Professional Documents
Culture Documents
I Putu Tirta Agung S
Abstract
The aim of this paper is to briefly analyze the development of economics thought in
Indonesia. This paper highlights issues concerning the country’s economics teaching as
well as the overall performance of its economists. The paper is divided into four sections
and ends up with a section that is meant to be the conclusion as well as the summary of
all the writings. The paper starts with a section that repositions the overall performance
of Indonesian economists as “Merely Catalysts of Knowledge”. It is then followed by
another three sections that try to examine the core problem affecting the overall
performance of Indonesian economists, and come up with three connected answer,
“Servilism as a Result of Initial Pragmatization”, “The Starving Lecturers and Professors”,
and “Their Low Stock of Knowledge”.
Keywords: Economics, indonesian economist, the development of economics thought
1
This text was suggested to me by Marthen L. nDoen (my thesis supervisor) reflecting the entirety of the previous
manuscript of my bachelor thesis. He recall a particular paragraph from page 76:
“Patutlah kita akui memang betapa menakjubkannya seluruh adegan di atas. Mimpi, cita‐cita, maupun
nafsu segala umat, turut menghiasi derap langkahnya, sehingga salah dan benar terlihat tipis di dalamnya.
Bahkan sang jawara dan pecundang sebetulnya tetaplah menjadi pemenang, sebab mereka sama‐sama
telah menyumbangkan jerih akal budi yang tak ternilai harganya bagi tumbuh‐mekarnya ilmu ini. ”
Translation:
“We cannot deny the magnificence of all the scenes above. Dreams, ambitions, and even passion of its
believers, all beautify its footsteps, so that right and wrong turns nearly undistinguishable. Even the
champion and the loser in reality both become winners, because they equally contribute an intellectual piece
in the puzzle, which is priceless for the growth and development of this field of knowledge. ”
In reaction to the above paragraph, he then asked, “What about Indonesia? Is there a problem such as that in this
country? Do Indonesian economists possess intellectual originality? Are we still merely consumers, or have we also
made contributions equal to those of producers to the enhancement of economics?” A series of questions that is both
very interesting and yet at the same time risky. Especially considering my own background where I instead am clearly
just a consumer myself. Being unable to shirk from such a challenge, I shall try to describe in this text the situation of
Economic science in Indonesia. I dedicate this text in tribute to Marthen L. nDoen.
“Mereka menyampaikan keluhan kepada saya sambil bertanya tentang apa yang salah dengan
ekonomi kita atau ekonom kita sehingga ekonomi kita tidak maju, bahkan terpuruk ke dalam krisis
yang belum terjadi dalam sejarah Republik Indonesia”(Swasono, 2003 {2002}: vi) 2
The above excerpt of a tragic statement by Sri‐Edi Swasono, embodies quite sufficiently the core
problem which I would like to draw attention to in this text. Thus if since the beginning in
Indonesia, to discover the world of economics history in its entirety, including its offerings of
freedom and all the forms of state which it desires, our attention has been directed almost
solely around the intellectual battlefield of European and American logic, therefore as a point to
ponder concerning the growth and development of economics in this country, I shall present a
concise observation of the existence and competence of Indonesian economists up until the
time this text was written.
Merely Catalysts of Knowledge
In reaction to the opening excerpt, it is my personal view that the reality concerning the
Indonesian economists is very bleak and far from impressive. In fact, it is almost beyond any
doubt that every Indonesian would instantly agree that all our economists 3 are poor in thought,
especially when it concerns originality. For the sake of objectivity though, let us first, identify the
cause of the seemingly hopeless situation. For this, I shall begin by posing a question which can
quite reliably measure the position, intellectual competence and ingenuity of Indonesian
economists in the eyes of the world. Has an Indonesian ever won the prestigious Nobel 4 Prize in
Economics? I fully acknowledge the controversy surrounding the Nobel Prize, however, in
relation to this text, we must still fairly assume it to be an ideal world class award, as such an
award is indeed a most effective incentive to stimulate intellectual creativity. Since its inception
2
Translation: “They complained to me asking what was wrong with our economy or our economists, so much that it
has resulted to the stagnation in our economy, and has even fallen into such a crisis which has never happened in the
history of the Republic of Indonesia.”(Swasono, 2003 {2002}: vi)
3
In order to avoid a difference in perception, the definition of economist (economics scholar or economic sciences
expert) here is those individuals who specifically study, research, develop and apply all economic analyses, concepts,
and theories.
4
The Sveriges Riksbank Prize in Economics in Memory of Alfred Nobel (Sveriges Riksbanks pris i ekonomisk vetenskap
till Alfred Nobels minne), or more commonly known as the Nobel Prize in Economics, an award for outstanding
contributions in the field of economics and is generally considered one of the most prestigious awards in that field.
This prize was first instituted by Sveriges Riksbank in celebration of its 300th anniversary in 1968 (awarded in 1969),
and although economics was not listed in Alfred Nobel’s will (possibly seen as beyond his wish), the Kingdom of
th
Sweden still awards the prize every year on 10 December with the same procedures and amount (10.000 Kronors in
2006) as all the other Nobel categories (physics, chemistry, physiology or medicine, and literature, except peace).
However, due to the controversy which developed around the awarding of the Nobel Prize in Economics, it was
decided in February 1995 that the award would experience a widening of its core definition, no longer specific to
economic science, but inclusive of related social disciplines such as: anthropology, psychology, sociology, and political
science. The complete details can be accessed via internet at http://www.nobel.se/economics/laureates/
(01/04/2007)
in 1969 until 2008 recently, the prize has been won by 62 of the world’s foremost thinkers. Yet
not a single one of them has been Indonesian. It was instead Amartya K. Sen from India, a
country whose independence came even later than Indonesia’s, who through his hard work
succeeded in winning the prestigious prize in 1998. Furthermore, Santa Lucia can take pride in
having produced Sir William Arthur Lewis, who became the first man of color ever to be an
economics Nobel laureate in 1979. Therefore, it is quite clear at least temporarily, that a world
class award in economics such as the Nobel Prize, is still merely a dream. This also shows that as
of yet meager (not the absence of any) contribution of the Indonesian economists to the
development of economics itself. If this is indeed so, what then is the current position of
Indonesian economists in the eyes of the world? Are we merely consumers of knowledge?
