Thu, 18 Jul 1996

Campaign fund for Golkar enrages PPP leader

JAKARTA (JP): The Central Java branch of the Indonesian Builders Association's scheme to raise funds to help finance election campaigns of the ruling Golkar organization has enraged United Development Party (PPP) leaders.

Hamzah Haz, chief of the PPP faction in the House of Representatives, yesterday planned to lodge a protest with the association's Central Java branch.

On Tuesday the senior PPP legislator in the Central Java legislative council, Thoyfoer, warned that the builders' plan would only widen the financial disparity among the three political organizations that will contest next year's election.

"The fund-raising efforts will worsen the high cost economy because builders will have to increase prices to keep their handsome profit margin," Hamzah told journalists.

The debate was sparked by Sundoro, chief of the association's Central Java chapter, last week when he made it compulsory for local builders to set aside part of their profit for Golkar election campaign activities.

Sundoro said the money that builders have to contribute amounts to "less than 2.5 percent" of their net profit. "If you can't resist your curiosity, ask the governor for details," he said.

Conglomerates are major financial backers of Golkar, the dominant political grouping with about 36 million registered members.

Hamzah said he would assign PPP legislators in the Central Java capital of Semarang to monitor the builders' plan and to "take action" if it goes ahead.

Thoyfoer said that the association's policy amounts to pressure on its members to contribute money to his party's competitors.

"We would have no objection if in his capacity as a (Golkar) cadre Sundoro sets aside part of his profit for the organization. But it is unacceptable if he makes it compulsory for association members," he said.

Objections to the builders' fund-raising scheme has also come from Moeljono S. Trastotenojo, a former member of Golkar's advisory council in Central Java.

According to Antara, Moeljono has lodged a protest with Central Java governor Soewardi and sent copies to various institutions, including the House speaker and the President. (pan)