PPP breaks ranks on Soeharto speech

PPP breaks ranks on Soeharto speech

JAKARTA (JP): The United Development Party (PPP) withheld its
endorsement of President Soeharto's leadership accountability
statement yesterday, saying it would announce its stand after the
final debate scheduled for Monday.

The other four factions in the People's Consultative Assembly,
the dominant Golkar, the Armed Forces (ABRI), the Indonesian
Democratic Party (PDI) and regional representatives, predictably
accepted it.

The factions that make up the 1,000-strong Assembly exchanged
views yesterday on the President's speech delivered on Sunday.

The Moslem-oriented PPP argued that President Soeharto had
failed to give a crystal-clear explanation about issues such as
the current economic crisis, poor law enforcement, corruption in
the bureaucracy and the painfully slow pace of political change.

Golkar, the powerful ABRI and the regional representatives
considered President Soeharto's achievement satisfactory and
unconditionally accepted his accountability statement that ran to
2,234 pages.

Dubbed the "government factions", the three reaffirmed their
support for Soeharto and B.J. Habibie for the presidency and vice
presidency for the next five-year term.

They also bade farewell to outgoing Vice President Try
Sutrisno and thanked him for his service.

While critical of many government policies, PDI also endorsed
the President's speech of accountability but vowed it would press
for clean governance and political reform.

PPP and PDI have both thrown their weight behind Soeharto's
renomination.

Very surprised

PPP spokesman Alfian Darmawan told a plenary session that the
Moslem-oriented party was "very surprised" to learn that the
President did not provide a complete account about basic issues
which his government had not properly addressed.

"Up to this moment, the PPP has not seen the 'good and clean'
governance the people have always idealized," he said.

He pointed out that the root of the problem was the widespread
corruption, collusion, manipulation and nepotism within the
bureaucracy.

PPP, which has 134 representatives in the Assembly, said the
government appeared disoriented about how the deteriorating
economic crisis should be solved.

"Government officials are in disarray because they are yet to
find out the cause of the crisis but they have to calm the people
who are seeing that the economy is about to collapse," he said.

The rupiah has depreciated more than 300 percent against the
U.S. dollar since the economic turmoil began last July, sending
countless companies to the brink of bankruptcy and pushing prices
sky high.

Skyrocketing prices of essential commodities have sparked food
riots in more than 20 cities across the country over the past
month.

Students in Jakarta, Bandung, Yogyakarta and Surabaya and
several towns in Central Java, have staged rallies on their
campuses to demand that the government do more to lower prices
and that the Assembly elect a new president and vice president.

The PPP said top government officials' past claim that
Indonesia's economic fundamentals were "solid" turned out to be
wrong.

"They used to claim our economic foundations were as strong as
concrete but everyone sees them crumbling like a paper house,"
Alfian said.

Another basic flaw in Soeharto's statement, according to PPP,
was his overly heavy emphasis on economic growth while somewhat
ignoring the unequal distribution of the development cake.

This, Alfian said, had resulted in most economic resources
being controlled by a handful of conglomerates.

Stable rupiah

The PDI faction demanded that the government should announce
very soon its long-awaited decision on how it would stabilize the
rupiah.

"Since the government signed an agreement with the
International Monetary Fund (IMF) on Jan. 15, the economic crisis
has not shown signs of abating; it is only worsening," faction
spokesman Bambang Mintoko said.

Frustrated by the deteriorating crisis despite the IMF rescue
package, Soeharto is considering an "IMF-Plus" scheme by which --
in addition to implementing reforms as the IMF recommends -- the
rupiah will be pegged at certain rate against the greenback.

The government has given confusing signals about the plan amid
strong opposition from international donors.

PDI reiterated its demand for political reforms that it
believes are vital for the country to emerge from the crisis that
is taking its greatest toll on the poor.

Political reform, Bambang said, was needed to promote the
development of democracy which had often been hampered by
incidents such as the banning of artistic performances and the
muzzling of government critics.

Praise

Golkar, ABRI and the regional representatives highlighted the
successes of the Soeharto administration in the development of
various sectors.

Golkar faction spokesman Ary Mardjono said Golkar fully
supported President Soeharto's "IMF-Plus" formula to overcome the
economic crisis.

The faction said the government deserved applause for what it
saw as "serious efforts" to create clean, efficient and
respectable governance.

"The nation's development will succeed only if it is backed by
capable and honest bureaucrats," said another Golkar spokesman,
Fahmi Idris.

Golkar said that between 1994 and 1997, most development
targets were achieved while others could not be achieved because
of the economic crisis and last year's drought.

ABRI spokesman Hari Sabarno praised President Soeharto for
"honestly" admitting that the current crisis happened because the
Indonesian economy was not strong enough to resist external
pressures and for promising to do everything possible to end it.

The faction backed the government's short-term plans to create
jobs for those dismissed by their bankrupt companies and to
procure medical supplies.

The regional representatives, made up of governors, regional
military commanders, informal leaders and government officials,
expressed their concern over the economic crisis that had ruined
the results of the development programs the New Order government
had implemented.

Faction spokesman Soewardi said the crisis had triggered
massive unemployment that would burden the next government.
(pan/byg/imn)