Before rushing to answer the above questions, perhaps we should consider the
following remark by Sri‐Edi Swasono 5 :
“Memprihatinkan sekali bahwa kita menyongsong sistem ekonomi pasar bebas lebih berapi-api
daripada orang-orang Utara. Kita mempraktekkan liberalisme dan kapitalisme di sini lebih hebat
daripada di negara-negara Utara sendiri. Kita bahkan menjadi juru bicara ekonomi pasar-bebas
untuk kepentingan mereka. Kita bahkan menggadaikan pikiran dan loyalitas nasional kita pada
ide pasar-bebas. ………ibarat “belum ditanya sudah mau”, lalu kita “menari atas kendang orang
lain” dengan mudahnya. Tidak hanya gampang kagum atau soft, barangkali juga malah servile,
tetapi mengaku friendly atau low-profile.”(Swasono, 2003 {2002}: 74-75) 6
According to Sri‐Edi Swasono, most 7 Indonesian economists (he unsurprisingly identifies himself
with the radical reformist minority) are mere marketers (or mediators) of economics.
Furthermore, due to his awareness and concern towards this sad state of affairs, he
enthusiastically invites fellow thinkers to:
5
On one side, i actually agree concerning the invitation of Sri‐Edi Swasono through his “red” book titled “An Economic
Exposè: Globalism and the Competence of Indonesia’s Economics Scholars” about the necessity of openness towards
schools of thought other than Capitalism and Socialism in the teaching of economics in Indonesia, as well as almost all
of his nine solutions for rejuvenating economic sciences in Indonesia, but (in purely constructive critique) why does it
instead appear to be a marketing tool for the school of economic sciences known as Structuralism? Even more
regrettably, when Sri‐Edi Swasono declared war on the ”servility” (servile, the attitude of being a servant) of
Indonesian intellects, why is it that just to convince us of structuralism, in his tiny book of only 174 pages, he had to
go as far as quoting over 20 of the world’s Structuralism experts, just to prove the decay of neo‐classicism? Might he
have done this because he is fully aware that our economists are indeed servile, so much that they need the
validation of first‐world intellects in order to be convinced? However, I must say that Sri‐Edi Swasono has provided a
breath of fresh air to the development of economic science in Indonesia. Further details can be viewed at Swasono,
2003 (2002).
6
Translation: “It is truly pitiful how we await the free trade economic system with more enthusiasm than those in the
north. We practice Liberalism and Capitalism here even more than the northern countries themselves do. We have even
become spokespeople for free trade in their gain. We even mortgage our minds and national loyalty to the idea of free
trade. ………as one who “accepts before being offered” ,we then “dance to someone else’s drum” so easily. Not only
are we easily impressed or soft, perhaps even servile, but we proclaim ourselves as friendly or low-profile.” (Swasono,
2003 {2002}: 74-75)
7
When he made this statement, unsurprisingly, he categorized himself as part of the ’radical reformist’ minority. See
Swasono, 2003 (2002): 77‐79)
“………sebenarnya sudah terselip niat saya untuk mengajak kaum intelegensia kampus meninjau
ulang keterbelenguan mereka, agar bersedia meninggalkan ortodoksi dan posisi status-quo dalam
pemikiran ekonomi. ………kita semua sebagai warga kampus, untuk bersama-sama meningkatkan
kadar intelektualitas kita, menghindari keusangan dan meraih kemutakhiran.”(Swasono, 2003
{2002}: 2, 97) 8
Oddly, in order to reach this sophistication Sri‐Edi Swasono instead offers a solution which is
truly contrary (or simply ordinary):
“………maka kita dituntut untuk dapat melahirkan koreksi-koreksi kreatif, pembaruan-pembaruan
dan terobosan-terobosan inovatif dalam pengajaran ilmu ekonomi. Ibaratnya paragraf demi
paragraf dan bab demi bab harus kita kritisi secara mendasar. Hal ini harus kita lakukan sambil
menunggu hadirnya buku teks baru yang lebih lengkap dan solid untuk menggantikan buku-buku
teks neo-klasikal konservatif-konvensional yang saat ini mendominasi kampus-kampus
kita.”(Swasono, 2003 {2002}: 105) 9
Apparently it is intended that we contribute better to the world, not through hard work and
persistence in developing economics, but instead only by awaiting the arrival of new alternative
economic textbooks in replacement of the neo‐classical schools, which for him are too
conservative and conventional. Obvious it is, from both those who proclaim and who are
claimed to be critical or even the most radical, until those labeled as conservative economists,
all are clearly mere intermediators of knowledge. In fact, we seem to be at such a loss at how to
solve this pathetic puzzle (not only in economics, but in all field of sciences), that through Act
14/2005 on “Teachers and Lecturers”, our government has been forced to issue yet another kind
of professorship called Profesor Paripurna (possibly translated as Plenary Professor), just to
stimulate intellectual creativity. The following is an excerpt of its content:
“Profesor yang memiliki karya ilmiah atau karya monumental lainnya yang sangat istimewa
dalam bidangnya dan mendapat pengakuan internasional dapat diangkat menjadi profesor
paripurna.” (Legislative Act No. 14/ 2005 on Teachers and Lecturers, Article 49: 2) 10
In simple terms, whoever Indonesian intellectual who one day wins the Nobel in Economics or
any other world class award, he or she shall at that very moment become our very first plenary
professor. However, the million dollar question right now is, why has this bleakness sustained?
8
Translation: “………actually it has been my intention to invite campus intelligentsia to review their the existing
boundaries, in order to try to leave the orthodoxy and status-quo in economic wisdom. ………we all as intellectuals
(campus society), to jointly increase our intellectuality, avoid obsoletion and strive for sophistication.” (Swasono, 2003
{2002}: 2, 97)
9
Translation: “………so we are obliged to bear creative corrections and breakthroughs in the teaching of economics.
