Dissertation's Thank You Note.pdf

STUDY OF INDONESIAN GOVERNMENT’S POLICY IMPLEMENTATION IN SEPARATING MILITARY FROM BUSINESS 2004 - February 2009

THESIS Writing Submitted as Partial Fulfillment of the Requirements for Obtaining Master Degree from Bandung Institute of Technology

By

FITRIANI NIM : 24007031 (Defense and Security Studies)

BANDUNG INSTITUTE OF TECHNOLOGY 2008

Dedicated to Mama Tanti, Papa Iik, Aryo, Guapito and Mister and to the lover of knowledge everywhere

THANKS TO Author would like to express much gratitude to Dr. Ir. Bambang Kismono Hadi dan Prof Dr. Ron Matthews MSc that took role of supervisors, for all their advice and guidance in the making of this thesis. Many thanks also addressed for Dr. Ir. Sonny Yuliar and Jaleswari Pramodhawardani M.Hum that had given their time to act as panelists in the author thesis defend on June 25, 2009. Their input is very valuable.

The appreciation is given to the United Kingdom Government that provided scholarship for author to join Security and Defense Management Master Program in Bandung Institute of Technology. Special thank you is given to UK Defense Attachés, Ibu Novianti Oei and Ibu Putri that managed the scholarship. Thanks also for all lecturer and staff in Development Study Magister Program in SAPPK-ITB, namely Pak Tasrif, Mbak Yani, Mbak Fitri, Ocha, Pak Gunawan, Pak Tarsiwad and Ricky. Author would like to give special gratitude to Curie Maharani S.Sos MT that edit the writing of this thesis.

Author is thankful for the support given to her by fellow classmates Sezsy, Nisya, Mbak Julia, Mas Irfan, Mas Afrian, Candra, Rizki, Mas Tonny, Mas Erwin, Mas Budi, Mas Themmy, Mas Adi, Mas Iwan, Mas Aris, Mas Daniel, Donny and Irwan. Thanks also for her juniors and seniors that had supported the research. Great credit is too given to the people that support the collection of data: Ibu Jaleswari Pramodhawardani from LIPI; Mas Mufti Makarim from IDSPS; Mas Hari Prihartono, Yuli and Tiara from ProPatria; Artanti Wardhani from FES; Aditya Batara from Lesperssi and Sonny Wibisono from Tinmas PAB TNI.

Author utters deep thank you for her family Mama Tanti, Papa Iik, and bro Aryo, without them she cannot make it this far. Gratitude is also dedicated to author close circle Guapito, Mister, Dee, Sezsy, Alin, Yosef, Ahmad ‘Deny’ Salman, Willy, Oten, Stephani, Henry and Fresh Tom that have provide her sun even in the cloudiest days. Author also treasured the support provided by friends from University of Indonesia: Mas Har, Mas Boni, Tian, Adit HI, Septi, Fajar, Yuli, Eka, Manty, Ale, Feri, Randy,

Indi, Maggie, Rara, Donna, Susan, Siska, Supri, Icil, Yenli, Wahyu, Wisnu, Esti, Martin, Puput and Ebi.

Love pride is given to Keluarga Bebek Bandung: Egi, Ata, Ea, Danta, Arief, Ali, Astrid, Ira, Alin, Manda, Pandu, Ocha, Fifin, and Bumi, without them author will not be challenged to finish on time. Certain regards given to Reading Lights-er: Arifin, Tonny, Riswan, Ade, Fitri and all the people that were there providing great books, talks and coffee. Thanks go as well to Keluarga Kost Bapak Nunuk, Ibu Yuyun, Pak Yadi, Dian, Pupung, Diles, Rio, Andi, Deni, Arief, Anto, and all the neighbors. Big gratitude for Alin’s family: Ibu, Nenek, Dede Alin and also the carry car that had helped the author so much in her early days in Bandung. Thank you also for Hasto that gave author a great time while staying in the memorable city, along with Sez’s family: Tante Rita, Om Yusuf, Teh Vivi, Fajar, Talita and Akbar.

In addition author would give muchas gracias to a house in Jl. Kesehatan and all of its members which made amazing work place and great play ground: Juan Satu, Juan Dua, Carolina, Mister, Ibu Latifa, Mbak Nia, Mbak Tumini and her baby. Appreciation also for all friends and colleagues that made the author so rich she cannot finish counting.

