Tue, 16 Mar 1999

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)