JAKARTA - The intention of the New Order government (Orba) to pursue economic growth is so massive. The investment faucet is wide open. The narrative of land for development echoes. However, the narrative is increasingly problematic. Instead of prospering, the New Order government often confiscated land belonging to the people. In the construction of the Kedung Ombo Reservoir, for example. Thousands of citizens lost everything. From home, profession and land. They were forced to choose their own path: fleeing or being considered PKI sympathizers.
There is no denying Suharto's role in restoring Indonesia's economic stability. As president, he took many measured actions. Especially to improve the economy that was in disarray after the Old Order.
The use of the services of development technocrats known as the Berkeley Mafia, is one of them. A group of professors and economists from the University of Indonesia (UI), the majority of whom are graduates of the University of California, Berkeley, have given a new color to the paradigm of Indonesia's economic development. There are various tactics.
Various concessions were also issued by the New Order government. From mining concessions, forestry, plantations, and land acquisition to various development projects. The goal is noble. The New Order wanted state revenues to increase, to absorb a lot of labor, and to move the economy forward. Therefore, the investment faucet is wide open.
In fact, the paradigm of economic development adopted looks good only on paper. Things are different on the field. Overexploitation often leaves a problem. Indonesia's forests are damaged. Even the conflict over land grabbing, which has been softened by the language of “land acquisition”, is getting worse. That is, the interests of the people are sidelined. While the interests of groups or companies are prioritized.
“The dependence on foreign investors began with a cooperation agreement with the International Monetary Fund (IMF), which is an international organization responsible for regulating the global financial system and providing loans to its member countries to assist with balance sheet problems in each country. ”
“The massive influx of foreign capital was strongly supported by the New Order government, which was supported by the Berkeley Mafia. Economic prosperity is only enjoyed by a few people who have access to government. The success of self-sufficiency in rice, which is the hallmark of the government program, did not last long due to inconsistent policy implementation," said Muhammad Ilham Arisaputra in the book Agrarian Reform in Indonesia (2021).
Military Secures Investment
The New Order government guarantees the smooth running of investment. The military was also deployed as a tactic. Which, the strategy is used to provide a sense of security and comfort to entrepreneurs. Or for those who want to invest in Indonesia. But the policy is not for the common people. They are often victimized in a series of investments. Moreover, investments that bring the narrative of land for development.
Lands from the people were often taken by force. In fact, the land is very meaningful for the people to support their daily life. Instead of caring, the New Order government tends to schedule land acquisition.
The process is clearly far from fair. The compensation is small, sometimes there is no compensation at all. Land acquisition, the government thought. Crime against the nation, said the people. All because the military is only used as a tool to smooth investment. No more.
“Every businessman who wants to invest or ask for a business license in Indonesia must obtain permission from the military and Suharto. The military is needed to secure incoming capital and also to carry out repression against people who refuse to convert their area of residence into a new place of business.”
“A permit for Suharto is also needed to ensure the continuity of an entrepreneur's business. Suharto was not directly involved in granting permits. Usually the closest people will connect with Suharto. Then, usually, Suharto will not only ask for a fee, but will also ask for shares from companies whose licenses will be granted," said Virdika Rizki Utama in the book Menjerat Gus Dur (2020).
Land Compensation Pruned Brokers
The narrative of land for development then resurfaced in 1985. The New Order government planned to build a reservoir on the border of three districts in Central Java: Sragen, Boyolali, and Grobogan. The name is Kedung Ombo Reservoir.
The land required at that time reached 6,500 hectares to dam five rivers. The reservoir is actually for the procurement of a 22.5 Megawatt Hydroelectric Power Plant. Moreover, Kedung Ombo Reservoir is predicted to be able to meet the water needs of 70 hectares of rice fields around it.
The New Order government is confident in building the Kedung Ombo Reservoir. In addition, the funding component for the Kedung Ombo reservoir has been carefully prepared. Most of the funds have been prepared from foreign debt cash from the World Bank amounting to 156 million US dollars, Japan Exim Bank 25.5 million US dollars, and partly from the State Budget. . The source of the problem began to emerge when the government was forced to perpetuate the acquisition of land owned by the people.
“In 1985-1991, the construction of the Kedung Ombo reservoir was underway. Yayak Yatmaka – an activist – felt the wisdom of the mountain-forest material review. Together with Father Mangun and the caretaker of the Pabelan Islamic boarding school, KH Haman Ja'far. He accompanied the residents of Kedung Ombo who survived at the construction site. In the end, the residents were isolated, with orders to shoot on the spot for outside intruders. The ruler at that time made a tactic, the residents would leave because they ran out of supplies.”
“With his expertise as a Wanadri (nature lover), Yayak slimpats go up and down the hills between drugs. Lives at stake. The construction of Kedung Ombo Reservoir (1985-1991) drowned 37 villages in 7 sub-districts of Sragen Regency, Boyolali, Grobogan. A total of 5,268 families lost their land due to the construction of the dam. Residents were forced to accept compensation of Rp250 per meter2. More than 40 people drowned to death," explained Rusna Nondi in his book A Spot of Light in Darkness (2014).
That said, compensation for land acquisition is actually very expensive. But what is accepted by residents is the opposite. The amount received is too small. It was rumored that land compensation according to the World Bank scheme reached Rp. 10,000 per meter2.
Then it was cut to Rp. 3 thousand. Surprisingly, the compensation that reached the residents was only Rp.250. The people protested. Even if the New Order government considers it lonely. In response, the New Order government began to play its role in guarding investment by perpetuating military power.
Residents who defend their land are intimidated. In fact, many of those who oppose the construction of the dam are categorized as part of the Indonesian Communist Party (PKI). Therefore, their ID cards are marked with former political prisoners. The view is in fact not in accordance with reality. Many of the people who refuse do not understand what Communism is. Especially being part of the PKI.
The people also questioned Suharto's attitude. Instead, he stood up for investment. not the people themselves. In fact, Suharto participated in spreading the narrative that those who refused were affiliated with communist ideology. In which, the rejecters are considered traitors to the nation.
"President Suharto himself in his opening speech of the Kedung Ombo Reservoir said he understood that people or residents who did not want to accept the construction of the Kedung Ombo Reservoir were infiltrated by the communists," said Ikrar Nusa Bhakti in the book Military and Politics of Violence in the New Order (2001).
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