Saturday, March 27, 2010

Said Aqil Siradj, new NU Chairman

Said Aqil Siradj is elected new chairman of Nahdlatul Ualama, the largest Moslem organization in Indonesia, replacing Hasyim Muzadi. Said will lead NU until 2015.
There were 503 people who had a right to cast a ballot. Said secured 294 votes, while his main rival Slamet Effendy Yusuf got 201 votes. Earlier on Saturday, Sahal Mahfudz, was elected chairman of the advisory board, defeating Hasyim Muzadi. Sahal secured 272 votes, while Hasyim got 180.
The election of NU chairman was conducted in two phases where only candidates with minimum support of 99 could go to the final round. Said got 178 votes, Slamet 158, while Salahuddin Wahid (brother of the late former president Abdurrahman Wahid) only got 83 votes, followed by young NU intellectual Ulil Absar Abdalla (22 votes), Ahmad Bagja (36), Masdar Farid Mas'udi (6), Ali Machsan Moesa (8), Hasyim Muzadi (6), and Abdul Azis (7).
Who is Said?
Born in Cirebon, West Java in 1953, Said graduated with bachelor degree, master, and PhD from Saudi Arabia universities. A father of four, he has been member of NU's executive board since 1999. Said is lecturer and professor at some universities in East Java. In 1998-1999, Said was a member of National Commission for Human Rights (Komnas HAM).

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Wednesday, March 03, 2010

Two wives compete to replace husband-regent

This is something! Probably the first in modern Indonesian history that two wives are competing in an election. This is about Mrs Haryanti and Mrs Nurlaila, wives of Kediri regent, Sutrisno, who enter a fierce race to be the next regent (2010-2015).
Detik.com reported that Golkar and PPP have endorsed Mrs Haryanti, the first wife, while National Mandate Party (PAN) nominates the second wife Hj Nurlaila. Golkar and PPP have reportedly jumped ship from Nurlaila to Haryanti. Their husband, Sutrisno, raised to power with the support of PDI-P. It is not clear who will get the support from PDI-P.
Earlier on Tuesday, Detik.com quoted political science lecturer at Airlangga University in Surabaya, Suko Susilo, saying it's unethical to have both the regent's wives entering the race. Well...

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Friday, February 26, 2010

I'm (Not) Responsible

Yesterday, media quoted President SBY saying, "as the head of the State, of course I'm responsible for what's going on in this country, in development and other sectors." Media interpreted that as a response statement to final conclusions made by nine political parties on Century case investigation.
Today, the President's spokesperson Julian Aldrin Pasha, corrected that saying "the President will not takeover the responsibility on Century case." President SBY is scheduled to give a speech as formal response to the issue sometimes early next week. "I clarify, that President never said he will takeover the responsibility (on Century case)," Julian said. What an ambiguity! How would people like Boediono and Sri Mulyani Indrawati see this?