In other words, each paragraph and chapter must be fundamentally criticized. We must do this while waiting for new
textbooks which are more complete and solid to replace the neo-classical conservative-conventional textbooks that
currently dominate our campuses.”(Swasono, 2003 {2002}:105)
10
Translation: “Professors which produce scientific work or any other monumental work that is outstanding in one’s
field and receives international acclaim can be promoted to plenary professorship.” (Legislative Act No. 14/ 2005
about “Teachers and Lecturers”, Article 49: 2)
Servilism as a Result of Initial Pragmatization
In line with the previous thesis from Sri‐Edi Swasono, who holds a professorship at the
University of Indonesia (UI), and in relation to the question above, Prof. Dr. Mubyarto of Gajah
Mada University (UGM) draws the following conclusion:
“Sebagian besar dosen Ilmu Ekonomi kita yang belajar di Amerika mulai awal tahun
enampuluhan, baik di UC-Berkeley, UW-Madison, maupun di universitas-universitas lain di
Eropa Barat, hampir semuanya memperoleh beasiswa dari yayasan-yayasan atau dari pemerintah
Amerika. Akibatnya jelas kebanyakan dari mereka menjadi silau terhadap kehebatan ilmu yang
mereka peroleh termasuk sistem nilai yang dianggap lebih baik dan lebih modern ketimbang
sistem nilai di Indonesia.”(Mubyarto, 2004: 22) 11
In this excerpt, Mubyarto is convinced that the scholarships given by various foundations, as
well as by the governments of developed countries since the 1960s, are the core cause of this
mess. He maintains that it is due to foreign generosity, Indonesian economists who at that time
were lucky enough to receive free education abroad, were instead enchanted and blinded by
the great knowledge and values system so proudly held by the westerners, and they
furthermore came to belittle what is their own. Oddly, all postgraduate (master degree from
Vanderbilt University‐USA in 1962 and PhD from Iowa State University‐USA in 1965) background
of the late Mubyarto, was in fact entirely achieved through scholarships of the same 1960s
period which he just criticized. Or perhaps, similar to Sri‐Edi Swasono, the late Mubyarto places
himself outside the group which he calls as “most”. So despite proposing a bold thesis, it is yet
very regrettable that this emotional answer of Mubyarto only further accentuates the narrow‐
mindedness of Indonesian intellects who are ungrateful, and only enjoy finding an escape goat.
Therefore, we must be open and impartial when speaking of the sterility of Indonesian
economists.
If in his argument Mubyarto claims most Indonesian lecturers of Economics who
graduated from the U.S. and Europe to be the core cause of this stagnation, and considering his
own professorship, he should also acknowledge the bitter state of education in Indonesia. This is
because, it is true that all the “acknowledged” Indonesian economists such as Drs. Mohammad
Hatta, Prof. Sumitro Djojohadikusumo, Prof. Widjojo Nitisastro, even until Sri Mulyani Indrawati,
have indeed experienced the joy of studying at top universities in developed countries.
Regrettably, however, each left only after completing their elementary and secondary
education. Some had even possessed Indonesian baccalaureate. It is no longer a secret that this
11
Translation: “Most of our lecturers of Economics who studied in America since the early sixties, such as at UC-
Berkeley, UW-Madison, or at other universities in western Europe, almost all received scholarships from American
foundations or the American government. As a result, of course the majority of them became blinded by the greatness
of the knowledge which they received including the value system which they considered to be better and more modern
than the value system in Indonesia.”(Mubyarto, 2004: 22)
country consistently implements a practical educational system, which inherited from the
Netherland‐Indies colonial government that is indeed pragmatic. 12
M.C. Ricklefs (2005 {2001}) in his book entitled “A History of Modern Indonesia Since c.
1200”, explains that European style formal education began to be widely available for the
Indonesian natives following the implementation of “Ethical Politics” by the Netherland‐Indies
government at the beginning of the 20th century. However, when attempting to realize the
educational system most appropriate to be applied, the colonial government was instead torn
into two ideals. Snouck Hurgronje and the first Director of Ethical Education, J.H. Abendanon,
preferred pure education of European characteristics, while Idenburg and Governor General van
Heutsz instead supported education of a practical, pragmatic and basic orientated (Ricklefs,
2005 {2001}: 329‐330). The latter proposition won its popularity and as a result, education in
Indonesia at that time was consequently aimed at fulfilling the need for (coolies) mere
government staff and low to middle level corporate employees (Ricklefs, 2005 {2001}: 332). This
is very obvious in the types of colleges which the colonial government left Indonesia with, such
as: OSVIA (initially termed hoofdenscholen and officially renamed since 1900, a kind of training
school for indigenous state employee candidates); STOVIA (originally called Java Nurse School
and renamed since 1902, a kind of training school for indigenous doctors); Technische
Hoogeschool (a technical college which began operating in 1920, and was renamed as Institut
Teknologi Bandung or Bandung Institute of Technology after the independence); Kweekscholen
(opened in 1852, it was a school for low level teachers); as well as Rechtshoogeschool (a college
of law which was founded in 1924). 13
Throughout the post‐independence era and even until this text was written, it seems
that the practical education system aforementioned has yet to experience any meaningful
change, as an example, let us observe one of the latest regulations concerning the guidelines for
the opening of a study program, as follows:
“Usul pembukaan untuk dipertimbangkan pemberian ijin penyelenggaraannya oleh pemrakarsa
kepada Direktur Jenderal Pendidikan Tinggi harus didahului dengan kajian kelayakan akademik
dan administratif untuk memenuhi kriteria berikut :
a. Adanya prospek pekerjaan yang nyata bagi lulusan program studi tersebut sehingga tidak
menimbulkan penganggur baru (didukung dengan data survei).
b. Kepastian bahwa dengan pendirian perguruan tinggi dan pembukaan program studi baru
tersebut tidak mengakibatkan beban tambahan bagi pemerintah (secara finansial) dan misi
utama perguruan tinggi tersebut masih tetap tertangani dengan baik.
12
To avoid definitional differences, I want to clarify that my use of the term pragmatic in this text, is to mean all forms
of behavior which only prioritize the practical aspect of a use value. Thus pragmatic here is just form of behavior, and
has nothing to do whatsoever with the ideology of ‘pragmatism’.
