Stephen Fitzpatrick, Jakarta – Indonesian President Susilo Bambang Yudhoyono has seized the running in a tough fight for political supremacy, declaring his main priority as leader is ensuring national "prosperity" rather than corralling numbers in the ruling coalition.
Dr Yudhoyono's stern 35-minute address yesterday, broadcast live on prime-time network TV from the presidential palace in Jakarta, where he was surrounded by his entire cabinet, was designed to draw a line under the festering Bank Century bailout affair.
In particular, it was meant to silence calls for criminal prosecutions of Vice-President Boediono and Finance Minister Sri Mulyani Indrawati after a full sitting of parliament voted in favour of investigating the pair.
Professor Boediono reinforced the message yesterday, saying he would not "betray" the President by resigning.
Dr Yudhoyono's speech contained coded warnings to "certain elements who have caused the nation financial losses" and "hidden behind the Bank Century chaos" that they could expect to face "comprehensive further action". Many viewers linked this statement to businessman Aburizal Bakrie, chairman of the coalition-member Golkar Party, one of Indonesia's wealthiest men and the main political thorn in Dr Yudhoyono's side, despite also being a crucial ally.
Mr Bakrie has been linked to potential investigations by Dr Indrawati's department of massive unpaid tax bills, and has long been at loggerheads with the Finance Minister.
The President has tried in recent weeks to mend relations with Mr Bakrie behind the scenes. The participation of the latter's Golkar Party is important symbolically to the coalition government but ultimately not crucial for the passage of legislation, since members are not forced to vote along party lines.
Dr Yudhoyono's speech was clear evidence he has given up trying to court Golkar or indeed any other coalition partners, and is happy to have legislation face the house on its merits.
Expressing deep gratitude to the members of the parliamentary committee that spent four months exploring the controversial 6.7 trillion rupiah ($800 million) Bank Century bailout's legality, Dr Yudhoyono warned them that it was nonetheless now time to return to work.
"The commission has finished its constitutional task," he said in an uncharacteristically direct and unemotional tone. Recent addresses by the President have been more beseeching in style.
"Its findings are a political conclusion, and according to the... legislation regarding (parliamentary commissions), those findings cannot be used as proof in a court of law."
Citing the successful criminal prosecutions against former Bank Century owners and directors including the disgraced Robert Tantular, Dr Yudhoyono contrasted this with the "exemplary service" done by Professor Boediono, Dr Indrawati and others when they set in train the months-long bailout process in 2008.
At the time the crucial decision was made, Dr Yudhoyono reminded the nation, he was abroad attending G20 and APEC leaders meetings.
However, he was adamant that the decision to rescue the second-string bank – largely using industry insurance funds designed to guarantee liquidity, he pointed out, not national assets – was made in the midst of "rumours and speculation of an imminent banking crisis".
"With absolute certainty that such a crisis really was upon us, I believe whoever had the authority to take the decisions at that time would have done the same thing," he said.
He said the experience of 1997-98, when Indonesia was hit hard by the Asian financial crisis, had taught it to move quickly in a similar situation and pass laws that enabled it to do so.
The coalition rift is not expected to produce any immediate cabinet reshuffles.