Three factions reject speech

JAKARTA (JP): Three of the seven factions presenting a response to President B.J. Habibie's accountability report at the People's Consultative Assembly (MPR) flatly rejected the President's speech, while the other four remained vague in their final conclusions.

The three factions -- the Indonesian Democratic Party of Struggle (PDI Perjuangan), the National Awakening Party (PKB) and the Indonesian Nationhood -- had harsh words for Habibie whom they said had failed to account for many unresolved and controversial issues during his 16-month presidency.

Four other factions -- the Golkar Party of Reform, United Development, Reform and Crescent Star -- gave ambiguous conclusions as they questioned many aspects of Habibie's speech, but at the same time highlighted several of his achievements.

Rather than presenting a definitive stance, they decided to forward the issue for discussion with the Assembly commission.

The seven factions were the first scheduled of the Assembly's 11 to give a general overview of the accountability speech. The remaining four will have their turn on Saturday morning.

President B.J. Habibie presented on Thursday his accountability speech, a mandatory requirement for a president. He will respond to the factions' overviews on Sunday.

Habibie patiently sat through the plenary session which lasted over three hours.

He may have physically sat in the corner of the front podium, but he must have felt as if he were in front of a firing squad. He looked busy taking notes and gave inquisitive or cheeky smirks as critical comments were hurled his way.

Several members of his demitted Cabinet sat wearily and listened in the wings of the Assembly hall.

Most factions acknowledged the achievements of press freedom and political openness.

However, while the prose and style of the presentation varied, all underlined common subjects of concern -- the economy, human rights and corruption.

Economy

Golkar appreciated the positive macroeconomic indicators such as low inflation, the strengthening rupiah and progress in the bank restructuring program.

They commended the establishment of the Indonesian Bank Restructuring Agency (IBRA), but criticized its weak management, which affects the bank recapitalization program.

The United Development Party (PPP) faction noted that the economy was still languishing and exports still declining.

"We're also greatly concerned about the rapid accumulation of foreign debt which now totals about US$150 billion," said Gazali Abas Adan, the spokesman for the United Development faction.

The faction also called for attention to the critical level of debt service burden.

"Our debt service ratio (against export earnings) has now reached 58.1 percent, far in excess of the maximum sustainable level of 20 percent," Adan added.

PDI Perjuangan noted Habibie's lack of an economic platform which up until now only followed programs set by the International Monetary Fund (IMF).

The PKB faction criticized Habibie for omitting a crucial point in his accountability speech, that is the loss of domestic and international trust in his administration.

Muhaimin Iskandar of the PKB faction said the strengthening of the rupiah should not be seen as a great success because the exchange rate is unusual, formed within very thin trading and under support from central bank intervention.

He pointed out the cost of bank restructuring was not Rp 350 trillion, as Habibie said in his speech, but between Rp 500 trillion and Rp 600 trillion.

Golkar further regretted that the Bank Bali scandal had set back banking reforms.

Spokesman Prio Budi Santoso said it was imperative that the full report of the PricewaterhouseCoopers (PwC) investigative audit on the Bank Bali scandal be presented to the House of Representatives.

The government is now waiting for a legal ruling by the Supreme Court on whether the report can be disclosed.

The scandal centers on Rp 546 billion ($80 million at the June rate) in funds that were siphoned out of Bank Bali to a company controlled by officials of Habibie's Golkar party. PwC found numerous indicators of fraud and the flow of funds from the scandal were allegedly linked to Habibie's close aides and Golkar officials.

The Reform faction turned down the positive macroeconomic indicators as cited by Habibie in his speech, as artificial because they were not supported by a fundamentally strong economic base.

Rights

Zulfan Lindan, in conveying the PDI Perjuangan faction's overview to the Assembly, berated all of Habibie's decisions related to human rights issues.

The release of political prisoners was not an achievement, as it was a must for whoever took over the country after Soeharto's era.

Golkar highly appreciated the release of political prisoners, but questioned the solutions for unresolved violent cases.

Golkar also asked the President to explain the obstacles in investigating these cases.

The National Awakening Party faction said Habibie's government completely disrespected the life of Indonesian citizens.

Muhaimin said the number of casualties from violence during Habibie's one-and-a-half years in office were equivalent to the number of victims during Soeharto's 32-year-rule.

The Crescent Star faction excused Habibie's failure in maintaining the stability and security of the country, saying the matter was not simple and a result of previously repressed problems, long before he took over the country's leadership.

The Indonesian Nationhood faction, through its spokesman Sutradara Gintings, however, was unremorseful, saying that the various public human rights measures Habibie took were publicity stunts designed to raise his own reputation.

All were critical over Habibie's handling of the East Timor issue, lamenting its likely separation from Indonesia as a result.

They criticized Habibie for not bringing the option of a ballot to the Assembly before executing the plan.

"The handling of the East Timor issue was not a mandate to be carried out by Habibie," Sutradara said.

He likened the East Timor policy to an experiment Habibie carried out in a laboratory.

"The option was an expensive experiment as it resulted in the amputation of our sovereignty and the fall of Indonesia's international credibility," he added.

On the issue of corruption, collusion and nepotism (KKN), questions were raised about Habibie's determination to weed out these crucial offenses.

"Golkar questions the governments determination to solve any KKN practices, either connected to former president Soeharto or others", Prio Budi Santoso of the Golkar Party of Reform faction said during the plenary session.

He question the government's decision to drop investigations of the alleged corruption by Soeharto, and the exoneration of the suspects in the Goro case, which included the former president's youngest son.

Similar concern was expressed by Zulfan Lindan of PDI Perjuangan.

"The endorsement of new laws (against corruption) were only intended to protect political interest," he said.

The faction claimed that law No. 8/1999 was actually an effort to protect parties involved in KKN practices before the endorsement of the law.

The Indonesian Nationhood faction criticized the Habibie government's failure to abolish KKN practices.

"People also cannot see the results of the government's efforts to abolish KKN practices in real life, including community administration and license services," it said. (02/emf/vin)