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Saturday, December 19, 2009

Politainment

Bad-mouthing or fights between political figures could generate endless politainment (just like infotainment). Media reports on exchange of statements between Adnan Buyung Nasution (member of advisory council to President SBY) and Tifatul Sembiring (member of SBY's cabinet).
Buyung called Tifatul might be a spokesperson for "corruptors" because of Tifatul's defense for government's draft to regulate the wiretapping, including on anti-graft body KPK. Angered, Tifatul promised "to fire Buyung". 
Wikipedia described politainment as a word composed of politics and entertainment, describes tendencies in politics and mass media to liven up political reports and news coverage using elements from public relations.
The International Encyclopedia of Communication (2008) described the following: As well as infotainment, which is used as a label for a specific television program type, the term “politainment” denotes, in a broader sense, the entangling of political actors, topics, and processes with the entertainment culture.
But it was media scientist Andreas Dorner who coined the phrase "politainment" in his famous paper: Politik in der medialen Erlebnisgesellschaft about nine years ago. Dorner names two types of politainment: entertaining politics and political entertainment. 
As explained by Nina Mahrt in her article (A Comic Approach to Politics? Political Education via Comics) in Journal of Social Science Education (Vol 7/8, 2008/2009), Dorner argues that each occurrence can't be completely separated from the other for the two often go together. Entertaining politics can be found whenever political players use instruments and stylistic elements of entertainment in order to actualize their political aims. Political entertainment, on the other hand, describes the work and products of mass media.
While some considered politainment an effective education tool, others criticized. Jeanette Henderson in her blog commented how politainment is a real danger to the future of US. "
Henderson raised the following questions: Do we really want our political leaders to behave like stand up comedians? Must we insist the minds of our candidates be diverted away from their serious job of being a leader to the opposite job of keeping us entertained? Don’t we already have enough professional performers to do that? If the only way to compel the voting public to become involved with politics it to turn our candidates into amateur entertainers, it’s a pathetic prospect for the future of our nation.
US President Barrack Obama is considered politainment rock star, but his quality as president is being tested in most current affairs. Indonesia has SBY as the politainment star too. Those members of inquiry team on Century debacle are now the actors. Previously we have Team 8 in Chandra & Bibit case. Our legislators appeared more frequently in the politainment shows than serious hearings at the House of Representatives (DPR) building. Our ministers are also regular politainment stars, regularly give speech in seminars, workshops, TV interviews, cover for magazines, etc. 

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Tuesday, November 10, 2009

Cikeas Idol: Round II

The first Cikeas Idol accomplished late last month. Out of thousands names, 34 have been selected as ministers. They're all happy. Everybody smile. Coz it is considered a "gift", not a tasking.
As the winner of Cikeas Idol, they will get to following facilities and incentives: (1) First class ticket to anywhere, (2) Free of traffic jam, (3) Free Breakfast, Lunch, and Dinner at the best restaurants, (4) Toyota Camry, (5) Big House in prestigious complex, (6) Private guardians, and (7) Name what you want (as long as you're not afraid of corruption, collusion, and nepotism charges).
You won't upset with all these offers, right? Tomorrow, seven new idols will be crowned as vice ministers. They will get slightly less than the first idols, but decent enough to leave a job as CEO of multinational company, for example. 
For those who have yet to be selected, there will be more Cikeas Idols to come. Depending on how you play, there might be next rounds of First Class Idols, but you have to get rid off some of them next year or two years from now under a program called "reshuffle".
Some might trigger noises on certain Idols to push that "reshuffle". If have tried that, but there is no such reshuffle, you have to wait five years from now. There is a possibility that they will change the program. Not Cikeas Idol anymore. But it's pretty much depend on what will happen in the next five years. Who knows that there will be another Cikeas Idol rounds in 2014 onwards?

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Monday, November 09, 2009

Seven Vice Ministers & Civil Servants

President SBY is scheduled to install vice minister for up to seven departments on Wednesday, November 11, 2009. Do we really need them?
These vice ministers shall be those with identity as civil servants. The departments predicted to have vice minister are finance, foreign affairs, industry, transportation, agriculture, defense, and health. We have to admit, civil servants are better off after the 1998 reform. In fact, they're the clear winners of the reform.
The basic salary of civil servants in Indonesia is currently higher than minimum wage of most Indonesians. Higher salary is expected to cut corruption, while that's not the case. Attorney General, for example, asked legislators to approve his plan to raise minimum salary of state prosecutor to Rp10 million or about US$1,000 per month. That would translate to US$12,000 per annum or about six times the nation's average GDP per capita.
The President's salary is currently Rp60 million per month or about Rp800 million per annum (US$90,000), 45 times the nation's average GDP per capita. US President Barrack Obama makes US$475,000 per annum or 10 times the country's GDP per capita (PPP).
High school teachers in Jakarta could make Rp6.5 million per month, lot better than average salary of journalists in town. The lowest paid civil servant in Indonesia, according to President SBY's speech before National Assembly in August, is Rp1.72 million per month or slightly less than US$200 per month. Since most civil servants get 13 months of salary, they could make at the minimum of US$2,600 per annum. Meanwhile, minimum wage for non-government sector is set US$106 per month in Jakarta. 
Public service is currently the best paid job in Indonesia, especially taking into account their relatively "relaxed" working environment. Civil servants in most government offices could go home three hours earlier than their peers in private sector. With less working hours, the current average salary of civil servants could be considered overpaid.
That's why government job attracted youngsters in various provinces. Look at this article, where 56,000 people are competing for 7,411 tickets in North Sulawesi province. Brokers reportedly offer one seat for US$3,000 (guaranteed).
Or this one in South Sumatra, where 6,000 applicants competed for 82 seats in department of religious affairs. In Sleman, Yogyakarta, 7,410 people submitted their CVs online, while only 367 seats available. In Bengkulu, the ratio is 10 to one, 7,616 applicants for 700 seats.
These guys are looking for jobs. They are not entering public sector to serve public. But realistically, this is the easiest way to create job. Expand the bureaucracy. Create more departments, more ministerial level positions, more legislators, more regents, sub-regents, governors, team member this and that.
But please tone down your expectation, i.e. to get better public service. Oh, and if you think higher salary will trim down bureaucratic process or corruption, please continue your dream. 

