Yudhoyono’s popularity drops over Century case

In an alarming sign for President Susilo Bambang Yudhoyono, two recent surveys have just confirmed his declining popularity.

The surveys suggest the causes include the alleged framing of two deputy chairmen of the Corruption Eradication Commission (KPK), Bibit Samad Rianto and Chandra M. Hamzah, and, most recently, the Bank Century bailout case.

Although there is no proof the President’s is involved in either case, widespread rumors to the contrary have reduced his popularity, the surveys said.

Officials from polling body Indobarometer said in a press conference over the weekend that public satisfaction over Yudhoyono’s performance in the first 100 days of his second term declined by 15 percent compared to when he had just won re-election.

Indobarometer executive director Muhammad Qodari said the result of the body’s recent survey, conducted between Jan. 8 and 18 and involving 1,200 respondents, showed the President’s public approval rating had dropped from 90 percent in August 2009 to the current 75 percent.

“The 15 percent decrease means there are public needs that the government is not addressing. This is an early indicator for the President to improve the government’s future performance,” Qodari said.

He further elaborated that the declining approval level was strongly related to ongoing legal and political issues.

Qodari said most of the respondents followed the cases of Bibit and Chandra, the alleged murder of the director of a state-owned firm by former KPK chief Antasari Azhar, and the Bank Century bailout case.

He said 69 percent, 79 percent, and 77 percent of the respondents knew about the three cases, respectively.

Another survey, conducted by Kompas daily and published in its Saturday edition, showed a similar trend.

Dividing the President’s public approval rating into four major sectors, Kompas said only 45 percent of the 1,249 respondents felt satisfied with Yudhoyono’s economic performance compared with 63 percent three months earlier.

Only 43 percent expressed satisfaction with his performance on law enforcement issues, 58 percent for his handling of political and security affairs, and 47 percent for welfare matters.

All the figures are a decrease from three months ago, and a larger drop from the President’s rating at the start of his first term in January 2005.

Kompas also found that the public’s confidence in the President’s performance in the four sectors experienced a declining trend compared with the figures three months ago and in early 2005.

The President’s drop in popularity, however, is mild compared with that of his subordinates, Vice President Boediono and Finance Minister Sri Mulyani Indrawati.

The two have been under intense public scrutiny since the emergence of the Bank Century bailout case, which is centered on the ballooning of bailout funds, totaling Rp 6.76 trillion (US$730 million).

Many see Boediono, then the central bank governor, and Mulyani as responsible for approving the issuing of the funds, some of which are suspected to have been channeled to certain political parties, including Yudhoyono’s Democratic Party.

Qodari said only 18 percent expressed approval for Boediono, but did not mention Mulyani’s rating.

Public policy analyst Agus Pambagyo was quoted as saying by news portal tempointeraktif.com that to restore public trust, it was important for the President to evaluate the implementation of his first 100-days programs.

Source :

http://www.thejakartapost.com/news/2010/01/25/yudhoyono’s-popularity-drops-over-century-case.html

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Minister: 100-day program almost completely ready

The government`s first 100-day program in the economic field is running smoothly and almost 100 percent accomplished, Coordinating Minister for Economic Affairs Hatta Rajasa said here on Tuesday.

"No hindrances at all in the process of the program and therefore it is almost 100 percent realized," Hatta Rajasa said after a coordination meeting at his office.

But according to Hatta, the problem was that a lot of infrastructure programs were not in accordance with the site plans and forestry regulations.

Therefore, he said, the government would try to complete the revision of two presidential decrees to overcome the problem, namely the presidential decrees on government partnership with private parties, on land provision.

"With those two decrees, development will be managed in ways that accord with the site plans and do not damage forests," Hatta said, adding that if a forest area had to be developed, there would be a good way out.

He said that based on the revised Presidential Decree on land provision, a forest area could be converted into land for other purposes if the compensation was twice as much as the amount of the forest area concerned.


source :
http://www.antara.co.id/en/news/1263290112/minister-100-day-program-almost-completely-ready
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Free trade to affect Indonesian industries

University of Indonesia (UI) economic analyst Ninasapti Triaswasti said the ASEAN-China Free Trade Area (ACFTA) effective January 1,2010 would affect certain industrial sectors in Indonesia.

"Certain industrial sectors such as garments and footwear industries are likely to be affected by the free trade area," she said in a discussion on the fate of local industries in the face of the ACFTA system here over the weekend.

