Cikeas talk turns power game in SBY’s favor

(News Terupdate) - Political turmoil triggered by the legislative investigation into the Bank Century bailout may have reached its height last week with back-and-forth mud slinging between old pals President Susilo Bambang Yudhoyono and Golkar Party chairman Aburizal Bakrie. It was a sour private meeting between the two last week that may have finally fortified the President’s decision to defend his officials mired in the bailout case. The Jakarta Post’s Rendi A. Witular, Hans David Tampubolon and Bagus Budi Tama Saragih dig deeper into the issue.

A regular political meeting on Feb. 7 between President Susilo Bambang Yudhoyono and Golkar Party chairman Aburizal Bakrie at the President’s private residence in Cikeas, West Java, may prove to be the turning point in the political drama revolving around the Bank Century bailout controversy.

The meeting was called following calls from politicians and protesters for Yudhoyono’s impeachment, alleging the President’s inner-circle had profited from the bailout.

However, the meeting somehow took the relationship between Yudhoyono and Aburizal to a new low.

Yudhoyono, according to a minister privy to details of the meeting, questioned Aburizal over Golkar’s audacious course in the legislative investigation into the bailout ahead of its preliminary conclusion announced the following day.

The President also alerted Aburizal of tax dodging allegations committed by companies affiliated with his business group.

Yudhoyono’s remarks obviously hit a raw nerve with Aburizal, the patron of the powerful Bakrie Group conglomerate, which controls Indonesia’s largest coal producer PT Bumi Resources.

Aburizal, according to the minister, suggested that Yudhoyono not liken the tax issue with politics, or make it a bargaining chip for undermining the bailout investigation.

Yudhoyono then perceived Aburizal’s response to be an attack on his dignity, said the minister.

Presidential spokesman Julian Aldrin Pasha and Aburizal spokesman Lalu Mara Satriawangsa said they were not aware of the meeting.

Yudhoyono may have lashed out first on Feb. 8 when he told the National Police to launch a crackdown on tax evasion. Yudhoyono’s statement, although not specific, was seen as directed at Aburizal.

The tax office is currently investigating tax dodging allegations to the tune of more than Rp 2 trillion involving Bakrie family affiliated companies, including Bumi and its coal units PT Kaltim Prima Coal and PT Arutmin Indonesia.

On the same day, an assault was launched on Yudhoyono’s camp when members of the investigation committee from Golkar and 6 other parties, including members of the government coalition, insisted there was a legal fault in the bailout decision, based on their preliminary findings.

The committee also faulted Finance Minister Sri Mulyani Indrawati and then Bank Indonesia governor Boediono (now Vice President) for their decision to bail out Bank Century during the global financial crisis in November 2008, the cost of which increased tenfold from the original estimate to Rp 6.76 trillion (US$716 million).

Seen as an act of defiance against Yudhoyono, Aburizal also demonstratively summoned Cabinet ministers and provincial governors affiliated with the party to a Feb. 10 meeting at the Golkar Party office at the House of Representatives.

It was during this meeting that Aburizal sternly advised the government and Yudhoyono’s Democratic Party against interfering with the investigation. He said tax evasion allegations against his companies would not change Golkar’s critical stance on the Century case.

“We are not afraid of being threatened at gunpoint, let alone with tax-evasion allegations,” said Aburizal at the meeting.

Golkar ministers — Chief Welfare Minister Agung Laksono, Industry Ministry M.S. Hidayat and Maritime Affairs and Fisheries Minister Fadel Muhammad — have also geared up if the worst-case scenario of a Cabinet reshuffle is made a reality by Yudhoyono.

However, efforts to mend ties were initiated the same day when Yudhoyono met with Aburizal and several other high-ranking Golkar officials.

Golkar senior politician and House deputy speaker Priyo Budi Santoso confirmed the meeting, saying it was held after Abruzial had met with Yudhoyono several times.

“It is normal for a coalition party to bring a number of its top officials to lobby [the coalition’s leader],” he said declining to elaborate on the Feb. 7 meeting.

Priyo, however, refused to explain the substance of the meeting. He also dismissed reports that the tax evasion allegation was ever discussed.

“I think we should not link tax issues with politics. That is ‘unhealthy’ political bargaining.”

However, Yudhoyono still seems to be at odds with Aburizal, highlighted by the President again speaking out agains the danger of tax dodging before an audience at the Presidential Palace on Thursday.

While not citing a specific case, Yudhoyono also lashed out at the danger of collusion between politicians and businessmen.

“Such collusion weakens the economy. History has taught us that. This also applies to tax dodgers.

Because of collusion, businessmen have managed to avoid paying tax,” said Yudhoyono.

Senior politician Lukman Hakim Saifuddin of the United Development Party (PPP) told reporters that Yudhoyono had actually warned Aburizal about his harsh comments on the tax-evasion allegations and on the coalition.

“Yudhoyono’s remarks are actually intended to warn [Aburizal]. But Aburizal seems to ignore them,
and with his statements, he is seemingly fighting back,” said Lukman, whose party is in the Yudhoyono-led coalition.

Speculation is rife at the House that Yudhoyono is now firming his grip on the coalition and on those who want to destabilize the government and the coalition.

It is the relentless mud slinging that may eventually fortify Yudho-yono’s decision to fight off ferocious political enemies — including those of Golkar — who mean to remove Boediono and Mulyani from Cabinet.

A minister, who refused to be named due to the sensitivity of the issue, said Yudhoyono had made a remark to several of his Cabinet members that he would openly challenge those wanting to throw Boediono and Mulyani to the wolves.

Politicians and analysts have said Golkar, Yudhoyono’s largest coalition partner, is eyeing to unseat Mulyani while those of the Islamic parties are targeting Boediono.

It is no secret that Aburizal has a vendetta against Mulyani, it would therefore be no surprise that he wants to see her out of the Cabinet.

Aburizal’s defiant stance is unlikely to gain the full support of other senior Golkar politicians as the party has never once been in opposition.

A coalition with the Yudhoyono camp is deemed more lucrative in garnering the party’s logistics, especially as Aburizal’s business empire has received government favoritism.

“Aburizal’s statement rekindles my hopes for the future of the Golkar Party,” Zainal Bintang, who chairs the Clean Golkar Caucus critical of Aburizal, said last week.

“Resigning is crucial so any pressure applied on Aburizal will not tarnish Golkar’s image. He is the face of Golkar,” he said.

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