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Friday, November 06, 2009

My enemy's enemy

It is a general belief that legislators hate Corruption Eradication Commission (KPK) because some of their friends have been jailed, prosecuted, and wiretapped. In the past few months, we have seen open wars between KPK and police/attorney general's office (AGO). 
Last night's hearing between House Commission III and National Police leaders was not more than a meeting of two friends. The friend in need went into tears, telling friends that "I didn't do it. I swear to God. I never took the bribery..hiks..hiks..." The friends started to console him...and BIG SMILE...They loudly said in chorus...LET'S FIGHT BACK!
It reminds me of the below story from Republic of Idiotidols, where crocodiles and Komodo joined forces to fight Lizard Citizens.
They are a stronger group now: 50 + 50. "You are crocodile, right? And, we're Komodo. Don't let one single lizard alive," one member of the group said.
"How many of them?" another member asked. "About one thousand," the other replied. "That's not enough for all of us," others started to complain. 
"When will we get them?" "Tomorrow. It's already 3AM in the morning. Let's get some sleep, and let these lizards have their good sleep. According to the veterinarians, lizards with good sleep will have better meat."
"BTW, do we need back-ups from the King Kong?" one Komodo asked. "Oh, C'mon, King Kong is just too busy brushing his hair, check his cheek in the mirror, and serving the powerful Queen Kong," a sleepy crocodile replied.
So they decided to go to bed. When they're about to get their meals, they realize that the number of lizards have skyrocketed to millions. 
"Do you think we could win?" one crocodile asked to a hungry Komodo.
"Check out whether Britain succeeded in subsidizing any government that would oppose Napoleon? Did Nixon's alliance with Mao's China manage to weaken Soviet Union?"
The problem with the lizard group, some lizards have been trained by the crocodile group to be their informant or do some counter-intelligence operation.  (Haryanto Suharman & Yosef Ardi)

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Ka'ban denied police allegations, who's lying?

Former forestry minister MS Ka'ban (2004-2009) denied allegations that he took Rp17 billion bribery in relation to the investigation on PT Masaro Radiokom (owned by Anggoro Widjojo) scandal. He also denied the police's theory about his close relationship with suspended KPK leader Chandra M. Hamzah.
Police Chief Bambang Hendarso Danuri mentioned at least twice yesterday about MS Kaban and Chandra M. Hamzah. First, he informed Team 8, established by President SBY about the flow of funds to MS Ka'ban. Second, he indirectly confirmed about that in a hearing with House Commission III. 
MetroTV interviewed Ka'ban saying "I never received Rp17 billion, and I don't know Chandra M Hamzah."
Ka'ban was a big supporter of SBY-Boediono. He declared the Pro SBY Movement (GPS) which campaigned for SBY-Boediono in the presidential election. Ka'ban is still the chairman of Crescent Star Party (PBB), which failed to get parliamentary seat.
In an effort to strengthen the Ka'ban-Chandra "conspiracy", police then mentioned the relationship between Ka'ban and Chandra where Ka'ban was the witness for Chandra's wedding with Nadia, daughter of the late respected Moslem leader Nurcholis Madjid (Cak Nur). 
But Ka'ban denied that. Worse, Nurcholis' wife Omi Komaria denied and condemned police chief Hendarso. She said Ka'ban was not even invited for the wedding ceremony. "I'm so sad learning the statement from Police Chief about the late Cak Nur and Nadia," Omi said.
Chandra's lawyer also deplored Police statement on the issue. Kompas.com published an article titled "Police Chief is alleged of spreading gossip."

