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.

Mulyani, Boediono, may have been “ridden” in bailout policy: former minister

Former state SOE minister Sofyan Djalil said Monday that Finance Minister Sri Mulyani Idrawati and former Bank Indonesia governor (now Vice President) Boediono might have not realized that the decision to bail out Bank Century had been “pushed by ghost riders” although the policy itself was imposed based on goodwill.

“There is no policy without risk, same goes for the Bank Century bailout. But then it appeared that the bailout was undertaken due to pressure from third parties,” Sofyan told a discussion.

He was referring to some parties who allegedly needed the government to inject the Rp 6.76 trillion (US$716.56 million) bailout in order to save the money of the bank’s big depositors.
Sofyan said the bailout policy making was okay as long as it was supported by sufficient data and based on good faith.

“Whether there were ‘ghost riders’ behind the policy or not, it is a separate issue. If they really exist, please, law enforcers investigate it,” he said, refusing to elaborate who the “ghost riders” might be.

Critics have called for Mulyani and Boediono to step down because the two are considered as the policy makers responsible for the bailout.

Sofyan said that such efforts were too extreme and counterproductive.

Sofyan said he was afraid that if every big policy was slammed by political moves, even if it was legally safe, many legislators would be hesitant to make quick and strategic decisions. “The country may become stagnant if this happen,” he said.

Sofyan surprised observers when suddenly made public his thoughts on the scandal. Sofyan had kept out of the media since he left office in October, despite the explosive scandal.

“It was my personal opinion,” he said, referring to his statement which was in favor of Mulyani.

When asked why he had not talked to media earlier, Sofyan said, “Because Pak Erry just called me yesterday, asking me if I could [enter the] discussion,” referring to former Corruption Eradication Commission (KPK) deputy chairman Erry Riyana Hardjapamekas.

Rumors have circulated that Erry has begun rounding up experts and public figures to spread opinion to the public in favor of Mulyani.


http://www.thejakartapost.com/news/2009/12/07/mulyani-boediono-may-have-been-%E2%80%9Cridden%E2%80%9D-bailout-policy-former-minister.html

Indonesian CPO controls 14.37 percent of world market

Indonesia`s crude palm oil (CPO) production which last year reached 19 million tons now controls 14.37 percent of the world`s vegetable oils` market, a minister said.

"CPO accounts for 33.6 percent of the world`s eight main vegetable oils, and Indonesia`s CPO accounts for 14.37 percent," Agriculture Minister Suswono told a palm oil conference and outlook 2010 here on Wednesday.

He said that Indonesia`s CPO controlled 44.7 percent of the world`s CPO market with a total exports last of 12.29 million tons.

Together with Malaysia, the minister said, Indonesia controlled 85 percent of the world`s CPO market.

"This year, Indonesia`s CPO exports are expected to reach over 14.2 million tons," the minister said.

The estimate of this year`s CPO exports is higher than that exported last year which stood at 11.2 million tons, Suswono said.

He said that this year, Indonesia`s CPO production was also expected to exceed 20 million tons from a total plantation area of seven million hectares.

In the international conference which was attended by representatives from various countries, the minister said that the role of CPO in Indonesia`s economy was very significant so that the government was committed to developing CPO industries from upstream to down steam.

"There are many external challenges in developing CPO industries, among others, the accusation that Indonesia destroy their forests and let fauna be extinct," he said.

However, Indonesia and other countries in the world are committed to carrying out sustainable CPO industrial development by doing their best to meet the world requirements through the Roundtable Sustainable Palm Oil (RSPO), he said.

Besides, the minister said, the government will also develop CPO down stream industries in an effort to increase the commodity`s added values and create more jobs for the people.


http://www.antara.co.id/en/news/1259737775/indonesian-cpo-controls-1437-percent-of-world-market

Let the truth be told in court, say legal experts

Experts warn that a possible decision by the Attorney General’s Office (AGO) to drop the cases against Corruption Eradication Commission (KPK) deputies Bibit Samad Rianto and Chandra M. Hamzah could impede efforts to reform the country’s law enforcement agencies.

Dropping the cases, experts warned here Sunday, would prevent the public from determining whether the cases made by the police and the AGO were fabricated.

“Only the court can prove if the police and the AGO do have sufficient evidence, or if such evidence was fabricated by officials,” said Chaerul Huda, a legal expert from Muhammadiyah University’s law school in Jakarta.

While TV stations are likely to broadcast the trials nationwide, Chaerul expressed optimism the process would be fair, and would reveal the truth, adding that if information revealed in the wiretapped conversations confirmed the alleged plot by the police and the AGO to sabotage the KPK, then public pressure would lead to stern action against the involved officials and would facilitate reform of the two law enforcement bodies.

On the contrary, he said, preventing the cases from going to court would mean the push for the reform of both institutions would lose momentum.

It could create a condition of “business as usual” in the institutions, as the AGO and the police could claim they had done their jobs well by providing sufficient evidence, and that only the President had prevented the cases from going further.

After meeting with National Police chief Gen. Bambang Hendarso Danuri and Attorney General Hendarman Supandji last week, President Susilo Bambang Yudhoyono announced that it would be better for the cases to be settled out of court.

After the President’s statement, Bambang said they had done their jobs by submitting the dossiers to the AGO, with Hendarman stating they would drop the cases if the dossiers were completed and ready
for trial.

Assistant attorney general for special crimes, Marwan Effendi, said here Sunday that the two cases had been ready for trial, and the prosecutors were seeking reasons to drop the cases this week.

Antigraft activist Hendardi said that if the President really wanted to fight corruption then he should have declared that there was no case against the two KPK leaders from the beginning, as well as follow recommendations made by his fact-finding team, which claimed there was no evidence to incriminate both Chandra and Bibit in graft cases.

