Editorial

Despite the protests and the months-long investigation, the public is no closer to learning the truth behind the Bank Century bailout. (JG Photo/Afriadi Hikmal)

Century Conclusions Have Shed Little Light

After two months of questioning senior government and Bank Indonesia officials and hundreds of hours spent pouring over records by the House of Representatives special committee, the public is no closer to learning the truth behind the bailout of Bank Century in November 2008.

In announcing their preliminary findings on Monday, the committee was divided in its conclusions, with seven political parties alleging that the bailout was illegal and serious crimes may have been committed. The Democratic Party and the National Awakening Party (PKB), however, concluded that the bailout had been the right decision and was lawfully carried out to avoid a deeper impact on the financial sector from the global economic crisis.

The split among the committee members underlines the complex nature of such bailouts, as often decisions have to be made under very strenuous circumstances and with incomplete information. It is impossible for government officials who have to make such judgment calls to deliberate too long as events can often overtake them.

The House inquiry into the Bank Century bailout was necessary to ensure that no laws were violated and that the money injected into the troubled bank was not diverted for improper purposes. The preliminary conclusions, however, shed no light on these critical issues.

Although some of the parties have accused the government of violating the law, they have not backed up their statements with solid facts and analysis. They themselves can be accused of political grandstanding instead of protecting the public interest. The key test now will be what form the final report takes, as if it diverges significantly from the preliminary conclusions, the public will be right in suspecting that politics is at play.

It is critical that the committee presents a clear, concise and detailed report on the outcome of its investigation. If the members allege that laws have been violated, they must back these allegations with facts, not just empty statements. Furthermore, the Bank Century bailout must not be used to settle personal political scores as too much is at stake.

With the global economy beginning to improve, Indonesia has much to gain from the turnaround. The country has received widespread praise for maintaining economic stability and implementing sound policies. With many corporations once again expanding their operations, new jobs will be created and more people will enjoy a higher standard of living.

It would be a great shame and a disservice to the people if the political elite disrupt the economic momentum that is now gaining speed due to their inability to rise above petty politics. The Bank Century saga must not be allowed to drag on for too long and undo the hard work that has been put in over the past five years.

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