatures, documents, and in-depth interviews with people coming from the practitioners of development planner, senior economists, and civil society organizations. <br /> <br /> <br /> <br /> <br /> Study revealed that the economic and development policies from the 1970’s until today was more determined by the pragmatism of government that mostly rely on the governments’ financing capability. For example, when oil price is increased in 1970an, Indonesia tends to carry out an interventionist policy. In the other hand, when the government's finance ability is decline the policy shifted to a pro-market. <br /> <br /> <br /> <br /> <br /> Regarding of the actualization of Pancasila, in the New Order era, Pancasila was articulated in a monolithic way by the regime and its became a tool of repression for them to perpetuate their power. Therefore, when the regime was falling on 1998, most Indonesian people lost trust in Pancasila. Thus, Pancasila became marginalized and forgotten. Meanwhile at the same time, Indonesian economic was trapped in a more <br /> <br /> <br /> <br /> <br /> iii <br /> <br /> <br /> <br /> <br /> pragmatic ways and drowned in a very uncertain condition of globalization. Indonesia also faced with problems in poverty and unemployment. Here the significance of Pancasila being required the most, to maintain Indonesia identity. Therefore, people began to look back to Pancasila and the philosophy embodied in it, as the fundamental spirit of Indonesia to keep forward. <br /> <br /> <br /> <br /> <br /> All those mentioned were results from a changing development paradigm which give more room for ideas and new concept to emerge and struggle between the government, market and civil society. The development was no longer carried out top-down and centralized by the central government and put its people as an object, instead of subject of development. All the stakeholders need to be engaging in the development. The new concept of good governance and it implementation as the key so that other party are willing to support and contribute in Indonesian development. In order to get his implemented well, Government of Indonesia need to have a strong think tank institution that connected straight to the development planning system. This think tank institution need to produce ideas and concepts that contain Pancasila’s as the basic values and put it to present contexts which mutual in accordance to the reality in it people. The national planning agency (Bappenas), as the government’s think tank institution had not met their optimum potential. Most of the capacity of the agency focused on projects investment planning. <br /> <br /> <br /> <br /> <br /> Thereby this study recommend that the National Planning Agency reinforced itself as the think tank institution through several way. The recommendation are : (i) undertaking an internal evaluation as a basis for role and functional reposition of Bappenas and to optimalize its human recources to produce new ideas and concept; (ii) Reinforced its organizational structure in accordance as a think tank institution; (iii) To improve its capacity in negotiation and lobbying with the civil society as well as to the legislative assembly; (iv) Reinforced the information system and research methodology as their asset as a think tank institution; and (v) Improve the capacities of its staff. All of these reinforcement and improvement need to be carried out simultaneously with the fortification of the planning and budgeting system, include the strengthening in planning coordination as well as to revitalize all of the planning documents so it can be made as a reference to a more effective development.