She said available data showed that over the past five years. industrial product exports had continued to decline and the implementation of the ACFTA would affect industries and workers.

After all, garment and footwear industries were labor-intensive industries which provided jobs for and improved the welfare of a large number of workers.

With the ACFTA, Chinese products, which are cheaper, would flood Indonesia`s domestic market. "The influx of Chinese products could threaten local industries whose products are more expensive," she said.

She said the government could take precautionary steps such as delaying the implementation of the free trade for certain industrial products which were not yet ready to compete.

The economic analyst said that the Indonesian government signed the ACFTA agreement in 2002 but it had not prepared the domestic industries to face it.



Source :
http://www.antara.co.id/en/news/1263219156/free-trade-to-affect-indonesian-industries
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President backs controversial school exams

Despite his earlier request for a review, President Susilo Bambang Yudhoyono appears to have thrown his weight behind his subordinate’s decision to retain the controversial final national school exams.

National Education Minister Muhammad Nuh said after a Cabinet meeting with the President on education and health issues, that the government would continue to hold the exams this year, regardless of lingering controversy and the Supreme Court order for the government to first improve the quality of education across the country.

“The national exams are part of our evaluation system, which is part of the studying and teaching process. It is a method [to evaluate], and there are always pluses and minuses in a method,” Nuh told a press conference at the Presidential Office.

“However, at the moment, and with various considerations, the [national exams] is the most appropriate means of assessment. The exams have more positive aspects than negative ones.”

Earlier, while opening the three-hour Cabinet meeting, Yudhoyono expressed concern over the implementation of the exams, which have been plagued with controversy for many years.

Students across the country have come to dread the national exams because the assessment determines their eligibility to graduate from elementary and secondary schools, yet it has seen increasingly difficult passing standards applied equally across the country, regardless of the disparities in education quality among regions.

In his opening speech, Yudhoyono offered two options to improve the public acceptance of the exams; first by allowing failing students to take remedial exams, and second by reviving the Ebtanas system that was used in the 1990s.

“I believe that the UN shouldn’t be the only tool to measure [students’ eligibility to graduate]. It should be combined with other assesments,” he said.

Nuh said that in the 1990s, teachers measured students’ abilities using a system combining results of the school’s own exams and the national-level exams, called Ebtanas.

Earlier, Nuh said, a student’s eligibility for graduation was determined simply by tests schools organized themselves.

Now, students’ eligibility is determined by four factors, and not solely by the national exams — as many may believe.

“First, they have to have finished the school’s education programs. Second, they have to generally
show good morals. Third, they have to pass exams organized by their own school. Fourth, they have to pass the national exams,” the minister said.

He added that there should be no more concerns regarding the exam because his ministry had adopted what the President suggested in his first suggestion, i.e. to allow failing students to take a remedial exam one month after the original exam.

Nuh said the current national exams were the best system, because it could simultaneously help the government map the quality of education in each region.

“So we can improve the quality of teachers and upgrade education facilities in worse-performing regions,” he said.

Nuh denied that the government was defying the September 2009 Supreme Court ruling in favor of a civil lawsuit rejecting the national exams.

He said that despite media reports, the court did not order the government to scrap the exams, but to improve the quality of education in regions to make them better prepared for the exams.

“And that’s what we’ve been working on over the past few years,” Nuh said.

Source :

http://www.thejakartapost.com/news/2010/01/08/president-backs-controversial-school-exams.html

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President asks govt agencies to implement budgets promptly

President Susilo Bambang Yudhoyono has reminded all administrative authorities to implement their work programs in 2010 and not to postpone implementation of their budgets.

President Susilo Bambang Yudhoyono made the statement here on Tuesday when handing over a List of Approved Projects (DIPA) 2010 to ministries and departments as well as regional administrations.

All regulations on budget disbursement and policies on goods and services procurement were available, the head of state said.

Therefore, there was no excuse for postponing the implementation of budgets, he said.

The head of state presented the DIPAs from the 2010 State Budget at the State Palace at a ceremony attended by Vice President Boediono, all cabinet ministers and 33 provincial governors from across the country.

The government is expected to allocate funds from the 2010 State Budget amounting to Rp1,047.7 trillion or 15.5 percent of the Gross Domestic Product.

The allocation of state budget funds for the central government is estimated at Rp725.2 trillion or 12.1 percent from the state budget, or up Rp79.8 trillion or 12.4 percent from Rp645.4 trillion in the 2009 state budget.

"The larger state budget should be spent as best as possible for the improvement of the people`s welfare," the president said.

