Indonesia, Daewoo Sign $1.1 Billion Contract For 3 Submarines
Major Political Parties Head For Showdown
The Golkar and Prosperous Justice (PKS) parties, despite their being part of the government's coalition, have explicitly faulted President Susilo Bambang Yudhoyono's (SBY) top cabinet members, Vice President Boediono and Finance Minister Sri Mulyani, for abusing their position to dispense a total of 6.7 trillion rupiah ($668 million) in bailout money to PT Bank Century in 2008. Boediono was the central bank's chief at the time of bailout.
Legislators from Golkar and Muslim-based PKS have been leading the opposition to this conclusion following a three-month parliamentary inquiry into the alleged scandal. Golkar and PKS legislators have described the bailout as a stark example of the SBY administration's corrupt practices.
They have said that Boediono's and Sri Mulyani's bailout led to Bank Century management's embezzlement of funds. Politicians and critics earlier charged that SBY and his Democratic Party benefited from the bailout in the form of political campaign funds and donations to foundations tied to SBY, his wife, and his party.
Boediono and Sri Mulyani say that the bailout was necessary to prevent the financial system from collapsing. But opposition legislators have refused to buy that argument, saying there is not enough evidence to suggest that the financial situation would be in a tailspin without the Century bailout. Golkar Party chairman Aburizal Bakrie said that the party's faulting of Boediono and Sri Mulyani is based on facts, rather than his party's opposition to policy-making.
Clearly, it is hard to swallow the notion that the Golkar and PKS parties' pursuit of the Century case is a genuine move to root out corruption. Golkar's politicians had called publicly for removing Boediono and Sri Mulyani from the cabinet even before the inquiry started. Golkar advanced its own presidential candidate in the 2009 election despite holding the vice presidency and minister posts in SBY's previous administration, in which Bakrie himself held a coordinating minister position.
Several Democratic Party legislators said they would resolve the Century case by proving that allegations of wrongdoing are false. In doing so, they insist that their coalition with the Golkar and PKS parties would still stand.
But indications are that Golkar and PKS have no inclination to relent and that SBY's Democratic Party intends to fight back. The police already have announced that they are launching a tax evasion probe into companies tied to Bakrie.
Calls are rising among SBY's allies to reopen the investigation into mud volcano incident, which submerged villages in Sidoarjo. Scientists at home and abroad have joined the chorus in pointing fingers at drilling by Lapindo Brantas, a company owned by Bakrie's group, for the mayhem the mud volcano caused.
An increasing number of Democratic Party politicians and supporters also have begun calling for reopening the investigation into the sale of several state-owned companies during Megawati Sukarnoputri's presidency. Analysts at the time said that the sale of state companies was rife with corruption. Megawati's party, PDIP, has been among the opposition parties that accuse Boediono and Sri Mulyani of misusing their power, and seek to remove them from government.
A showdown appears to be imminent. Speculation is on the rise that President SBY will be forced to remove Golkar and PKS from the coalition cabinet if these parties continue to attack Boediono and Sri Mulyani.
At a time when countries in the region are emerging from their economic doldrums, Indonesia needs to focus on seizing the opportunity to raise economic performance to stimulate job creation.
But what politicians now see instead is an opportunity to intensify horse-trading. And the countdown to the next general election, when SBY no longer can be a candidate, might have just begun.
