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Economic Development and Policy Name Student ID : Kharisma Putri Aurum : R120042


The New Jakarta, Phenomenon of Jokowi Ahok and Their Influence in Economic Development
1. Jakarta, City of Hopes

Jakarta officially known as the Special Capital Region of Jakarta (Daerah Khusus Ibukota Jakarta) is the capital city of Indonesia. As the capital city of Indonesia, Jakarta is always crowded by the sound of the movements. Skycrapers, apartment complexes, crowded streets, business activities, and the same things we can always find in every big city. Located on the northwest coast of Java, this city has been the Indonesias economic and political center. Jakarta history started on 1527 while this city was famous with the name Sunda Kelapa. Nowadays, Jakarta Capital City is grouped into five city administrative areas and one district administrative area. This city is growing rapidly with more than 10 millions of people live in its 740.28 km2 land area (data of 2011). On July 11th, 2012 a first round of Jakarta gubernatorial election was held, with a second round run-off on September 20th, 2012 to elect the Governor of Jakarta for the next five year term. Incumbent governor was running for a second successive term, Fauzi Bowo. Two toped candidates came out as the result from first round election, Joko WIdodo and Fauzi Bowo. After the second round, an official result came out with the winner on September 29th, 2012, Joko Widodo won the election with 53.82% of votes. Some people said this election is a symbol of democratic maturity of Indonesia, especially for Jakartans. The enthusiasm of Jakartans was very high, even the background of the winner is not very common for Jakarta Governor. Jokowi and his partner as vice governor, Basuki Tjahaya Purnama (Ahok) are called as the representations of young generations and educated voters. With their campaign strategy which very different, they even did not have to spend high cost, several community became their sympathizer instead. The new era of democracy has come, people become more rational and aware of politic.

The New Jakarta, a Phenomenon of Jokowi Ahok and Their Influence on Economic Development


Economic Development and Policy

Table 1 Schedule of Jakarta Governor Election of 2012

DATE March 13th-19th, 2012 May 20th-20th, 2012 June 24th-July 7th, 2012 July 11th, 2012 September 14th-16th, 2012 September 20th, 2012 October 7th, 2012

ACTIVITY Registration of Jakarta Governor Election candidates Announcement of voters list Campaign Period First round election Campaign Period Second round election Inauguration


Knowing Jokowi and Ahok

Joko Widodo or famous known as Jokowi has successfully attracted many attentions of Jakartans, even Indonesians, by his candidacy for Jakarta Governor on 2012. His simple and innocent character make people remain for the need of honest leader. Jokowi was a furniture exporter who entered politics for the first time when he ran for mayor in 2005, he is widely perceived as clean and capable in a country beset by corruption Transparency International ranked Indonesia 100th out of 182 countries in 2011. As mayor of Surakarta, Jokowi helped relocate street vendors to ease traffic congestion and introduced a modern tram system. He streamlined business application procedures, widened access to health services and cleaned up slums, the last issue with special appeal to Jakarta voters. In 2010, he was reelected with 90.9 percent of the vote. Jokowi named worlds third best mayor in the 2012 World Mayor Prize on World Mayor Project, a project conceived and organized by the City Mayor Foundation that already started since 2004. Basuki Tjahaja Purnama was born with Tionghoan name Zhong Wanxie is Jokowis partner as Vice Governor of Jakarta Capital. He started his career as an owner of mining contractor on 1989, during his business period he found some unfair bureaucracy knocked off his company. This experience encourages him to finally start his political action on 2003. Before candidating as Jakarta vice Governor, Basuki or famous as Ahok was in charge as a regent of East Belitung Municipality on 2005-2006. He is the first regent of this municipality who came from Tionghoa ethnic, a minority ethnic in Indonesia. With his unordinary campaign method, Ahok successfully gained many votes from the people of East Belitung. Instead of spent his money to make people vote him, he gave his phone number so that people can communicate directly to him. He entered legislative body on 2009 and create new standard of anti-

The New Jakarta, a Phenomenon of Jokowi Ahok and Their Influence on Economic Development


Economic Development and Policy

corruption, transparency, and professionalism. On 2006, TEMPO Magazine called his as one of ten people who had changed Indonesia. On 2007, he called as Anti-Corruption Figure from the association which composite of Indonesia Trade Group, Ministry of Public Officer, and Indonesian Transparency Society. 3. A Vision Called The New Jakarta

