Boediono counters his foes over bailout

Adianto P. Simamora , The Jakarta Post , Jakarta | Sat, 03/06/2010 11:21 AM | Headlines

One day after President Susilo Bambang Yudhoyono strongly defended Boediono and Finance Minister Sri Mulyani, the Vice President took an offensive stance against his critics.

The Vice President reminded his political opponents that democracy should not be used to bring down political competitors or adversaries.

He asked them to learn from the experiences of Indonesia and other countries where excessive and short-term political desires often destroyed the goals and system of the democracy itself.

“Let us not use democracy as an arena of mass mobilization and a contest of financial power,” said Boediono, in a clear reference to the street demonstrations conducted in Jakarta and other cities before and around the final sessions of the House’s inquiry committed on the Bank Century bailout scandal.

Boediono also made it very clear he would not resign from his position as demanded by various groups, arguing he and Yudhoyono had won by a landslide victory in the July in last year’s presidential election.

However, he described the presidential election happening in April, while in fact it was the legislative election. The former central bank governor was firm in his stance to stay in power because he believed he did not commit any wrongdoing, including corruption, and his decision to approve the bailout policy was merely to rescue the country from much more devastating economic risks.

“If I fulfill the demands [to quit], I will be recorded in the history as a leader who runs away from responsibility,” Boediono said.

“As a leader I have insulted the will of the people who have voted for me and Yudhoyono. Apart from it, I will not betray the trust of the President and leave him.”

Boediono was accompanied by Sri Mulyani, chief economics minister Hatta Rajasa and chief security minister Djoko Suyanto during his 20-minute address. The three declined to talk to the media.

The House of Representatives’ plenary meeting on Wednesday unanimously declared the 2008 Bank Century’s Rp 6.76 trillion (US$ 716 million) bailout to be illegal and demanded the prosecution of those responsible for the bailout, including Boediono in his capacity as Bank Indonesia governor, and Sri Mulyani.

On Thursday, Yudhoyono defied the House’s vote of no confidence, and insisted it was inappropriate to take legal actions against the government’s policies.

Several factions in the House have voiced their plan to impeach the Vice President, which requires lengthy and complex procedures.

Several political parties, including Golkar, the Prosperous Justice Party (PKS) and the National Mandate Party (PAN) have expressed their interest in replacing Boediono.

In his speech, Boediono conceded there were corrupt practices and poor management at Bank Indonesia, but insisted the bank’s internal condition should be separated from the decision to bail out Bank Century.

“I am confident, the decision that I have taken is right and is the best for our economy at that time,” he said.

“Therefore I declare here that I am ready to be accountable for it in this world and the hereafter.”