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Home Feature

Indonesia: On the Brink of Change – Unity or Fragmentation?

Ali Syarief by Ali Syarief
April 26, 2025
in Feature, Indonesia at Glance, Politik
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By : Ali Syarief

Indonesia, the largest archipelagic nation in the world, with more than 17,000 islands and hundreds of ethnic groups, has long been known for its motto “Bhinneka Tunggal Ika”—unity in diversity. However, in the past two decades, this spirit of unity has been increasingly challenged by complex political, economic, and social dynamics.

1. Centralization vs. Decentralization: The Inequality That Constrains

Since the 1998 reform movement, Indonesia has adopted a regional autonomy system to grant more power to local governments. However, the implementation of this autonomy has often been hindered by tight fiscal control from the central government. Although regions are given administrative authority, they still heavily rely on transfers from the center, which often do not reflect the actual needs of the regions.

Furthermore, policies that fail to consider local contexts have exacerbated inequality. For instance, during the COVID-19 pandemic, there were mismatches between central policies and regional responses, revealing a lack of coordination and understanding of local conditions. This issue has highlighted the need for more effective decentralization that goes beyond mere administrative powers (bti-project.org).

2. Threats to Democracy: The Militarization of Governance

In March 2025, Indonesia’s parliament passed a controversial revision to the National Defense Law, which allows military personnel to hold strategic government positions without needing to resign from active duty (aljazeera.com). This move has sparked protests from pro-democracy groups and human rights organizations who fear a return to military dominance in politics, given Indonesia’s history under authoritarian military rule.

3. The Complacency of Civil Society and Intellectuals

Despite the growing awareness of the potential for fragmentation, many intellectuals and civil society groups seem unaware of the impending threat. Rather than pushing for deep structural reforms, many have become bogged down in academic or bureaucratic routines that fail to address the root causes of division. Their role is crucial in shaping public opinion and advocating for policies that are inclusive and just. Unfortunately, many seem to be “sleeping” while the nation’s unity is in jeopardy.

4. External Influence: Great Powers Eye Indonesia’s Resources

In the worst-case scenario, if Indonesia were to fragment, the resource-rich regions could fall under the influence of major global powers such as the United States and China. These two countries have strategic interests in Southeast Asia and have already shown keen interest in Indonesia’s natural resources. This is not speculative but a geopolitical reality that needs to be carefully monitored. The map of influence over Indonesia’s resources is already drawn.

5. A Path Forward: Towards a Federal State

Some argue that to prevent fragmentation, Indonesia should transform into a federal state, as initially envisioned in the 1949 Constitution of the Republic of Indonesia (UUD RIS). In a federal system, regions would have greater autonomy in managing their local affairs, including their economies and cultural policies. This would not only reduce inequality but also strengthen local ownership of the country’s future.

6. The Necessary Strategic Steps

To avert disintegration, several concrete strategic steps must be taken:

  • Full Regional Autonomy: Grant full autonomy to regions in managing their natural resources and local policies, without excessive interference from the central government.
  • Military Reform: Ensure that the military remains professional and uninvolved in political affairs, preserving the democratic nature of the government.
  • Empowering Civil Society: Engage civil society and intellectuals more actively in policymaking to ensure that policies are more inclusive and responsive to the people’s needs.
  • International Diplomacy: Strengthen Indonesia’s position in international forums to prevent external interference, which could further destabilize the situation.

7. Conclusion

Indonesia stands at a crossroads. Without the right strategic steps, the threat of fragmentation is not an impossible outcome. However, with a commitment to structural reform and the involvement of all elements of the nation, Indonesia still has the potential to preserve its unity and diversity. As a large and diverse nation, Indonesia can serve as an example to the world in managing diversity and maintaining unity—but this requires collective awareness and concrete action.

As a nation that prides itself on its cultural richness, Indonesia has the potential to be a model for the world in managing diversity. However, all of this requires collective awareness and decisive action to prevent further division. Indonesia’s future hinges on the willingness to address its structural weaknesses and to involve all of its citizens in crafting a united future.

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