People said the winning Jokowi-Ahok the winning of smart voters. The crowd of Jakarta Governor Election was heard all over country and brought out the spirit of democracy, especially from young people. Putra Daerah or means people who born and grow up in the city is not really important anymore as long as they have a strong character, integrity, courage, and humility. Jakartans were very hopeless with Jakartas problem. Many problems have been covering this city and pathetically they did not find a figure who can even give some spirits and hopes for this city. The rise of Jokowi-Ahok with their proven past leadership figure gave so much influence to the people. The rise of Jokowi-Ahok to power is certainly not smooth. Initially they were considered to be peanuts in the tough political contestation. But the genuine-type and proven leader such as Jokowi quickly gained popularity among the public who were tired with the previous leadership. Furthermore, Ahok himself had been much challenged due to his minority issue. But with his humbleness and unprovoking reaction to the issue, Ahok finally succeeded winning the test. The winning of Jokowi-Ahok would also provide momentum in the countrys political sphere. Previously lots of people thought that only money and the elite power that can control the many. But a simple leader like Jokowi and a minority figure such as Ahok can win too. In other words, Indonesian democracy becomes more and more aligning towards a better direction (Projecting Indonesia, 2012). Went through their first 100 days, Jokowi-Ahok still on the right track with people of Jakarta will still be watching on their work. Some policies have already been made; they also made a great move on bureaucracys environment. They built great communication not only with local government, but also people of Jakarta. On the other hand, they just as strict with bad bureaucracy and brought out transparency as a new trend. With a jargon Jakarta Baru or literally means a new Jakarta, they utilized social media as part of their transparency. The video of Ahoks meeting with some public officials has uploaded to PemprovDKIs Youtube account and has been watched by millions people. Jokowi-Ahok were trying to change the face of Jakarta Governance from elitist-bureaucratic to technocratichumanist.

The New Jakarta, a Phenomenon of Jokowi Ahok and Their Influence on Economic Development


Economic Development and Policy


Good Governance, Good Economy

According the definition of good governance by UN, there are 8 points to define what good governance is; 1) Consensus Oriented, 2) Participatory, 3) Following the Rule of Law, 4) Effective and Efficient, 5) Accountable, 6) Transparent, 7) Responsive, 8) Equitable and Inclusive. Some studies also stated that corruption, as one of the type of bad governance, has many consequences to economic condition. Corruptions might be negatively associated with economic development. Mauro (1995) investigates the causal relationship between government corruption and economic growth. He uses three indices on judicial system, red-tapism (formalism or Methodism), and corruption to measures Bureaucratic Efficiency (BE). Mauro found positive correlation between BE index and per capita GDP, between BE index and GDP per capita growth, between BE index and the ratio of investment to GDP. It cannot be argued, healthy political situation will bring healthy economic condition of society. People will have higher willingness to invest in such country with healthy political situation where represent the stability of the country. On their article titled Analysis: Jokowi-Ahok signal many wins for Indonesia (posted on The Jakarta Post Tue, September 25 2012, 10:55 AM), Debnath Guharoy and Roy Morgan made an analysis about the winning of Jokowi-Ahok and how their influence to Jakartans economic level. A chart captures the transformation that has taken place in just the last five years. From bad time to good time, the cross-over is now complete and heading in the right direction despite the occasional flutter or two. The real economy is in good shape, with consumption today and demand tomorrow as robust as ever.

The New Jakarta, a Phenomenon of Jokowi Ahok and Their Influence on Economic Development


Economic Development and Policy

Figure 1 Good Time to Buy a Major Household Appliance

Guharoy and Morgan found the line that tracks the Good time to buy sentiment happens to run almost identical to the line that records the march of Indonesias rising middle class, while the momentum of Jakarta Governor Election started. One line has shot up from 27 percent of the population to 50 percent in 5 years, as seen in the chart. Moreover, the countrys middle class grow steadily from 28 to 49 percent. These opinions are influenced by Roy Morgan Single Source, the countrys largest syndicated survey. More than 26,000 respondents are interviewed every year, week after week. The data is projected to reflect 87 percent of the population 14 years of age and over. The chart captures when the bad time became the good time. It was on March 2012, which is the same period of time with the registration phase for Jakarta Governor Election candidates. As can be seen from the chart, there is a significant increases of good time from 40% on June 2011 to 50% on June 2012, which is the highest from the last 5 years. Percentage of good time means number of respondents who feel that it was the good time to buy a major household appliance. This is actually represents how they think about their economic level and their confidency. The rises of Jokowi-Ahok as a figure of good leader brought the rises of hope of people about their economic condition and quality of life.

The New Jakarta, a Phenomenon of Jokowi Ahok and Their Influence on Economic Development