One year ago, Basuki Tjahaja Purnama, known by his nickname, Ahok, was riding high. The governor of Jakarta, the capital of Indonesia and its largest city, was widely popular for policies like a crackdown on graft and for his no-nonsense style. In early 2017 Ahok had an approval rating of roughly 70 per cent. He was the overwhelming favourite to win the 2017 gubernatorial election, and was often mentioned as a future presidential candidate.
In the past year, few have fallen so far as Ahok. In April, he was trounced in the gubernatorial election, losing by more than 15 per cent to Anies Baswedan, a former cabinet minister who could not match Ahok’s charisma. Baswedan had trailed Ahok until Islamist groups, some with ties to the army, began holding anti-Ahok rallies in Jakarta, in late 2016. These turned into a political phenomenon. They wound up attracting tens of thousands of people, smearing Ahok with massively untrue charges and fearmongering.
It got worse for the former governor. In early May, an Indonesian court sentenced Ahok to two years in jail for blasphemy. The court held that Ahok, a Chinese Christian in a country that is overwhelmingly ethnic Malay and Muslim, had insulted Islam during a speech last year where he warned potential voters not to let other candidates fool them by citing a Quran verse to claim that a non-Muslim could not be a leader of Muslims.
Ahok’s downfall was swift, but it exposed a growing challenge in Indonesia, once considered a model of democratic transition and pluralism. Over the past decade, even as Indonesia held multiple free elections and crushed the Al Qaeda-linked Jemaah Islamiah terrorist network, the country’s famous moderation was slowly crumbling.
Now, violent militant networks are rebuilding, while non-violent Islamist movements have become increasingly influential. After taking down Ahok, the militants and the army could swing the presidential election in 2019, potentially undermining Indonesia’s entire democratic progress.
In the early 2000s, only a few years after the fall of long-time dictator Suharto and the Asian financial crisis, Indonesia was beset by economic and political instability, with militant groups launching multiple major terror attacks.
But by the end of the 2000s, Indonesia had achieved a striking shift. Under former president Susilo Bambang Yudhoyono and then current president Joko Widodo, elected in 2014, the country’s police and intelligence units identified Jemaah Islamiah cells and destroyed them. Yudhoyono and other leaders touted the country’s freedoms and political decentralisation. “Indonesia can be a model where Islam and democracy exist hand in hand,” Yudhoyono told CNN.
Ahok won a job as deputy governor of the capital city, a seeming sign of the country’s growing tolerance. In the 2014 presidential elections, Widodo defeated former lieutenant general Prabowo Subianto. Prabowo, the former son-in-law of Suharto, was a man who seemed the embodiment of the old, army-dominated country.
But in the past few years, the ground began to shift. It was not, however, until the anti-Ahok rallies of late 2016 and early 2017 that the scope of the challenge became fully clear.
Meanwhile, although openly religious parties had not done well in national elections, decentralisation actually may have helped them. On the local level, for instance, militant groups have passed laws that allowed more usage of Sharia law in places like Aceh. These victories have left Islamist groups emboldened and ready to take on bigger, national-level fights. Between the mid-2000s and the mid-2010s, the number of people prosecuted under blasphemy laws in Indonesia skyrocketed, in part due to pressure on prosecutors and judges from militant groups. Unfortunately, both Yudhoyono and Widodo did little to stop these campaigns.
The case of Ahok’s election provided the perfect storm for militants – some with potential links to retrograde army officers and oligarchs – to finally dominate the national stage.
Ahok’s statement, which he later apologised for, spread quickly on social media and through networks of the Islamic Defenders Front, a leading militant group that historically has had close ties to some officers in the armed forces, and through other militant organisations.
The enormous rallies in Jakarta turned ugly. Many featured false claims, including that Ahok was a Chinese spy and that Chinese were (falsely) demographically swamping the country. The rallies dominated the national media coverage. Militant networks that had previously been viewed as fringe groups played central roles in organising the rallies, and seemed to have limitless resources.
The fact that the Islamic Defenders Front and other rally leaders seemed flush with cash made many Indonesian observers wonder who in the military and business community – wary of Ahok’s crackdown on graft, and worried about efforts by allies Ahok and Jokowi to bolster transparency regarding the armed forces – might be backing the protests.
The army had never really exited politics, but now it could be even more influential. During Suharto’s time, the armed forces and the dictator ruled together. Although the army stepped back from public dominance after Suharto’s regime collapse, the armed forces did not fully submit to civilian rule. And while Prabowo lost the 2014 election, he never left the political stage and still enjoys strong support in some ranks of the army.
The rallies clearly had an effect on the election, sending an ominous signal for the future – mainstream politicians have, for the first time, learnt that they can use religious grievances and hard-line rallies as wedges to win support. Polls taken after the election suggested many voters were willing to vote primarily on religious and ethnic lines.
Jokowi’s government is now desperately trying to fight back. In mid-May, the security minister, Wiranto, announced that Indonesia was banning one of the militant groups – probably so that the group could not launch anti-Jokowi demonstrations in the run-up to 2019. In the next year, Jokowi likely will position himself as a staunch champion of religious voters – a strategy easier for Jokowi, a Muslim, to use than Ahok could have.
Yet the decision to ban the militant groups may not succeed, and Indonesia’s democracy appears increasingly threatened. Indonesian judges may force the government to backtrack on its militants ban. And Jokowi wooing of hardliners could actually wind up further empowering militant groups, since it could make the president look weak.
Meanwhile, leaders of the anti-Ahok rallies are clearly gearing up for a similar effort to smear Jokowi and potentially push Prabowo forward in 2019.
If this effort succeeds, it could be the death blow for Indonesia’s nascent democratic experiment. In the 2014 campaign, Prabowo openly railed against liberal democracy’s institutions and norms. He could win the 2019 vote and then turn into an elected autocrat, along the lines of the Philippines’ Rodrigo Duterte. If Prabowo wins with the support of major militant groups, he could then use them as a kind of shock troops, to intimidate opponents – while militants destroy Indonesia’s moderate Islamic traditions. Indonesia, then, would still be a model – but a model of how democracy dies.
Joshua Kurlantzick is senior fellow for South East Asia at the Council on Foreign Relations
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
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UAE currency: the story behind the money in your pockets
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
UAE currency: the story behind the money in your pockets
If you go
The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at.
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.
How Islam's view of posthumous transplant surgery changed
Transplants from the deceased have been carried out in hospitals across the globe for decades, but in some countries in the Middle East, including the UAE, the practise was banned until relatively recently.
Opinion has been divided as to whether organ donations from a deceased person is permissible in Islam.
The body is viewed as sacred, during and after death, thus prohibiting cremation and tattoos.
One school of thought viewed the removal of organs after death as equally impermissible.
That view has largely changed, and among scholars and indeed many in society, to be seen as permissible to save another life.
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
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UAE currency: the story behind the money in your pockets