Susilo warned against 'corporatocracy'

Susilo warned against 'corporatocracy'

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Tight regulations for government officials whose families run
businesses will be not enough to keep them from abusing their
powers, an expert says.

It would be better for President Susilo Bambang Yudhoyono to
replace his Cabinet ministers who had direct links to business
enterprises, the expert suggests.

"The President has the prerogative to replace ministers who
are in dual roles and appoint loyal and dedicated professionals
to the Cabinet. State officials and their families should also be
barred from doing business," the rector for the State Institute
of Public Administration, Ngadisah, told The Jakarta Post on
Monday.

Ngadisah said the presence of government officials taking
advantage of their positions would lead the country to what she
called a "corporatocracy".

While visiting South Korea, Susilo said he would issue a
presidential instruction regulating government officials whose
families or business groups were involved in public projects for
the sake of good governance. The President called the officials
"dual-function" politicians.

Earlier, Vice President Jusuf Kalla, whose family runs a range
of businesses, said the presence of former businesspeople in the
Cabinet was an unavoidable trend as many entrepreneurs were
involved in politics. Kalla is a former businessman who now leads
the Golkar Party, which won the most votes in 2004 legislative
election.

Ngadisah said a corporatocracy would in the long run give
raise to economic oligarchies at the expense of democracy as
power and economy fell into the hands of a minority elite.

Ministers were already deeply involved in the making of public
policy.

"The chances are big that they will be trapped in conflicting
interests if their families take part in government projects,
although they are offered through public tenders, because
business aims at making profits," she said.

Ngadisah expressed skepticism that the planned presidential
instruction would work because of the absence of close
supervision.

"Public control, including from the mass media, is very
possible, but it has no legal consequences," she said.

Tjahjo Kumolo of the Indonesian Democratic Party of Struggle
said the regulation demonstrated the President's inability to
shake up his Cabinet after strong pressure from Golkar.

"SBY won the people's mandate. He should not be hesitant to
exercise his prerogatives to replace his ministers, particularly
the economic team who have proven failures in carrying out his
economic programs," Tjahjo said, referring to Susilo by his
initials.

Soetrisno Bachir, a businessman who chairs the National
Mandate Party, said non-partisan figures should not be barred
from public positions, but public officials should be prevented
from doing business to avoid conflicts of interest.

"A presidential instruction is not necessary. The President
should encourage the strict enforcement of Law No. 28/1999 on
clean government and take actions against state officials
involved in corruption, nepotism and collusion. It is very simple
and a strong political commitment from the national leadership is
needed," he said.

He said all sides should be fair in treating Kalla and
Coordinating Minister for the Economy Aburizal Bakrie because
their families complied with the rules of the game when doing
business.

"So far, there is no evidence that either Kalla or Aburizal
have misused their powers to enrich their families and business
groups," Soetrisno said.