13
It was not until 1950 that Indonesia had its first Department of Economic Science (University of Indonesia, UI), and
from whence Dr. Sumitro Djojohadikusumo received his predicate as ‘Begawan Ekonomi’. This was because aside
from becoming the first dean of the University of Indonesia’s department of Economic Science, in 1951 he also
became the first “Professor” of economics in Indonesia. Thus the title begawan was given because Dr. Sumitro
indirectly became the ‘great teacher’ of all ‘great teachers’ of economic science in Indonesia until now.
c. Untuk menjamin tidak terjadinya kelebihan pasok lulusan, maka program studi yang
diusulkan dapat ditutup dan dibuka sesuai dengan kebutuhan. Untuk itu diperlukan
kemampuan melakukan relokasi sumberdaya perguruan tinggi.
d. Pembukaan program studi baru memperhatikan keadaan lingkungan yaitu penyelenggaraan
program studi oleh perguruan tinggi lain sekitarnya atau di wilayahnya sehingga tidak
terjadi persaingan yang tidak sehat antar perguruan tinggi.
e. Pembukaan jurusan baru dapat menjanjikan peningkatan pemanfaatan sumberdaya
pendidikan tinggi yang ada dan meningkatkan layanan penyelenggaraan pendidikan tinggi.
f. Pembukaan jurusan baru tidak akan menimbulkan pergesekan internal dalam perguruan
tinggi sehingga menurunkan mutu kinernanya.” (Directorates General of Higher Education
14
Decree No.108/DIKTI/Kep/2001)
By observing the regulation, we can see that criteria a and c very clearly show how Indonesia
quite enjoys that practical educational system. Supposedly, due to reasons of poverty and
unemployment, the educational realm of abstract knowledge does not receive sufficient
attention in this republic, as everything is focused on fulfilling the developing “trends” of labor
market demands, which are more technical in nature. The country’s bureaucrats, often use
those excuses such as tangible employment or prospects for graduates, as a lethal weapon.
It is true that exploring the mechanism of formal education in Indonesia is very
interesting. However, before continuing this exploration, we should best ponder firstly the
following opinion by Donny Gahral Adian:
“Seorang profesor di perguruan tinggi negeri terenyak saat seorang mahasiswa bertanya.
Pertanyaannya sungguh di luar lingkar terjauh wawasan keilmuannya. Sejenak ia tercenung lalu
mengentak, ”Saya minta pertanyaan tidak melebar dari apa yang saya terangkan!”Mekanisme
pertahanan sang profesor bertolak dari ketidaktahuannya. Alih-alih menyadari kelemahannya, ia
justru mematikan iklim kuriositas. Universitas berkelas dunia? Tunda mimpi itu sebelum
inkompetensi semacam ini dibenahi.” (Adian, 19 December 2005) 15
14
Translation: “A permit proposal by the initiator to be considered for the permission thereof by the Director General
of Higher Education must be preceded by a study of academic and administrative feasibility to fulfill the following
criteria:
a. The existence of a tangible prospect of work for the graduates of the stated program of study so as not to cause
new unemployment (supported by survey data).
b. Assurance that the founding of this college and the opening of the afforestated new study program will not cause
an additional burden for the government (financially) and that the main mission of the given college remains well
handled.
c. To guarantee against the case of an oversupply of graduates, the proposed study program can be opened and
closed as needed. Therefore the ability to relocate college resources is necessary.
d. The opening of the new study program must take its surroundings into consideration, i.e. the existence of a study
program by a neighboring college or within the vicinity thereof in order to avoid unhealthy competition between
colleges.
e. The opening of a new major can promise increased utility of existing colleges and improve the service and overall
conduct of higher education.
f. The opening of a new major shall not cause any internal friction within the college which may decrease the
quality of its conduct.” (Directorates General of Higher Education Decree No.108/DIKTI/Kep/2001)
15
Translation: “A professor at a local tertiary educational institution practically fell out of his chair upon hearing a
question from a particular student. The question was way beyond the furthest boundaries of the professor’s knowledge.
Being momentarily stunned he then retorted,”I ask that the question does not diverge from what I have explained!” The
professor’s defense mechanism stems from his ignorance. Rather than realizing his weakness, he instead murdered the
curious atmosphere (iklim kuriositas). World Class University? Put that dream on hold until this sort of incompetence
is taken care of….”(Adian, 19 December 2005)
For we can see how free thought, especially about freedom to be independent, is a difficult task
to reach. Perceptions are deliberately uniformed, without being given a chance to behave
differently (lest the label of being crazy, a rebel, or other similar negative idioms will
automatically follow a student’s self‐identity). Since early childhood this country’s children are
indoctrinated, that mountains must be drawn in triangular shapes, or that it is practically illegal
to color outside the drawing lines, and this is what I mean by servilism as a result of initial
pragmatization, from the earliest age. This mess is further complicated by the one way
communication teaching method. Teachers (certainly including lecturers and even professors as
well) must be acknowledged as super humans who know absolutely everything, so that their
words are the words of God (sabdha panditha guru), beyond question or doubt. Teachers are
obliged to teach and students must therefore obey their every command. Thus, the easiest way
to graduate, aside from being supported by a brilliant mind, is to master the “art of flattery”.
Often, it is uncertain whether the teacher is “sure” of what he is teaching. This is truly an ideal
sketch of a coolie, who is effective, hardworking, obedient, man pleasing, without having to
think creatively and innovatively.
Therefore, if in the previous paragraph the late Mubyarto blamed the servility of the
majority of Indonesia’s lecturers of economics who graduated from the United States and
Europe, or other developed countries, he should have firstly also taken an objective note of the
educational milieu in Indonesia. Because most of its experts in and lecturers of economics who
graduated from various prominent universities around the world, were first made by the
“practical” educational system of their own country.