Among government institutions and ministries receiving the largest amounts of DIPA funds totaling Rp340.1 trillion were the defense ministry (Rp42.3 trillion), the national education ministry (Rp55.2 trillion), the public works ministry (Rp34.8 trillion) , the religious affairs ministry (Rp27.2 trillion), the national police (Rp27.2 trillion) and the health ministry (Rp21.4 trillion). The transportation ministry (Rp15.8 trillion).

The president on the occasion presented DIPA funds to National Education Minister M Nuh for the 2010 budget for national education, and to Defense Minister Purnomo Yusgiantoro and Finance Minister Sri Mulyani Indrawati as the state`s general treasurer.

The 33 governors would also receive DIPA funds from President Yudhoyono for their 2010 regional budgets.(*)


Source :
http://www.antara.co.id/en/news/1262733478/president-asks-govt-agencies-to-implement-budgets-promptly
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Insight: Gus Dur, his cultural legacy lives on

Indonesia saw out the year 2009 with unexpected sadness in the passing of one of the country’s most valuable individuals: Abdurrahman “Gus Dur” Wahid.
He was the nation’s fourth president after Sukarno, Soeharto and B.J. Habibie. But he was the first to be elected in a post-authoritarian system of government.
In 1998, socioeconomic and political crises forced Soeharto to resign from the presidency he had occupied for more than three decades.
His vice president, Habibie, then took over for less than two years. In 1999 the People’s Consultative Assembly favored Gus Dur over Megawati Soekarnoputri to lead the country. Regardless of his physical limitations, he was considered the only person who could heal the country and unite the fragmented parties. Ironically, after less than two full years, his presidency was nullified and handed over by the Assembly to his vice president, Megawati.
It is important to note, however, that Gus Dur would not be remembered more as Indonesia’s fourth president. Instead, our reminiscence of him centers on the very fact that he was a man, an extraordinary one in fact, who dedicated himself to tolerance, pluralism, democracy and respect for human rights.
He might have failed as a president, yet he thrived as an ardent advocate of these important and fundamental issues. And because of that, he will be missed most as a person who others — regardless of socio-religious affiliation or ethnic origin — could lean on and turn to in their agonized as well as frustrating moments.
For Nahdlatul Ulama (NU), the largest Islamic organization in the country, he will be remembered more as an activist who guided the institution into modernity — in the truest sense of the word. In this organization, he deserved to be put on a par with Hasyim Asy’ari and Idham Chalid. The former was the NU founder and also Gus Dur’s grandfather. The latter was one of NU’s most well-known politicians, who led the organizations for decades.
Gus Dur entered Indonesia’s socio-religious and political limelight in the 1970s. As a leader at his grandfather’s Islamic boarding school in Jombang, East Java, he quickly impressed many Jakarta-based NGO activists. Though one should not forget that after all Gus Dur also spent his early years in Jakarta — given that his father, Wachid Hasyim, was a notable statesman and former minister of religious affairs.
Dawam Rahardjo, Adi Sasono, Utomo Dananjaya, the late Eky Syachruddin and Tawang Alun were among the earliest to regard him as a colleague. Having known him for several years, they were among his strongest supporters in his bid to be the NU head.
With Nurcholish Madjid joining his ranks, in 1980 Gus Dur succeeded Idham Chalid as chairman of NU.
He stayed at the helm of the organization for 15 years, successfully transforming it into a strong civil society institution.
It was during this time that Gus Dur also became a regular contributor for many media outlets.
Tempo, Kompas and Prisma were among his favorites. His interests were wide-ranging, but he was very keen to address the issue of Islam-state relations. Many misunderstood him as a proponent of secularism. Had they read him more carefully, they would know that he only wanted to place Islam in the context of Indonesia — culturally and politically.
This was where his idea of indigenization came in. In his view there is no need to put Islam culturally in the context of its origin, Saudi Arabia.
In Indonesia, Islam would thrive and make no discordance if it developed in the country’s socio-cultural context. Because of that, it is incumbent upon Islam to accept pluralism and accommodate indigenous and local cultures. Islam should also serve as a complementary factor in Indonesia’s socio-cultural and political life.
It was in this regard that once he posed the rhetorical question, “Why must we use the Arab word shalat [or pray] if the Indonesian term sembahyang is no less true [than the former in meaning]?”
And on another occasion he argued for the socio-cultural comparability of the Arabic “Assalamualaikum” with local greetings such as “Selamat pagi”.
These viewpoints became controversial only because many did not grasp the noble intention behind them.
Indonesians, whether in agreement with his ideas or otherwise, will likely remember Gus Dur in this context. They will miss him most for his viewpoints, controversial though they may be. With his demise, many will long for a father figure to lend them a hand in times of need and despair. It is very unlikely that they will see him in the context of the shortest period of his history — as the fourth president of the Republic of Indonesia.

