Wed, 07 Nov 2001

Anticorruption law review delay affects foreign aid

Tiarma Siboro, The Jakarta Post, Jakarta

Minister of Justice and Human Rights Yusril Ihza Mahendra said on Tuesday that delay in the review of Corruption Law No. 31/1999 might hamper the disbursement of foreign financial assistance.

"Members of the Consultative Group on Indonesia (CGI) have said that the delay in the deliberation of the review of the anticorruption law did not matter. But, they indicated that it might affect the disbursement of financial assistance from donor countries," Yusril told reporters, after attending a security coordination meeting at the office of the Coordinating Minister for Political and Security Affairs.

The draft bill of the anticorruption law, which is expected to provide legal authorities with draconian powers, was submitted for deliberation to the House of Representatives in June. The House, however, only passed it into law in a plenary session on Oct. 23. The law was an amendment of the Corruption Law No. 31 issued in 1999.

Yusril said that he had been pushing for immediate deliberation of the law's review since June, but the House seemed to be preoccupied with its own agenda. This included the establishment of the House special committee to investigate the high-profile State Logistics Agency (Bulog) case, which implicated former president Abdurrahman Wahid, and the House members' participation in the Special Session of the People's Consultative Assembly in July. The Assembly's Special Session led to the dismissal of Abdurrahman from office.

"It seemed that the House did not have enough time to deliberate the review of the anticorruption law," he said.

Yusril added that besides evaluating the government's legal reforms, CGI members would also consider the government's willingness to combat money laundering and its seriousness in regulating foreign investment.

"The CGI previously indicated that Indonesia should remain committed to three reforms, namely the deliberation of draft laws on the eradication of corruption, collusion and nepotism (KKN); on money laundering, on investment and on electricity," he said.

The minister said he expected the House would deliberate the review of the laws on money laundering, on investment and on electricity immediately after the recess period was over, which would be some time next week.

Besides the CGI requirement, the coordination meeting also discussed the request by the UN and the U.S. that Indonesia freeze the assets or accounts of companies or individuals allegedly linked to international terrorist organizations.

On Wednesday, the CGI will meet to discuss loans to finance the 2002 state budget deficit.

The government has said that it would be seeking new loans, of around US$3.5 billion, to finance next year's budget.