The threats had been long and loud, but in the end, they were all bark and no bite.
Finance Minister Sri Mulyani Indrawati presented the revised 2010 state budget to House of Representatives Commission XI on Friday as a threatened boycott by a handful of lawmakers still fuming over the 2008 Bank Century bailout failed to materialize.
Just weeks after an inconclusive and politicized probe into the bailout ended with President Susilo Bambang Yudhoyono affirming his support for Sri Mulyani and Vice President Boediono, the apparent targets of the House investigation, the best the defeated lawmakers could muster were three walkouts — none of them even members of Commission XI, which handles finance matters.
After the House probe ended, lawmakers from Golkar and other parties that pushed for her ouster from government threatened to ban Sri Mulyani from the House, a move that went nowhere after the president took responsibility himself for the Century bailout.
On Friday afternoon, Bambang Soesatyo of Golkar, Desmond Mahesa of the Great Indonesia Movement Party (Gerindra) and Erik Satrya Wardhana of the People’s Conscience Party (Hanura) told the commission that Sri Mulyani, who is in charge of the budget, should not present it because the House special committee had found her responsible for the bailout.
Golkar’s Harry Azhar Aziz, who chaired the hearing, dismissed the recommendation and allowed the finance minister to proceed. He said a budget hearing was not the place to debate Bank Century.
In response, the three lawmakers, who had no role in the hearing, walked out.
The almost comical boycott seemed only to strengthen Sri Mulyani’s position. She survived several weeks of the special committee probe, starting in December, by insisting that she and Boediono, the central bank governor at the time of the 2008 bailout, had approved the Rp 6.7 trillion ($743 million) lifeline for the ailing lender to save the banking system from collapse.
The respected technocrat is now presiding over a surging economy, a booming stock market, a strengthening currency and growing interest from foreign investors drawn to the country’s political stability and vast domestic market.
Sri Mulyani seemed relieved that the threat of a boycott was over and the hearing went forward. “The most important thing is that the state budget has been discussed,” she said, adding that the discussion was crucial to clarify and sharpen the government’s macroeconomic assumptions to bring them up to date.
Viva Yoga Mauladi, a commission member from the National Mandate Party (PAN), said: “Legally speaking, we have to use the innocent-until-proven-guilty principle. Before there is a verdict from law enforcement, [Sri Mulyani] has the authority to represent the government in the hearing.”
The House special committee had called on police and other agencies to carry out an investigation into the Century bailout. No charges have been filed against Sri Mulyani or Boediono.
Viva Yoga said the boycott effort should not be perceived even as an official stance of the parties involved, since other members did not join in. Yorrys Raweyai of Golkar told the commission that Bambang’s recommendation did not represent the party’s stance.
Bambang said Sri Mulyani’s appearance “set a bad precedent,” as the special committee had said the bailout was illegal.
Burhanuddin Muhtadi, an analyst with the Indonesian Survey Institute, said the walkout might be part of a broader Golkar strategy given its fraught relations with the Yudhoyono government despite being an ostensible member of the ruling coalition.
By joining the hearing but also trying to embarrass Sri Mulyani, “Golkar is playing a game of two-faced politics,” Burhanuddin said. “There will be more of this in the future.”
Finance Minister Sri Mulyani Indrawati presented the revised 2010 state budget to House of Representatives Commission XI on Friday as a threatened boycott by a handful of lawmakers still fuming over the 2008 Bank Century bailout failed to materialize.
Just weeks after an inconclusive and politicized probe into the bailout ended with President Susilo Bambang Yudhoyono affirming his support for Sri Mulyani and Vice President Boediono, the apparent targets of the House investigation, the best the defeated lawmakers could muster were three walkouts — none of them even members of Commission XI, which handles finance matters.
After the House probe ended, lawmakers from Golkar and other parties that pushed for her ouster from government threatened to ban Sri Mulyani from the House, a move that went nowhere after the president took responsibility himself for the Century bailout.
On Friday afternoon, Bambang Soesatyo of Golkar, Desmond Mahesa of the Great Indonesia Movement Party (Gerindra) and Erik Satrya Wardhana of the People’s Conscience Party (Hanura) told the commission that Sri Mulyani, who is in charge of the budget, should not present it because the House special committee had found her responsible for the bailout.
Golkar’s Harry Azhar Aziz, who chaired the hearing, dismissed the recommendation and allowed the finance minister to proceed. He said a budget hearing was not the place to debate Bank Century.
In response, the three lawmakers, who had no role in the hearing, walked out.
The almost comical boycott seemed only to strengthen Sri Mulyani’s position. She survived several weeks of the special committee probe, starting in December, by insisting that she and Boediono, the central bank governor at the time of the 2008 bailout, had approved the Rp 6.7 trillion ($743 million) lifeline for the ailing lender to save the banking system from collapse.
The respected technocrat is now presiding over a surging economy, a booming stock market, a strengthening currency and growing interest from foreign investors drawn to the country’s political stability and vast domestic market.
Sri Mulyani seemed relieved that the threat of a boycott was over and the hearing went forward. “The most important thing is that the state budget has been discussed,” she said, adding that the discussion was crucial to clarify and sharpen the government’s macroeconomic assumptions to bring them up to date.
Viva Yoga Mauladi, a commission member from the National Mandate Party (PAN), said: “Legally speaking, we have to use the innocent-until-proven-guilty principle. Before there is a verdict from law enforcement, [Sri Mulyani] has the authority to represent the government in the hearing.”
The House special committee had called on police and other agencies to carry out an investigation into the Century bailout. No charges have been filed against Sri Mulyani or Boediono.
Viva Yoga said the boycott effort should not be perceived even as an official stance of the parties involved, since other members did not join in. Yorrys Raweyai of Golkar told the commission that Bambang’s recommendation did not represent the party’s stance.
Bambang said Sri Mulyani’s appearance “set a bad precedent,” as the special committee had said the bailout was illegal.
Burhanuddin Muhtadi, an analyst with the Indonesian Survey Institute, said the walkout might be part of a broader Golkar strategy given its fraught relations with the Yudhoyono government despite being an ostensible member of the ruling coalition.
By joining the hearing but also trying to embarrass Sri Mulyani, “Golkar is playing a game of two-faced politics,” Burhanuddin said. “There will be more of this in the future.”
