State companies banned from 'money politics'

State companies banned from 'money politics'

JAKARTA (JP): The government has banned state enterprises from
funding political parties, but conspicuously overlooked
specifying punishment awaiting violators.

In an instruction letter to all state-owned companies dated
Feb. 26 but only released on Monday, State Minister of the
Empowerment of State Enterprises Tanri Abeng labeled as "money
politics" financial assistance from the firms to a political
party.

"To avoid unexpected conflicts at the state enterprises'
expense, all facilities belonging to a state-owned company are
not allowed to be used in any form of electoral campaign," he
stated.

The newly passed political party law allows companies, whether
private or state owned, to donate up to Rp 150 million
(US$16,700) to a political party.

But Tanri barred state enterprises from supporting any of the
48 political parties contesting the June 7 general election
because the companies were basically owned by the Indonesian
people, not a particular political group.

State companies have been widely seen as financial sources of
the ruling Golkar Party, particularly under Soeharto's New Order
regime. Some businesspeople also complained about being strong-
armed into making donations to Golkar.

Tanri said on Monday state-owned companies should focus on
economic activities and stay clear of politics.

"State enterprises are economic institutions seeking profits
and added value. Therefore, we have to keep them from anything
that could adversely affect their performances."

He promised there would be stern punishment for managers who
violated the instruction, but dismissal was not one of his
considerations.

"I haven't thought about dismissal of a state enterprise
manager who is close to a particular political party. But they
deserve heavy punishment, at least for their lack of discipline."

Tanri said violation of his instruction could also lead to
charges of malfeasance of state funds, which would be made
following investigation by the State Audit Agency.

Coalition

An assistant to Tanri, Sofyan Djalil, said individual
employees of state enterprises were still allowed to give money
to political parties as stated by the political party law. The
law limits individual donations to Rp 15 million.

Influential leader of the National Awakening Party (PKB)
Abdurrahman Wahid, better known as Gus Dur, reiterated on Monday
the probability of a coalition between his party and the
Indonesian Democratic Party of Struggle (PDI Perjuangan) under
Megawati Soekarnoputri.

"The coalition is very likely because basically we share the
same ideas as to how to help this nation recover," said the PKB
founder and chairman of the country's largest Muslim organization
Nahdlatul Ulama.

Abdurrahman expressed guarded optimism the two parties would
come out the winners in the polls due to extensive grassroots
support.

He ruled out a possible coalition with the National Mandate
Party (PAN) or Golkar.

"We haven't thought about that so far," he said.

Abdurrahman, Megawati, PAN chairman Amien Rais and Golkar
member Sultan Hamengkubuwono X were the four signatories to what
has become known as the Ciganjur declaration.

Election-related violence occurred in Central Java on Sunday
when PKB and PAN supporters clashed in downtown Surakarta on
Sunday. At least 12 people were injured, with two requiring
hospital treatment.

Local PKB chief Mahsun Musyafak told The Jakarta Post on
Monday the brawl followed a minor traffic accident involving
vehicles of two rival groups on Jl. Ahmad Yani. Both groups were
returning from party functions.

"We have reached a peaceful settlement, with each of us
deploring and apologizing for the incident," Mahsun said.

More violence was reported in Tegal and Kudus, all targeting
United Development Party (PPP) members. At least 10 PPP
supporters were injured in Tegal after an unidentified group
pelted them with stones.

"We suspect the assault was conducted by supporters of an
influential political group in the province," the deputy chief of
local PPP office, Hendro Suyitno, said without identifying the
party.

In Yogyakarta, rector of local Teacher Training Institute
(IKIP), Djohar, said the institute would not join the election
monitoring commission due to fears the activity would spark
conflicts with political parties.

"Election-monitoring mechanisms remain unclear, so we are
afraid we risk fighting with the parties if we deploy students to
watch over the polls."

He said he was surprised that some of his fellow rectors opted
to join the poll-monitoring group without adequate knowledge of
its system. (02/44/har/edt/amd)