ABSTRAK KAJIAN IMPLEMENTASI KEBIJAKAN PENGALIHAN BISNIS MILITER OLEH PEMERINTAH INDONESIA 2004 – Februari 2009 Oleh Fitriani NIM : 24070031 (Program Studi Pertahanan) Ketika angkatan bersenjata suatu negara memiliki akses dana di luar APBN, maka berkuranglah kemampuan otoritas sipil, yakni pemerintah, untuk melakukan kontrol atasrnya. Salah satu cara militer mendapatkan di luar kas negara adalah melalui aktivitas bisnis. Tentara nasional Indonesia semenjak pembentukannya memiliki tendensi untuk terlibat dalam bisnis. Berdasarkan sejarah, TNI berasal dari gabungan tentara bentukan kolonial Belanda, Jepang, serta gerilya di tingkat lokal yang sudah terbiasa mencari sumber dana untuk membiayai operasi mereka. Praktik ini terus berlanjut walau Indonesia sudah terbentuk, bahkan lebih menggurita saat tentara menasionalisasi bisnis milik asing di tahun 1950an dan naiknya Presiden Soeharto yang mendukung kebiasaan tersebut. Ketika Reformasi terjadi pada tahun 1998, muncul suatu gelombang kesadaran untuk melakukan reformasi atas bisnis yang dikuasai oleh militer. Di mulai dengan penghapusan doktrin Dwifungsi di era Presiden Abdurrahman Wahid dan dilanjutkan dengan keluarnya aturan hukum untuk mengambilalih bisnis militer di masa pemerintahan Presiden Megawati. Yang menjadi masalah adalah bagaimana pengimplementasian aturan tersebut di masa Presiden Susilo Bambang Yudhoyono. Terdapat empat kebijakan dalam Undang-Undang yang menjadi landasan bagi pemerintah Indonesia untuk mengambil alih bisnis militer. Satu di antaranya adalah UU TNI No.34/2004 Pasal 76 memberikan batas waktu pengalihan hingga Oktober 2009. Tesis ini mengkaji bagaimana efektifitas dan efisiensi pemerintah dalam melakukan pengambilalihan bisnis militer hingga Februari 2009. Pengukuran dilakukan melalui analisa media dan stakeholder. Terdapat 103 analisa berita dan 14 posisi stakeholder yang dikaji untuk melakukan penilaian terhadap kinerja pemerintah pada isu ini. Terdapat juga pengalaman dari negara-negara lain dalam melakukan pengaturan terhadap bisnis militernya sebagai masukan. Kesimpulan yang dihasilkan adalah bahwa pemerintah Indonesia belum efektif dan efisien dalam melakukan pengambilalihan bisnis militer. Hal ini menimbulkan keraguan bahwa pemerintah mampu memenuhi target pengambilalihan bisnis militer seperti yang ditetapkan dalam Undang-Undang. Sulitnya pemerintah mengambilalih dikarenakan kurangnya determinasi politik dan bisnis militer merupakan bagian dari budaya dalam negara yang butuh waktu panjang untuk dihapuskan. Kata kunci: Bisnis Militer, Pembiayaan Pertahanan Indonesia

ABSTRACT STUDY OF INDONESIAN GOVERNMENT’S POLICY IMPLEMENTATION IN SEPARATING MILITARY FROM BUSINESS 2004 - February 2009 By Fitriani NIM : 24070031 (Defense Study Program) When the armed forces of one country has access outside state budget, at that same time the ability of civil authority, in other word the government, to control them had diminished. Business is a common activity for military to gain off-budget funding and Indonesia has facing this problem for a long time. Since the forming of Indonesia armed forces, it has tendency to conduct business activities. Historically, TNI was formed by colonial troops of the Dutch, the Japanese, and local level guerrilla that were used to seek its own funding to support their operations. The practice continues although Indonesia has firmly became a state, it is even more expansive when the military nationalized foreign owned business in 1950s and President Soeharto regime that support the conduct. As soon as Reformasi occurred to the country due to Southeast Asia Crisis in 1998, there was wave of consciousness to reform the military owned business. Started with Dual functions doctrine elimination in President Abdurrahman Wahid era and continued by the making of regulations to separate military from business in President Megawati ruling. What has been a problem is how the law implemented in President Susilo Bambang Yudhoyono era. There are four policies declared in State Law that act as a base for Indonesian government to conduct take over on military business assets. One of them, the TNI Law No. 34/2004 Article 76, bluntly posed deadline for the government to deal with the problem up to October 2009. This writing studies how government effectiveness and efficiency in implementing the policy to the period of February 2009. The assessment was conducted using media and stakeholder analysis. There were 103 news and 14 stakeholder stances analyzed to measure government productivity in the issue. Experiences from other countries in managing military business are added to give other perspectives. The conclusion derived is that government of Indonesia has not worked efficiently nor effectively in taking over military business. This brings doubt on whether it can fulfill the deadline imposed by the law. The reason why is it so hard for government to reform military business is because of its lack of political will and also because military business is part of state culture that need time to be erased. Keywords: Military Business, Indonesia Military Funding