The House of Representatives' inquiry committee investigating the Rp 6.76 trillion (US$716 million) Bank Century bailout has spent almost two months in carrying out the probe and has less than two weeks in which to complete it, leaving a political puzzle regarding its final conclusion. House Speaker Marzuki Alie from President Susilo Bambang Yudhoyono's Democratic Party gave his comments on the investigation to The Jakarta Post's Ridwan Max Sijabat.
Question: Where is the inquiry committee heading in its final conclusion?
Answer: All political puzzles in the scandal will be brought to light before the public. All those in breach of the law will be brought to justice if any legal violations are found.
The bank bailout was a decision and policy made by the government and Bank Indonesia to avoid another economic crisis, or one more severe than the 1997 economic meltdown. So, the investigation into the scandal will not end in an impeachment of the President or Vice President (Boediono, then BI governor), or in a no-confidence motion toward the government.
What about speculation of impeachment?
If they want it and have the political capital to impeach the President, do it. But based on the Constitution, the President can only be impeached if he is found by the Constitutional Court to be guilty of breaking the law, committing immoral misconduct or is physically unable to carry out presidential tasks. In this case, neither the President nor Vice President violated the law.
Apart from the coalition, both the Golkar Party and the Prosperous Justice Party (PKS) are aware of the constitution and the complex political process impeachment entails.
Do you think the investigation will end in a political deal?
The investigation is political in its nature and political negotiations are inevitable.
What kind of political negotiations are going on? Cabinet reshuffling or replacing the Vice President?
I don't really know. You'll have to ask the President please!
How do you assess the Democratic Party-led coalition's progress in parliament?
Such a political coalition is unprecedented in the presidential system. But, due to the absence of a single majority in the House, the President has to accommodate the coalition. But it is not regulated in any law and to some extent, it's merely ethical. The coalition partners did not sign a binding political contract. Golkar, PKS and the others are free to set their own political goals in the investigation.
Can you verify speculation the Democratic Party has invited Golkar and PKS to meet, specifically to discuss the inquiry's direction?
It is not true. Coalition members have met frequently, but not to discuss the case.
Will the special committee complete the probe in time?
If the remaining two weeks is inadequate, the investigation can be extended until completion. It is important for accountability.
But the special committee is seeking more data from relevant institutions. What is your comment?
There is no problem and the House leadership has facilitated the committee's efforts to obtain the data through the Central Jakarta District Court. But the committee should bear in mind that it has no authority and competence to audit all the data.
What is your comment on the progress of the investigation?
The investigation focuses on Bank Century as an ailing bank, which officials said posed a systemic threat to the country's banking system. It has been a protracted argument. Apart from the debate on whether the threat was systemic or not, the government had only two options.
First, if the bank was not bailed out, the Deposit Insurance Corporation (LPS) would spend Rp 6.4 trillion to compensate all deposits below Rp 2 billion. But since it was bailed out, LPS spent Rp 6.76 trillion, only slightly higher. That is why the Financial System Stability Committee (KSSK) took the second option. The year following the bailout, the LPS-controlled shares of the bank gained Rp 400 billion and is expected to book more profits in the next four years until the bank is sold.
Do you think the government's bailout policy and decision will be deemed illegal?
Government's policies and decisions are not subject to criminalization, otherwise no officials would make decisions and policies to carry out economic development.
But former Bank Indonesia governor Sjahril Sabirin is a good precedence in this matter?
Sjahril's case is different to the Century case. Sjahril made a policy with the disbursement of Rp 100 billion through the BI Pension Foundation (YPI) to former legislators, prosecutors and lawyers while no certain individuals benefitted from the bailout policy.
Did the bailout funds flow to your Democratic Party?
Neither party officials nor the President gained from the bailout. If proven otherwise, the party and also the President will voluntarily accept all political and legal consequences.
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