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Wanna be minister? Establish Scholarship for...

If you want to be a cabinet minister in 2014, probably you can this "little trick". Establish a scholarship program in the ESMP at the JFKSG, top US university. Find one Indonesian, son or daughter of a potential president for 2014-2019. Help him to get a confirmed acceptance at the school. God Willing, you will be secured a cabinet post in his or her father/mother's cabinet. 
Criteria to get the scholarship: He or She shall be the beloved children of the potential president candidate in 2014. You may add the following criteria:
(a) an excellent academic record with a first degree equivalent to a good Second Class (Upper) Honors or higher or a GPA of at least 3.5; (b) a very good command of the English Language; (c) at least seven years full time relevant work experience; and (d) assessed to have outstanding potential for leadership in government, business, or civil society after graduation. 
You don't have to start it now, because election is still four years and eight months away. You can start in 2013. But you have to search the right candidate from now on, because others might do the same. Make sure you pick the right candidate. Then you may start to think what portfolio in the next cabinet you really want.
If you need consultation, you may contact the following address: ADORAFOUNDATION.CO.ID. PS: ONLINE CONSULTATION ONLY, FREE OF CHARGE, BUT IF THE ADDRESS IS NOT CORRECT, BLAME BOOBLE.COM!

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Thursday, November 05, 2009

Susno & Ritonga resigned, next?

Susno Duadji, head of criminal investigation unit, and Abdul Hakim Ritonga, deputy attorney general, have resigned from their respective post. Their names are allegedly implicated in a plot to incriminate two suspended Corruption Eradication Commission (KPK) leaders. Will National Police Chief Bambang Hendarso Danuri and Attorney General Hendarman Supandji follow suit?
Actually some reporters have raised the question to Hendarman. His answer was, "it's up to the President." Isn't resign a voluntary action born out of self-consciousness?

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Tuesday, November 03, 2009

Crocodile Dumbee

National Police Chief Bambang Hendarso Danuri has finally apologized for the gecko and crocodile terms first popularized by criminal investigation unit head Susno Duadji for Corruption Eradication Commission (KPK) and police respectively few months ago.  
Some said it's just too late. The metaphor turns out to be a mess, not only for police, but president SBY. SBY's inaction in the dispute between KPK and police has disappointed millions of people, including those voted for him in July 8 election. Millions of people have been rallying behind the "gecko" in a "people power" against the "crocodile".
The police chief urged the society to stop using the gecko vs crocodile metaphor. He even claimed himself as a member of "gecko", not crocodile.
As for Susno "crocodile" Duadji, looks like that he will find the end of his career as head of criminal investigation unit.
  

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Sunday, November 01, 2009

Voted for an idol, don't expect a president!

