i

THE REJECTION OF UNITED STATES TOWARD JAPAN PROPOSAL

ON FORMING ASIAN MONETARY FUND (AMF) 1997

Accomplished By:

Haniza Ayu Mentari

20100510225

INTERNATIONAL PROGRAM OF

INTERNATIONAL RELATIONS DEPARTMENT

FACULTY OF SOCIAL AND POLITICAL SCIENCES

UNIVERSITAS MUHAMMADIYAH YOGYAKARTA

2015

ii

THE REJECTION OF UNITED STATES TOWARD JAPAN PROPOSAL

ON FORMING ASIAN MONETARY FUND (AMF) 1997

UNDERGRADUATE THESIS

Presented in partial fulfillment of the requirements for the bachelor degree of

Sarjana Ilmu Politik (S.IP) from the International Program of International

Relations Department, Faculty of Social and Political Sciences, Universitas

Muhammadiyah Yogyakarta

Accomplished By:

Haniza Ayu Mentari

20100510225

INTERNATIONAL PROGRAM OF

INTERNATIONAL RELATIONS DEPARTMENT

FACULTY OF SOCIAL AND POLITICAL SCIENCES

UNIVERSITAS MUHAMMADIYAH YOGYAKARTA

2015

iii

APPROVAL PAGE

UNDERGRADUATE THESIS

THE REJECTION OF UNITED STATES TOWARD JAPAN PROPOSAL

ON FORMING ASIAN MONETARY FUND (AMF) 1997

Accomplished By:

Haniza Ayu Mentari

20100510225

This undergraduate thesis has been examined and approved by the Board of

Examiners of International Relations Department, Faculty of Social and Political

Sciences, Universitas Muhammadiyah Yogyakarta

On

Day/ Date : Thursday, April 24th 2015

Time : 10.30 WIB

Place : Examination Room HI D

Acknowledged by:

Board of Examiners

Dr. Ali Muhammad, MA

Chief of Examiner

Dra. Nur Azizah, M.Si Ratih Herningtyas, S.IP., M.Si

Examiner I Examiner II

iv

STATEMENT OF ORIGINALITY

This is to certify that, to the best of my knowledge, the content of this

undergraduate thesis is my own work and has not been submitted for any degree

or other purposes which may affect plagiarism. Every source in completing this

undergraduate thesis has been revised and acknowledged by my adviser.

Yogyakarta, May 9th, 2015

Haniza Ayu Mentari

20100510225

v

LIFE MOTTO

He said, "I only complain of my suffering and my grief to Allah, and I know from

Allah that which you do not know. (Q.S Yusuf:86)

The best thing about the future is that it comes only one day at a time.

– Abraham Lincoln

An unexamined life is not worth living.

–Socrates

Life isn’t about getting and having, it’s about giving and being.

–Kevin Kruse

A dream you dream alone is only a dream, a dream you dream together is reality.

-John Lennon

Have courage and be kind

- Cinderella Movie

vi

DEDICATION

This thesis is dedicated to the one and only, the merciful, and my everything

Allah swt.

My beloved Parents, the guardian of my life:

Ir. Eddy Zunardi and Letty Misnarini, SH

My Super Sisters and Brothers, the best fanatic fans of me:

Yashinta Anggi Puspita, SH., M.Kn

Yashanti Berlinda Paradisa, S.P., M.Sc

Yashandi Muhammad Lingga, S. St

Muhammad Aldiga Moza Mahardika

Yacantika Septanisa Angelita

My big family, the priceless one:

Herlin Latif family and Ngadi Widyotaruno family

My Department, the place I learn, the place I’ve spent my wonderful 4.5 years:

International Relations Department of Universitas Muhammadiyah Yogyakarta

And for everyone who never stop give me so many loves and supports in finishing

this thesis. I would like to dedicated this thesis to all of you too.

vii

THANK YOU NOTE

Who should I thanks first? I really do my best in writing this thank you note. It

does not mean that I did not know how to say thank you, but I just can’t write

everyone. So, please forgive me to anyone who did not found his/her name in this

thank you note. If I really did not write your name, let me tell you, I also thanking

you. Thank you for your support, love, and understanding, I love you, fellas!

- My Lord, My Love, My Everything, Allah swt. Thank you very much for

Your never-ending surprises. Now, I do realized how beautiful Your plan

was. You must be know how grateful I am for everything that You have

planned. Thanks ya Allah. I am looking forward to Your another surprise.

- My Beloved family, Mama, Papa, Che Shinta, Che Shanti, Abang Lingga,

Abang Aldi, and Cantika. Finally, Ayu made it. I do apologized to make all

of you wait too long. I did not do it intentionally. You know very well how

beautiful the process was. Ah, very long process, but I enjoy it. I did.

