RECENT ECONOMIC REPORTS
WRAP-UP OF MPR
LEGISLATIVE ACTIONS
Summary: In addition to voting on
President Habibie’s accountability speech, the
People’s Consultative Assembly (MPR) on October 19
passed by acclamation a number of key pieces of
legislation: revocation of the 1978 law incorporating
East Timor into Indonesia, approval of the State Policy
Guidelines (GBHN) for the 1999-2004 period, amendments to
the 1945 constitution that will curtail the powers of the
President, and a commitment to incorporate into law
special autonomy status for Aceh and Irian Jaya. We
understand that MPR decrees, including that on East
Timor, will go into effect as of the close of the MPR
session, now scheduled for October 21. End
summary.
Accountability Speech
In the only vote of the plenary, 691 members cast
secret ballots accepting, rejecting or abstaining on
President Habibie's October 14 accountability speech. In
a fully televised procedure, the MPR voted to reject the
speech by a vote of 355 to 322, with 9 abstentions and 4
spoiled ballots. The entire, two-hour long procedure, was
carried live on several Indonesian television stations.
The pen and paper procedure used reflects lingering
distrust of mechanical voting equipment (which the MPR
has) and overwhelming desire to make it as transparent as
possible. Members were called by name to the front of the
chamber where they submitted a paper with their name and
in return received a ballot. Each then entered one of
several partitioned booths and wrote one of three options
on the ballot before stuffing it into a clear plastic
box, before exiting the chamber. The ballots were read
out loud and each vote marked (with a "line"
under one of the three options) on a white board at the
front of the chamber. The tally went back and forth, with
votes to "accept" gaining an early lead only to
be overtaken by a steady run of "reject" votes.
In the end, given the transparency of the procedure, no
one challenged the outcome, despite there being only 33
votes separating the "reject" from the
"accept."
East Timor
Shortly after midnight on October 20, the plenary
accepted, by acclamation, the recommendation of the
commission to endorse the results of the August 30 East
Timor consultation. The decree adopted repeals the MPR
decision of 1978 incorporating East Timor into Indonesia,
without any conditions.
Aceh and Irian Jaya
The assembly adopted by acclamation the recommendation
of the commission that special autonomy status be given
to Aceh and Irian Jaya. The recommendation, however, was
vague as to when and how the necessary laws should be
passed by the Parliament (DPR). This issue was hotly
debated in the commission, with some MPR members from
Aceh arguing that this MPR should pass the necessary
legislation before it adjourns. The State Policy
Guidelines include directives to the new government to
resolve the conflict in Maluku (Ambon) and to investigate
human rights violations in Aceh and Irian Jaya and to
prosecute those found responsible.
Constitutional Amendments
The MPR also adopted by acclamation the
recommendations of the commission to amend 10 articles of
the 1945 constitution with the effect of curtailing the
power and prerogatives of the President and strengthening
those of the Parliament (DPR). Notable among these are:
stipulation that the President/Vice President are limited
to two five-year terms; requirement that the President
can continue to make laws but they must now be
deliberated and endorsed by the Parliament; and
requirements that the President consult with Parliament
prior to appointing diplomats, granting agrement to
foreign ambassadorial nominees, pardoning or amnestying
prisoners, awarding honors and medals. The MPR also
referred a number of other, more controversial amendment
proposals to a working group that will report back to the
DPR next year.
State Policy Guidelines
The MPR unanimously approved the State Policy
Guidelines (GBHN) which set forth the MPR's mandate for
the next five years. In a major departure from past
practice in which the guidelines contained directions
only for the President, this time it includes directives
not only for the President but also the Parliament (DPR),
the Supreme Court, the Supreme Advisory Council (DPA),
and the Supreme Audit Agency (BPK). Also new is the
requirement that not only the President but also the
other state bodies will have to account to the MPR (which
will now meet annually instead of once every five years)
for their execution of the policy guidelines. The new
GBHN is divided into broad sectors: law, economy,
politics, religion, education, social life and culture,
regional development, natural resources and environment,
and defense and security.
Economic policy dominates the GBHN. It directs the
government to create a market-based economy with fair,
open competition and to prevent monopolies and
corruption. The government is instructed to give special
attention to the development of small and medium
enterprises and cooperatives, within the free-market
framework. Foreign loans are to be decreased in an effort
to lower the state budget deficit. The new government is
ordered to renegotiate and restructure external debts in
cooperation with the IMF, IBRD and other creditors and to
seek DPR approval for new foreign borrowing.
The government is to promote the rule of law, uphold
human rights, and improve the welfare (salaries) and
quality of law enforcement personnel, including the
police. Included in the guidelines are special clauses
directing the government to resolve the communal conflict
in Maluku (Ambon) and to immediately investigate human
rights violations in Aceh and Irian Jaya, and to
prosecute those found responsible for the abuses. Senior
officials are now required to disclose their assets
before and after their tenure in a bid to prevent
corruption. civil service reform will be undertaken
through better pay, better promotion, and better
training.
In the areas of defense and security, the government
is directed to abolish the TNI/POLRI seats in the DPR.
(Note: TNI/POLRI have agreed to phase out their
"dual function" seats by 2004.) The new
government is also directed to improve the image of the
military and to train them to protect human rights and
democracy as well as defend the nation.
Regional development, particularly that of eastern
Indonesia, is given high priority with the new government
required to delegate greater responsibility to provincial
administrations to handle investment licensing and manage
their natural resources.
Trends | Reports | Energy | Petroleum | Investment
|
