Shoeb Kagda, Jakarta – Anyone watching the current spat between Indonesian President Abdurrahman Wahid and Bank Indonesia governor Sjahril Sabirin should be forgiven if he said: "Have we not seen all this before?" For it was only a few short months back when Mr Abdurrahman engaged in a battle of wits and verbal sparring with his former military commander and coordinating minister for security and political affairs, General Wiranto, in a bid to oust him from the cabinet.
As in this instance, the newly retired general Wiranto was implicated in an official investigation and was asked by the president to step down voluntarily or face the sack. He was then named in an investigation into the military's blatant abuse of power following the referendum in East Timor.
Mr Sjahril is currently at the heart of another investigation into the central bank's role in the Bank Bali scandal. He has been accused of perjury and complicity by the attorney-general. And now he has been forced into a corner by the president. Mr Sjahril has denied any wrongdoing and has in turn accused the executive wing of the government of interfering in the affairs of the central bank which, under new laws, is independent of the government. He has on his side the law, which stipulates that the central bank governor must be appointed by parliament and not the president and, thus, only parliament has the power to remove him.
At stake in this unfolding drama, is the authority and credibility of Indonesia's still fledgling public institutions. All but annihilated during former president Suharto's New Order regime, the country's political and financial institutions have only been recently revived.
In the case of Mr Wiranto, the once-powerful military's position and role in the country's changing political landscape was at issue. The military had been discredited and stripped of its authority over most matters concerning the nation's political life, and Mr Abdurrahman was attempting to bring it to account for its past abuses of human rights and, more importantly, to subject it to civilian control and the rule of law.
In Mr Sjahril's case, the conflict outlines more clearly the independence of the central bank and the role and responsibility of its governor. But Mr Sjahril is mistaken in saying that the president is interfering in the affairs of the central bank. Mr Abdurrahman has not sought to dictate monetary policies to the governor, although he did ask the central bank to help prop up the rupiah after the currency started to head south.
In fact, what Mr Abdurrahman is attempting to accomplish is to lay down clearly the ground rules of behaviour and accountability for all government officials. Mr Sjahril claims he has not stolen any money but that is not the issue. What is important is that he has been named as a suspect by the attorney-general in a political scandal involving the central bank, and as its head, he cannot deflect the blame from himself. If Bank Indonesia is to regain credibility and the trust of the financial community, which it oversees, its governor cannot be seen to be under any kind of suspicion.
Mr Sjahril is backed by Speaker of the House Akbar Tandjung, whose Golkar party was the principal recipient of the US$80 million that flowed out of Bank Bali last year. Mr Tandjung has even gone as far as undermining the attorney-general's investigation by publicly stating that there was insufficient evidence to remove Mr Sjahril.
What is undeniable, however, is that the current chaotic political and social climate offers the larger political parties ample opportunities to boost their slush funds ahead of the next general election. The top office in Bank Indonesia, with its ability to control and monitor the flow of capital within the country, is a lucrative prize for these political parties.
If Indonesia is to attract foreign investments back to its shores, the nation must apply the rule of law fairly and equitably. No individual, not even the president, must be spared from the harsh light of the law. The right thing for Mr Sjahril to do, therefore, is to hand over his day-to-day duties to his deputies until he can clear his name because without public confidence in the central bank, there can be no international confidence in Indonesia's ability to manage its economy.