Thank you for believe in me. I will never be me like today if not because of

your prayer, love, support, and everything that you have taught on me. Thank

you for never getting angry while know I have to postphone the graduation

again and again. I have to say that I am very lucky to having you as my

family. You are the world for me, for sure! I don’t know how many times I

have dissapointed, broke your expectation about me. But, again and again,

Thanks for always stay besides me, support me, believe me, and not leave me.

I love you, I do love you, I will always love all of you.

- My Brother In Law, Bang Ian and Mas Rusly and My sister in law (wanna

be), Yuk Desvia. Thank you for not only loves my sister and my brother, but

also loving me and my entire family. Your support, love, and prayer also help

me a lot in finishing this thesis. So, thank you so much, ipars!

- My mirror, Pebri Emilda Nurriska. Thanks for listening, supporting, and

caring me so much. Ah, I have to say it simply, Thank you for everything,

bie. You are the precious one. No one can replace you!

viii

- My best, My sister, My second family. Reynita Hutami Adiningsih, We are

in misunderstanding situation a lot, recently. But, we both know how much

we love and care to each others, right kak? Tiara Pramudita SNI, thanks to

the hard time in the past, we will never get this close without those beautiful

pain, dear. Heny Iswanti, I just can’t forget our first meeting, kaks. What a

faith. Nurjannah Y, we should spend more times to sharing, ayy. Our deep

conversation just too short. My girls, I do love you. Each of you really taught

me many things. Thanks for stay besides me in happy and hard time. Thanks

for the endless believe, love, care, pray, and support in this past 4.5 years. Ah,

glad to know all of you, girls!

- To Ahmad Soim, Thank you for sharing, listening, supporting, caring,

loving, praying, understanding, and everything. Lego house!

- To Syifa Zia Rahmah, Don’t stop being nice to other peoples and do your

best to control your anger, dek. The right man will came, surely! Well, I will

the one who pay in our next meeting, ya. Don’t you dare!. Dyan Maulidha

Nugraheny, talking to you is like talking to myself. Many similarities that

been found when we have a deep conversation. Stay awesome the ‘O’ girls.

Regards, Best friend! (did you still keep it?) Ridha Amalia, there are too

many stories that can’t be shared because of the distance. But before you

leave, we really have a good time right? I wish you can be the expert of

faking smile, dek. Lawrozabna Lila Danisa. Many things that we have not

done yet. Vacation? Ah. Well, have some sleep, nduk! My girls, I enjoyed the

tears, laugh, foods that we shares. I have a really good time with all of you.

Thanks for everything. I love you!

- To Ahmad Muhammad, Atina Rosydiana, Ahmad Rifky, Reza Fahmi

and Aditya Maulana Hasymi. Thanks for the beautiful memories, guys!

Playing, sharing, laughing, and crying together, don’t we? See you on the top.

Stay healthy, Stay awesome!

- The place I met the best people, KOMAHI UMY. Thanks to give me so

many opportunities to learn, to serve, to teach, to share, to care, to love, and

to be loved.

ix

- To my seniors Bang Hadi and team (2008), Thanks to let me became the

part of KOMAHI family. All of you are inspiring peoples.

- To my seniors Mas Aan and team (2009), Thanks kakak-kakak for your

support, trust, pray, advice, and love for me and my mates. Especially Mas

Aan Mbak Binar, Kak Adli, Kak Saddam, Kak Cucu, Mbak Pepi, Mas

Luthfi and Uda Ari, all of you are the reason why I stay.

- To my mates, my team (2010): Reza, Atina, Adit, and Kukuh, being a team

with all of you as BPH is wonderful chances and memory ever, guys. Now

we can sleep well, right?

To Ata, Yanu, Ahmad, Rifky, Rara, Rey, Tiara, Dana, Deni, Rusdy,

Yamin, Iman, Ghozy, Qory, Arya, Helmi, Ragil, Syahwal, Isa, Ihsan,

Fikar, and Jupri. We start it together, then we also end it together. We did it,

guys. Thanks for everything! We are forever family. Mmuach!

- To my Juniors, Awwab and team (2011). Awwab, Vita, Arif, Anya, Emon,

Mira, Fattah, Faiq, Amandha, Ori, Putri, Bella, Fariz, Riza, Citra, Febri,

Maulana, Bondan, Eya, Fikri, Enal, Dea, Cibo, Abah, David, Nizar, Arta,

Nyimas, Rahmanda, Jawwad, Dyan, Feri, Novita, Risca, Fitria, Deansa,

Indra, Zuha, Faldi, Tiffany, Eci, Fivien, and Gania. Thanks for supervised

and treat your mates and junior really well. You really lead the organization

together. Thanks to keep you words, thanks to repay my trust. I owe you,

guys.

