SBY keeps Boediono & Sri Mulyani

President SBY sent strong signals to keep VP Boediono and finance minister Sri Mulyani Indrawati in the cabinet despite pressures from politicians, especially DPR's recommendation and conclusion on Century bailout.

SBY defended the bailout policy and praised both Boediono and Sri Mulyani Indrawati for making the right decision to save Indonesian economy from global financial meltdown.

Constitutional experts said the fact that the President's televised speech Thursday night (to defend both the policy and people behind the policy) rebuffed DPR's conclusion implies to the need to bring the issue to Constitutional Court. So, it's not (completely) over yet.

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Boediono on resign rumor: Not that easy!

Rumors swirling around political elites that VP Boediono plans to resign due to the heat from Century case investigatio. But Boediono calmly responded, saying "I'm elected by people, to resign is not that easy."

Detik.com quoted Azyumardi, leader of Indonesian Moslem Intellectuals Association (ICMI), about their Q&A with the vice president. "We asked to the vice president about rumors out there that Mr Boediono wants to resign. He replied with question about the source of the rumor. But then the vice president said, "people elected me, so to resign would not be that easy."

Kompas.com quoted Azyumardi Azra with stronger words from Boediono, saying, "so, there is no intention to resign. The rumor is not true."

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Sampoerna, Lin Che Wei, & SBY-Boediono?

Boedi Sampoerna is one of 2009 newsmakers. His over US$200 million funds at Century has become the target of various investigations. What is the relationship between Sampoerna and people in power?

Media reports pointed to Lin Che Wei, former CEO of Danareksa (state-owned investment bank) as "consultant" for Boedi Sampoerna and his son Soenarjo (his name is mentioned by George Aditjondro in his controversial book Gurita Cikeas in relation to Jurnal Nasional newspaper). Interestingly, Lin Che Wei was also an active member in SBY-Boediono campaign team. He was quoted by various media reports during the election for his support to Boediono as VP.

Koran Jakarta in its Sunday, May 31, 2009 edition wrote an article titled Ideologi Hanya Sebuah Permainan. In the article, Che Wei explained why he joined SBY-Boediono team. "They're both well respected by market and public," he said. Unfortunately the newspaper didn't explain in detail when Che Wei joined SBY-Boediono team.

Lin Che Wei once told Vivanews.com that Century bailout has nothing to do with "lobbies" from Boedi Sampoerna. In September 15, 2009, the online publication quoted Che Wei saying "one thing is clear, before Century bailout, I, as advisor, Boedi or his son Sunaryo Sampoerna, never lobbied anybody. Sampoerna family never asked bailout on Century."

In a press release dated January 29, 2009, published by Vivanews.com, three months after the bailout, Che Wei, in his capacity as representative of Boedi Sampoerna, said initially Boedi had difficulties in releasing his funds at Century, especially when the bank was controlled by Robert Tantular.

Boedi, according to recent reports, has withdrawn Rp385 billion out of US$200 million funds in Century. The House' special committee to investigate Century plans to dig deeper into the withdrawals.

Without the bailout, Sampoerna would have lost his US$200 million. But prior to the bailout, Century divided US$42.8 million of the funds into 247 accounts worth Rp2 billion each in anticipation of possible closing down of the bank. The question, why they stopped at US$42.8 million and not the whole US$200 million?

Corruption Eradication Commission (KPK) grilled Boedi for almost nine hours yesterday. PDI-P legislators push DPR's special committee to investigate further the sub-plot of the Century case.

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Herman Sarens Sudiro & politics

Kompas.com reported that Herman Sarens Sudiro (reportedly retired Brigadier General, but others reported Lieutenant General) agreed to surrender to the military police. Just confused that Herman (photo from Fajar.co.id), who has actively involved in Indonesian politics, is listed in the "fugitive list" of Military HQ for the past ten years? Isn't he one of the founders of Relawan SBY (Volunteers for SBY) in 2004 and 2009 presidential elections?

The Jakarta Post quoted First Marshall Sagom Tamboen, head of military information center, saying Herman was suspected of being involved in the embezzlement of TNI assets during his term as a corps commander in the 1970s. Sagom said, Herman's summons was meant to clarify and settle the allegation. The summon created a tense situation between the general and law enforcers at Taman Telaga housing complex in Tangerang on Monday. Herman ignored three summonses, and the military court decided to use force to bring Herman to court.

