Govt mulls cut in subsidy for political parties

Tiarma Siboro and A'an Suryana, The Jakarta Post, Jakarta

Minister of Home Affairs Hari Sabarno hinted on Monday that the government was considering terminating a subsidy for political parties.

Speaking to reporters in his office, Hari said ending the subsidy would be an "effort to help political parties become more independent in struggling for their respective ideals".

"Some 48 political parties in this country have relied too much on financial aid from the government. We had to allocate a staggering subsidy of Rp 105 billion for the parties that contested the last elections.

"It is bad for political development in this country, since they (the parties) will never be independent," Hari told reporters.

The minister did not say whether, if the subsidy is cut, the government would relax the ruling on the amount of non- governmental financial assistance political parties are allowed to accept.

Hari did say that the government would not revise the regulation in Law No. 2/1999 on political parties that limits private donations to parties at Rp 15 million and Rp 150 million from institutions.

"It has been regulated in the law and we are not going to reevaluate it (the regulation)," he said.

The subsidy for political parties took effect earlier this year, requiring the central and local governments to pay political parties Rp 1,000 (8 US cents) annually for every vote they secured in the 1999 general election.

Separately, political observer Andi Mallarangeng said political parties should be allowed to accept more money from non-governmental organizations, which would be used to cover parties' expenses.

This would reduce the temptation to accept funds from "dirty hands", he said.

"Actually, the limits on donations stipulated in the 1999 law are too small. A party should be able to accept more since its needs will increase in the run-up to the election. In the U.S., for example, individual donations can reach $1,500," he said.

Mallarangeng also suggested the General Elections Commission (KPU) draft detailed regulations on campaign funds.

The former KPU member said a clear and detailed ruling was needed to ease the possibility of money politics, which reportedly was widespread in the 1999 elections.

"In the 1999 elections, it was difficult to audit the funding of the political parties because their financial balance sheets were not credible and they were not transparent," he said.

Therefore, a detailed ruling, which should include clear punishments for violators, in necessary to enable a more credible election, he said.