Rivals battle for reform agency
By Greg Earl, Jakarta
The battle for control of Indonesia's bank restructuring agency is intensifying, with signs that two former finance ministers are at odds over how to manage the institution, central to economic recovery.
And the key powerbroker behind the new Government, Dr Amien Rais, has led a bitter attack on the new United States ambassador to Indonesia, Mr Robert Gelbard, for allegedly interfering in work of the agency.
The row over the control of the Indonesian Bank Restructuring Agency (IBRA) is now threatening to overshadow the release of an investigation of the Bank Bali scandal that helped bring down the Habibie Government.
President Abdurrahman Wahid called for the early release of the report last week as the newly independent Parliament stonewalled in what appeared to be an attempt to protect key figures from the previous Government.
Dow Jones Newswires reported at the weekend that a leaked copy of the PricewaterhouseCoopers report called for an investigation of the Indonesian central bank governor, Mr Sjahril Sabirin; former finance minister Mr Bambang Subianto; and former state enterprises minister Mr Tanri Abeng.
But with those ministers and other named officials mostly out of the Government, the release of the report is less controversial than the leadership of IBRA, charged with selling the assets of failed banks.
The agency now controls about $50 billion in loans and equity positions in about 200 companies, making it the effective gatekeeper for the return of foreign investment and the Chinese entrepreneurs who mostly owned the banks and companies in the first place.
It is meant to raise about $3.7 billion in the current financial year and much more in the next when the interest burden of bank restructuring bonds has to be serviced.
Some Indonesian newspapers have reported that a campaign is under way to remove the current IBRA head and former investment banker, Mr Glenn Yusuf. One report said a potential replacement is Ms Rini Soewandi, the current chief executive of the car company Astra International, who also has links with the once powerful businessman and Soeharto associate Mr Bob Hasan.
The struggle intensified last week when several politicians including, Dr Amien and new Finance Minister Mr Bambang Sudibyo, criticised Mr Gelbard for allegedly threatening a negative reaction in capital markets if Mr Yusuf was replaced.
According to one report, Mr Bambang was taken to a meeting with Mr Gelbard at the office of former finance minister Mr Marie Muhamad by the US-oriented new Foreign Minister Mr Alwi Shihab. Mr Marie now heads a private anti-corruption organisation.
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From: tapol at gn.apc.org (TAPOL) Subject: Workers Reject New Manpower Minister
Joyo note: Labor activists claim that the appointment of Bomer Pasaribu is arguably the worst decision President Wahib made in selecting the members of the new cabinet. They say it was a blind concession to Golkar political pressure. Bomor is widely known as a reactionary on labor rights and related issues -- someone who's emblematic of Suharto-era KKN regarding labor policies and practices. ------------
Associated Press October 31, 1999
Indonesia's Wiranto: Military To Have "Wider Role" -Paper
SINGAPORE (AP)--Indonesia's influential security minister has reportedly said the military will have a "much wider role" in the future under the country's new government.
The military will make "various efforts in helping the people's welfare, which we call nation-building and national development," Gen. Wiranto was quoted as saying in Singapore's Straits Times newspaper Sunday. "This is a much wider role and doesn't focus merely on politics," the newspaper quoted Wiranto, former chief of Indonesia's armed forces, as saying.
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