APSN Banner

Political lobbying holding up Bank Century inquiry

Source
Jakarta Globe - February 4, 2010

Febriamy Hutapea & Muninggar Sri Saraswati – How should the PT Bank Century scandal be settled? Why have preliminary recommendations not been declared by the House of Representatives' special committee investigating the bailout?

Both lawmakers and analysts suggested to the Jakarta Globe on Wednesday that the finger of blame should be pointed at the country's top political lobbyists, who were reportedly busy trying to strike back-room deals to come to a mutual settlement over what the final recommendations of the House special committee will be.

Tjahjo Kumolo, a senior official of the Indonesian Democratic Party for Struggle (PDI-P), said representatives of President Susilo Bambang Yudhoyono's Democratic Party had been trying to strike a deal with the PDI-P over the Bank Century bailout investigation.

"No agreement has been reached as yet," Tjahjo said, even as his party officially stated on Tuesday that it has not found any evidence to implicate Yudhoyono in connection with the bailout.

"We will not just stick on the point of whether or not Yudhoyono needs to be impeached. There should be some responsibility shown, and whether violations of the Criminal Code or existing regulations had indeed occurred."

House Deputy Speaker Priyo Budi Santoso of the Golkar Party said Golkar chairman Aburizal Bakrie and Yudhoyono were involved in "intensified" and ongoing communication on the issue.

"There is intensive communication ongoing between the two. For us, that's normal. Nothing wrong and not prohibited," Priyo said, without specifying the content of the communication.

Priyo said Golkar had officially asked Aburizal to stay out of any meetings held by Yudhoyono's coalition members, unless Yudhoyono himself attended.

Golkar would instead send its secretary-general, Idrus Marham, to attend such meetings on Aburizal's behalf, he said. Idrus heads the House special committee investigating the bailout.

Golkar sees the lobbying process as an attempt to secure an "agreement for the larger interests of the nation."

Priyo acknowledged that the party was facing pressure from many sides to remove outspoken party member Bambang Soesatyo from the House special committee. Although Golkar has found at least 58 indications of possible crimes related to the bailout, Priyo said the party had not yet reached a final conclusion on how to proceed.

PDI-P member Hendrawan Supratikto said some members of the special committee have started to shift stances as the committee prepares to conclude its probe.

"I believe some members of the special committee who come from [parties of the ruling] coalition have been under pressure from their respective factions and party leaders," Hendrawan said.

His said the PDI-P has found 45 violations involving four state institutions in the bailout process: Bank Indonesia, the Financial System Stability Committee (KSSK), the Coordination Committee (KK) and the Deposit Insurance Agency (LPS).

The PDI-P's stance is contrary to that of the Greater Indonesia Movement Party (Gerindra), the second-largest opposition group in the House. Gerindra has stated that the inquiry had found more than enough evidence to begin impeachment proceedings.

Sulastio, executive director of the Indonesian Parliament Center, is convinced that Vice President Boediono is the primary target.

The bailout was approved by Sri Mulyani Indrawati, as finance minister and head of the KSSK, and Boediono, who was central bank governor at the time.

"From the questioning over the past couple weeks, even the public can read where the committee is heading. Boediono is the target and with all the inquiries, the committee has more than enough ammunition to lay the guilt on Boediono," Sulastio said.

Sulastio added that Sri Mulyani might escape relatively unhurt because she was only endorsing Boediono's recommendation to bail out the bank.

Former House special committee member Anna Muawanah, a member of the National Awakening Party (PKB), said lobbying was common in the political process, including cases such as the settlement of the Century investigation.

[Additional reporting by Markus Junianto Sihaloho and Emmy Fitri.]

Country