Habibie defends approach to graft

JAKARTA (JP): President B.J. Habibie defended on Monday his cautious and legalistic approach to eradicating corruption, saying he refused to be rushed by public opinion over a highly politicized issue.

"We cannot rush and be reckless in our investigation and in pushing for a prosecution, especially if the evidence for a trial is incomplete and unconvincing," Habibie said in his state of the nation address broadcast nationwide.

"We could, for the sake of popularity for example, take a shortcut by using power to drag those already condemned guilty by public opinion to court and have them convicted," he said at a plenary session of the House of Representatives.

"But once we adopt this unfair method, we are condoning violations against the principle of upholding justice and human rights, which are central themes of reform. Moreover, if we took that approach, we'd be going back to the old practice of using force and not a legal approach in handling corruption, collusion and nepotism."

Although Habibie did not name former president Soeharto in his speech, his reference to corruption investigations was clearly an attempt to stave off criticism over the slow investigation into the alleged corruption of his former mentor.

The Attorney General's Office, which is leading the corruption investigation, earlier stated that it did not have sufficient evidence to try the former strongman.

Habibie asserted that his administration had worked hard to eradicate corruption, collusion and nepotism, stating that investigations had uncovered cases involving Rp 7.2 trillion in state funds. He said politically loaded cases received more public attention.

Some Golkar leaders have urged that Habibie's presidential candidate status be withdrawn because of his reluctance to prosecute Soeharto, and more recently, because of allegations that the President and his close associates were implicated in the Bank Bali scandal.

In his speech Habibie congratulated the Indonesian Democratic Party of Struggle (PDI Perjuangan) for winning the most votes in the June general election. The praise was also extended to Golkar, the United Development Party (PPP), the National Awakening Party (PKB), the National Mandate Party (PAN) and the Crescent and Star Party (PBB) as the six top parties in the vote count.

Habibie's inclusion of PBB among the parties that passed the minimum 2 percent threshold to have the right to contest the next election in 2004 contradicted the last result announced by the General Elections Commission in which PBB polled 1.94 percent.

He challenged other political leaders to present their vision for the nation during the People's Consultative Assembly (MPR) in November, stressing that his agenda would be revealed in a speech to open the Assembly.

"You won't find the details in today's speech. I reserve them for November."

Underlining a free press as one of the pillars of democracy, Habibie said the media should function as an effective form of social control to ensure good governance.

"The mass media should avoid pursuing the sensational. They should give priority to conveying the truth to the general public. Disclosing the complete facts could help the process of enlightening the nation's life. But the dramatization of partial facts and concealment of others are violations of ethics and are irresponsible."

Habibie only paused in his two-hour speech on one or two occasions. The first time he revealed to the audience that he was not allowed to drink because he was fasting.

"But this does not in anyway affect my spirit," he quipped.

Habibie underlined his determination to uphold human rights principles, citing the various United Nation's conventions ratified by the government during his short presidency.

He said he upheld equal opportunity in all spheres of life, a statement contrary to his supporters' use of the issue to derail the presidential bid of his main rival, Megawati Soekarnoputri of PDI Perjuangan.

After pausing briefly, apparently for effect, Habibie said: "We have to eliminate all forms of gender bias in politics, economics, law, business, science and technology, and even in the military and police."

The President addressed the Aceh issue generally, but did not offer any new proposals to resolve the province's increasingly volatile situation. He said he would consider the House's plan to define the province's "special territory" status.

On the military, the President said the decision to change the name ABRI (Armed Forces) to TNI (National Military) -- which coincided with the separation of the National Police from the military on April 1 -- was to distance TNI, described as "pioneers of reformation", from criticisms of past military practices.

Habibie defended his decision on the popular consultation in East Timor, in which East TImorese will choose whether they want to remain part of Indonesia under a special autonomy arrangement, or be separated from the republic.

In an apparent response to predictions made by many foreign analysts that voters would choose independence, Habibie said the outcome would not undermine the unity of the Indonesian republic.

Addressing criticisms on the slow pace of reform, Habibie explained his "accelerated evolution" approach, which he said called for gradual and orderly changes. He said such changes were low risk compared to the alternative of a revolution with the accompanying dangers of violence.

Habibie highlighted economic indicators which pointed to the country's recovery:

* Positive gross domestic product (GDP) growth rates for two consecutive quarters, 1.34 percent and 0.47 percent respectively in the first and second quarters of 1999.

* Stable prices, with five consecutive months of deflation since March.

* A stronger rupiah exchange rate, reaching Rp 6,700 in July. Although the rupiah returned to about Rp 8,000 this month, this was still better than Rp 15,000 at the peak of the economic crisis last year, he said.

* Falling interest rates, to less than 13.5 percent currently, from over 70 percent in August last year.

* Stronger foreign reserves at US$26.5 billion against $18.7 billion a year ago.

* Return of foreign investors as shown by the composite share price index of the Jakarta Stock Exchange at 550, compared to 250 in September.

The President acknowledged that while these figures were encouraging, "the economy is far from fully recovered... Moreover, the process of economic recovery is still disrupted by waves of demonstrations, security disturbances, and unfounded and destructive rumors".

Habibie outlined his economic agenda for the "long journey toward recovery":

* Restoring a climate conducive for local and foreign investors.

* Completion of the bank restructuring and recapitalization programs. (prb/emb)