Nothing wrong with govt giving parties funds, observers say

Tiarma Siboro, The Jakarta Post, Jakarta

In this time of economic hardship, news that the government is providing a total of Rp 105 billion in taxpayers' money to 48 political parties may be a little too much for many people to take.

But according to political observer Andi A. Mallarangeng and even government critic Arbi Sanit, such financial assistance is vitally important.

They argued on Saturday that the assistance was needed so that the political parties could be audited.

So far, political parties obtain their funds from membership fees and donations from individual supporters.

Law No. 2/1999 prohibits political parties from owning businesses or receiving donations from individuals exceeding Rp 15 million, or donations from private companies, corporations or organizations in excess of Rp 150 million.

Giving political parties carte blanche to raise their own funds would bring its own dangers, such as the temptation for them to set up their own businesses or to turn to financiers who would then use them as vehicles for pursuing their own interests.

"That's why the state must provide financial assistance to finance their various activities," said Mallarangeng, a former member of the National Elections Committee.

The government subsidy would also provide a good excuse for having the parties audited as they would have to be accountable for every penny of taxpayers' money that they spent.

"This is a way of maintaining public accountability. If any of the funds are unaccounted for, the government can investigate the parties to see if they have violated the rules of the game."

Mallarangeng, who is also a lecturer at the Institute of Public Administration (IIP), argued that subsidizing political parties was common practice everywhere in the world.

Under the Indonesian laws, the government provides financial assistance to all political parties based upon the series of conditions set out in Government Regulation No. 51/2001.

The amount of assistance depends on the government's finances at the time.

This year, the government has allocated some Rp 105 billion (US$95 million) for 48 political parties, or the equivalent of Rp 1,000 (US$0.08) per voter. But so far, only nine of the parties are entitled to collect the money, while the remaining 39 parties have yet to fulfill various requirements, including settling their internal dispute.

The nine are the Indonesian Christian National Party (Krisna), National Labor Party (PBN), Peace Loving Party, National Democrats Party (PND), Crescent and Star Party (PBB), New Masyumi Party, MKGR Party, Islamic Community Party (PUI), and the Murba Party.

Arbi Sanit said that providing financial assistance to political parties is a government obligation. Nevertheless, the parties could still be independent.

"It is the taxpayers' money and therefore it should not affect their independence," he said.