Morality Dilemma of Indonesian Economic Diplomacy Policy

“Observation tells us that every state is an association, and that every association is formed with a
view to some good purposes. I say good because in all their actions all men do in fact aim at what
they think good.” Aristotle1

Since 2015 Indonesia has became the member of the G-202 countries,
a forum that systematically gathers developed and emerging economic powers to discuss key global
economic issues. Most of the members are the countries with the largest Power Parity Purchase
(PPP). For most of people, the Indonesian membership in the G-20 is considered as the government
achievement that has aligned Indonesia with superpowers around the world. But for other small
groups, such as the Society of Scientists and Technologies (MITI), in March at the University of
Gajah Mada stated, that the entry of Indonesia into the G20 is stupidity. As quoted from the official
page of MITI, the quality of economic value added of Indonesia is still very low, exports of more
than 70% are still based on unprocessed raw materials or cheap labor based products, and only less
than 30% based on technology.3 Apart from the debate, Indonesia has been accepted as a G-20
member and Indonesia must be ready to face the dynamics in it. For Indonesia, how Indonesia can
represent its insterest in this association.

What have been explained above has been predicted by Samuel P. Huntington. Huntington has
analyzed the future trends of the global order since two decades before that for the first time in
history after the cold war world, global politics has become multipolar and multi-civilization. In the
late of 1980s the communist world collapsed and the Cold War international system became history.
In the post-Cold War world, the most important distinctions among peoples are not ideological,
political, or economic but cultural matters. Peoples and nations are attempting to answer the most
basic question humans can face that is who we are. People define themselves in terms of ancestry,

1
Aristotle, Politics, Book 1.I, p. 54. As quoted in Reus-Smit, Christian ( ) The Moral Purpose of the State: Culture,
Social Identity, and Institutional Rationality in International Relations. West Sussex: Princeton University Press, p. 170.
Accessed on 28 February 2018. Retrieved from http://ebook3000.com/politics/The-Moral-Purpose-of-the-
State_481313.html.
2
The G-20 Summit was held to respond to the financial crisis of 2007-2010 and in response to the notion that developing
countries are not sufficiently involved in the discussion and setting of the core of the global economy. The G-20 summit
of heads of state or heads of government is held in addition to the G-20 Central Bank's G-20 Finance and Governor
Meetings that are held to prepare for the Summit and implement its decisions. The first meeting was held in Washington,
D.C. in 2008. Wikipedia, G20, Accessed on 2 March 2018. Retrieved from https://id.wikipedia.org/wiki/G20.
3
Taruno, Warsito P., the Chairman of MITI., in Rachel, Sindir SBY, Menteri Susi Sebut Indonesia Rugi Masuk G20,
Accessed on 2 March 2018. Retrieved from http://liputanislam.com/berita/sindir-sby-menteri-susi-sebut-indonesia-rugi-
masuk-g20/
religion, language, history, values, customs, and institutions. People use politics not just to advance
their interests but also to define their identity. They define their identity with cultural groups such as
tribes, ethnic groups, religious communities, nations, and the broadest level, civilizations.4

In this matter the question on the power and the purpose in the new global relation are still the
essential matters in state to state relation. Even the world is not divided by its ideological arguments;
the quest for the dominance and interests is still ongoing in international relation.5 It can be seen
from the emerging of the new big economy states in Asia such as China, India, and Indonesia which
will pursue their dominance and interests in global relation by bilateral and multilateral cooperation.
The case of G-20 is one of the developments of global trends in the quest of dominance and interest.
But it brings another consequences for Indonesia, that the multilateral has brought another
consequences. China is building its Silk Road through OBOR program meanwhile the US became
more protective in its economic policies. Indonesia has to be more adaptive to face this developments.

The above world developments become the challenges Indonesia. The ambassadors and the
diplomats will face more complex milieu in terms of political, economic, cultural and social actors in
the international interactions. Despite of the knowledge and diplomacy capabilities, they will be
asked to be consciousness and awareness morally and ethically.6 These two matters are essential in
the leadership discourses; therefore the ambassadors and the diplomats are the leaderships in essence
in terms of their duty in representing the state in the global arenas and to overcome the complex
problems and issues. It brings the problem of moral relativism on the relationship between the
countries such as the preference of "good", "bad", "right" or "wrong" ones decision to another. As
expressed by the quote that has been mentioned above expresses that the notion constitute and
constrain institutional design and action, leading states to embrace different institutional practices in
different historical contexts.7

As the member of the WTO, Indonesia and America has built a good relation in politic, economic,
military and so on; and the main objective of the WTO that is to provide a forum for negotiating

4
Huntington, Samuel. P, (1996), the Clash of Civilization and the Remaking of the World Order, New York: Simon &
Schuster, p. 2-3. Accessed on 28 February 2018. Retrieved from
https://edisciplinas.usp.br/pluginfile.php/2906407/mod_folder/content/0/Huntington%20The%20Clash%20of%20Civiliz
ations%20%20Cap%201%20.pdf?forcedownload=1.
5
D’Anieri, Paul, (2012) International Politics: Power and Purpose in Global Affairs (Second Edition). Wadsworth:
Cengage Learning, p. 5. Accessed on 28 February 2018. Retrieved from
http://longfiles.com/mf9ratp80efp/International_Politics.PDF.html
6
Aalto, Pami , Harle, Vilho, and Moisio, Sami, (2012) Global and Regional Problems: Towards an Interdisciplinary
Study, Burlington : Ashgate Publishing Company, p. 232. Accessed on 28 February 2018. Retrieved from
http://longfiles.com/dfwbf4fpbdg8/Global_and_Regional_Problems.pdf.html.
7
Reus-Smit, Christian ( ) The Moral Purpose of the State: Culture, Social Identity, and Institutional Rationality in
International Relations. West Sussex: Princeton University Press, p. 170. Accessed on 28 February 2018. Retrieved from
http://ebook3000.com/politics/The-Moral-Purpose-of-the-State_481313.html.
agreements aimed at reducing obstacles to international trade and ensuring a level playing field for
all, thus contributing to economic growth and development. But since the Trump presidential, the
foreign trade policy has shifted to became protectionism and it become obstacle for Indonesia export
to the US since the US set import tariffs which againts of the WTO agreements. What Indonesia
should do to deal with this problem. As for America, this is a matter of moral relativism8 considering
America is a country that trades the principle of laissez-faire economics and free markets.

Recommendation

1. Indonesia can use the WTO as a mediating medium to solve this problem, given that America
is still a member of the WTO to warn America not to limit its domestic market with high
import tariffs.
2. Indonesia can divert export products originally destined to America to other countries by
utilizing embassies and diplomats to market Indonesian products.
3. Indonesia can stop exports to the United States mostly from the agricultural sector and begin
to process its products into value-added products that meet international standards. This third
option requires more intensive product research and development activities to be competitive
and marketable for export.

8
The American anthropologist William Graham Sumner was an influential advocate of this view. He argues in his 1906
work Folkways that what people consider right and wrong is shaped entirely - not primarily - by the traditions, customs,
and practices of their culture. Moreover, since in his analysis of human understanding there cannot be any higher moral
standard than that provided by the local morals of a culture, no trans-cultural judgement about the rightness or wrongness
of a culture's morals could possibly be justified. Wikipedia, Moral Relativism. Accessed on 2 March 2018. Retrieved
from https://en.wikipedia.org/wiki/Moral_relativism