- To my juniors, Fanani and team (2012). Fanani, Desti, Ghiffary, Lila, Dede,

Dyan, Cipa, Riefa, Randi, Tebo, Atika, Mahfud, Miftah, Soim, Adel,

Luthfi, Afida, Ninda, Ote, Annisa, Ichago, Ossa, Ridha, Dita, Achi,

Galuh, Atib, Dyas, Rangga, Satria, Sarah, Jojo, Anif, Nanang, Gita,

Richo, Dyah, Alif, Rahmat, Ambon, Amel, Nadya, Mutia, Tere, Hani,

Ergi, Farras, Ucup, Wulan, Ummi, Asep, and Fenny. Thanks for your

loyality and dedication to the organization. I hope you can lead, run, and

finish it together, guys. Give as much as you can while you still had a

chances. I put my trust on you, deks. Good luck!

- To the other juniors, Diffari, Icik, Icha, Nanda, Uul, Gede, Akay, and the

x

others that I can’t mention. Nice to know you all.

- IPIREL families, especially 2010 team, Ama, Lisa, Wanda, Tiara, Rey,

Edwin, Nanda, Kak Kya, Kak Mahar, Kak Danu, Kak Aziz, Enka, Adit,

Adul, Dana, Iman, Hasna, Ghozy, Jojo, Galuh, Kresna, Resti, Reza,

Riffy, Oka, Muti, Dita. Thanks for everything, guys. I did learn a lot from

you. We were in hard time before, but isn’t time really heal everything? Keep

this good relations, guys. I wish you every success!

- KKN Dusun Kembaran Team, Upay, Didik, Nasa, Fuja, Jefri, Tenggar,

Sengaji, Radip, Fian, Lingga, Adam, Yazid, Oji, Mila, and Omeng.

Thanks to believe me as your leader. Thanks for your cooperation. KKN

really blend us become one, right? Different departments? Whatever!

- Finally, I would like to thanks myself. You made it, you made it, and you

really made it. I am proud of you, for sure. All the obstacles which came

during the process are really give you lessons. Learn from it and never regret

everything which already happen. You regret means you not thankful for

Allah extraordinary plan. So, be happy because you really finish this thesis!

Thank you everyone! Please stay healthy and awesome. I wish you all the

best. May Allah permit us to meet again, someday. Amin. Do not forget me!

I love you all.

Sincerely yours,

Haniza Ayu Mentari

xi

PREFACE

Assalammu’alaikum wr. wb

Alhamdulillah, Alhamdulillah, Alhamdulillah. Thanks to Allah swt, because of his

mercy and kindness has give opportunity for the writer to finish the thesis entitled,

The Rejection of United States toward Japan proposal on Forming Asian

Monetary Fund (AMF) 1997.

This thesis is presented in partial fulfillment of the requirements for the bachelor

degree from the International Program of International Relations Department,

Faculty of Social and Political Sciences, Universitas Muhammadiyah Yogyakarta.

The writer realized that the thesis is beyond of perfect, so the writer are look

forward any suggestion and critics that could made the thesis became perfect.

The undergraduate thesis finished by helps. supports and guides by many peoples.

Therefore, I would like to express my gratitude toward:

1. Prof. Dr. Bambang Cipto, MA as the Rector of Universitas

Muhammadiyah Yogyakarta.

2. Ratih Herningtyas, S.IP., MA as the Supervisor of the thesis, the one who

guide the writer patiently, give many suggestion and support which really

helpful in the making of the thesis.

3. Dr. Ali Muhammad, MA and Dra. Nur Azizah, M.Si as the examiner, the

one who give good respond, suggestion and support during the thesis

defense and revision process.

4. Miss Ika Wahyuni as the language supervisor, the one who recheck

patiently my language and grammar in the thesis.

5. Sugeng Riyanto, S.IP., M.Si and Adde Marup Wirasenjaya, MA as the

lecturer, the one who give me support and believe me to doing some work.

6. All the lecturer of International Relations Departments, the people who

taught the student patiently and spiritful. We are very lucky to have good

lectures like all of you.

7. Mbak Atik as the staff of IPIREL office, the one who always help the

writer and others IPIREL students a lot. Thank you for your consideration,

xii

mbak.

8. Pak Nur, Pak Jumari, Pak Ayub, and Pak Waluyo, the staff of the

International Relations Department. Thank you for all your kindness and

patient in helping all the students in many aspects. We are very thankful.

9. Everyone that contributes and helps a lot in the making of the crisis which

may be cannot be mentioned one by one.

In conclusion, hopefully this thesis could be useful, especially for the

writer, student, and everyone.

