Kwik to quit Cabinet if principles are compromised

Dadan Wijaksana, The Jakarta Post, Jakarta

State Minister of National Development Planning Kwik Kian Gie said he would rather resign from his post than compromise his principles over differences with his colleagues in the Cabinet.

His statement on Wednesday further highlights the apparent end of the honeymoon for the 6-month-old economic team, which has come under fire for its controversial policies of late.

The outspoken Kwik said he could tolerate differences but "if they are so huge and revolve around principle matters and concern very important issues, then I would resign."

He was speaking to reporters on the sidelines of a hearing with the House of Representatives' Commission VIII on Environment, Science and Technology.

Kwik did not give details about the issues that were causing the apparent rift.

Once dubbed the "dream team", President Megawati Soekarnoputri's senior economic ministers appear increasingly divided over a number of issues.

The latest being a public debate over a government plan to grant indebted former bankers an extension of up to 10 years to repay huge debts to the government.

Calling it unreasonable, Kwik has repeatedly, and publicly, opposed such a plan, saying the extension agreement would only benefit the reluctant debtors at the expense of the people's sense of justice.

Unlike his colleagues, Kwik is standing firmly on the other end of the rope.

Kwik's resistance should come as a surprise as he is a member of the powerful Financial Sector Policy Committee (FSPC), from which the new plan was first approved.

He said earlier that the decision was made even though he disagreed with it.

Finance Minister Boediono has kept silent on the issue, although there is speculation that he too opposes the extension.

An interministerial team is reviewing the plan in response to public criticism, and is expected to present a solution next month.

Kwik created more public uproar when he told the Kompas daily last Monday that the government should delay the ongoing sale of Bank Central Asia (BCA).

He questioned whether BCA, if owned by foreign investors, should still receive public funded earnings from state bonds on which BCA earns some Rp 5 trillion (about US$480 million) a year.

His comment came on the very day that bidders for BCA must submit their final bids, and after nearly two years of unsuccessful attempts to return the bank into private hands.