Reflection: Once "tukang catut" always tukang catut.

http://www.atimes.com/atimes/Southeast_Asia/IF01Ae02.html

Jun 1, 2007

A spot on Indonesian leader's clean hands 
By Bill Guerin 

JAKARTA - Just when it seemed Indonesian President Susilo Bambang Yudhoyono was 
making significant progress in tackling the country's endemic culture of 
corruption, he and Vice President Jusuf Kalla have been linked to allegations 
that they received illegal off-budget funds to finance their 2004 election 
campaign. 

Opposition politician Amien Rais, the onetime champion of the reform movement 
that helped bring about dictator Suharto's 1998 downfall, admitted he 
personally received about US$60,000 in illicit campaign funds through the 
Fisheries and Marine Resources Ministry, formerly headed by Rokhmin Dahuri. 

Rais dropped a potentially bigger bombshell when he claimed that Yudhoyono and 
Kalla also received illicit funds from Dahuri and that the General Elections 
Commission had evidence to substantiate his claims. 

Dahuri is currently on trial in a Jakarta court over alleged abuse of public 
funds, and on the stand he has owned up to channeling about Rp11.5 billion 
(US$1.2 million) from the ministry budget to at least four political parties 
between April 2002 and March 2005. 

Both politicians have denied the charges, with Yudhoyono referring to the 
allegations as "slander". "I and Jusuf Kalla clearly never received [funds] and 
clearly the claims are misleading and unhealthy," he said at a press conference 
last week. Yudhoyono and Rais later met on Sunday for 10 minutes and appeared 
to agree to leave the case in the hands of the Corruption Eradication 
Commission rather than sparring in the public domain. 

But the political controversy the allegations have already generated in the 
media have to some degree undermined public perceptions about the Yudhoyono 
government's corruption-busting credentials, crucially as the country enters a 
new election cycle with presidential polls scheduled for 2009. Significantly, 
Yudhoyono was elected on a clean-hands ticket in 2004, underlining the 
importance the Indonesian electorate then and likely now puts on corruption 
issues. 

While the business-minded Kalla has recently attracted media attention over 
possible conflicts of interest related to his family's non-competitive bidding 
and winning big-ticket government projects, the more bureaucratic Yudhoyono has 
until now remained above the fray. If public perceptions turn against his 
government, several opposition candidates, including from the main Islamic 
party, are poised to present themselves as graft-busters to voters. 

People's Consultative Assembly Speaker Hidayat Nurwahid said this week, "The 
president and the vice president could be impeached if they are proven guilty 
of breaching the law." That seems unlikely, because Kalla's Golkar party 
dominates the legislative body, but the risk is that Yudhoyono and Kalla become 
in the popular imagination associated with the corrupt old ways they promised 
on election to reform. 

Of course, this would come as no surprise to Indonesia watchers who remember 
the furor in November 2004 when Election Supervision Committee head Kommarudin 
Hidayat went on record as saying investigations had revealed evidence of more 
than 1,000 serious administrative and criminal violations of election-campaign 
regulations allegedly involving all parties and presidential candidates. 

Bribes, kickbacks and phantom donors 
The most serious offenses - including fictitious donors, vote-buying and 
bribing officials - were attributed to both then-president Megawati 
Sukarnoputri's Indonesian Party of Struggle and the military-affiliated Golkar 
party, of which Kalla is chairman, according to Kommarudin Hidayat at the time. 
But Rais' allegations represent the first time both Yudhoyono and Kalla in 
particular have been directly accused of electoral fraud. 

Draining state funds for electoral purposes is nothing new for Indonesia. In 
1999, Bank Bali paid local corporation PT Era Giat Prima (EGP) a "commission" 
of Rp546 billion (US$60 million) to help it collect Rp946 billion from the 
state foodstuffs monopoly, Bulog, which owned it money. Prosecutors later said 
the commission went into the Golkar party's coffers and helped finance 
president B J Habibie's 1999 election win. EGP was partly owned by Golkar's 
then-deputy treasurer, Setya Novanto. 

Golkar was later instrumental in pressing for a probe into the next election 
scandal, known as Bulogate I, which entailed the embezzlement of Rp35 billion 
from the company and eventually led to former president Abdurrahman Wahid's 
political downfall in July 2001. 

Bulogate II, disclosed by Wahid's National Awakening Party, surfaced when 
former Bulog chief Rahardi Ramelan told prosecutors he gave state funds for a 
food-relief program to former defense minister and military commander Wiranto, 
who was a presidential candidate in the 2004 campaign. 

Megawati's reformist reputation was also sullied by a counter-trade transaction 
to buy Russian-made Sukhoi jet fighters and Mi-35 helicopters. The trade 
minister at the time, Rini Soewandi, tasked Bulog with executing the $129 
million deal between Indonesia and Russia, though she insisted it was the 
president herself who gave the green light to what was later ruled an 
"improper" deal. 

In less than three years in office, Yudhoyono has arguably achieved more 
political and economic reform than the other three post-Suharto governments 
combined. And his corruption-busting has won his administration kudos both 
internationally and, albeit to a lesser degree, domestically. He recently 
breathed life into efforts to go after the Suhartos - which, of course, raises 
questions about the timing of the allegations being leveled against him and 
Kalla. 

Last week, for example, Yudhoyono signed a special decree ordering state 
prosecutors to file a civil lawsuit against former president Suharto, 85. The 
former strongman has consistently denied allegations of illegally siphoning off 
some $600 million through seven foundations and he has in the past been 
declared too ill to stand trial. New Attorney General Hendarman Supanji, 
appointed by Yudhoyono during a recent cabinet reshuffle, is also pursuing 
cases against Suharto's top son, Tommy Suharto. 

Some contend that Yudhoyono's move against the Suhartos signals a renewed will 
to pursue his so-called "war against corruption" at the highest-possible 
levels. At the same time, there are others who question whether his move may 
have been preemptive to divert attention from the charges leveled against him. 

The still-unsubstantiated charges could not have come at a worse time for 
Yudhoyono's government. Recent polls show a sharp decline in his popularity, 
which fell from a 67% approval rating at the end of last year to only 49% in 
March. That decline has been led by public perceptions that his government's 
economic-reform programs have failed to lift the masses out of poverty. 

That was notably one big reason Indonesian voters dumped the self-proclaimed 
reformist Megawati for the self-proclaimed clean hands of Yudhoyono at the 2004 
polls. Yet exactly nine years after Suharto's downfall and the birth of 
Indonesia's democratic era, it's still open whether any Indonesian politician 
can remain completely above the fray of money politics. 

Bill Guerin, a Jakarta correspondent for Asia Times Online since 2000, has been 
in Indonesia for more than 20 years, mostly in journalism and editorial 
positions. He specializes in Indonesian political, business and economic 
analysis, and hosts a weekly television political talk show, Face to Face, 
broadcast on two Indonesia-based satellite channels. He can be reached at 
[EMAIL PROTECTED]
. 

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