The Starving Lecturers and Professors
Earlier on, by borrowing the statement of the late Prof. Mubyarto we succeeded in
identifying the cause of the servility of even Indonesia’s prominent economists who graduated
from various world‐class universities. Still within the realm of education in Indonesia, in order to
proceed with our investigation, why don’t we now take a look at a sketch by Donny G. Adian
explaining the teaching condition of higher education in Indonesia:
“Pertama, kita harus membuang jauh pikiran yang menyetarakan antara gelar dan kompetensi
pengajaran. Banyak dosen bergelar profesor yang mengajar ala kadarnya. Alih-alih membina
anak didiknya, tenaganya lebih banyak disumbangkan ke lembaga-lembaga non-akademis. Kuliah
hanya sesekali dihadiri. Sisanya adalah tugas mandiri yang membebani mahasiswa. Jika ditanya,
jawabannya selalu klasik: capaian finansial. Logika finansial membuat drainase pikiran
berlangsung laten di dunia pendidikan tinggi kita. Kedua, kita perlu berjarak dengan label
”selebritis akademis” yang melekat pada sebagian dosen. Dosen-dosen yang “biasa di luar” ini
tidak lagi mengabdi pada pengembangan keilmuan. Mereka hanya mempelajari apa yang bisa
dijual. Akibatnya, pengetahuannya tak pernah beringsut maju. Teknologi informasi hanya
dimanfaatkan untuk mencari informasi situasi politik, ekonomi, dan sosial terkini. Jurnal-jurnal
internasional yang bisa diakses secara virtual tak pernah dijamah.”(Adian, 19 December 2005) 16
Once again poverty is made an excuse here. However, when we examine these few excerpts
from Adian, the pitiful situation of tertiary education in Indonesia becomes ever so clear. In
relation to the two previous sections, the red thread trailing this quest to unveil the sterility of
Indonesia’s economic intellectuals grows increasingly longer. Apparently, after being stuffed
with servility in their own country and then upon returning to and teaching in their homeland,
those “servile” economic intellectuals, graduates of various prominent universities around the
world, are forced to face a bitter reality. For in order to maintain the household’s kitchen smoke
(an Indonesian expression meaning: to make ends meet), it is not enough to merely hold the
status of a lecturer and researcher at just one university. They may think that it would be a
waste to have worked hard and long studying abroad just to achieve a Masters Degree or PhD, if
their families were to remain hungry after all. The result is similar to what Donny G. Adian
describes. They are left with just two options: to strive for teaching hours beyond the regulated
maximum, or to use the titles of Ph.D. and Professor as an expressway into the political arena.
Today an academic post in an academic structure, tomorrow a member of the House of
Representatives or even a post as a state minister.
It is true though, that thus is the situation, which has come to be in this country.
Honestly, since writing the above excerpt, I have been submersed in a well of doubt. The
demand for cheap education never ceases its cry, yet on the opposite side, the fate of its
teachers is truly pathetic. Because as solution for cheap education, the easiest way for Indonesia
is, just to sacrifice the livelihood of the teachers. As an example, if we refer to the Presidential
Decree No. 59/2006 (on the cost‐of‐living allowance for university teachers) and the Presidential
Decree No. 1/2006 (concerning the adjustments to the Basic Salary of Public Civil Servants), a
full time professor (category IV/e) with working experience exceeding 31 years only receives a
base salary of Rp. 2.070.000,00, and an extra professorship allowance of Rp. 990.000,00, so that
the total is only Rp. 3.060.000,00. Try to imagine if to satisfy the need to update his “stock of
knowledge”, a Professor would have to buy books such as Amartya K. Sen’s “Development As
Freedom” (published by Anchor Books, New York) for US$ 16.00, Murray N. Rothbard’s “The
16
Translation: “First, we must dispose of ideas which equalize titles and teaching competence. Many lecturers
who hold the title of professor can barely teach. Rather than developing their students, most of their energy is
spent on non‐academic institutions. Classes are only occasionally attended. They most just consist of independent
assignments which burden the students. When asked, the answer is always cliché: Financial considerations. This
‘financial logic’ has made latent the intellectual drainage particularly in our tertiary education. Secondly, we need
to draw a distance from the label of “academic celebrity” which is so identifying of some lecturers. These
“extraordinary” lecturers are no longer devoted to scientific development. They only study what is sellable. As a
result, their knowledge never progresses. Information technology is only used to find information about the latest
political, economic, and social situations. International journals which can be accessed virtually are left
untouched.”(Adian, 19 December 2005)
Ethics of Liberty” (published by New York University Press, New York) for US$ 17.95, and
subscribe to the World Bank’s “World Development Indicators” (WDI) database which further
costs US$ 25.00. Assuming the exchange rates of Rp. 9.000,00 to US$ 1.00, our great professor
would have to dig Rp. 530.550,00 out of his personal paycheck, which would mean one fifth of
his entire monthly income (base salary plus allowance). It would be a different story, however, if
the professor were to become a rector or hold any other structural position on the level of
Echelon 1A. Automatically, his monthly income would temporarily (at least before the actual
promotion) increase to as much as Rp. 4.500.000 (Presidential Decree Number 3/2006 on
Remuneration for Structural Posts). Especially if he succeeded in being elected to the Indonesian
Legislative Assembly or even to being a minister, his fortune would overflow. Otherwise, the
professor might also consider joining one of the many non‐Government Organizations (nGO)
worldwide. According to Mathen L. nDoen 17 , their monthly income could increase drastically up
to about US$ 5,000. So being a rational human being, who would not want one’s own personal
welfare to improve?
Thus, it can be said that this country’s economic intellectuals are just a bunch of
bureaucrats 18 . From Mohammad Hatta, Sumitro Djojohadikusumo, Widjojo Nitisastro, Frans
Seda, Emil Salim, Kwik Kian Gie, Mubyarto, Dorodjatun Kuntjoro‐Jakti, Sri‐Edi Swasono,
Boediono, Sjahrir, Faisal H Basri, Didik Junaidi Rachbini, even until Sri Mulyani Indrawati, were
and are bureaucrats. Prof. Didik Junaidi Rachbini, for example, started out as an assistant
lecturer, 18 years later head chairperson as well as a founding member of a certain political
party and a member of the House of Representatives. Similarly, Prof. Sri‐Edi Swasono initially
pursued a career as lecturer until attained professorship, only to end up as the chairperson for
the Indonesian Cooperative Assembly (Dekopin).
Then what about the fate of the “inferior” economics university lecturers (generally
graduates of local universities), a.k.a. the “lesser” or even those who are still pursuing their
career? In order to find the answer, let us observe the following excerpt:
17
A closed discussion with Marthen L. nDoen, on Thursday 26 April 2007 at the office of the head of the
Developmental Economic Studies of the Economics Faculty, Satya Wacana Chritian University.
