WHAT SBY MUST DO ON CENTURY SCANDAL

(News Terupdate) - President Susilo Bambang Yudhoyono marked the first 100 days of his second term on Thursday. The Bank Century bailout scandal is still haunting his government and the exhausted inquiry process at the House of Representatives now seems to be going nowhere.

While Indonesia is facing the critical issue of implementing the China-ASEAN Free Trade Agreement (CAFTA), which started this month, the political arena has been crowded by the bailout issue.

In 2008, before the CAFTA was implemented, Indonesia had a trade deficit of US$3.6 billion with China, and this will increase after the CAFTA. More than 18 business associations have stated they are not ready for the CAFTA.

This issue has been neglected by the “infotainment” news covering the House’s Bank Century inquiry.

Infotainment is not a new phenomenon and such TV journalism is now replacing press journalism.

Anything on television can be transformed into entertainment, whether it is news, religious sermons, or a serious dialogue.

For television journalism, the medium is the message, and the medium is the massage. Anyone that enters a TV screen, instantly becomes an actor or actress. And, in today’s world, we love being able to become an instant celebrity.

To find the truth behind the Bank Century case is very important. Unfortunately, the focus has now shifted from what solution we need, to who made the mistake, and who should be the blamed. Vice President Boediono, who was the Bank Indonesia governor at the time of the bailout, and Finance Minister Sri Mulyani, are now the two main targets. The misleading process is now getting bigger and bigger, like a snowball rolling down a hill.

What actually happened is clear. The law and the Constitution were not broken. The case is about the accountability of a mistaken policy. It means a policy was not made in the proper way. The competency to make the policy was there, but the integrity and the misuse of the authority is questionable and that is only exacerbated by the arrogance of the policy makers.

That is the first core issue. The second issue is about policy failure. It is about unsound implementation. As the governor, Boediono stated that he was responsible for defining the status of a “failed bank” and its “systemic impact”. The Finance Minister stated that she was responsible for the bailout.

However, both of them pointed their fingers at the Deposit Insurance Corporation (LPS).

A senior law professor from the University of Indonesia stated that government policy could not be judged, unless it violated the law and Constitution. That opinion is of course supported by the government. But it is an arrogant standing of any government, and a stereotype of every government, especially one facing a crisis of accountability.

There are always two basic tasks of government: to produce excellent public policy and to conduct public services. The government as the power holder, has the prerogative to make decisions in order to manage the nation. Democracy only allows people to indirectly control the government by how well they manage the country through their policies.

But, there is a wide and clear difference between public policy and excellent public policy. An American public policy scholar, Thomas R. Dye, stated that public policy is about what the government does, why it does it, and what difference it makes.

Therefore, public policy is not just about government decisions, it is about making excellent decisions. What all nations need is an excellent public policy.

The bailout policy was not an excellent policy. It was merely a government decision that was justified by power and legal authority.

Up to now, we have not seen any policy paper, policy analysis, or background to the decision to
bail out Century.

The government has just argued the situation was very critical and the fall of Century could have caused a financial and economic crisis.

A policy made without proper policy analysis, which should be written and exercised even during high-pressure situations, is the job of a shaman, not a professional.

So, what should we do now? Sacrificing Boediono and/or Sri Mulyani does not guarantee the case will be end wisely. But sacrificing nobody is not what the political elite want. “They need blood”, whispered an economic analyst of a leading international bank to me recently.

This is the opportunity for Indonesia to prove to the world that its democracy is already mature and deep.

The President should come up with a solution and take charge as a professional leader and a wise Bapak (father of the nation). It is time to say to the people of the country that the unfinished and restless debates must be ended.

Indonesia is now lagging behind in the strategic readiness needed to face the new phase of economic globalization. This is an age of big opportunity. If we miss it, we will lose out in the decade.

Why President?

There are several things that must be done.

First, the President is the only effective player when an organization stands deep in a crisis as Indonesia does today.

Second, proper and fair strategic solutions that consist of any action taken in regard to huge money that has already been spent must be returned.

Third, there must be a guaranteed promise to develop excellent policies in the future. Fourth, a call to decide who should be terminated from their post as a consequence of malpractice should also be made.

The market will not be fragile as predicted when one or two high-ranking officers step down from their posts. Well, for the President, it is a call of duty. And, time can’t wait.

Posted in: SCANDAL