Camelia Pasandaran & Anita Rachman – Just a day after rumors began spreading that the Golkar Party was considering pulling out from the ruling coalition, President Susilo Bambang Yudhoyono indicated his readiness on Thursday to discuss the party's controversial "pork-barrel" proposal.

"If we see the intention [behind the proposal], the context is actually positive because it centers on the relationship between constituents and those elected into office in regard to developing the regions," Yudhoyono said.

"If this is what they meant, then in my opinion, or the government's opinion, the House and the Regional Representatives Council [DPD] could formally propose to the government a special allocation for the regions that clearly need such a policy."

Yudhoyono's statement comes despite an ongoing public outcry regarding Golkar's proposal, which would give each legislator Rp 15 billion ($1.6 million) to develop their constituencies.

The speaker at the House of Representatives, Marzuki Alie, a senior member of Yudhoyono's Democratic Party, said the proposal, which would cost a total Rp 8.4 trillion, amounted to "theft" from the state budget.

Angered but determined, Golkar went on to suggest allocating Rp 1 billion to develop each of the country's villages and subdistricts. This too, however, appears doomed to failure in the House.

Yudhoyono on Thursday said the public backlash regarding the controversy had even resulted in him receiving some of the vitriol, with some people accusing him of personally "masterminding" the scheme.

"Early this morning, I received messages from someone who thought that I was actually behind this proposal," he said.

But the president said the idea had merit and should be looked at in a positive light. He suggested that funding for regional development should be discussed at the upcoming National Development Planning Coordinating Meeting (Musrembang).

"This would be better because input from all parties would then come into the budgeting process," he said, adding that the Regional Representatives Council could also be called on to work with the government and the House to monitor the scheme.

On Wednesday night, a Golkar official threatened the party would quit the ruling coalition if it did not get its way, triggering rumors that the party was getting ready to jump ship.

"If we cannot stay together, if we don't have the same views anymore, what is the use of us staying in this coalition?" Yamin Tawari, associate chairman of Golkar's executive board, said in response to the House leadership decision to shelve its proposal.

Yamin tried to deflect criticism of the proposal, which was backed by party chairman Aburizal Bakrie, by saying representatives from the other coalition parties had previously agreed to support it during a coalition meeting.

Setya Novanto, chairman of Golkar's faction in the House, said on Thursday that his party welcomed the Yudhoyono's open mindedness. "The president has given us suggestions. We appreciate this. We shall evaluate the matter among our party members," Setya said, adding that it was never Golkar's intention to directly control or dictate how much money should be allocated to the scheme.

Amir Syamsuddin, a senior Democrat, however, had a different view. "The president has not approved the proposal, but he also did not reject the idea completely," the party's former secretary general said. "Yudhoyono said the idea was good, but it had to be handled carefully."