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Coalition deemed fragile over bailout

Source
Jakarta Post - January 16, 2010

Irawaty Wardany, Jakarta – After only three months, the Democratic Party-led majority coalition at the House of Representatives seems too fragile to offer full political support to President Susilo Bambang Yudhoyono's government amid the ongoing procedural investigation into the Rp 6.76 trillion (US$712 million) Bank Century bailout.

Like the Indonesian Democratic Party of Struggle (PDI-P), People's Conscience Party (Hanura) and Greater Indonesia Movement Party (Gerinda), legislators from the Golkar Party and Prosperous Justice Party (PKS) asked pressing questions to witnesses in their attempt to uncover procedural violations in the bailout process.

Golkar's Bambang Soesatyo said his party was not part of the coalition and that it had its own agenda in the investigation.

"Ever since the presidential election, Golkar has been at loggerheads with the President and his party. The fact that several Golkar figures are in the cabinet is the result of our political lobbying," he said.

Andi Rachmat of the PKS said his party's main goal was to get to the bottom of the scandal by investigating it thoroughly.

"Unfortunately there is a price to pay because the Century case will implicate many (important) figures," Andi said, adding the PKS wanted the whole process to be transparent. "We're performing our constitutional function, to maintain checks and balances," he added.

PDI-P, Golkar and the PKS identified a number of legal violations during the bailout process when questioning a number of officials, including Vice President Boediono and Finance Minister Sri Mulyani, both key players behind the bank bailout.

Sri Mulyani, also chairwoman of the Financial System Stability Committee (KSSK), admitted receiving poor information from Bank Indonesia during the decision making process on Nov. 21, 2008. Boediono was central bank governor at the time.

Former vice president Jusuf Kalla testified that he was kept out of the loop on the Bank Century bailout process. He also blamed the high cost of the bailout on Boediono.

So far, only committee members from the Democratic Party, the National Mandate Party (PAN), the National Awakening Party (PKB) and the United Development Party (PPP) have pulled their punches when questioning witnesses.

The President has called for an evaluation of his 422-member coalition as his administration nears the end of its first 100-day.

Center for Strategic and International Studies (CSIS) political analyst J. Kristiadi criticized the fragile coalition, which he said was built on a weak foundation, instead of ideal political platforms.

As a result the inquiry was being used to attack the bailout decision and gain political power, he said. "I believe this process will not solve the case. It will only end with political negotiations," he added.

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