18
Just to refresh the air, and as a point to ponder, let us contemplate this interesting anecdote by Peter G. Klein on
the matter of the dualism of a certain economics intellectual, who so happens to also be a bureaucrat:
“Economists are not traditionally popular as policy advisors. Economics teaches that resources are limited,
that choices made imply opportunities forgone, that our actions can have unintended consequences. This is
typically, not what government officials want to hear. When they propose an import tariff to help domestic
manufacturers, we economists explain that this protection will come only at the expense of domestic
consumers. When they suggest a minimum‐wage law to raise the incomes of low‐wage workers, we show
that such a law hurts the very people it purports to help by forcing them out of work. On and on it goes. As
each new generation of utopian reformers promises to create a better society, through government
intervention, the economist stands athwart history, yelling ‘Remember the opportunity cost!’”(Klein, 2006)
“Asosiasi Dosen Indonesia (ADI) mencatat tak kurang 10.000 dosen yang mengajar di berbagai
kampus negeri serta swasta tanpa mengantongi jabatan akademik. ”(KOMPAS, 5 April 2006) 19
It seems they must readily toil at multiple universities beyond the maximum working hours limit
even without academic tenure (continuously being nicknamed “flying” docents or lecturers), or
they must find side jobs as consultants at various national or international non‐Government
Organizations or at non‐academic institutions, making them “ever out of office” as Donny G.
Adian puts it. With scientific research being abandoned, scientific development is consequently
lulled. In an effort to solve this dilemma, in 2003 the Indonesian government granted up to Rp.
25,50 billion just to finance programs which encompassed all sort of research (KOMPAS, 28
Januari 2002).
From research grants to the “plenary professorship award”, may the Indonesian
government never run out of ides should the situation remained unchanged. Thus the general
scenario of our investigation is clear, at least for now, that this country’s economists, whether
they are labeled as being prominent, critical, conservative, or even just plain average, are all as
of yet mere catalysts of knowledge. This is actually not the fault of the generous scholarships
from the various first‐world governments and international foundations, as the late Prof.
Mubyarto believed, but it is in fact because those brilliant economists had been initially made
servile by the pragmatic educational system this country adheres to. Furthermore, upon
graduating and having to return to teach in their homeland, together with their colleagues who
graduated from local universities, they are faced with complex decision of either prioritizing
idealism or satisfy physical hunger first? Of course as “rational economic humans”, it seems that
they choose the latter option. It is the good fortune of those who graduated abroad, to be
blessed with the freedom of choice, whether to be a consultant or even a bureaucrat. While
their less fortunate friends who are still pursuing their career, must submissively teach beyond
maximum working hours at multiple local universities, or attempt consultative posts at various
national and international non‐Government Organizations to even non‐academic institutions.
The realm of scientific abstraction is rarely touched, because all their research only deal with
“sellable” technicalities. The result, farewell to the development of economics in this country,
and forget the dream about the Nobel prize in economics which was discussed previously.
Their Low Stock of Knowledge
“Para ekonom, khususnya ekonom pembangunan, harus mulai banyak bergaul dengan ahli-ahli
sejarah, ahli-ahli ilmu politik, sosiologi dan antropologi, dst.”(Swasono, 2003 {2002}: Hal. 82) 20
19
Translation: “The Indonesian Association of Docents (ADI) list no less than 10.000 docents who teach at various
universities, both state and privately run, without academic tenure.”(KOMPAS, 5 April 2006)
20
Translation: “The economists, particularly those in the field of developmental studies, must begin to associate with
historians, experts of political science, sociology, anthropology, etc.”(Swasono, 2003 {2002}: 82)
If since the beginning of this text the focus of attention has been on the general situation of
education in Indonesia, I shall now narrow this discussion down to the realm of economics in
Indonesia. The million dollar question is thus, precisely what personal advantage did John Locke,
Adam Smith, Karl Marx, John Maynard Keynes, or other great economics thinker, even the
entire lot of those Nobel winners, have that our Indonesian economists don’t? It is indeed clear,
that John Locke was the early pioneer of the philosophical foundation for economics titled “the
pursuit of happiness”, Adam Smith wields “the invisible hand” and “laissez‐faire
nachtwachterstaat”, Karl Marx has “added value theory”, “scientific socialism” and “proletariat
dictatorship” to his name, while J.M. Keynes is remembered for “aggregate demand” and
“welfare state”. Nevertheless, how exactly were these great characters ultimately able to
produce works capable of changing the world? Furthermore, what manner of personal “stock of
knowledge” (accumulation of knowledge), could possibly enable a future economics giant to
give birth to such brilliant ideas as these with such seeming ease? Armed with these questions,
we now aim the spotlight on the scientific background of Indonesian economists and those of
the world.
Who was John Locke? We know him as a prominent British philosopher (Rima, 2001:
46). Who then was Adam Smith? Smith was also a philosopher. In fact, he was a professor of the
philosophy of moral ethics. Continuing on, who was Karl Marx? Seeing his title of Doctor of
Greek Philosophy, as well as his thesis titled “Difference between the Democritean and
Epicurean Philosophy of Nature”, he too was undoubtedly a philosopher (Callinicos, 1996: 15).
And so who was John Maynard Keynes? Keynes completed his education at Cambridge
University not in order to deepen his knowledge of economics, but rather of mathematics. In
fact, J.M. Keynes actually preferred philosophy to studying economics. Strangely, none among
“the three big one” (Smith, Marx dan Keynes) ever had a formal education in economics. Adam
Smith gained his understanding of economic matters through his intensive discussions with
David Hume, Turgot, Quesnay, as well as other European intellectuals of that era and also
through a series of his own researches during his work on “The Wealth of Nations”. Marx also
became familiar with economics through his own independent research. While Keynes was
more fortunate as his father was an economist (John Neville Keynes, friend of Alfred Marshall,
founder of the Cambridge school of thought), so that it was easy for him to join for free the
public lectures given by Marshall and A.C. Pigou (Rothbard, 2003: 3‐5). So in view of the facts
relating to these three great characters, we instead discover a very impressive conclusion. It
seems quite clearly that for Smith, Marx as well as Keynes, economics was crowned as if it were
the peak of their thesis.
