President Susilo Bambang Yudhoyono can no longer suppress his resentment over the behavior of members of the House of Representatives' committee investigating a decision by the government and the central bank to rescue the graft-ridden Bank Century in late 2008.
In a Cabinet meeting Thursday, Yudhoyono lashed out against ministers from the coalition parties, questioning the committee's ethics and attitude in treating his officials.
Despite forging an alliance with the government, committee members from the Golkar Party and the Prosperous Justice Party (PKS) insisted on hurling harsh questions and accusations at Vice President Boediono and Finance Minister Sri Mulyani Indrawati during the committee's hearings.
Boediono, while serving as central bank governor, and Mulyani as finance minister were the decision makers behind the bailout that cost a total of Rp 6.76 trillion (US$700 million), more than 10 times the amount originally granted.
While unable to fight back against harsh criticism from committee members, Boediono was humiliated during the committee hearing Tuesday, a condition deemed grossly impolite by Yudhoyono, who holds strong Javanese traditions.
"The President (in the Cabinet meeting) raised the issue of ethics and the attitude of committee members. He is very concerned about the unethical way the members questioned the officials," said Information and Communications Minister Tifatul Sembiring Thursday.
"The hearing was just like a television reality show. The President hopes for more conducive relations between the government and the House in the future," he said.
The President has called for an evaluation of his 422-member coalition as his administration nears the end of its first 100-days, with speculation rife that Yudhoyono will review his coalition following the behavior of Golkar and PKS legislators. Yudhoyono's coalition makes up 75 percent of seats at the House.
"We are still working out ways to improve the attitude of the committee members, as well as our commitment to keep the coalition solid," said House Speaker Marzuki Ali of Yudhoyono's Democratic Party on Friday.
Although having a potentially strong coalition, Yudhoyono has thus far refused to openly declare his full support for Boediono and Mulyani making the bailout decision, as well as forcing the coalition parties to end the bailout debate.
Yudhoyono's indecisiveness has kept the government and the House unnecessarily occupied in resolving the case, draining most of the energy needed to find solutions to improve the economy and social affairs.
"Yudhoyono should openly declare in public that the bailout decision was his full responsibility, and take the problem into his own hands. This is well needed to put an end to the unproductive debate at the House," said senior lawyer and member of the President Advisory Board Adnan Buyung Nasution on Saturday.
Yudhoyono is now pulling some new strings by trying to lower the tension of the investigation through lobbying by his inner-circle.
The National Awakening Party (PKB), for example, has replaced two of its investigation committee members with more amiable members.The National Mandate Party (PAN) and the United Development Party (PPP) have also softened their stance on the bailout.
What is left for Yudhoyono is to shut down Golkar and PKS, while leaving minority of opposing sides; the Indonesian Democratic Party of Struggle (PDI-P), the People's Conscience Party (Hanura) and the Greater Indonesian Movement Party (Gerindra) to push their agenda.
"I've heard there has been intensive lobbying to undermine the committee. The ruling elite is playing its coalition cards," said committee member Hendrawan Supratikno of the PDI-P.
Golkar, the PKS, the PKB and the PAN dismissed allegations they were toning down the heat on the bailout probe. "The aim of the committee is to get to the problem of the bailout. I don't see the investigation as a threat to the President," said committee chairman Idrus Marham of Golkar.
In previous reports, analysts believed Golkar's aim in pushing for the bailout probe was merely intended to unseat Mulyani due her string of disputes with Golkar chairman Aburizal Bakrie.
The intention of other coalition parties, however, may be limited to seeking greater bargaining power for financial resources through state companies, government-initiated projects and procurements, as well as heads of government and state agencies.
J. Kristiadi, a political analyst from the Center for Strategic and International Studies (CSIS) criticized the fragile coalition, which he said was built on weak foundations, instead of an ideal political platform.
As a result, he said, the investigation committee was being used to attack the bailout decision and gain political power. "I believe this process will not solve the case. It will only end with political negotiations," he added.
Temporary findings indicate depositors may have played big role.
Hendrawan Supratikno
Faction: PDI-P (16.6 percent of legislative seats/opposition)
Temporary findings on bailout motive: A combination of officials wanting to save big depositors and those honestly seeking to save the economy.
Other findings:
1. Messy Bank Indonesia (BI) banking supervision. There are indications the central bank provided misleading and insufficient information to the Finance Ministry to justify the bailout.
2. Power struggle between then vice president Jusuf Kalla and President Susilo Bambang Yudhoyono over the bailout plan.
3. Weak argument there was a systemic threat.
4. Yudhoyono's active involvement in the bailout decision.
Mukhamad Misbakhun
Faction: PKS (10.6 percent of legislative seats/coalition member)
Temporary findings on bailout motive: Vested interests wanted to save big depositors.
Other findings:
1. Messy Bank Indonesia (BI) banking supervision. There are indications the central bank provided misleading and insufficient information to the Finance Ministry to justify the bailout.2. Power struggle between then vice president Jusuf Kalla and President Susilo Bambang Yudhoyono over the bailout plan.3. Weak argument there was a systemic threat.
Idrus Marham
Faction: Golkar Party (19.3 percent of legislative seats/coalition member)
Temporary findings on bailout motive: Reckless decision making by Finance Minister Sri Mulyani.
Other findings:
1. Messy Bank Indonesia (BI) banking supervision.
2. Weak argument on whether there was a systemic threat.
Anas Urbaningrum
Faction: Democratic Party (26.4 percent of legislative seats/head of coalition)
Temporary findings on bailout motive: To prevent a systemic threat in the banking sector from the failure of Bank Century, as well as saving the economy from falling into a financial crisis.
Other findings:
1. Messy Bank Indonesia (BI) banking supervision.
2. Strong argument to bail out the bank because of a systemic threat.