Lots of people, who claimed themselves voted for SBY-Boediono in July 8 election, expressed their disappointment over SBY's position in the high profile dispute between Corruption Eradication Commission (KPK) and police/attorney general's office. 
In less than three days after its establishment, the Facebook account to support two suspended KPK leaders---Bibit Samad Rianto and Chamdra M. Hamzah---got over 200,000 members. Even political parties within SBY-Boediono coalition criticize SBY for his inaction. "This is a country without government," Nursyahbani Katjasungkana, politician from National Awakening Party (PKB).
Sorry guys, we voted for an idol, we got an idol. We voted someone because of fake images created through beautiful advertising and media reports. Look at how we continued the "Indonesian idol" with "Cikeas idol" (selection of ministers which looks more of an audition for an pop idol than a selection of leaders). Cikeas is the private residence of SBY where he and VP Boediono "interviewed" minister candidates. The Indonesian Idol has been mandated to appoint lower level "idols". 
Hikmahanto Juwana, law professor at University of Indonesia, warned SBY for a possible "people power"emerged from the crisis. He shouldn't take it lightly. The president's press statement on Friday has failed to win public support for his inaction. Students might stage public rallies soon. Facebookers will also stage public rally on November 8, 2009. More influential figures have been rallying behind KPK leaders. Nahdatul Ulama and Muhammdiyah, two of the largest Moslem organizations, are rallying behind KPK leaders. Political parties will soon turn their back from SBY. 

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Saturday, October 31, 2009

ALL THE PRESIDENT'S MEN

Will SBY end up like Nixon? "Impeach SBY," one reader of Kompas.com campaigned. "This is the New Order Part II," another reader commented. Others tend to be sarcastic. "This is a revenge because KPK prosecuted the father-in-law of his son...", "This is a systematic action to kill KPK..."
"He let this from happening so his cronies could corrupt absolutely, following his teacher, Soeharto. Cikeas Dynasty." "Who asked you to vote for SBY?" others commented. These hate posts are reflection of how upset people are on SBY and his men.
Main targets of public criticism are Bambang Hendarso Danuri (Police Chief), Susno Duadji (head of criminal investigation unit), Hendarman Supandji (Attorney General), Abdul Hakim Ritonga (deputy AG), and Djoko Suyanto (coordinating minister for politic, security, law, and human rights). They are all the president's men.
Police and AGO have widely been considered responsible in what popularly believed as criminalization of Corruption Eradication Commission (KPK).
Watergate scandal implicated Nixon, which led to his downfall, mainly because his men masterminded the plot against Democratic Party. Nixon is the ultimate beneficiary owner of their actions. The question in the KPK fiasco is of course whether SBY could be considered benefited from the plot against KPK leaders.
It is true that SBY made "strange" statements. He, for example, once said "KPK has grown into an overly powerful institution." He also expressed "concern"about KPK's wiretapping thing. But we can't answer the question based on his statements, including the recent controversial tapped conversation which mentioned SBY.
Bibit and Chandra are prosecuted based on "statements" from former KPK chairman Antasari Azhar (detained in multiple cases) that he "heard" the flow of Rp6.7 billion funds to KPK leaders. 
Police then named Bibit and Chandra suspects in "bribery" case. But when they failed to get convincing evidence, they moved to different allegation: abuse of power.
With three KPK leaders named suspects, president SBY then issued government regulation in lieu of law to install three provisional leaders for KPK. The main reason was because KPK needs at least three leaders to make crucial decisions.
But on Thursday, October 29, Constitutional Court dropped "a bomb" with its verdict where Bibit and Chandra can't be suspended.
Interestingly SBY said "this is just a case, like others," while public, including Constitutional Court, believe "this is an extraordinary case."
But of course SBY wants to be perceived as a president who upholds the law when he said "I don't want to intervene the investigation." But he seems to miss is law without the sense of justice is meaningless. He is trapped in a formal process of law framed by police and AGO or men around him. 
Everybody shared his view on the importance to honor any formal legal process. But they felt something the president might not. Rationale built by police to detain Bibit and Chandra is not shared by most people. 
When police said Bibit and Chandra made too many press statement which affected investigation, and as a result they should be detained, is horrible from human rights perspective. Under the law, everybody, even if he or she is convicted reserved the right to talk.
He might wants to be perceived of "not taking sides". But his inaction is considered an endorsement to police, an indirect support to police, so he is taking sides. Unfortunately, people have completely different view about police. SBY seems trusts on police so much while most people doubt and cynical.

