Three factions reject speech

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)