Emil to proceed with his VP bid

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)