Indonesian Political, Business & Finance News

It's never simple

| Source: JP

It's never simple

Nothing is as simple as it seems, especially in Indonesian
politics. The procurement of Russian jet fighters and helicopters
by the government was supposed to have been a simple and
straightforward affair. But the House of Representatives, and a
host of other interested parties, including the mainstream media
hungry for political scandals, have decided differently.

With the nation preparing for general elections and
presidential elections in 2004, one can sense that this affair
has been politicized, and will be even more so in the coming
months. Commission I of the House decided last week to launch an
investigation into the procurement, setting the stage for a
drawn-out and possibly bloody affair.

Where this is leading us to is anybody's guess.

But since Bulog, the state logistics agency, is also
implicated in this affair, we can turn to earlier Bulog-related
scandals for possible answers. Buloggate I cost Abdurrahman
Wahid, whom Megawati Soekarnoputri replaced in 2001, his
presidency. Buloggate II is now costing House Speaker Akbar
Tandjung his political future, including his bid for the
presidency, although not (yet) his job.

This time around, the nation's political pundits prefer to
settle for the more exotic term "Sukhoigate", named after the
Russian state-of-the-art jet fighter, instead of going for
Buloggate III. But the target is clear: President Megawati
herself, or failing that, those close around her.

Sukhoigate started with President Megawati's decision to buy
four Sukhoi planes and two military helicopters during her state
visit to Russia in April.

Few people had questioned then about the need to buy these
planes or the choice of Russian military technology. The nation's
air force's equipment is already in an appalling state to the
point that we have compromised our air defense capability. The
government does not have the budget to fully modernize the air
force, but we could at least start with four, if only to keep
ourselves up with technological changes. And Russia was chosen
because our traditional supplier, the United States, has imposed
an embargo on all sales of military hardware.

With the government stretched for money, Megawati did well in
securing a barter deal for the six aircraft, worth $193 million,
in exchange for 30 Indonesian commodities and products.

Bulog was brought in because of its expertise in gathering the
products. And Bulog, upon a request from the Ministry of Trade
and Industry, asked state-run Bank Bukopin to pay $26 million to
the Russian handling agent, Rosoboronexport, as a down payment.

This sounds simple enough, or at least nobody questioned the
deal even when she returned home from Russia. That is, until the
House recently learned of at least two flaws in the deal, thanks
to revelations by Megawati's own Cabinet members.

First, Minister of Finance Boediono refused to repay the $26
million to Bank Bukopin without the House's approval. Further
disbursement for the payment of the deal could not be made
without the House's consent either, he said. Essentially, the
purchase of the Russian aircraft is a government spending, and
this particular item is not part of the 2003 Budget approved by
the House before January.

Second, Minister of Defense Matori Abdul Djalil stated that he
was never brought into the discussions to buy the Russian planes.
This according to the House, is in violation of the law that
states that the Minister of Defense is the official responsible
for the procurement of all military equipment.

It is unclear why the two ministers went public with this
information that essentially undermined the authority of their
own bosses. What is clear is that President Megawati had clearly
violated several procedures in purchasing the planes.

But nothing is ever simple in Indonesian politics. The affair
has triggered speculation that there is a lot more to it than
meets the eye. There has been speculation that this campaign was
launched by local politicians serving the interests of the United
States; there is speculation that some people are reaping
financial profits from this deal; there is also speculation that
the House investigation is intended to bring down the Megawati
presidency.

Having gone through successive political scandals, including
two Buloggates, this nation is now in for another one that
promises to be no less interesting. It is interesting not only
because of the players involved and the possible international
implications, but also because of the ability of our politicians
to make simple things complicated.

The actions of our elected politicians are beyond the control
of the electorate. If they have chosen this investigation to be
their next preoccupation over other more important matters, then,
that is their choice. Like it or not, this investigation will
proceed and will consume the time and resources of our
politicians, political pundits and the media. We may as well sit
back and enjoy this new political comedy brought before us.

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