Only PDI Perjuangan supports govt subsidy

Muhammad Nafik, The Jakarta Post, Jakarta

All major political parties, with the exception of President Megawati Soekarnoputri's Indonesian Democratic Party of Struggle (PDI Perjuangan), have thrown their weight behind a bill that moves to scrap government subsidies for political parties.

Legislators from Golkar party, United Development Party (PPP), and the National Awakening Party (PKB) said the bill would help improve the loyalty of their constituents.

"I agree that political parties should not receive funds from the government," Golkar legislator Ferry Mursyidan Baldan told The Jakarta Post on Friday.

He said the move would deter attempts by certain people to set up new parties for financial gain.

Political parties currently receive a government subsidy worth Rp 1,000 (12 US cents) for each vote garnered in the previous general election over a period of five years.

Based on that calculation, Megawati's PDI Perjuangan, the biggest faction in the House, is entitled to receive some Rp 35 billion (US$4.2 million) from the government since it garnered around 35 million votes in the 1999 elections.

Ali Masykur Musa, a senior PKB legislator, shared a similar view.

"It (the move) is good to increase people's participation in politics. In the long run, it will improve their political maturity," he added.

The House of Representatives (DPR) is currently deliberating a bill on political parties which requires political parties to finance their own activities.

It also allows political parties to raise funds through individual and corporate contributions, but limits individual contributions to Rp 100 million per year and corporate donations to Rp 500 million per year.

Political parties are prohibited from receiving funds from state-owned enterprises, foreigners and humanitarian organizations, a violation of which may lead to the party being disqualified in the elections or dissolved.

The bill however does not oblige political parties to have their financial statement audited by certified public accountants.

According to Ali Masykur, scrapping the subsidy would hasten "the natural selection" of political parties and allow parties with a broad vision and realistic programs to stay on.

Close to 50 political parties participated in the 1999 General Election, but only six met the two percent election threshold, and thereby qualified to enter the next general election.

However, most parties that did not meet the threshold are planning to participate in the 2004 election.

Muhammad Husnie Thamrin, a senior legislator from PPP, also hailed the bill, saying it would boost the independence of political parties.

"In the past it was fine for the government to provide funds because there were only three parties contesting the elections. But it is inappropriate for the government to help finance political parties that number up to 200," he said.

"This will undermine the state budget," he added.

Thamrin said it was ideal for parties to raise funds from their supporters and sympathizers. "This will also educate them and make them more aware of political affairs," he said.

PDI Perjuangan legislator Heri Achmadi said that providing financial assistance for parties was still normal as elections were part of people's political education.

"It's very expensive. Parties cannot afford to cover all their operational costs. They need government assistance because the people are still not accustomed to giving contributions to political parties," he said.

Heri said PDI Perjuangan would fight for the continuation of the government subsidy for political parties.

Analyst J. Kristiadi from the Centre for Strategic and International Studies (CSIS) hailed the move to stop subsidizing political parties, saying there should be no more money earmarked for parties.

"The move will prevent certain individuals or groups from establishing political parties in a bid to get funds from the government," he said.

He urged parties to collect funds for their operations through fund-raising programs. "I believe many people or groups are still willing to make donations to parties fighting for their interests," he added.