Indonesian Political, Business & Finance News

Govt mulls cut in subsidy for political parties

| Source: JP

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.

View JSON | Print