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Friday, October 23, 2009

New Ministers, More Promises

Reading newspapers this time around, we would feel like we're in the middle of election campaign season. New ministers in SBY-Boediono cabinet were competing to publish their promises. 
ICT Minister Tifatul Sembiring promises "green Base Transceiver Station" where the telco BTS will source their electricity from biogas derived from cow manure. Education minister Muhammad Nuh promises cheap books, while agriculture minister Suswono promised self-sufficiency in corn and sugar.
Energy Minister Darwin Zahedy Saleh pledged to launch a bureaucratic reform and promote alternative energy, while environmental affairs minister will campaign for stopping mining license within forest area.
Endang Rahayu Sedyaningsih, health minister, pledged no more cooperation with US Naval Medical Research Unit (Namru). 
Fishery and maritime affairs minister Fadel Muhammad promised fishermen's prosperity, while law and human rights minister Patrialis Akbar wants to make his ministry a favorite. Even trade minister Mari Pangestu, one of few ministers from SBY-Kalla administration, promised for online licensing next year.
Coordinating minister for the economy Hatta Rajasa made the most, even though we have heard similar promises in the past five years, like boost the real sector, create more jobs, accelerate infrastructure development, improve electricity supply, reform the bureaucracy, higher economic growth (up to 8%), etc.
Their boss, President SBY, announced three slogans in the first cabinet meeting: "Change and Continuity", "De-bottlenecking, Acceleration, and Enhancement", and "Unity, Together We Can."
We might get more promises and slogans in the coming days, weeks, months, and years until we finally enter the "real election campaign" season. 

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Wanna be minister? Try public rally!

Days of public rally in Maluku to protest no Maluku guy in SBY-Boediono cabinet turned out to be a big success. SBY promised to give one seat to someone from Maluku. Flores, Timor, Indian may follow!
"Not very long, there will be someone from Maluku in a strategic post in the administration," President SBY said today.
Media reported yesterday that thousands of youngsters staged public rallies in Ambon, Maluku province. They came from various organizations (PKMRI, HMI, GMNI, etc) to protest SBY's cabinet composition where no one from Maluku in the new cabinet.
Earlier on Tuesday, leaders of youth organization KNPI Maluku staged public rally at Maluku DPRD (local house of representatives) to protest the cabinet selection.
Tempo Interaktif had a comprehensive report about the rallies. Well, no Flores nor Timor guy in the cabinet. Should they stage public rallies, will the president enlarge the cabinet again?

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Sad for Nila, a "crisis" for SBY

She was crying when she's informed that she can't be the health minister. Hundreds of well-arranged congratulation flowers have been arrived at her residence. She then asked housemaid to take the flowers away. 
Nila Djuwita Moeloek had been widely mentioned as candidate for health minister. She is a professor, an ophthalmologist, and one of few people invited to a discussion with visiting US President George W. Bush few years back in Bogor, West Java. 
Nila is the wife of former health minister Farid Anfasa Moeloek, an anti-smoking spokesperson. Farid once said government shall issue a regulation to ban smoking because potential losses to the State is estimated at Rp325 trillion per annum, while contribution from tobacco excise is about Rp50 trillion per annum. 
Rumors quickly spreading that Nila failed a "psychological test". Nila confirmed that according to the test, she can't handle working under stress. Interestingly, some reports pointed to four other candidates of failed medical test (two others for psychological test, one for heart, and the other one for hepatitis C). 
"But why Nila is the only one replaced," Ribka Tjiptaning, chairperson of the House Commission IX (health affairs), a politician from PDI-P, questioned.
Ribka doesn't believe in the medical test behind the decision to replace Nila with Endang Rahayu Sedyaningsih. The steamy allegation is that SBY was "under pressures" to replace Nila, from both local (cigarette companies) and international lobbies. Endang is considered a "good friend" of US government program Naval Medical Research Unit (Namru) 2.
Advisory board of Indonesian Doctors Association (IDI) doesn't believe Nila can't stand stress because as ophthalmologist, she is used to work under high stress. "From medical point of view, Nila is fit and healthy. But of course it has nothing to do with the political "fit and proper" test result. May be she is not fit "under political pressures"?" Hasbullah Thabrani, dean of Medical School at University of Indonesia commented cynically.
Political observers, as usual, also fired criticism towards SBY's decision. But SBY defended his decision this morning saying "in the selection process, she (Nila) is superb, but in one or two spots, I think won't be wise for me to push her in a department."    