Wassalammu’alaikum wr. wb

Yogyakarta, May 9th 2015

Writer,

Haniza Ayu Mentari

xiii

TABLE OF CONTENTS

THE REJECTION OF UNITED STATES TOWARD JAPAN PROPOSAL ON

FORMING ASIAN MONETARY FUND (AMF) 1997 ........................................ ii

APPROVAL PAGE ............................................................................................... iii

STATEMENT OF ORIGINALITY ....................................................................... iv

LIFE MOTTO ......................................................................................................... v

DEDICATION ....................................................................................................... vi

THANK YOU NOTE ........................................................................................... vii

PREFACE .............................................................................................................. xi

LIST OF TABLES, CHART, AND FIGURES .................................................... xv

CHAPTER I ........................................................... Error! Bookmark not defined.

INTRODUCTION ................................................. Error! Bookmark not defined.

A. Background ............................................. Error! Bookmark not defined.

B. Purposes of Writing ................................. Error! Bookmark not defined.

C. Research Question ................................... Error! Bookmark not defined.

D. Theoretical Framework ........................... Error! Bookmark not defined.

1. Concept of Leadership ......................... Error! Bookmark not defined.

2. Concept of Hegemony ......................... Error! Bookmark not defined.

E. Hypothesis ............................................... Error! Bookmark not defined.

F. Method of Writing ................................... Error! Bookmark not defined.

G. The Research Area .................................. Error! Bookmark not defined.

H. Organization of Writing .......................... Error! Bookmark not defined.

CHAPTER II .......................................................... Error! Bookmark not defined.

THE DYNAMIC RELATIONS OF UNITED STATES AND JAPAN ........ Error!

Bookmark not defined.

(1939-1997) ............................................................ Error! Bookmark not defined.

A. The Beginning of US-Japan Alliances .... Error! Bookmark not defined.

1. The Rivalry in the World War II (1939-1945) .. Error! Bookmark not

defined.

2. From Enemy to Sub-ordinate (1945-1952) ........ Error! Bookmark not

defined.

3. The Alliances Formed (1952-now) ...... Error! Bookmark not defined.

B. The Shaking of Alliances ........................ Error! Bookmark not defined.

1. The Rivalries of Economy (1952-1997) ............ Error! Bookmark not

xiv

defined.

2. The Rivalries in International Financial (1952-1997) ................. Error!

Bookmark not defined.

CHAPTER III ........................................................ Error! Bookmark not defined.

ASIAN CRISIS 1997 AND THE ASIAN MONETARY FUND PROPOSAL

................................................................................ Error! Bookmark not defined.

A. Asian Crisis 1997 .................................... Error! Bookmark not defined.

1. The cause of the Asian crisis ............... Error! Bookmark not defined.

2. The Impact of Asian Crisis 1997 ......... Error! Bookmark not defined.

3. The US-Japan response toward Asian Crisis 1997 ... Error! Bookmark

not defined.

B. Asian Monetary Fund Proposal ............... Error! Bookmark not defined.

1. The Forming of Asian Monetary Fund Error! Bookmark not defined.

2. The Response toward Proposal ............ Error! Bookmark not defined.

CHAPTER IV ........................................................ Error! Bookmark not defined.

US REJECTION TOWARD AMF PROPOSAL ... Error! Bookmark not defined.

A. US Interest in Rejecting Asian Monetary Fund (AMF) proposal ... Error!

Bookmark not defined.

1. US and International Monetary Fund (IMF)...... Error! Bookmark not

defined.

2. AMF as the potential IMF competitor . Error! Bookmark not defined.

3. US wanted to maintain their hegemony and structural power ..... Error!

Bookmark not defined.

B. Japan as a threat of potential hegemony and structural power ........ Error!

Bookmark not defined.

1. Japan with economic domination ........ Error! Bookmark not defined.

2. Japan with morality .............................. Error! Bookmark not defined.

C. Japan as potential intellectual leaders .. Error! Bookmark not defined.

CHAPTER V .......................................................... Error! Bookmark not defined.

CONCLUSION ...................................................... Error! Bookmark not defined.

BIBLIOGRAPHY .................................................. Error! Bookmark not defined.

APPENDIXES I ..................................................... Error! Bookmark not defined.

xv

LIST OF TABLES, CHART, AND FIGURES

LIST OF TABLES

Table 2.1 : Pearl Harbor losses

Table 2.2 : The Loss of National Wealth Due to the Pacific War (In millions

of yen at end-of-war prices)

Table 3.1 : Exchange and interest rates during the Crisis

Table 4.1: High-technology exports (Current US Dollars) (1993-1996)

Table 4.2 : GDP (Current US Dollars) (1981-1986)

Table 4.3 : Major Recipient Countries of Japan Bilateral ODA

LIST OF CHART

Chart 4.1 : Shares of Aid by Major Donors by region (1997)

LIST OF FIGURES

xvi

Figure 3.1 : The Concept of AMF

Figure 4.1 : Flying Geese Paradigm: Japan, NIEs, ASEAN-10