by : Bactiar Effendy


Source :
http://www.thejakartapost.com/news/2010/01/05/insight-gus-dur-his-cultural-legacy-lives.html
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SBY eyes 6.6% average annual growth rate

Indonesia’s economy may grow by an average annual rate of 6.6 percent over the next five years and reach 7 percent by the end of 2014, President Susilo Bambang Yudhoyono said at the opening of the first trading day in 2010 of the Indonesia Stock Exchange.
In his second five-year term Yudhoyono plans by 2014 to have the unemployment rate fall to between 5 and 6 percent from 8 percent currently, and to reduce the poverty rate to between 8 and 10 percent from 14.2 percent.
Yudhoyono said the Indonesian economy showed all the favorable conditions required to attain 7 percent growth by 2014 as long as there was economic and political stability.
A key contributing factor to  economic stability, he said, was to have strong foreign currency reserves.
“We now have only US$65 billion [in foreign currency reserves]. This must be increased in line with our volume of trading,” Yudhoyono said, announcing a target of US$100 billion for currency reserves by 2014.
Yudhoyono also lauded the performance of the IDX in 2009, which had emerged as the second best performer in Asia with a growth of 86.98 percent.
“I really thank and appreciate all the parties who have been working hard last year,” Yudhoyono said, following  which he pressed the button to start this year’s  trading.
The IDX is expected to be among the markets that will remain bullish this year due to the country’s strong economic fundamentals at a time when many economies are still suffering from recession.
The IDX closed the day with a rise of 41.06 points or 1.6 percent to stand at 2,575.41, the steepest increase since Nov.16, Bloomberg reported.
Finance Minister Sri Mulyani Indrawati said that stock market positive performance was achieved due to the government’s responsive actions to cushion the impacts of the global economic downturn.
Mulyani said the government’s measures in handling the crisis last year had succeeded in maintaining market confidence.
“As a result, we experienced a stable economy in 2009 which placed Indonesia as one of the very few countries in the world which were able to post positive growth despite the [global] crisis,” she said.
Indonesian economic conditions are stabilizing after the market collapse and turbulence as a result of the global financial crisis, which reached its peak by the end of 2008. The inflation rate in 2009 reached 2.78 percent year-on-year in December, the lowest inflation rate in a decade, while the rupiah remained stable at between Rp 9,400 and Rp 9,600 to the US dollar.
Low inflation may give the BI room to keep its benchmark interest rate at a record-low 6.5 percent when policy makers meet on Wednesday.
Chatib Basri, an adviser to the finance minister said the inflation rate was likely to reach 6 to 7 percent in 2010 assuming the rupiah remained stable at 9,800 to the dollar.
The economy would receive a boost from the expected rebound in exports which were expected to recover from a 15 percent fall in 2009 by the middle of the year, he said.
“Exports have begun to recover but still at a slow pace. The global economic crisis has eased but it will take time to impact on investment and export rates,” Chatib said.
Unlike exports, the investment rate has already regained ground and demonstrated positive growth.
“Investment is already going up, albeit slowly,” he said.

Source : 
http://www.thejakartapost.com/news/2010/01/05/sby-eyes-66-average-annual-growth-rate.html

World Community Express Post-Death Pain grief Gus Durgus dur

The death of former Indonesian president to four brought sorrow to the international world. In the social networking sites, Twitter and Facebook, dozens of the world community expressed their grief after the death of a man who often called Gus Dur is. One German citizen, Kennedy, in the account for twitternya convey testimoninya Gus Dur. "Gus Dur is more awesome than Chuck Norriss" he wrote in twitternya account.

Meanwhile, a Malaysian citizen, Deenazah, expressing a sense of loss over the death of Gus Dur. "Love Gus Dur's a lot! My deepest Condolence, "he wrote in facebooknya account.

Not only the people of the world, some Indonesian people living abroad are also soluble in an atmosphere of grief. One of them is Heryadi. In twitternya account, the man who lived in the United States was expressing his admiration for the thought Gus Dur.

