A political war?<\/p>\n
No one can deny that the export loan scam involving Bank
\nNegara Indonesia (BNI) has done some serious damage, not only to
\nthe Indonesian trade and banking industry, but to the country's
\neconomy as well.<\/p>\n
The scandal, which has been the talk of the town for the past
\nseveral weeks, involves the issuance of no less than 41
\nfictitious letters of credit (L\/Cs) for a total of Rp 1.7
\ntrillion (US$291.2 million), in a classic case of collusion
\nbetween banking officers and businesspeople. Police have so far
\nnamed about a dozen suspects in the crime.<\/p>\n
The case naturally threatens to damage the already
\nquestionable credibility of the country's import and export
\nprocedures by once again throwing the spotlight on the corruption
\nthat remains rampant in the country's bureaucracy and business
\nsector. Immediate proof of this damage could be found in the
\nworsened sentiment on the Jakarta Stock Exchange, as reflected in
\nthe 0.4 percent fall in the composite index at end of last month.<\/p>\n
Quite appropriately, 21 witnesses have so far been summoned
\nfor questioning by the police, including 16 BNI employees, two
\nprivate company executives and three officers from related banks.
\nPolice have also confiscated US$238,000 in cash and documents,
\nand ordered 29 bank accounts belonging to companies and
\nindividuals allegedly linked to the scam blocked.<\/p>\n
Bank Indonesia, which oversees the country's banking industry,
\nhas for its part blamed the directors of BNI for failing to act
\non an internal audit that reported something serious amiss in the
\nbank, long before the scam became public knowledge.<\/p>\n
So much for the sinister practices that apparently still
\nthrive in parts of our business environment and banking industry.
\nThe question that interests us at this point concerns not so much
\nthe practice of corruption and collusion, or even the scale of
\nthe crime committed, but rather the delay in bringing the affair
\nto the attention of the public. For if the BNI management was
\nnotified of irregular practices months before the public was made
\naware that something was amiss at the bank, the very fact of this
\ndelay could point to yet another problem the country must
\nconfront.<\/p>\n
It is tempting in this context to refer to observations made
\nlast week by Ikrar Nusa Bakti, a researcher at the Indonesian
\nInstitute of Sciences (LIPI), to the effect that the scandal --
\nwhich was initially thought to be a mere run-of-the-mill affair
\n-- has taken on a political dimension that could lead to a brutal
\npolitical war ahead of next year's general election. In other
\nwords, the scam could be used by one political party to discredit
\nanother, with neither side actually bothering to fix the root of
\nthe problem itself -- which is corruption.<\/p>\n
Although no parties were mentioned, it is obvious from the
\nnames of those believed to be involved in the BNI scam that the
\nLIPI researcher was referring to the Golkar Party. At the same
\ntime, it may or may not be a coincidence that the public furor
\nover the BNI scam was unleashed at the same time that reports
\nemerged of a suspicious business deal involving Mohammad Rizki
\nPratama, the son of President Megawati Soekarnoputri, who is also
\nthe chairwoman of the Indonesian Democratic Party of Struggle
\n(PDI Perjuangan).<\/p>\n
An investigation team set up by the House of Representatives
\nreportedly found irregularities involving the contract giving
\nMohammad Rizki control of 30 hectares of the 44-hectare Jakarta
\nFairground in Kemayoran, which is managed by the State
\nSecretariat. The findings were announced by Effendy Choirie, who
\nis a member of former President Abdurrahman Wahid's National
\nAwakening Party (PKB) and no admirer of Megawati.<\/p>\n
Although the President is reported to have asked her son to
\nwithdraw from the venture, the issue could benefit the Golkar
\nParty in a possible political war kindled, presumably, by the
\nbloody clash between supporters of the two parties in Buleleng,
\nBali, last month.<\/p>\n
What is cause for concern here is not so much the possibility
\nthat the as yet passive enmity could erupt into renewed clashes,
\nbut rather that a political war would be likely to end in a
\npolitical deal or settlement. If that happens, both the BNI scam
\nand the Kemayoran case would most likely be buried.<\/p>\n
It is primarily for this reason that Indonesians should
\nwelcome the informal talks that have been held in recent days
\nbetween leaders of these two major parties. In both the BNI and
\nKemayoran cases, let the law take its due course.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/a-political-war-1447899208",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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