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Wednesday, October 21, 2009

Paedophilia & minister candidate

So, one of SBY-Boediono's minister candidates once reportedly detained by Cambodian police in July 2005 with paedophilia allegation. 
Christian Guth, legal advisor for Cambodia foreign affairs ministry, told VivaNews today that two Indonesian legislators were detained by Cambodian police in July 2005. They were in Cambodia to attend the Asean Parliamentary Organization (AIPO) meeting from July 20 to 24, 2005. But Detik.com quoted Guth saying the legislators were released on US$20,000 bail.
Others said the legislators were only "victims" of "blackmail". "Because if that was true, why the guy managed to attend 2006 AIPO meeting in Manila?"
Guth declined to disclose the name of the legislators. If it's true that one of them is the list of minister candidates, he might be the one identified with initial S (based on database of Indonesian delegation at the AIPO). But looks like SBY-Boediono already "clarified" the issue. Looks like the suspected name has been confirmed a new minister.

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Tuesday, July 14, 2009

KPK vs Police: Sampoerna's Money

Police called itself crocodile, equalled Corruption Eradication Commission (KPK) with lizard. So, it is crocodile (buaya) versus lizard (cicak in Indonesian). At the heart of the recent "war" between these institutions is Budi Sampoerna's money at Bank Century. 
It all started with massive fraud at Bank Century, allegedly committed by the bank's former shareholders, including Robert Tantular who has been detained in the case. The bank collapsed, but the State is generous enough to bailout the bank in the name of preventing a bigger risk for the system (systemic risk).
How big is the systemic risk? Well, based on recent calculation, Deposit Insurance Institute (LPS) has injected over Rp6 trillion to keep Century in operation. Thousands of depositors will be at risk if government close down the bank, that's true. But the most affected from the closure would be Budi Sampoerna. Some reports pointed to Sampoerna's over US$200 million funds deposited in the bank.
Under the guarantee system, LPS could only cover deposits at the maximum of Rp1 billion per account. So, it's impossible for Sampoerna to recoup the money if government close down the bank. Sampoerna is known for "good relationship" with the ruling elites. Government decided to bailout the bank and had LPS injected significant amount of liquidity, including short-term facilities from central bank under the leadership of Boediono.
The bank survived, at least until now. The bank's management claimed various improvements. Still, it is not "easy" for depositors, including Budi Sampoerna, to get their money out of the bank. The first argument was to prevent liquidity crash, understandable. The second is police investigation on Tantular, Bank Century, and Antaboga Delta Securities. Police reportedly ordered Century not to release "major deposits", including Sampoerna's.
But in April, Sampoerna got "great news". Susno Duadji, National police chief of detectives wrote a letter to Century management in relation to Sampoerna's US$18 million funds. "In relation to US$18 million deposits of PT Lancar Sampoerna Bestari in Century, there is no more issues," Duadji wrote. Copy of the letter is published by Koran Tempo this morning.
Duadji referred to police investigation, examination on Robert Tantular and Boedi Sampoerna, plus discussions with Rudjito (head of commissioner council of LPS) and Maryono (CEO of Bank Century).
It is this letter that triggered rumors that the detective head got "compensation" of US$1 million for "releasing" the deposits. Duadji denied the allegation. He then complained about wiretapping by KPK. In a move seen as "retaliation", KPK investigates KPK deputy chairman Chandra Hamzah in relation to the case of suspended chief of the antigraft body, Antasari Azhar.
SBY as "father" of the "crocodile" invited a meeting with the "lizard" to end the rivalries. But others worry about "the peace deal" yesterday at the State Palace would only weaken anti-graft campaign.