"Is right," If in the past I said that the House of Representatives was a kindergarten, now I say it is a playgroup. " So long, Mister "wrote Heryadi in twitter account RIP" Gus Dur "

Until now twitter and facebook pages and hold dibanjuri expression of grief and loss over the death of Gus Dur. The expression of grief was almost touching the 10 thousand.

Indonesia mourns former president Wahid, dead at 69

Former Indonesian president Abdurrahman Wahid died in hospital on Wednesday aged 69, after a long battle with illness, a party official said.

Wahid was Indonesia's fourth president, coming to power in 1999 after the country's first general elections following the fall of military strongman Suharto in 1998.

Popularly known as Gus Dur, he was practically blind, diabetic and had suffered strokes.

Doctor Aris Wibudi of Cipto Mangunkusumo Hospital in Jakarta said Wahid died at 18:45 (1345 GMT) due to complications arising from diabetes and stroke.

His younger brother, Salahuddin Wahid, told AFP the family was "shocked, sad and grieving".

"He was humorous, happy, clever, brave and really cared about the community. He was full of life and his fighting spirit was strong. Even when he was sick, he would fight on," he said.

Wahid rose to political prominence through his role as a leader of one of the country's biggest mass Islamic movements, the Nahdlatul Ulama (NU), having been a strong critic of Suharto during the general's three-decade rule.

He defeated Megawati Sukarnoputri to scoop the presidency in a parliamentary vote, even though her Democratic Party of Struggle put in the strongest showing in a general election earlier in 1999.

His time in government was an exciting period of democratic change under the country's post-Suharto "Reformasi" drive, and Wahid was an enthusiastic advocate of ethnic and religious tolerance.

But there were also fears the unwieldy, Muslim-majority archipelago of 234 million people would crumble under the weight of separatist and sectarian conflicts in places like Aceh, Papua and the Malukus.

Violent Islamic extremism reared its head with the coordinated Christmas-eve bombings of churches in Jakarta and other cities in 2000, which killed 18 people and were blamed on regional terror network Jemaah Islamiyah.

Wahid's response was to crack down on Islamist extremists while seeking dialogue and conciliation with ethnic separatists, the latter strategy putting him at odds both with the military and the Jakarta elite.

He also broke a taboo in Indonesian politics by calling for diplomatic relations with Israel, and backed the lifting of a Cold War-era ban on communism.

It was the liberal and democratic ideas that had earned him international respect that ironically were often at the core of the steady growth of opposition to his leadership.

A moderate religious scholar, Wahid was also criticised in office for his erratic leadership style and was sacked by the national assembly in 2001 amid unproven allegations of corruption and incompetence.

Hailing from a prominent Muslim family in Jombang, East Java, the father of four daughters held a degree in Arabic studies from Cairo University and another in literature from Baghdad University.

Despite his obvious ailments, Wahid remained active in public affairs until his death as a senior leader of the 40-million-strong NU.

NU vice-president Maskuri Abdillah said Wahid -- who studied English, German, Arabic, French and Russian -- would be remembered as a "pluralist" who stood for tolerance in the most populous Muslim-majority country.

"His death is a big loss not just to Nahdlatul Ulama, but also to Indonesians from all races and faiths," he told AFP.

"He was a humorous person who loved to crack jokes so people could feel at ease. He would always crack jokes at social events to reduce tension and people would warm up to him easily."

In September 2007 he announced that he would campaign for the presidency in 2009 if asked by the movement's top clerics -- whom he referred to as the "elders" -- but in the end he did not get the call.

Wahid's National Awakening Party won only 4.9 percent of the vote in general elections earlier this year, less than half its showing in 2004, but it remains strong in its East Java heartland.

Indonesia held its first direct presidential elections in 2004, which were won by the incumbent Susilo Bambang Yudhoyono.

Cabinet’s performance ‘under threat from conflict’

The scandal threatening to bring down Vice President Boediono and Finance Minister Sri Mulyani Indrawati for their roles in bailing out Bank Century is indicative of the rift forming within the Cabinet, analysts said Sunday.

Mulyani has accused Golkar Party chairman and former chief welfare minister Aburizal Bakrie of being behind the calls for her to be axed over the Rp 6.76 trillion (US$716 million) bailout.

Speculation is rife that the rift was created by political parties eyeing the vice presidency and finance portfolio for their own members.

Political expert Bima Arya Sugiarto, from the consultancy Magna Charta, said the conflict had impacted on the Cabinet’s performance, but did not elaborate on what that meant.

