Aditya Suharmoko, Jakarta – The now-infamous saga between the Corruption Eradication Commission (KPK) and the National Police, and the arrest of two KPK leaders, must be resolved immediately or it will badly affect the investment climate, hampering economic growth, a business group says.
"The case of the KPK versus the police will clearly affect law enforcement and political stability, two basic things needed to improve the investment climate," Hariyadi Sukamdani, vice chairman on fiscal policy at the Indonesian Chambers of Commerce and Industry (Kadin), said Sunday.
Two KPK chairmen, Bibit Samad Rianto and Chandra M. Hamzah, were taken into police custody last week. The two had been earlier declared suspects by the police for allegedly blackmailing and receiving bribes from a corruption suspect.
While the police have been insistent their actions are based on legitimate legal grounds, speculation has been widespread that they are using this case to cripple the KPK – a powerful anti-corruption body which has been the darling of the public for prosecuting and convicting corrupt officials, including high-profile ones.
Speculation was heightened by the revelation, after the arrest of the KPK chairmen, of an alleged recorded phone conversation detailing a scenario to frame KPK leaders.
Hariyadi said the business community was looking at this case carefully and considered this as a test case for Indonesia's legal system as well as over whether the country can guarantee legal certainty. He said the role of President Susilo Bambang Yudhoyono will be crucial.
"The society will see that the President is being inconsistent in upholding the law if this remains unsolved," he added.
The case comes when the government plans to improve the investment climate by achieving 7 percent economic growth by 2014, the last year of President Susilo Bambang Yudhoyono's second five-year term.
"If (the Police had) strong evidence to arrest Bibit and Chandra, then this must be disclosed to the public. But if this is weak, the case must be dropped," said Hariyadi.
His remarks follow previous similar statements. No less than Industry Ministry M.S. Hidayat has stated that if not resolved immediately and amicably, the case would negatively affect investment.
"I'm not referring to one particular case, but in the context of legal certainty, every legal dispute which has a national impact must be settled soon. If it drags on and on, it will surely affect investment," he said.
Dradjat Wibowo, economist who is also a former lawmaker, was more straightforward, saying that the case was a bad precedent for Indonesia's legal system which may spook investors who consider legal certainty as a key factor for investment.
"Let's say an investor on average invests 10, then because of this case, they will only invest 5," Dradjat said. "I think in general, the problem between the KPK and the National Police will negatively affect investors' perspectives toward Indonesia."