http://www.theaustralian.com.au/news/world/sby-takes-bold-step-to-strike-out-coalition-dissent/story-e6frg6so-1225837522138


SBY takes bold step to strike out coalition dissent 
Stephen Fitzpatrick, Jakarta Correspondant 
From: The Australian 
March 06, 2010 12:00AM 

INDONESIAN President Susilo Bambang Yudhoyono has seized the running in a tough 
fight for political supremacy, declaring his main priority as leader is 
ensuring national "prosperity" rather than corralling numbers in the ruling 
coalition. 

Dr Yudhoyono's stern 35-minute address yesterday, broadcast live on prime-time 
network TV from the presidential palace in Jakarta, where he was surrounded by 
his entire cabinet, was designed to draw a line under the festering Bank 
Century bailout affair.

In particular, it was meant to silence calls for criminal prosecutions of 
Vice-President Boediono and Finance Minister Sri Mulyani Indrawati after a full 
sitting of parliament voted in favour of investigating the pair.

Professor Boediono reinforced the message yesterday, saying he would not 
"betray" the President by resigning.

Dr Yudhoyono's speech contained coded warnings to "certain elements who have 
caused the nation financial losses" and "hidden behind the Bank Century chaos" 
that they could expect to face "comprehensive further action". Many viewers 
linked this statement to businessman Aburizal Bakrie, chairman of the 
coalition-member Golkar Party, one of Indonesia's wealthiest men and the main 
political thorn in Dr Yudhoyono's side, despite also being a crucial ally.

Mr Bakrie has been linked to potential investigations by Dr Indrawati's 
department of massive unpaid tax bills, and has long been at loggerheads with 
the Finance Minister.

The President has tried in recent weeks to mend relations with Mr Bakrie behind 
the scenes. The participation of the latter's Golkar Party is important 
symbolically to the coalition government but ultimately not crucial for the 
passage of legislation, since members are not forced to vote along party lines.

Dr Yudhoyono's speech was clear evidence he has given up trying to court Golkar 
or indeed any other coalition partners, and is happy to have legislation face 
the house on its merits.

Expressing deep gratitude to the members of the parliamentary committee that 
spent four months exploring the controversial 6.7 trillion rupiah ($800 
million) Bank Century bailout's legality, Dr Yudhoyono warned them that it was 
nonetheless now time to return to work.

"The commission has finished its constitutional task," he said in an 
uncharacteristically direct and unemotional tone. Recent addresses by the 
President have been more beseeching in style.

"Its findings are a political conclusion, and according to the . . . 
legislation regarding (parliamentary commissions), those findings cannot be 
used as proof in a court of law."

Citing the successful criminal prosecutions against former Bank Century owners 
and directors including the disgraced Robert Tantular, Dr Yudhoyono contrasted 
this with the "exemplary service" done by Professor Boediono, Dr Indrawati and 
others when they set in train the months-long bailout process in 2008.

At the time the crucial decision was made, Dr Yudhoyono reminded the nation, he 
was abroad attending G20 and APEC leaders meetings.

However, he was adamant that the decision to rescue the second-string bank -- 
largely using industry insurance funds designed to guarantee liquidity, he 
pointed out, not national assets -- was made in the midst of "rumours and 
speculation of an imminent banking crisis".

"With absolute certainty that such a crisis really was upon us, I believe 
whoever had the authority to take the decisions at that time would have done 
the same thing," he said.

He said the experience of 1997-98, when Indonesia was hit hard by the Asian 
financial crisis, had taught it to move quickly in a similar situation and pass 
laws that enabled it to do so.

The coalition rift is not expected to produce any immediate cabinet reshuffles.

Related Coverage
  a.. Bailout vote crisis for SBY The Australian, 2 days ago
  b.. Indonesia coalition rocked by split The Australian, 3 days ago
  c.. Battle to be Indonesia's biggest loser The Australian, 2 Feb 2010
  d.. Conduct questions catch up with SBY The Australian, 22 Jan 2010
  e.. Anti-corruption protests turn violent Adelaide Now, 9 Dec 2009

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