Who is Herman? Herman is a founder of Volunteers for SBY (Relawan SBY), which actively supported President SBY in both 2004 and 2009 elections. Other founder of the organization is Hatta Rajasa (now coordinating minister for the economy).

According to the organization's website, other founders are included Parasian Simanungkalit (Brig Gen ret Police), Pieter LD Wattimena (First Marshall, ret, former high ranking officer at defense ministry), Alexius Gordon Mogot (formet North Sulawesi police chief), and Hatanto Reksodiputro (former secretary general of trade affairs ministry). Other names are HIM Damsyik, Ani Herawati, and Rustam Effendy. Chairman of the organization is Mr Faisal Riza Yoenoes.

Born in Pandeglang, Banten, May 24, 1930, Herman is also famous as boxing promoter and member of Harley Davidson Club. According to Kompas.com, Herman is also an actor in at least 12 films. Married to Tinawati in 1958, Herman is also known as former husband of Theresia Blezinsky, older sister of the famous Tamara Blezinsky.  

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Summon SBY, why not?

Two political parties, PDI-P and Hanura, proposed the examination of President SBY by the House special committee for Century case. Demokrat, PKS, and PPP said that's not necessary. Why not?

PDI-P politician Gayus Lumbuun said finance minister Sri Mulyani Indrawati confirmed that she informed the president through short message (SMS) on November 21, 2008 about the bailout when SBY was overseas. Late last month, senior politician from National Mandate Party (PAN) Abdillah Toha wrote an open letter to the inquiry committee, asking for the same. "Summoning the president is allowed under the law. The purpose would be to corroborate what his subordinates have told the committee or to reply questions his staffs were unable to answer," Toha wrote.

Toha said if the president knew about the bailout, the inquiry need to get the president's answer about when he gained the knowledge, and what steps he took to ensure the bailout's safety.

Sri Mulyani told legislators earlier that President SBY didn't involved in the bailout decision, but he was reported about the decision. She admitted of several consultations with the President about the bailout. "As far as I remember, the president only asked me to take necessary measures according to existing laws," Sri Mulyani said.

PDI-P politicians argued participation of Marsilam Simanjuntak, former head of President's delivery unit UKP3R, in various meetings for Century bailout, is an indication that the president was actively involved in the decision making.

Raden Pardede, secretary Financial Sector Stability Committee (KSSK) initially said that Marsilam attended the meetings upon the president's requests. But yesterday Raden insisted Marsilam attended in his capacity as one of the sources asked by KSSK for opinions and views on the bailout. Sri Mulyani also said so. Marsilam meanwhile said he attended the meetings because KSSK asked the president to allow me working with KSSK. "That's it," Marsilam said.

Well, it is important to know the president's own view on the process to the bailout, or whether there were communications between him (overseas) and the acting president Jusuf Kalla (at home, VP) during the so-called "critical moments".

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SBY in Sri Mulyani vs Bakrie

Some said Lapindo mudflow in Sidoarjo is one of cases which put finance minister Sri Mulyani Indrawati at odds with Aburizal Bakrie, chairman of Golkar Party. But it was president SBY who issued three decrees which systematically reduced Bakrie Group's financial burden on the endless hot mudflow. Where will be SBY on the recent "war" between the two powerful figures within his own "inner circle"?

When the hot mud outflown for the first time, most government officers promised public that "all the associated costs will be handled by Bakrie Family" only to see three presidential decrees issued by SBY substantially lifted the costs from Bakrie's shoulders. The last decree issued in September 2009. Some said Sri Mulyani lost the "war within the inner circle" in Lapindo issue as other cabinet members rallied behind SBY in the "decisions" to help Bakrie.

They were reportedly at odds on the collapse of Bakrie-related stocks. Bakrie reportedly asked for trading suspension on IDX, Sri Mulyani rejected. But we know for sure that the stocks have finally been suspended for two weeks or so. The stocks have recovered significantly this year. There were "orders" to "help" Bakrie stocks.

They were also at odds on the divestment of 14% shares in PT Newmont Nusa Tenggara (NNT). Sri Mulyani once scored a win in this issue when she managed to get "cabinet approval" to have the State acquires 14% shares. But that was a brief victory before the new cabinet established in October 2009. Sri Mulyani lost her "power" as "ad interim coordinating minister for the economy" to Hatta Radjasa, one of few powerful persons around SBY in the new cabinet selection.

