Bitter Lesson from Netflix’s Love-Hate Relationship with Government
- Izzan Fathurrahman
- Jun 4, 2020
- 4 min read
This article has been published on The Jakarta Post paper edition on January 20, 2020 in this following link https://www.thejakartapost.com/academia/2020/01/21/bitter-lesson-from-netflixs-love-hate-relationship-with-government.html
Perhaps no more dramatic love story early of this year than Netflix’s love-hate relationship with the Indonesian government. Ditched out by the Ministry of Communication and Information, and even was about to be blocked (imagine your loving partner is going to block you on Instagram! How hurt is that?!), yet openly received by the charming charismatic Minister of Education.
The main reason for the Ministry of Communication and Information ditched out Netflix is because it is considered providing less Indonesian movies on its platform compared to its imported-original products. Thus, the government wants Netflix to increase the percentage of Indonesian movies on its platform. Regardless of whether the argument is true and based on sufficient research or not, from this point at least we can see the government efforts in prioritizing Indonesian products. An intervention to the market mechanism.
On the other hand, the charming charismatic Minister of Education, Nadiem Makariem, openly receives Netflix and place them as a partner of the government. Specifically, the minister invites the on-demand movie streaming platform to collaboratively improve the Indonesian filmmakers’ quality by having joint capacity building programs, such as sending the Indonesian filmmakers to Hollywood. The platform has even been planning to disburse USD 1 million to support collaboration.
The attitude of these two respective state institutions towards Netflix is totally in contrast, and this worsens the common argument that the Indonesian government never really have a clear stand of its economic paradigm. At the glance, Indonesia under President Joko Widodo administration favours neo-liberal pretty much.
No need to go into a deep analysis, by seeing the government development priorities in these last few years of building infrastructure and improving education clearly emphasize the government’s favour in market expansion. This is supported by the appointment of Nadiem Makarim, ex-Gojek’s CEO, the country most successive tech start-up company, to create a link and match mechanism between education and the market.
Not to mention the efforts in de-bureaucratization and deregulations to attract investors, including the current controversial omnibus bill on employment creation. The president’s social welfare policies are also similar, they are created more to enable a deeper market penetration. Creating a safety net for people in case the penetration fails and lead to an economic recession.
This exactly reflects what The Economist magazine stated in January 2010 that in the period of technological revolutions, the government should only contribute to the creating conditions for business to invest, such as education and infrastructure. Other than that, the government should stay away. The line is mainly anchored on the Keynes’s famous statement that the importance of government is not to do things which individuals already doing, in a better or a worse way; but to do things which at presents are not done at all.
The efforts are not in vain. People as a consumer clearly enjoy the benefit of this open market system. In the context of behavioural economy and utilitarianism principle of neoliberal, consumers have more options in pleasing themselves as well as in easing their life. The rapid growth of e-commerce and on-demand transportation have generated trickled down effects to the small-medium enterprises (SMEs). Consumption increases which benefitting the state to generate higher GDP.
With the great power of market yet comes less responsibility of the state. As the highest entity power and the supposed game maker, this is definitely not a satisfying situation for the state. Thus, the Indonesian government attempts to elevate its bargaining position, including intervenes on Netflix.
However, this is the situation of this relationship. The public as a major consumer is already happy with the current market relationship. Thus, interrupting their interests clearly affects their support. This situation is worsened by the common stigma that the Indonesian government is unproductive, corrupt and easily captured by personal interest.
In this relationship, Netflix is an innocent kind-hearted person (with all services it’s offered) being played by an old corrupted player, the state. Within all benefits they have been enjoying through this relationship under the neoliberal platform, no wonder protests emerge from people to the government due to their statement to Netflix.
This situation is even more obvious if we look at the figure of two ministers. The Minister of Communication and Information come from politician background. A group that has been in prolonged hatred by Indonesian society and perceived a bad image. In contrast, the Minister of Education is Nadiem Makarim, a young charismatic ex-CEO of a successful start-up company that has been believed generating lots of positive social and economic impacts on society.
Therefore, in this love-hate relationship drama, what the government should learn is to take a bold position on its economic paradigm and answering their bad stigma. Keep forging the neoliberal principles that they have been pursuing and creating or back to their ambiguous grey zone. This is irrespective of all consequences entailed to any chosen paradigm since every economic paradigm choice has its own effects.
This also does not mean the government should be totally away in the neoliberal economy. Yet, with its already bad label, what is more important to see is real actions of the government to intervene market. For instance, by improving the quality of Indonesian movies or by solving the existing Indonesian broadcasting problems, like censorship mechanism. Not only throwing a statement without further explanation of how to implement.
Just like in a normal relationship, you need to be bold to be attractive in front of your partner and his/her close circle. Once you make a fatal mistake, it is difficult to get an apology, particularly with the past negative stigma you carry on your shoulder. Proving through real actions is more important to retain the relationship.
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