Reform icons fighting lone battle against raging wolves

Defenseless and all alone probably best describe how Vice President Boediono and Finance Minister Sri Mulyani Indrawati are struggling against power-crazed politicians eager to lynch them. Even President Susilo Bambang Yudhoyono is seemingly unmoved to help relieve the offensive aimed at the two by allied politicians over the high-profile Bank Century bailout. The Jakarta Post’s Rendi A. Witular digs deeper into the issue. Here are the stories:

“I feel like I’m alone,” Finance Minister Sri Mulyani  Indrawati said at an internal meeting with senior officials earlier this month, as recalled by one of those in attendance.

Mulyani used the Javanese expression dipakakke — being thrown in harm’s way — to refer to her current quandary of facing a searing offensive from politicians and analysts over her decision to bail out the ailing Bank Century, since re-branded Bank Mutiara, in late November last year.

During the meeting, Mulyani expressed her disappointment with  her officials for not failing to give her their full backing before the public, amid an investigation launched by the House of Representatives’ inquiry committee into the bailout.

The committee is expected to unravel suspicions over the alleged involvement of President Susilo Bambang Yudhoyono’s inner circle in taking advantage of the bailout money.

However, critics believe most members of the committee are using the opportunity to try to unseat Mulyani and Boediono for various reasons other than trying to unravel the truth.

Boediono and Mulyani, the nation’s reform beacons, were the decision makers responsible for bailing out Century to the tune of Rp 6.76 trillion (US$716 million).

They insist their decision was aimed at cushioning the impact of the global financial crisis on the nation’s banking sector and the economy in general.

Indications of the committee’s hidden interests were recently voiced by Mulyani in an interview with the Asian Wall Street Journal.

In the interview, Mulyani said she believed the probe was an attempt to discredit her by politicians opposed to her reform agenda, notably leaders of the Golkar Party, including party chairman Aburizal Bakrie.

Sources close to Mulyani say tensions with Aburizal heightened in early November when Yudhoyono ordered Mulyani to meet with Aburizal privately at his residence in Menteng, Central Jakarta.

The meeting, supposed to ease the tension and help put an end to the formation of the inquiry committee, ended on a sour note as Aburizal lashed out at Mulyani over her policies that had proved unfavorable for Bakrie interests.

Among the issues raised by Aburizal included problems revolving around the Lapindo mudflow compensation and the family’s attempts to purchase stakes in gold miner PT Newmont Nusa Tenggara.

Aburizal, among Yudhoyono’s close confidants, also expressed his disappointment with Mulyani’s opposition to the closure of the Indonesia Stock Exchange when share prices of Bakrie-controlled companies nose-dived at the height of the global financial crisis in late 2008.

Aburizal had demanded Yudhoyono intervene in closing the bourse.

Other contentious issue aired at the meeting included Mulyani’s decision to slap travel bans on a number of coal-mining executives, including from Bakrie companies, after a dispute over coal royalties in mid-2008.

During the meeting, Aburizal also fumed over attempts by Mulyani to proceed with an investigation into alleged tax violations by Bakrie mining companies. Mulyani oversees the tax office.

With no progress made at the meeting, Aburizal ordered Golkar politicians to proceed with the inquiry committee, leading to its official forming on Dec. 1.

A Golkar politician, speaking on condition of anonymity, said Aburizal had told Mulyani that as an outsider, it would be easier for him to unseat her through the political process.

Bakrie family spokesman Lalu Mara Satria Wangsa said he was not aware of any such meeting, declining to comment further.

However, Golkar politician Zaenal Bintang confirmed the meeting had taken place and that it was aimed at ending the bad blood between the two ahead of the committee being formed.

“The meeting ended in deadlock,” he added.

Mulyani’s comment in the Asian Wall Street Journal, as well as the disclosure by tax chief Tjiptardjo of alleged tax evasion by Bakrie companies to the tune of more than

Rp 2 trillion, have brought her into full-fledged confrontation with Aburizal.

Golkar politician Bambang Soesatyo fired the committee’s first salvo by leaking the transcript of an alleged voice recording of Mulyani speaking with Bank Century shareholder Robert Tantular, suggesting the bailout decision was based on the latter’s request. The transcript later proved to be fake.

To top it off, a Cabinet member said Yudhoyono was livid at the widely publicized rift between his highly regarded finance minister and Aburizal, his chief welfare minister during his first term.

Yudhoyono’s rage was expressed to Mulyani last week just before he flew to Europe. The President, according to the Cabinet member, had basically told Mulyani to trust in his efforts to try to settle the whole mess.

Mulyani could not be reached for confirmation.

Since the clamor over Century heated up two months ago, little has been seen of Yudhoyono’s efforts, through playing his coalition cards, to try to prevent the wolves from getting at Mulyani and Boediono.
Several legislators say they believe Boediono is currently being targeted in the inquiry by Islamic parties, which opposed his being named vice president from the get-go.

However, Yudhoyono and his Democratic Party have indicated they may leave Boediono and Mulyani out to dry over the contentious bailout.

Democratic Party deputy chairman Achmad Mubarok said the result of the investigation into the two would be up to the committee members.

“Whether [Mulyani or Boediono] are asked to resign from their posts will depend on the committee’s final recommendations,” he said.

University of Indonesia political analyst Boni Hargens said questions should be asked of Yudhoyono’s indifference to the looming political lynching of two of his most trusted officials.

Additional reporting by Hans David Tampubolon