“The President just wanted to save the police and the AGO by giving them the authority to drop
the cases.

“Now, we expect no push for reform within the two institutions.”

http://www.thejakartapost.com/news/2009/11/30/let-truth-be-told-court-say-legal-experts.html

House OKs Century inquiry team

On Tuesday the House of Representatives endorsed an inquiry committee into the Bank Century scandal, with the Golkar Party likely to lead the committee and to emerge as the real winner, politically speaking.

The committee, will have full legal rights to investigate the Rp 6.7 trillion (US$710 million) bailout scandal and call witnesses including President Susilo Bambang Yudhoyono, Vice President Boediono and Finance Minister Sri Mulyani.

As many as 30 legislators will be involved, with Yudhoyono’s Democratic Party, the biggest in the House, having eight legislators in the committee, Golkar six, the Indonesian Democratic Party of Struggle (PDI-P) five and the Prosperous Justice Party (PKS) three.

Now that the committee is endorsed, the next item on its agenda is to fill its leadership position. The Democratic Party is likely to throw its support behind Golkar to chair the committee rather than opening up opportunities for the opposition bloc led by the PDI-P.

Golkar, a late comer in Yudhoyono’s coalition, indicated after the endorsement that the party’s secretary-general Idrus Marham will probably chair the committee.

This possibility became clear after Ruhut Sitompul from the Democratic Party said that his party would have no problem with any of the Golkar candidates for the post of chairman, especially with Idrus Marham, who is Golkar chairman Aburizal Bakrie’s most trusted aide.

“Pak Idrus is a good capable man to chair the committee,” he said.

A number of experts agreed that Golkar would very likely be given the committee chairman post due to its status as the “middle party” in the House and the understanding by the Democratic Party, accused of possibly receiving Bank Century bailout funds, of resistance against it taking the post of chairman.

“The Democratic Party and the PDI-P are standing on two opposite sides in the committee. Golkar, as another party with significant power, becomes the middle party that is acceptable by the two other parties,” an expert from the Indonesian Institute of Sciences (LIPI), Lili Romli, told The Jakarta Post.

Yudhoyono’s coalition in the House, also includes the PKS, the National Mandate Party (PAN), the United Development Party (PPP), and the National Awakening Party (PKB), which would tend to be allied to the Democratic Party.

Experts have said that by letting the chairmanship go to Golkar, the Democratic Party could seek a compromise and push the committee not to summon Yudhoyono or to make any move to endanger the President and his family members, increasing Golkar’s bargaining position vis a vis the government.

Burhanuddin Muhtadi from the Indonesian Survey Institute (LSI) said that he believed Aburizal would gain most in terms of both political and economic advantages by the end of the day.

“There is the possibility for Golkar to be given more ministerial posts during any reshuffle by President Yudhoyono as a bargain for the party’s crucial position at the committee,” he said.

Burhanuddin doubted, however, that Aburizal had a chance to replace Boediono, who is accused of being responsible for the decision to bail out the bank.

He said that having Idrus in the chairmanship would mean that Aburizal could have major influence in determining the committee’s agenda.

However, a number of legislators from other parties doubted Idrus.

“Who is Idrus Marham? What statement has he ever voiced?,” Desmon Mahesa from the Great Indonesia Movement Party (Gerindra) said.

Mukhammad Misbakhun from the PKS said that he would rather have the committee led by anyone from the PDI-P to maintain its soul.

http://www.thejakartapost.com/news/2009/12/02/house-oks-century-inquiry-team.html

Corruption in goods procurement caused loss of Rp689 billion

State money corrupted in goods and service procurement during the 2005 - 2009 period reached a total of Rp689.19 billion, Acting Corruption Eradication Commission (KPK) Chief Tumpak Hatorangan Panggabean said.

"The figure is based on data obtained from cases handled by KPK from 2005 to 2009," Tumpak said on the sidelines of a national conference on corruption eradication in Indonesia here on Wednesday.

The KPK data showed that the Rp689.19 billion was corrupted in the procurement of various goods and services worth Rp1.9 trillion.

He said that the losses which were suffered by the state were corrupted because agencies or bodies carrying out the good and service projects were appointed directly.

The state`s losses of this type reached Rp647 billion or 94 percent of the total of corrupted money, he said.

Tumpak said that six percent, or 41.3 billion was corrupted through price markups.
The KPK acting chairman said the state losses were calculated from corruption cases on which the Supreme Court had already issued a verdict.

He said the amount of corrupted money could be deducted by the amount of money corruption suspects had returned but the KPK had no information on the refunds.


http://www.antara.co.id/en/news/1259737445/corruption-in-goods-procurement-caused-loss-of-rp689-billion

President renews denial he has received funds from Bank Century

President Susilo Bambang Yudhoyono renewed his denial that his success team had accepted funds from Bank Century in the recent presidential election.

The president made the denial at the conclusion of his address on the occasion of the 64th anniversary of the National Teachers Day at the Senayan indoor tennis stadium in Jakarta Tuesday.

The president even swore before God to deny the reports carried in the newspapers.

"People who had been disgraced have a right for justice," he said.

Today, the President`s youngest son, Edhie Baskoro, along with Coordinating Minister for Economic Affairs Hatta Radjasa as head of the campaign success team for the Yudhoyono-Boediono pair, and the Andi, Rizal, and Choel Mallarangeng brothers, came to the Metro Jaya Police Headquarters, to see the People`s Democratic Fortress (Bendera) coordinator Mustar Bonaventura, who alleged that they have received funds from Bank Century.

The President in his address also called on the people to give the House of Representatives a chance to settle the right of enquiry to uncover the flow of funds from Bank Century.


http://www.antara.co.id/en/news/1259681983/president-renews-denial-he-has-received-funds-from-bank-century