We know that Bakrie finally won the 14% shares, despite last minute maneuvers to push Aneka Tambang acquire the shares. Bakrie Group had paid 10% shares in NNT for US$391 million. Few days ago, Bakrie and its partner, local administrations of West Nusa Tenggara (NNT), paid 7% shares in NNT, and will pay another 7% soon. Combined, Bakrie won 24% shares in NNT.

Without substantial support from people above Sri Mulyani or at least gave no opposition to Bakrie, it's difficult to imagine how Sri Mulyani would have lost to Bakrie in this Newmont divestment.

So, Bakrie won in three major issues. One may say, well, Aburizal was a cabinet member and that then VP Kalla contributed at some point. But most people forget that it was SBY the real "saviour" for Bakrie even though his decisions might be against people's sense of justice. 

The fact that SBY opted to "help" Bakrie may raise question, will SBY do the same in the current "war" between Bakrie and Sri Mulyani?

Both Bakrie and Sri Mulyani were and are still the "major contributors" for SBY. Sri Mulyani contributed to SBY a "good international image" in his "campaign" for a "clean government". Bakrie contributed to SBY in both 2004 and 2009 presidential elections. Bakrie contributed significantly in 2004 along with Jusuf Kalla which crowned them the Three Musketeers. Bakrie contributed substantially in 2009 election, not only financially, including media network support, but politically. We know that while in public Aburizal expressed his support for Kalla's presidential bid, he, Agung Laksono, and Akbar Tanjung---known as Trio Alpha were big supporters of SBY-Boediono, substantially weakened support for Kalla, including within Golkar Party.

Aburizal Bakrie and Jusuf Kalla are currently out of the cabinet, but Bakrie, by no means, can't be considered an "outsider" for SBY. Bakrie managed to name three of his men as cabinet ministers: Agung Laksono, Fadel Muhammad, and MS Hidayat. Bakrie, as the chairman of Golkar Party, is an "insider" because without Golkar's support in the House of Representatives (DPR), SBY-Boediono's ruling coalition would be weak.

Bakrie has friends in at least two of SBY-Boediono's ruling coalition members: Prosperous Justice Party (PKS) and National Mandate Party (PAN).

On the other hand, international business community and some major business groups are rallying behind Sri Mulyani in most issues. They are also contributing factors for SBY's legitimacy. SBY is clearly "caught" in a very delicate situation here. From the current political development, SBY has to make another crucial decision: Bakrie or Sri Mulyani. 

It is not an easy situation like what market players thought. Bashing Bakrie might cost SBY-Boediono's future, i.e. triggering impeachment through the inquiry on Century debacle. It is a risky decision. Bashing Sri Mulyani might cost SBY-Boediono a "loss in market confidence". The less risky decision might be not to pick the winner. But is it politically realistic for SBY-Boediono?

by Haryanto Suharman & Yosef Ardi

taken from yosefardi.com

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5 Minister candidates failed medical test?

Five minister candidates for SBY-Boediono reportedly failed medical test. One for heart problem, three failed psychological test, and one has hepatitis C.

"DK failed due to heart problem, while ML, MA, and NDM failed psychological test, while PY reportedly has Hepatitis C," someone who claimed got information about the medical test on 36 minister candidates said. "But all of them finally classified "fit" for the ministerial job, even though three were identified not be able to work under pressures," the source further said. 

Detik.com speculated that Nila Djuwita Moeloek, candidate for health minister, failed medical test because of "old age". The online publication then speculated on new candidate for health minister identified as Dr Endang Sedyaningsih.

Meanwhile Kompas.com reported that four minister candidates---NDM, MA, SU, and SM---failed medical test.

But Hatta Rajasa, state secretary minister and candidate for coordinating minister for the economy, dismissed the speculations about five candidates. Hatta said "that's not true. All candidates passed the test."

Others busy to speculate that the medical test could be used by certain groups to "block" someone in a particular post. 

Whoever will replace Siti Fadilah Supari has to deal with her October 16 letter (No. 919/Menkes/X/2009) to US government about the termination of cooperation with Naval Medical Research Unit 2 (Namru). Fadilah cc-ed the letter to foreign affairs, defense, coordinating minister for people's welfare, and state secretary ministers. 

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