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Govt denies Cabinet cracking
Dadan Widjaksana and Aditya Suharmoko , The Jakarta Post , Jakarta, Beijing | Thu, 10/23/2008 11:04 AM | Headlines
EYE-TO-EYE: Finance Minister Sri Mulyani listens to Bank Indonesia Governor Boediono during a hearing at the House of Representatives in Jakarta on Wednesday. They discussed the fate of the financially troubled Indover Bank. (JP/P.J. Leo)
The government has brushed aside claims there is a conflict among Cabinet members that has placed the position Finance Minister Sri Mulyani Indrawati in jeopardy, in relation with her handling of companies hammered by the recent stock market dive.
As reported earlier by The Jakarta Post, sources say attempts are underway to unseat Mulyani for her stern moves to safeguard the state budget and reportedly reject government assistance to rescue a business empire struggling to deal with the impact of its plummeting share prices.
Sources name the business empire as the Bakrie group of companies -- controlled by the politically wired family of welfare minister Aburizal Bakrie -- whose share-price dive helped drag down the Jakarta stock market.
However, presidential spokesman Andi Mallarangeng rejected the claims, saying relations between Cabinet members were just as good as ever.
"No, that's not true. I was a bit surprised myself to read (the report)," he told reporters on Wednesday on board a Garuda flight carrying an Indonesian delegation, led by President Susilo Bambang Yudhoyono, to Beijing, where leaders of Asian and European countries will gather for the Asia-Europe Meeting (ASEM).
Mulyani has carved out a formidable ministerial career since 2004, thanks in part to her fearless stance in making tough decisions.
In her early years as a minister, for instance, she initiated a massive overhaul in two units under her ministry known to be among the most corrupt state institutions in the country -- the tax and customs offices.
But her efforts have brought her plenty of enemies, the sources claim, who are now teaming up in a bid to unseat her.
Ministry sources say businessmen involved in violations in the mining sector, the customs and excise business, and the tax sector are among those teaming up with businessmen who recently got burned in the stock market and could not recover their losses.
Andi, however, dismissed this as "mere speculation". He said the President had never discussed the issue with his Cabinet ministers, saying "there is no such thing at all."
Mulyani refused to comment on the issue Wednesday, saying only that it was a difficult question to answer.
However, when asked for her response to businessmen who were unsatisfied with her recent policy in dealing with the havoc in the financial sector, Mulyani said the ministry remained committed to upholding transparency and accountability.
"Financial market stakeholders believe we have enforced all regulations based on the highest standards of responsibility and accountability," she said.
"We are requesting companies facing special situations that need special attention to settle their problems based on capital market protocols."
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Investment Manager (not verified) — Fri, 10/24/2008 - 11:14am
Unseat Sri Mulyani and I'm pulling US$1Bn more out of Indonesia. She and Boediono are among the very few credible and competent people in power..... remove them and Indonesia returns back to bedlam.
Another FEUIer (not verified) — Fri, 10/24/2008 - 10:52am
Such dirty moves have always been aimed at individuals with courage and integrity such as Sri Mulyani. We have witnessed, in this country, that people who were deemed as impediment were toppled or even murdered. Whereas finding such a person is like looking for a needle in the haystack.
Yet, law enforcement for such cases has never been really upholded. The masterminds behind the attempts have never been revealed. They are still free out there aiming their next target.
Arjuna (not verified) — Fri, 10/24/2008 - 9:50am
I think ministry of finance have on the track to save Indonesia from economic crisis. Let's we remember again 1998 lesson where many banks be given special attention by BI, and finally state had loss money. The saving of government just a little bit, so it's must used so efficient.
Mohamad Ramadan (not verified) — Fri, 10/24/2008 - 12:07am
Sigh....we celebrate the downfall of Soeharto 1998. Sigh....we celebrate the dawn of Democracy! What a sick joke! Today one decade after "Big Business" treat RI's state treasury as their personal Bank. They make money "Gambling" they keep the winnings. On the contrary, they make wrong bet in the casino, they demand that the Nation pay for their losses. Custodian Sri Mulyani refuse to hand them the key to the People's Money, they scheme to remove her and place their crony as Finance Minister! Democracy Indonesian version, are we ruled by MAFIAs. Robber Barrons! Worst than Soeharto and cronies. Where is SBY "The President"? How useless, how pathetic and what a disappointment!
Dahlani — Thu, 10/23/2008 - 7:49pm
Actually, we have to think deeply with high consideration to our national future condition. Market, as representative of open mind people, couldn't be cheated with hypocrite information. As people work in educational field, I invite politician to do the right thing for Indonesia, not for themselves. Look at other country. People and his government working together, trust each other, to coop global financial crisis.
PT (not verified) — Thu, 10/23/2008 - 5:32pm
Conflict between academician and bussinessman is not new. Since the people who run the businesses always have some hidden agenda.
John Ralph (not verified) — Thu, 10/23/2008 - 2:14pm
If Finance Minister Sri Mulyani Indrawati is pushed out, foreign investors will leave Indonesia and never to return. Certain people think Indonesia is nothing more than their business subsidiary and they need to grow up. If they cannot manage their own businesses and their personal affairs, why should the Indonesia people bail them out. Most Indonesian businessmen do not invest their own funds in Indonesia, but use borrowings to pay for their equity, and the foreign investors. They have only a very short view of their own country and are not serious for long term investment. Finance Minister Sri Mulyani Indrawati is one of the best lawmakers in Indonesia being one of a few real lawmakers working for the people of Indonesia. The whole world know this.
FEUIer (not verified) — Thu, 10/23/2008 - 12:27pm
Well, hopefully not!! Mbak Ani is the main reason our economy didn't spiral down the drain further or been dragged around senseless by the on-going global recession. She has brain, integrity, experience, wisdom, and guts-- how often do you find someone this qualified in our often-criticized cabinet?
Bakrie Bros had their days as the face of young uprising local businesspeople, and national pride has been bestowed upon them at due time. But they've been slacking off and not pulling their own weight lately. And to again rescue them this time, at the price of losing a credible brain such as Mbak Ani, not to mention some taxpayers' money, is not something Indonesia should even think of doing.