Chris McCall, Jakarta – President Abdurrahman Wahid was fighting for his job yesterday as he and his closest allies struggled to defuse a political scandal.
In his most extensive comments yet on the issue, Mr Wahid denied he had authorised the removal of 35 billion rupiah (HK$35 million) from a pension fund for employees of the state commodities regulator Bulog. His inner circle has come under heavy attack over the issue, which has exposed the deep cracks in the coalition Government.
But Mr Wahid, in an interview with leading Indonesian daily Kompas, admitted he had considered using Bulog money to fund humanitarian work in violence-racked Aceh province.
Parliamentary Speaker Akbar Tanjung, who heads the powerful Golkar party, called for Mr Wahid to disclose everything he knew about what Indonesians have nicknamed "Buloggate".
Analysts have suggested the affair could herald a realignment in Indonesian politics. "Akbar Tanjung is playing his cards very well. They hope to gain political capital out of it," political commentator Wimar Witoelar said.
Mr Wahid's comments followed the resignation of an aide, Bondan Gunawan, as state secretary on Monday. Mr Gunawan, an old friend of Mr Wahid's, has denied any wrongdoing. During his interview with Kompas, the President was accompanied by another old friend he had promoted to high office, Cabinet Secretary Marsilam Simanjuntak.
Asked if he had approved the disbursement of the funds, Mr Wahid replied: "No. I only asked. I, let's say, heard that there were funds at Bulog. I asked, can it be used for Aceh or not?"
Mr Wahid said he was told that with the correct presidential authorisation it could, but concluded this would involve budget changes, which would have to go through Parliament and would simply take too long.
"It didn't happen. Later, I got help from Sultan Hassanal Bolkiah to the tune of US$2 million [HK$15.5 million] for Aceh. I used this money. I sent it to Acehnese people who used it to pay for various types of rehabilitation projects in Aceh," he said.
Foreign Minister Alwi Shihab, one of Mr Wahid's closest associates, also denied any involvement in the scandal. "I see a scenario to corner me. I don't have to defend myself because I know that I am clean," Mr Shihab said.
Although he played a major role in the appointment of former Bulog deputy secretary Sapuan, he had never met him, he said. "Maybe my closeness with the President has attracted jealousy," Mr Shihab said.
Since his election last October, Mr Wahid has increasingly surrounded himself with close allies and friends, leading to allegations of the cronyism for which disgraced former President Suharto was infamous. He has also sacked several ministers from rival parties, including Yusuf Kalla of Golkar, who was head of Bulog when the incident occurred.
Mr Kalla's former deputy Mr Sapuan has been fired and declared a suspect in the case. So has Suwondo, a businessman friend of Mr Wahid who sometimes acts as a masseur. He has gone missing.
The scandal has exposed Mr Wahid's political weakness, and there is talk among Indonesian politicians of impeachment. The top legislature which elected him meets again in August and has the power to sack him.
Mr Wahid's Nation Awakening Party is only the fourth largest in Parliament. He won office through a complicated series of alliances, largely with various Muslim-orientated groups, several of whom have since become disenchanted with him. His last-minute decision to run also irritated many supporters of popular favourite Megawati Sukarnoputri, who Mr Wahid had pledged to support in the election.
Analysts suggest the row may make or break the Government. It might survive and grow stronger as a result of facing the controversy, said Mr Witoelar. Or it could be replaced with a tighter coalition. One of the winners in this scenario could be Vice-President Megawati. Her Indonesian Democratic Party of Struggle is the largest in Parliament.