“The whole investigation into the Century bailout should be organized on a proper schedule,” he said.

He added President Susilo Bambang Yudhoyono’s Democratic Party, as the coalition leader, should immediately re-evaluate the alliance in order to tackle “future political catastrophes”.

“The party should initiate a review of each coalition partner so as to give more room to those wiling to work for the nation,” he said.

Bima warned that the rift, if not properly handled, could lead to a further deterioration in the Cabinet’s performance.

“It could turn into a serious problem for the administration,” he said.

The University of Indonesia’s Maswadi Rauf agreed the present dispute had affected the Cabinet.

However, coalition party officials have denied any rift forming between them, insisting the current political turbulence has had no effect whatsoever on the government’s performance, and pointing out that, on the contrary, the government is working at its optimum level.

“There’s no such political fracture within the Cabinet,” Justice and Human Rights Minister Patrialis Akbar, from the National Mandate Party (PAN), said Sunday as quoted by news portal detik.com.

“Matter of fact, we’re coordinating and performing at our best in providing assistance to the
President.”

Forestry Minister Zulkifli Hasan, also from the PAN, said he too was working at peak performance of late.

“The speculation about the Cabinet’s inability to work is just a rumor,” he said as quoted by detik.com.

“Any talk of a rift is baseless. I hope the public isn’t wasting its time entertaining such rumors.”

Also denying there was any rift in the Cabinet were Coordinating Public Welfare Minister Agung Laksono and Maritime Affairs and Fisheries Minister Fadel Muhammad, both from the Golkar Party.

Golkar and the PAN are both members of the coalition led by the Democratic Party.

Democratic Party legislator Ruhut Sitompul also said there was nothing amiss.

However, he said any rough patch that did crop up from the Century case would pose a challenge for the government, particularly if not handled correctly.

“We’re now dealing with the Century case by summoning for questioning those involved in the contentious bailout,” he said.

“To date, I’ve seen nothing that could harm the current government’s performance.”

http://www.thejakartapost.com/news/2009/12/14/cabinet%E2%80%99s-performance-%E2%80%98under-threat-conflict%E2%80%99.html

Whole bailout process was ‘illegal,’ says audit agency

The investigators into the Bank Century’s bailout may be hitting a wider target as the Supreme Audit Agency (BPK), whose recent report is the basis for the probe, underlined Monday the bailout process might not have a legal basis.

On Monday, the BPK hosted a meeting with representatives from three law enforcement institutions, the Corruption Eradication Commission (KPK), the National Police, and the Attorney General’s Office, as well as the Financial Transaction Report and Analysis Center (PPATK), to discuss its findings that might lead to criminal charges arising from the case.

A member of the BPK who was also the head of the BPK’s investigation team on the Bank Century case, Hasan Bisri, reiterated the agency’s findings, as stated in the audit report, that the whole bailout process resulting in Century being handed over to the Deposit Insurance Corporation (LPS) might be illegal due to the absence of a clear legal basis.

A body called the Coordination Committee (KK) officially handed over the Bank Century to the LPS, but the BPK audit said the KK had never been legally formed.

According to Article 21 of the 2004 Law on LPS, a troubled bank considered to constitute a systemic threat to the banking system should be handed over by the KK to the LPS. However, the detail of the law said that the KK could only be established after the enactment of the proposed law on the financial sector safety net, which has never been established and endorsed.

“In this case, we found that the KK’s legal basis was absent and therefore the LPS management of Bank Century has not been legally covered,” Hasan said.

The KK was crucial because the bailout disbursement could not be done if the committee did not hand over the bank to the LPS.

When asked whether the absence of a legal basis for the KK would mean the whole Rp 6.76 trillion (US$710 million) of bailout was illegal, Hasan said, “I think so.”

LPS executive director Firdaus Djaelani recently said the debate over the KK’s legal basis was due to differences in legal interpretation.

“In my opinion, the KK was legal. It was not a real institution, though. It was like a group of officials.”
KPK acting chairman, Tumpak Hatorangan Panggabean, said the antigraft body would only investigate violations committed by authorities and leading to state losses.

“If you ask whether the KPK has found graft indications? I answer, yes. We have kicked off preliminary investigations but have yet to be able to publicize the case.

“We will soon summon witnesses, search offices, seize evidence, in order to find facts before we can name any suspect,” Tumpak said.