The situation concerning this conclusion will be further accentuated if we outline the
scientific background of each Economics Nobel Laureate. The fact is, not a single one of them
purely came and studied economics. In fact, three of those “Economic Nobel Laureates”, had
neither a formal (undergraduate, graduate, or postgraduate) nor a non‐formal education in
economic science whatsoever, namely: John Forbes Nash (Professor of Mathematics, Princeton
University), Daniel Kahneman (Professor of Psychology, Princeton University) and Robert J.
Aumann (Professor of Mathematics, Hebrew University of Jerusalem). Furthermore, almost all
the Economic Nobel Laureates had formal educational background in mathematics and
statistics, four intellectuals were professionals in the field of physics (Jan Timbergen, Robert
Mundell, Daniel McFadden, dan Robert F. Engle), an one of them even held a “bachelor” degree
in electronic engineering (Vernon L. Smith). Only two out the 60 “Economic Nobel Laureates” did
not have an educational background in natural science (Friedrich Hayek and Amartya K. Sen), yet
they nevertheless possessed a strong “accumulation of knowledge” in social sciences such as
political sciences, law, psychology, sociology, anthropology and even philosophy. Referring to
the previous paragraph, it is clearly visible that the personal “stock of knowledge” possessed by
each of the world class intellectuals above proved to play an important role like ammunition in a
cannon as they fire their explosive ideas. The question now is, what about the “accumulation of
knowledge” of Indonesia’s economists?
The answer is almost too simple, as this country’s economists are no more than
economist. Take for example the “Father of Indonesian Cooperatives”, Mohammad Hatta,
whose undergraduate degree was in fact in the field of business. Likewise is the case of Prof.
Sumitro, the Begawan (Guru) of Indonesian economists, whose B.A., M.A. and Doctoral degree
(through his thesis titled “Javanese Credit during the Depression”), the entirety of which dealt
only with economics. It is thus clear, through these series of conditions that a challenge to a duel
of accumulated knowledge would result in the loss on the side of our economists. The
Indonesian simile “like a frog in a piece of coconut shell” really seems to apply here. Even before
the battle, Indonesian economists would flee the arena tails‐between‐legs for prematurely
running out of ammo. It is even possible that due to this very problem, all ideas which have ever
made it out of the mouths of Indonesia’s economists are yet to be conclusive. Be the ideas
concerning cooperatives system to “Economics a la Pancasila”, all are as of yet mere technical
adaptations of thought. In fact, in my research before writing this text, I found a profound
oddity. In a particular book titled “Economic Thoughts and Issues in Indonesia over the last half‐
century” (volume 1‐5), Hadi Soesastro et al. (2005) as the editor successfully categorizes all the
article of the listed prominent economists into eight main aspects, which encompass: “systems
and basic principles”, “institutional economics”, “Political Economics”, “development planning”,
“macro economics”, “issues on agriculture, trade and industry”, “regional development”, and
“the development of socio‐economics”. Yet not one of them, methodically writes about one
specific research problem examined based on those eight listed points of view. Taking the topic
of “Economics a la Pancasila” for example, not one of them methodically dissects the matter
beginning with “fundamental systems and principles” to the pattern and form of its “social
economic development”. It sems that they love to orate and write tidbits in jointly published
books, which are more sellable (referring back to Donny G. Adian’s statement), rather than
submersing themselves for lengthy periods to create a magnum opus such as the class of Adam
Smith’s “The Wealth of Nation”, Karl Marx’s “Das Capital”, J.M. Keynes’s “The General Theory”,
to Amartya K. Sen’s “Collective Choice and Social Welfare”. Consequently, we can dispose of the
dream of an economic system a la Indonesia. But, how is it possible that our economics experts
have a poor “stock of knowledge”?
Actually, this very problem is the core cause of the stagnation of scientific development
in this country. Indonesia always dreams of attaining the highest ideals, but is regrettably always
forgetting its own ability. From the earliest stages, its entire young generation is expected to
determine their own personal future, in order to develop their beloved homeland. However, this
is not done through the rationalization of option that the youngster chooses, but through
partitioned cubicles, which have already been prepared by the youngster’s beloved country.
Thus, what was initially an expectation turns into basically coercion. If since childhood someone
dreams to be an economist, then Indonesia shall endeavor with all its might to materialize the
dream of its citizen. He or she is then facilitated since high school with concentrative classes,
such as natural sciences or social sciences. The natural sciences class is aimed at students who
wish to be doctors, engineers, or other professions which deal natural science. The social studies
class is the place where future economists, sociologists, anthropologists, lawyers as well as
prominent company directors, judges, attorneys, and politicians are made. Upon finishing high
school, Indonesia has also prepared a range of faculties at various universities, to facilitate its
beloved youngster. So enters the future economist into the economics faculty. After his
undergraduate studies, various magisterial and doctoral programs await, yet again under the
emblem of economic science. As the years go by, finally our future economist will get his PhD in
economics, and then he will officially be a fully fledged economist ‐ truly an ideal description of
the reality, specific and nonsense‐free. But it is ever so regrettable, that Indonesia forgets to
look itself in the mirror concerning the situation described in the previous sections, concerning
the bleakness of the pragmatic educational system it is so proud of, which is filled with little
more than starving teachers, docents, lecturers and professors. Instead, the abstract sphere of
scientific disciplines are partitioned one from another, so that each discipline ends up being
treated independently, without acknowledging the interrelation between one to the other.
Thus is this country. Natural science only means the study of natural phenomena, and
social studies talks specifically of humanity and its interactions, while economics is simply a
study about wealth. Educational institutions are only seen as a mere manufacturing plant, which
is hoped to produce reliable ready‐to‐use labor in its respective fields. If someone desires to be
an economist, one is then fixed up in a factory called the economics faculty. There one is faced
with various tempting offers, obviously designed by the owner of the factory. Even though the
norm for a university to be labeled as prominent (categorized among the country’s top 50) is
that it has a science and mathematics faculty, a psychology faculty, a faculty for social sciences
as well as political sciences, or even a law faculty, yet various classes such as mathematics,
statistics, introduction to commercial law, socio‐politics, philosophy of science, and business
behavior, are still always offered independently by the university’s economics faculty.
