Bank Century standoff a long way from over

Hans David Tampobolon , The Jakarta Post , Jakarta | Sat, 03/06/2010 11:35 AM | Headlines

The political standoff over the Bank Century bailout drags on with political parties and the House of Representatives giving the cold shoulder to President Susilo Bambang Yudhoyono’s defense of the policy.

Golkar Party chairman Aburizal Bakrie met with his party’s lawmakers on Friday evening to assert his support for the legislative body’s ruling on the bailout and legal measures against those held responsible for the decision to salvage the bank.

“The due process of law must continue without any political intervention, and uphold the principle of presumption of innocence,” Aburizal said while briefing Golkar lawmakers.

Aburizal said the Bank Century inquiry was a long and tiring process, but it had taught the country a few lessons.

“The lesson learned from the Bank Century case is that we know now that we need to improve the country’s protocol on crisis management. We have also learned that there is a lot that needs to be improved in Bank Indonesia’s management,” he said.

House ruled on Wednesday that the bailout, which ten folded to Rp 6.76 trillion (US$716 million), was flawed, and recommended legal measures against Vice President Boediono and Finance Minister Sri mulyani Indrawati for authorizing the policy.

The next day the President said he endorsed the bailout and played down criminal charges against two of his most trusted aides, saying the House’s findings could not justify the legal process.

Deputy House speaker Priyo Budi Santoso of Golkar said he appreciated the President’s opinion on the bailout, but insisted that the House’s conclusion and recommendations on the case would stand.

“All that we ask from the President is his understanding of our position,” Priyo said.

Mustafa Kamal, deputy chairman of the Prosperous Justice Party (PKS) at the House, said Friday the House’s ruling was legitimate and binding.

“Therefore, it is crucial for the recommendations to be fully implemented,” he said.

Pramono Anung from the Indonesian Democratic Party of Struggle (PDI-P), said the House’s recommendations were politically binding, although they may not be legally binding.

Yudhoyono’s coalition partners, Golkar, PKS and the United Development Party (PPP), turned their back on the President to help the opposition camp convincingly win the vote on the bailout policy.
Priyo said Golkar was prepared for the worst-case scenario for its confrontational stance.

However, Democratic Party chairman at the House, Anas Urbaningrum, said there was no need for coalition partners to be worried as far as Yudhoyono’s statement was concerned.