National Police Chief Detective Comr. Gen. Ito Sumardi, meanwhile, said that detectives would soon question Ito’s predecessor Comr. Gen. Susno Duadji over the Century scandal.

Susno previously said that he had information about the recipients of the bailout funds.

Another BPK member, Taufiequrahman Ruki, said the investigative audit of the bailout had found nine violations that could potentially be categorized as crimes.

“The possible crimes don’t only include corruption, but also banking crimes and money laundering, as well as general crimes,” Ruki, a former KPK chief, said.

Information on the nine findings will be distributed to three law enforcement institutions. The violations were allegedly committed by officials from Bank Indonesia, the Financial System Stability Committee (KSSK), the LPS and Bank Century itself.

http://www.thejakartapost.com/news/2009/12/15/whole-bailout-process-was-%E2%80%98illegal%E2%80%99-says-audit-agency.html

Century team to summon Boediono and Sri Mulyani

The Bank Century inquiry committee is questioning Vice President Boediono and Finance Minister Sri Mulyani on their decision to issue Rp 6.76 trillion (US$716 million) in bailouts.

The decision to summon Mulyani and Boediono was made during the first plenary meeting of the House of Representatives committee in Jakarta on Monday.

Mulyani and Boediono decided to salvage the bank during a meeting in November last year. During that time, Boediono was the Bank Indonesia governor.

Mulyani and Boediono said their motives were nothing more than to save the nation by preventing a possible systemic collapse of the country’s banking system by saving Bank Century during the global
financial crisis.

Economists and legislators at the House’s finance commission, however, have doubted their reasoning, citing that Bank Century was a small and insignificant bank. Legislators also questioned the bailout, because its amount was much higher than the amount agreed by the House, which ranged between Rp 600 billion and Rp 1 trillion.

An audit report from the Supreme Audit Agency (BPK), recently submitted to the House, also said there might have been a number of procedural violations conducted during the bailout process.

Along with Mulyani and Boediono, the 30-member inquiry committee will also summon a number of people deemed to know more information about the bailout.

One of the committee deputy chairmen, the Indonesian Democratic Party of Struggle’s (PDI-P) Gayus Lumbuun, said former National Police detective chief Comr. Gen. Susno Duadji, would also be summoned. Susno was heard in a wiretapped conversation by the Corruption Eradication Commission (KPK) to have allegedly asked for a Rp 10 billion bribe during the debacle.

Gayus also said that former vice president Jusuf Kalla would be summoned, because he was the acting president when the bailout was issued. During that time President Susilo Bambang Yudhoyono was abroad.

Despite determining the people and institutions that needed summoning, the committee has yet to determine the fixed schedule of the summoning.

“Our summons will be directed by the development of the investigation,” committee chairman Idrus Marham from the Golkar Party said.

The committee has currently only established a fixed meeting schedule with the BPK and the Financial Transaction Report and Analysis Center (PPATK).

“We are going to meet with the BPK on Wednesday, and PPATK on Thursday,” Idrus said.

The committee plans to discuss the people that need summoning and budgeting Tuesday.

During the hearing, there was also a debate on whether the committee’s future hearings should be made open to the public.

Yudhoyono’s Democratic Party, which has the most members in the committee, insisted that the meeting should be closed door.

However, other parties insisted the meetings be open to the public and the media. The committee agreed that all hearings and inquiries be made open, unless there were requests from certain witnesses. “But the final say will be made by committee members,” committee deputy chairman, Mahfudz Siddiq from the Prosperous Justice Party (PKS), said.

http://www.thejakartapost.com/news/2009/12/15/century-team-summon-boediono-and-sri-mulyani.html

SBY warns of ‘politically motivated’ rally next week

President Susilo Bambang Yudhoyono says he has been informed of a plan by rogue elements to use the upcoming International Anticorruption Day on Dec. 9 as a platform for their “political motives”.

Speaking while opening a Cabinet meeting at the Presidential Office on Friday, Yudhoyono said the motives were “not necessarily related to corruption eradication measures”.

“I’ve received information that on Dec. 9, some social movements are planning to commemorate International Anticorruption Day,” he said.

“That’s good, [it shows] concern for our anticorruption measures. However, there are those whose real motives are political.”

Yudhoyono hinted these figures would be those “whose commitments to combating graft are never seen”.

“If that’s the case, then welcome — if you really want to eradicate graft in the country together,” he said.

He added similar political moves were afoot among some parties urging a probe into the Bank Century bailout.

Yudhoyono has in recent weeks expressed his anger over rumors that some of the bailout funds were channeled to his election campaign team and family members.

