The Dynamics of Policy Research from The New Order Era to Reformasi  Era

Since the days of New Order Era, Institute for Economic and Social Research, Education and Information (LP3ES) have faced many challenges to produce new challenges. These challenges include the financial sustainability of institutions, the pros and cons of donor funding, and management, as well as institutional issues.  

The issue of funding by donors for example. Upon its establishment in 1971, LP3ES has relied on funding from FNS (Friedrich-Naumann-Stiftung) from Germany.  Ten years later, such funding was considered by Ismid Hadad, its current chairman, to make LP3ES dependent on donors. Then the funding model was changed to be based on programs or projects. "Another challenge was asset management," said Fajri Siregar, a PHD candidate from University of Amsterdam and a lecturer at FISIP UI.

Nevertheless, LP3ES was a pioneer of civil society organizations in Indonesia. "The system they built was made reference buy other NGOs at the time," said Fajri.

This was conveyed by Fajri in KSIxChange#12, titled “The Frailties of Indonesia Knowledge Production, A Critical reflection of civil society and Knowledge Production during the New Order and Reformation Era” held by the Knowledge Sector Initiative (KSI) on June 20, 2019.

In his presentation, Fajri explained that LP3ES was the object of his research.  This research was to find out how LP3ES produced knowledge during the New Order. According to Fajri, the LP3ES research work was sufficient to support government programs, such as in the discussion of MSMEs, and microeconomics.

“(Their research) is critical, but also modernist," he said.

LP3ES was formed with the intention to develop a more holistic approach to economic and social development. The focus and strategic priorities were put on human resource investment.

As an NGO engaged in the field of research, LP3ES has been involved in many policy studies, ranging from research on the informal sector, cooperatives, small industries, and folk crafts, agriculture, maternal and child health,  environment and others.

When alternative development models were introduced in the late 1970s and early 1980s, LP3ES began to pay attention to the development of small-scale economic sectors. In urban areas, development of small-scale economic and the informal sector were carried out by developing small industrial centers, providing small business management assistance, conducting entrepreneurship training, and providing marketing support for products from small businesses.

In rural areas, socio-economic development is carried out through the Islamic boarding schools (pesantren) by developing economic ventures. The strategies and approaches used in community economic development both in urban and rural areas were based on three main strategies, namely (a) strengthening human resources, (b) strengthening community institutions and authorities, and (c) building micro credit schemes that can be accessed by poor communities. The establishment of the Regional Development Planning Agency (Bappeda) throughout Indonesia was a recommendation driven from research conducted by LP3ES.

Prisma magazine, LP3ES’s publication, sought to present discussions of economic development, social development, and cultural change in Indonesia. Prisma offered readings for academics, students, and officials.

"Prisma functioned as a driver of academic discourses during the New Order," said Fajri.  It also provided a room for officials to write

LP3ES, according to Fajri, also benefited from big names, such as Dorodjatun Kuncorojati and Emil Salim who were the founders of Bineksos Foundation, the patron foundation of  LP3ES. Both names become magnets, including on campuses, making LP3ES better known to the public.

Post-reformasi intellectual activists

When Prisma temporarily stopped its publication in 1998, a journal called Jurnal Wacana was released by INSIST Press, an agency engaged in publishing, training, education, and advocacy. This institution was founded in Yogyakarta in 1997 by Mansour Fakih and Roem Topatimassang.

According to Fajri the publication of Jurnal Wacana provoked new thoughts and new ideas about social transformation. "The issues raised by INSIST Press were clearer, namely social justice and community empowerment. There are two words that really describe INSIST, namely 'organic intellectual'," explained Fajri. 

Fajri said, the two founding figures of INSIST, namely Roem and Mansour wanted to integrate activism and scholarship. One of Roem's works in INSIST's publication was entitled “Sekolah itu Candu” (School is Addictive), while Mansour Fakih wrote “The Collapse of the Theory of Development and Globalization”.

Over time, INSIST, which was originally a foundation, turned into a confederation which was deemed a legal entity, an analogy to be made with the World Football Federation, FIFA.

"INSIST moved their activities to the regions, setting up 13 regional organizations, believing that the production of knowledge is more beneficial if it is close to the community," continued Fajri. 

For example, INSIST in Jambi and the local farming community practiced knowledge about planting on peatlands.

“Unfortunately the knowledge acquired from the field, despite their being interesting, was rarely recorded or documented and they never made it to the journals, so people don't know about it," said Fajri.  According to him this is a challenge for INSIST.

Another challenge faced by INSIST is financial sustainability in institutional development.

"They have a regulation, but it does not clearly specify what the institution should do, for example regarding financial matters, distribution of workload and others. The organization was very fluid and highly dependent on the stock of knowledge of the senior staff. This posed new challenges regarding transfer of values from seniors to juniors," said Fajri again. 

Examining the two NGOs closely, Fajri marked some differences between LP3ES and INSIST. Fajri said LP3ES had critical thinking, but also supported the government program, while INSIST with the initial enthusiasm wanted to initiate social movements by being more critical of government programs.

"But, interestingly individually, there is the potential to become a government program facilitator, for example facilitators for BUMDes (Village-Owned Enterprises)," continued Fajri. For example in Maluku, a number of INSIST Maluku management collaborated with the local government, running government programs, including participating in developing BUMDes. 

LP3ES knowledge production raises many national issues and becomes a palugada organization, aka raising various national issues. Whereas INSIST with its transformation, which is now in 13 regions is closer to local issues and closer to the community. Related to this, the decentralization of knowledge with local issues by INSIST can be utilized for the process of transferring capital to new areas.

Both institutions illustrate the importance of the development process which involves all parties, including NGOs, both as critical controllers and supporters of the development program. The involvement of various elements of society is part of efforts to encourage inclusive growth on all levels, at the national and local levels. In line with the Indonesia Development Forum IDF 2019 event "Mission Possible: Seizing the Opportunities of Future Work to Drive Inclusive Growth, on 22-23 July.