Anita Rachman, Febriamy Hutapea & Muninggar Sri Saraswati – A divided House of Representatives late on Wednesday declared that the bailout of Bank Century in 2008 violated laws and recommended that law enforcement agencies investigate indications of corruption, banking crimes and general crimes, as well as any officials deemed responsible for the Rp 6.7 trillion ($723 million) rescue.
Opposition parties were joined by three members of President Susilo Bambang Yudhoyono's ruling coalition in voting against the government. But the 325-212 vote was not viewed as a major defeat for the president and will likely bring the prolonged Bank Century affair to an unceremonious end.
Most important for Yudhoyono and his Democratic Party, Vice President Boediono and Finance Minister Sri Mulyani Indrawati – the targets of many lawmakers – weren't directly mentioned by name in the final House recommendation, apparently due to fierce lobbying by the State Palace. However, their names are listed in an addendum to the findings.
While the House recommended that law enforcement agencies investigate, the recommendation isn't legally binding, meaning Yudhoyono's administration can simply ignore it. The National Police and Corruption Eradication Commission (KPK) are already investigating the bailout, but it's unlikely they will focus attention on Boediono and Sri Mulyani. The two officials have said they approved the bailout amid fears that a collapse of Bank Century threatened the banking sector at the height of the global financial crisis.
Late into a marathon day-night session that ranged from boring to farcical, the House's nine factions chose between two options at around 10:45 p.m. Option A, supported by the Democrats, found the bailout was legal but recommended investigations of Bank Century officials and some in the central bank for alleged involvement in unspecified crimes. Option C, which passed, declared that there was abuse of power in the bailout, which indicates legal violations, and recommended expanded criminal investigations.
The Indonesian Democratic Party of Struggle (PDI-P), the Great Indonesia Movement Party (Gerindra), the People's Conscience Party (Hanura) and three ruling coalition members – the Golkar Party, United Development Party (PPP) and the Prosperous Justice Party (PKS), chose the second option. The Democratic Party and its loyal ally, the National Awakening Party (PKB), as well as the National Mandate Party (PAN), supported the first.
Political analyst Yunarto Widjaja of Charta Politika called the House verdict "dull and useless," both legally and politically.
Lawmakers on the House committee investigating the bailout conceded last month that they had found no evidence to support allegations that some of the bailout funds were embezzled by Yudhoyono's re-election team.
"There is nothing new in their recommendations in terms of legalities. The political outcome of the probe, too, is not equal to an impeachment motion as it takes more battles to bring it to the Constitutional Court," Yunarto said.
Lawmakers, he said, turned the Rp 5 billion investigation into "a forum to increase their public profile" and "a place for political bargaining."
Political observer Sunny Tanuwijaya, of the Center for Strategic and International Studies, said the House's failure to come to a unanimous conclusion supports allegations that political parties were more interested in boosting their popularity ahead of the 2014 elections and perhaps garnering political concessions from Yudhoyono than "uncovering the truth."
"The result of the probe has no direct impact on the government, although it may open the door for a change in the country's political stability," he said.
Lawmakers could still attempt to bring an impeachment motion against Boediono or demand Sri Mulyani's resignation to keep pressure on Yudhoyono. The president, meanwhile, could reshuffle his cabinet to remove Golkar and PKS for siding against the government.
Sporadic violent protests continued for a second day outside the House in South Jakarta, with 13 people injured during afternoon clashes between riot police and hundreds of antigovernment demonstrators. Earlier in the day, government supporters had staked out key positions outside the compound.