“Some people sincerely want to get to the bottom of the Bank Century case, to get answers, which we must respect and respond positively to,” he said.

“But I know that others [are doing it] not out of curiosity, [but out of] political motives.”
Yudhoyono said he had already briefed his Cabinet on the issue.

“Whatever happens, especially in Jakarta, it shouldn’t disrupt our concentration and perseverance in doing our duty for the development and welfare of our people,” he said.

The Cabinet meeting touched on developments in the government’s plan to combat judicial corruption and Indonesia’s proposals for the climate conference in Copenhagen.

This is the second time Yudhoyono has openly warned of a plot against himself. On July 17, following the bombings earlier in the day of the JW Marriott and Ritz-Carlton hotels, he claimed to also be a terrorist target.

Ahmad Muzani, secretary-general of the opposition Great Indonesia Movement Party (Gerindra), suggested Yudhoyono calm down and quit blowing things out of proportion.

“All he has to do is approach all elements in society,” he said as quoted by news portal detik.com.

“Stay calm, this is a trivial matter. As head of state, he can solve this with a persuasive approach.”
Muzani also suggested the announcement was part of a political image-building campaign.

“Yudhoyono is panicking about the worst-case scenario from the rallies to commemorate International Anticorruption Day,” he added.

“Such rallies, big or small, are the public’s way of expressing their aspirations. There’s no call for panic.”

Former student activist Hariman Siregar said Yudhoyono’s announcement was inappropriate.

“His statement will only serve to further inflame the situation,” he said as quoted


http://www.thejakartapost.com/news/2009/12/05/sby-warns-%E2%80%98politically-motivated%E2%80%99-rally-next-week.html

Committee blighted by parties' political interests: Observers

Major political parties are intensifying closed-door lobbying among themselves and with high-ranking officials in the leadup to the Bank Century inquiry committee during the House of Representatives' recess period.

The committee, chaired by Golkar secretary-general Idrus Marham, will go on a week-long break, and will be back to work on Dec. 14.

Legislators have said that those lobbying, which include the government's coalition bloc and mem-bers of opposition groups, are concerned with the inquiry's exit strategy, including who should be saved and victimized, as well as what the politicians could gain from the government if they followed the design.

A committee member claimed that the parties involved in the lobbying are aiming to predetermine the results of the inquiry so that by the time it begins its first meeting everything would have been settled.

Ahmad Muzani from the Great Indonesia Movement Party (Gerindra) said that as the major parties had pre-decided the committee chairman even before the formal election was conducted demonstrated backroom deals would determine the results of the inquiry rather than the official meeting.

"If we reflect on the chairman selection process, it is clear that we cannot do anything to go against the government and its large coalition bloc. From the beginning, it's a political compromise, and it will last until the end."

The Democratic Party has expressed its minimum target of getting the President and Vice President Boediono off the hook, with no comment on Finance Minister Sri Mulyani's culpability or lack thereof.

Rescue missions to save Mulyani are reportedly underway, with a group of businesspeople, a political party and supporters on Facebook intensifying efforts to defend the reform-minded minister.

Sources have said that a tycoon was approaching the House's major factions to save Mulyani while in the online world, the rescue mission began with the establishment of a Facebook group named "We Believe in the Integrity of Sri Mulyani".

As of the time of writing, the group had gathered 10,060 members.

On Saturday, the United Development Party (PPP) invited Mulyani to explain the bailout, with the party chairman and Religious Affairs Minister Suryadharma Ali stating his party needed more firsthand information about the case.

The Golkar Party aimed at more seats for either the Cabinet or state enterprises, party officials have said.

Party chairman Aburizal Bakrie, who reportedly plans to run for president in 2014, said he would not seek to impeach Yudhoyono and Boediono.

Yudhoyono's other coalition members, which include the Prosperous Justice Party (PKS), the National Mandate Party (PAN) and the National Awakening Party (PKB), also looked to strengthen their position against the government through the inquiry move, observers have said.

Burhanuddin Muhtadi from the Indonesian Survey Institute (LSI) said that all political parties, pro-government or opposition, knew about each other's dirty laundry.

As a number of high-ranking PDI-P figures are tangled in graft cases. Burhanuddin said such a condition would eventually cause PDI-P legislators at the committee to succumb to their party's political bargaining interests.

The PDI-P's Gayus Lumbuun, however, said that his party would work seriously, even if it were waylaid by its members' legal problems.