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Democrats, PKB in Indonesian House May Shift Sides On Bailout
Muninggar Sri Saraswati | February 15, 2010

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President Susilo Bambang Yudhoyono faced the possibility on Sunday that his party’s faction and that of the National Awakening Party in the House of Representatives might switch their stances on the Bank Century bailout and declare it illegal, as the special committee investigating the case prepares to deliver its final report this week.

Meanwhile, the other major factions on Sunday stood firm in their positions that the bailout was illegal. Seven of the nine factions in the House, including four members of Yudhoyono’s ruling coalition, have stated their positions that the government’s bailout of Bank Century was illegal.

“Our stance has yet to change based on facts found during the investigation,” said Priyo Budi Santoso, of the Golkar Party, echoing the sentiment of the majority.

However, the Democrats and the National Awakening Party, or PKB, had not ruled out changing their positions, after maintaining previously that the bailout was necessary to prevent a systemic threat to the domestic banking industry at the peak of the global financial crisis in late 2008.

The Democratic Party’s Jafar Hafsah, who joined the special committee’s fact-finding mission to Makassar, said the committee had uncovered suspicious transactions.

“We found alleged transactions worth Rp 11 billion [$1.18 million] in [Bank Century depositor] Amiruddin Rustam’s account that were made without his knowledge after the account was closed,” Jafar said.

Jafar did not reject speculation that his party may switch its stance in the final report, but acknowledged that his team had not found a money trail to any political parties, including his own.

“We will find the best solution, as it is a political decision. We will not name names,” he said.

PKB chairman Muhaimin Iskandar also did not rule out the possibility of changing positions in his party’s final report.

“It depends on the data and evidence found,” he said.

Political observer Bahtiar Effendy, of Syarif Hidayatullah University, said the Democratic Party would likely follow the lead of other major parties, including members of the ruling coalition.

“Golkar, PKS [Prosperous Justice Party] and PAN [National Mandate Party] have repeatedly said they would be partners to the government but would remain critical. The Democratic Party would likely be critical, too, in the Century case,” he said.

The special committee has decided to postpone release of its final report on the Century investigation — which was due today — to include their fact-finding visits to five cities, scheduled to finish on Sunday.

The special committee is set to end its tenure on March 2. Its recommendations must secure approval from the House of Representatives before they are brought to the Constitutional Court.




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