Emil to proceed with his VP bid

JAKARTA (JP): Former cabinet minister Emil Salim reiterated yesterday his intention to proceed with his bid for the vice presidency, dismissing a strong call from Golkar deputy chairman Abdul Gafur that he desist.

Emil told a press conference at his office he would stop his campaign only after the five factions in the People's Consultative Assembly (MPR) officially announced their vice presidential candidates during the body's General Session from March 1 through March 11.

"My stance is, before the Assembly names the (candidates) for vice president, the process to nominate (people) for the second top post is still ongoing," said Emil, who helped revive the country's economy from the doldrums during the early years of the New Order administration.

The 1,000-member Assembly will elect the next president on March 10 and the vice president the day after.

Golkar, the Armed Forces, the regional representatives, the United Development Party and the Indonesian Democratic Party have all named State Minister of Research and Technology B.J. Habibie as their sole vice presidential candidate to flank President Soeharto, whose reelection for a seventh consecutive term is almost certain.

The factions, however, still need to undertake a formal procedure -- namely submitting the name or names in envelopes along with the signatures of faction members, to the leaders of the MPR.

A press release from Gema Madani, a group of activists from various non-governmental organizations campaigning for Emil, said that as of yesterday Emil's publicly listed supporters has soared to 6,000.

Moslem intellectual Nurcholish Madjid, one of those on the list, said Emil fitted the bill because of his clean record and commitment to democracy.

Gafur suggested yesterday that Emil, who is also a Golkar elder, should give up his campaign because it would be impossible for him to change the ruling political organization's mind.

He has also threatened to dismiss any Golkar legislators who support Emil, as the act would be a violation of the organization's principles of dedication, loyalty, discipline and perfection.

"Surely he (Emil) understands those principles, but he fails to implement them," Gafur said.

He said Emil's move would have served as a political education had the bid been made before Golkar's nomination of Habibie.

"This is no longer a political lesson, because we have reached a decision (to nominate Habibie)," Gafur said.

Emil was quick to stress yesterday that he was just attempting to serve as a moral force, rather than build up a people's power movement.

"I hope that the Assembly members will heed the aspirations of people in these remaining days. As a democrat, however, I would accept whatever the Assembly decides," said Emil.

Currency board

Earlier yesterday, Emil also called for total economic reform, the strengthening of the rule of law, empowerment of civil society and the upholding of morality to restore confidence in the country's economy.

Speaking at a luncheon hosted by the Australia-Indonesia Business Council, Emil said Indonesia badly needed to stabilize its currency, but through complete reform and not via the proposed currency board.

"When there is volatility in the exchange rate, then it is not yet quite right (to implement a currency board) ...Therefore, I prefer that we not do it right now," Emil said.

"A stable exchange rate has to be reached much like a methodical attack on the goal is made in soccer," he said, adding that such methods should include sound fiscal and monetary policies, banking reform and structural adjustments to remove all market distortions.

He said that as the root of the country's problem was a loss of confidence, all efforts must be directed toward restoring the lost confidence, including removing all market distortions such as monopolies, cartel-like practices and managed trading.

If the government fully implemented the 50-point agreement with the International Monetary Fund, confidence would return and the rupiah would eventually stabilize, he said.

The rupiah is currently trading at 10,000 to the U.S. dollar, having lost 75 percent of its value since last July when it stood at 2,450 to the dollar.

"The rupiah at 10,000 to the dollar is irrational, impossible. At the 10,000 level, there is an X factor, which is noneconomic. And this noneconomic factor is basically confidence," Emil said.

"When you create confidence, you reduce... this X factor, and therefore the rupiah will strengthen from 10,000 to a normal level," Emil said.

To be more effective, such total economic reform should be followed by reforms on other fronts, he said, particularly in the legal system as investors demanded certainty and predictability based on the clear rule of law. (nur/aan/rid/amd)