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Friday, July 10, 2009

Fights over cabinet

The possibility of Golkar Party rejoins SBY-led coalition started to heating up the relationship between coalition members. Prosperous Justice Party (PKS) warned SBY to "honor" the "deal" with 24 political parties which endorsed the incumbent.
Mahfudz Siddiq, chairman of PKS faction in the House of Representatives (DPR), said Golkar's reentry to the ruling administration shall not disturb the established coalition. "If Golkar finally joins the coalition, the should be given posts initially allocated to professionals, not the quota for coalition members," Siddiq said.
PKS, the second largest party within the Demokrat Party-led coalition, has reportedly proposed eight names for the new cabinet, including people like Tifatul Sembiring (PKS president), Hidayat Nur Wahid (former PKS president), Iwan Prayitno (legislator), and Zulkieflimansyah (legislator).
But Demokrat Party deputy chairman Ahmad Mubarok dismissed the rumor saying "coalition members already knew when it comes to cabinet, it's the whole authority of SBY to decide," he said.
Looks like PKS wants more seats in the next cabinet (now three). "At the moment we have 45 seats. In the new DPR, we will have 57 seats, so it's logical to have more cabinet seats," Siddiq is quoted by Tempointeraktif.com.
Sign of Golkar's reentry could be seen in Fahmi Idris' statement. He said Golkar has no other choice than to join SBY coalition. Idris is the head of Kalla-Wiranto campaign team.
Other than PKS, National Mandate Party (PAN) has also started to complain about Golkar's maneuver. "I think, we also have rights to show our resistance towards Golkar. It is better for Golkar to stay out of the administration," Patrialis Akbar, executive of PAN told Inilah.com.
PAN had also proposed some names to SBY for consideration in the establishment of new cabinet. Another PAN executive Toto Daryanto admitted the party proposed some names, but will be flexible on whether SBY add new seats or will reduce the party's portion in the cabinet. PAN has three seats in the cabinet, including Hatta Radjasa, head of SBY-Boediono campaign team. Hatta is reportedly tipped as coordinating minister for people's welfare, replacing Aburizal Bakrie.
Having Golkar will only complete the colors of another rainbow cabinet. The cabinet will be dominated by blue, white, green, dark green, light green, dark blue, yellow, etc. Like rainbow, it looks beautiful but needs clouds to exist. Rainbow disappears as clouds float through the sky!  


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Golkar chairmanship race intensifies

Hours after quick counts shown Jusuf Kalla, chairman of Golkar Party, lost the presidential race, various groups have intensified maneuvers to accelerate the party's convention to elect new chairman. 
Today, Ridwan Bae, head of South East Sulawesi chapter of Golkar Party, claimed Aburizal Bakrie has secured support from 500 regency and provincial level leaders of the party to be the new chairman.
Bae predicted Surya Paloh, chairman of advisory board of Golkar Party, will be Bakrie's main competitor in the race. But he believes Bakrie will get additional support from Agung Laksono (currently deputy chairman) and Akbar Tandjung (former chairman). According to Bae, Tandjung will be the new chairman of advisory board, while Laksono might be the new secretary general.
Bae claimed significant support for Bakrie has nothing to do with "money politic". Really? Well Fahmi Idris, head of Kalla-Wiranto's campaign team, believes those local chapter leaders approached the potential candidates because of "money". He didn't mention names, but people know what he really means.
Kalla expects his successor will be from young generation. Kalla insisted that the party doesn't need an accelerated convention (ahead of the normal schedule in December). Idris echoed Kalla's suggestion to let young generation leads Golkar. (Notes: Bakrie is 63, while Paloh 58) Unfortunately it's not clear what age is considered "too old" to be a chairman of Golkar.
But looks like, some leaders wanted such acceleration. Fadel Muhammad, for example, suggests an accelerated convention. But others, like Syamsul Ma'arif said Kalla's performance in the election can't be used to justify an extraordinary convention.
Theo Sambuaga, another Golkar leader, believes there will be no extraordinary convention. But looks like some Golkar leaders have been trying to bring back the party to a coalition led by president SBY's Demokrat Party and be part of the next ruling administration, as usual. Other leaders, including Yogyakarta Sultan, suggests Golkar to become an opposition party. But looks like that's not a favorable option. 
 

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