Sometimes in fact, supposedly for the sake of making it easy for the students, two faculties at a
single university will offer classes which have basically identical contents, but under a different
name. The joke gets funnier still when we examine our credit system, which is allegedly “free” or
“optional”. In reality, the term simply means the freedom to make use of the remaining credits
after the core curriculum, to take classes that the faculty has provided, outside the chosen
major. It does not mean the freedom to take classes at other faculties. If a student should be
ever so willful, he or she must accept that the grade from a class outside his faculty will not be
included into his or her GPA. This means extra cost and yet only to be a guest student. There
goes the scientific enthusiasm, once burning, but now blown cold due to lack of appreciation.
Students are forced to bow in submission, grateful for whatever is already written out for them.
In short, through its educational system that remains pragmatic despite trying to be
ideal, if you want to become an economist in Indonesia, then devote yourself exclusively to
study economics and make sure you do so at its designated place, the economics faculty. A
direct comparison can be made with developed countries such as the U.S.A. and Great Britain as
well as its commonwealth countries, which even provide degrees such as “Bachelor of General
Studies” (B.G.S.) and “Bachelor of Science in General Studies” (B.S.G.S.) for all undergraduate
student, who have graduated from a personally customized scientific concentration. It seems
the concept of a “department store university” sounds more appropriate to answer the
challenge for a sufficient “stock of knowledge”, rather than the pattern of a “human repair shop
university” like what is currently implemented in Indonesia. We can thus correlate the excerpt of
Sri‐Edi Swasono which I included at the beginning of this sub‐chapter. The word “associate”,
should be replaced with the word “study” so that it more appropriately reads as follows:
“The economists, particularly those in the field of developmental studies, must begin to study
with historians, experts of political science, sociology, anthropology, etc.”
The Conclusion of an Odyssey
Clear it is that the economics experts of Indonesia are poor in thought especially in term
of original ideas. The Nobel in Economics is still far beyond our reach, because apparently the
famed Indonesian economists who are the pride and joy of their country, from those who claim
or are claimed to be critical as well as the most radical, those are labeled conservative
economists all clearly and openly mere catalysts of knowledge. But why? The cause is not
merely due to admiration and bedazzlement towards the scientific greatness and value system
which the west takes pride in. Rather it is because our economists, including the majority of the
country’s economics lecturers and professors who graduated from various renowned
universities around the world, especially those who graduated from the local universities, have
been stuffed by the practical educational system that Indonesia itself implements.
Furthermore, upon graduating and returning to devote their knowledge through
teaching in their homeland, together with their colleagues who graduated locally, they are
slapped with the dilemmatic question of prioritizing idealism or satisfying their bellies first.
Obviously as rational economic man, our intellectuals are then forced to busy themselves in
search of side income in order to maintain their household’s kitchen smoke. Those who
graduated abroad are fortunate enough to be afforded the luxury of choice as to whether they
opt to be a consultant even a bureaucrat. While their less fortunate comrades, including those
still pursuing their careers must resign to teaching beyond the maximum load, at multiple
universities, or chase after consultative posts at the many national and international “non‐
Government Organizations” and non‐academic institutions. The realm of scientific abstraction is
rarely touched due to the fact that all the research done by those economic experts only deal
with sellable technicalities. So bleak is the prided pragmatic educational system, merely filled
with hungry teachers, lecturers and professors.
Nevertheless, without any attempt towards self‐reflection, Indonesia remains confident
in its steps towards a brighter tomorrow. With its high idealism, this country obliges its young
generations since early stages, to determine their personal future, to participate in contributing
to the development of their beloved homeland. Yet it is a pity, that for the sake of its ambition
Indonesia instead places knowledge in boxes, and sets up thick partitions between the abstract
milieu of scientific disciplines, resulting in their treatment as being isolated from one another.
Once again, if you wish to be an economist the Indonesian way, then study only economics at
the economics faculty. As a result, those hungry economics experts find their “stock of
knowledge” to be lacking. Coronating them merely “as a frog under a piece of coconut shell“,
who scurry off the battlefield before the war even begins, simply due to an exhausted
ammunition supply. From the mess we call our educational system, filled but with hungry
teachers and docents, to the impoverished personal “accumulation of knowledge” of this
country’s economics intellectuals due to the thick partitions between disciplines of knowledge,
we now know the reason for the stagnation of the development of economic science in
Indonesia. But what then is to most appropriate solution for the matter?
For the key is simple, only freedom and sincere appreciation. Indeed Indonesia has been
labeled as poor 21 , the base salary and remuneration of its teacher, lecturers and professors is
low, but at least the Indonesian youth should never be forced to become what this country
wants them to. Let them choose their own free path to prosperity and welfare. Provided it does
not disadvantage others, even if they go as far as choosing to a coolie. Not that we should make
coolies out of these students, but simply let being a coolie remain an option. Enlighten their
minds, teach them to distinguish themselves in their ambitions and to be independent in the
efforts to realize their dreams. For if Sri‐Edi Swasono (2003: 55) negatively labeled Adam Smith
as being “a great dreamer”, it seems he forgot that all economist were in fact “big dreamers”.
Smith dreamed that one day mankind could live freely and empathetically through its own ego,
Marx always dreamed of the birth of a societal order which named communist, while Keynes
continually dreamed of an ideal world without unemployment. In fact, was not Pancasila itself a
dream of Soekarno? It seems Prof. Sri‐Edi has confused the meaning of “dream” with “fantasy”.
It looks as if Indonesia has now underestimated and forgotten the significance of the power of a
dream. So respect whatever ambition, dream, or choice of the Indonesian youth, not through
obligations, but through a path of freedom. Refrain from limiting them through thick partitions
among the abstract milieu of scientific fields. It is enough to provide the educational facilities
which this country’s youth needs, but do not force them to choose any particular one. Free
them to choose the means, tools, and also the best way according to them, for the enrichment
of their personal “stock of knowledge”, so that they are able to create their own circle of
knowledge. Since economics is simply a way about freedom, towards prosperity and welfare.
Because great ideas originate only from dreams which are realized through the determination of
the heart, the clarity of the mind, and the passion in the heart and the mind of one, all of which
comes to naught when coerced.
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21
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