Indonesian Political, Business & Finance News

Campaign contribution

| Source: JP

Campaign contribution

If some of the campaign contributions that the United States'
Democratic and Republican parties have been returning to their
donators these past few weeks could find its way to the United
Development Party (PPP) and the Indonesian Democratic Party
(PDI), the financial woes of the two minority parties would
probably be over. The problem facing the two small parties, with
the general election just over two months away, could not have
been more startling when compared to the situation that has
developed across the Pacific.

As PPP and PDI gear up for the month-long election campaign,
which begins April 27, their leaders say they are on the verge of
bankruptcy. Both depend heavily on government subsidies, not only
for their daily operations, buildings and congresses, but also
for the May 29 polls and the preceding election campaign.
Currently, they have little in their coffers to prepare for the
election.

The government has promised to distribute the campaign money
soon, but it has not stated how much will be given to the three
parties contesting the election. In 1992, it gave Rp 250 million
($104,000) to each of them. This year, PPP says it needs Rp 4
billion ($1.6 million) to take part in the election, including Rp
1.7 billion for the campaign. PDI says it needs Rp 1 billion for
the campaign.

Golkar does not have any financial problems because it can
count the generous contributions received from powerful business
conglomerates, including the Lippo Group, which has been at the
center of the campaign-contribution controversy in the United
States. Unlike in the United States, campaign contribution in
this country is not regulated.

But what corporations in their right minds would contribute to
PPP and PDI? To be associated with the two parties is an almost
sure recipe for business failure, especially at a time of
increasing economic competition. As much as we abhor saying it,
money and politics do mix. In business, a campaign contribution
is regarded as an investment, a political investment. There is no
such thing as charity.

PPP and PDI should scrape through the election with the tiny
government subsidies as they have done in the previous five
elections. They will receive some contributions, chiefly from
candidates in return for the privilege of being nominated by
their party, especially those who eventually get elected.

The campaign-funding issue has exposed one of the biggest
flaws of the general election and the entire political system
that we adhere to. If they are still dependent on government
handouts, can the two minority parties really mount a serious
challenge to Golkar and the government? Some people may dislike
the term handouts, but who are they kidding? PPP and PDI cannot
be independent as long as they are not financially independent.

This says a lot about our political system. Until Indonesia
makes changes to the system, to one that makes political parties
genuinely independent, PPP and PDI will have to contend with
playing their roles as minority parties -- making up the number
in election after election -- in a system that ensures victory
for Golkar.

The election has often been officially described as a "fiesta
of democracy". One can't help wonder what the PPP and PDI have in
store for the nation during the campaign period, given the
restrictive campaign rules and their individual financial
problems.

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