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.