Indonesia ATL: The Presidency of Try Sutrisno (1997-)

[GSD310]

Wasnt erna witoelar a former minister at the time? Would she accepted a secretary to 2nd lady role?

Erna Witoelar only became minister OTL when Abdurrahman Wahid became President (1999-2001). Prior to that she's mostly known as someone active in Indonesian environmental NGOS. At this time ITTL, she's the wife of Minister of Civil Service Reform Rachmat Witoelar.

That aside, I have a random question directed at loyal watchers of this TL or anyone who randomly encounter this: Would an Indonesia that handled the Asian Financial Crisis better have a positive, negative, or neutral impact on Anwar Ibrahim in Malaysia? Did his fall from his position as Minister of Finance OTL have anything to do with the way things went in Indonesia?

Not that this will turn into a Malaysian TL but I'm asking this because ITTL we're approaching the date of Anwar Ibrahim's dismissal (2nd September 1998) and also because Malaysia being the country next door to Indonesia, there's a good chance of interaction ITTL.

I know Anwar Ibrahim tried to adopt an approach that emphasized austerity and attacked the political interests of Mahathir's cronies but thus far I haven't been able to get a site or a source of information that tells a blow-by-blow account of his feud with Mahathir.

 

[deepoceanblue]

oh okay, my memory must be mixed up.

hmm maybe since TTL Indonesia doesnt have a popular coup, mahathir wont feel as insecure OTL?

 

[GSD310]

29: State Address
15th August 1998:

Cut to RCTI studios with host Desi Anwar.

“Good morning, ladies and gentlemen and welcome to an RCTI Special Event: the President’s State Address”, said Desi Anwar “With me is commentator Wimar Witoelar. Pak Wimar, good morning.”

“Morning”, said Wimar.

“Pak Wimar, what do you think of we will hear in the State Address today?”

“Well, the State Address is the Indonesian equivalent of the State of the Union in the United States so we’ll definitely be hearing about what the President intends to do for the future”, said Wimar “More specifically for President Try, this will be his first State Address so it’ll be interesting to see what he intends to do but also his vision.”

On the screen the DPR members have all stood up as the official party appeared and began to make their way to the front of the chamber through the middle aisle. With applause all around him, President Try Sutrisno walked down the aisle accompanied by Chairman of the DPR Harmoko. Behind them walked Vice President JB Sumarlin flanked by Vice Chairmen of the DPR Abdul Gafur, Syarwan Hamid, Fatimah Achmad, and Ismail Hasan Metareum.

“Okay, I’m getting word now that we have begun relaying of TVRI’s feed, we will see you all again after the State Address”, said Desi Anwar.
---

After the National Anthem had been played, all in attendance sat down as Harmoko made his opening address. Try tried to be calm but his nerves betrayed him when it only seemed like a short time before Harmoko concluded the speech with “I now invite the President to make his State Address”.

Try mounted the lectern flanked by two aide-de-camps, Colonel Budiman and Colonel (Navy) Mukhlas Sidik. One handed him his speech and the other his glasses and then he was ready.


“Assalamualaikum Warahmatullahi Wabarakatuh.

Mr. Chairman, Honorable Vice Chairmen, Honorable members of the DPR, and fellow Indonesians,

This 17th August we will, God Willing, be celebrating the 53rd Anniversary of our Nation’s Independence…

The New Order's Present Situation:
Our journey as a nation has been, and always will be, wrought with trials and challenges. Over the past few years, much has been commented and speculated about how Indonesia will handle the issue the succession. In spite of these comments and speculations, President Soeharto has always expressed the view that this nation has the political and constitutional mechanisms necessary to handle succession.

When the tragic and unfortunate events of last year occurred, we all bore witness to the fact that we do have the mechanisms necessary to handle succession when the Vice President assumed the Presidency without any unrest or instabilty. Even more than that, this nation went on to hold an MPR Session to elect a president and vice president contested by multiple candidates. It now has a cabinet spanning the divide of Golkar, PPP, PDI, and ABRI.

It is a true testament to the strength of the political system that is the New Order. A testament to the strength of the political system President Soeharto has built.

The New Order stands strong. But the New Order cannot stand still.

We cannot take for granted that we are all here today sitting in this chamber because there is nothing wrong with the nation and that we can remain with the way things are…

In the past three decades, our people have had an increase in their living standards on the back of the economic development that has become the hallmark of the New Order. At the same time they have become more educated, making them more critical of the government and more open minded about alternative ideas of how society ought to be run.

Our task now is to ask ourselves how do we keep the New Order relevant. Relevant for those who are still impoverished, who live in regions that are as yet to be touched by development, relevant for those who entertain notions of breaking away from the Republic, and relevant for many more groups of people who I’m sure are still not satisfied with the New Order.

The New Order must be kept relevant by renewing itself. To look at the New Order’s well-held tenets and refresh it so that these tenets so that they do not become static and frozen in time…

We must, in other words, become the Renewal Order rather than the New Order…

Economic Recovery:
At the present moment, the best way to keep the New Order relevant is by guiding the nation to recovery from economic crisis…

The most visible consequence of this economic crisis is the slowdown in our economy. Factories and offices are laying off workers, there is a trend of reverse migration from the cities to the villages where there are more employment opportunities, and consumption has weakened due to households holding on to their money so that they can better weather and ride out this economic crisis.

The government has addressed this issue in two ways. We have created a stimulus package to encourage activity in the economy…

This past 1st July, the government has also issued a deregulation policy package so that the slowdown in sectors such as construction and manufacturing can be offset in sectors such as exporting and tourism…

For the present, the government is ready to refocus its attention to the banking sector. In the past decade, deregulation has brought about a flourishing banking sector. At the same time we must be honest enough to admit that this deregulation has not been matched with improvements in the government’s capacity to regulate this sector.

It is common knowledge for example that those conglomerates that have entered in the banking sector have ended up giving themselves loans beyond the amount that has been stipulated by the law. Or that the liquidity in our banks is just barely sufficient to stay afloat. Hence the necessity for the government, acting through the Bank Indonesia, to provide liquidity assistance through the BLBI…

The role of the banking sector is important to the economy. Without credit, it is impossible for economic activity to occur. Yet the time has now come for banks to play their part in this nation’s economic recovery.

The government has signalled three months ago that it will begin taking BLBI repayments from all those who has received it starting from this coming 1st September. The government remains committed to this deadline and would like to see the BLBI recipients to do their part.

The government will also be at the forefront of the changes to the banking sector. Having received reports that 4 state banks are not performing as they should, I announce today that Bank Bumi Daya, Bank Ekspor Impor, Bank Dagang Negara, and Bank Pembangunan Indonesia will be merged into a single bank. It is the aim of the government that this new bank, which I will name Bank Mandiri, will pool together the resources of the four state banks to weather this crisis.

I also would like to at this time call on the DPR to pass the Banking Bill which has been submitted three months ago. It is a matter of urgency that this honorable assembly passes it for it will allow the government the necessary mechanism to deal with the banks in the event of adverse circumstance…

The Seventh Government Five Year Plan
Mr. Chairman and honorable members of the DPR,

Economic recovery is important and it is the vital challenge this nation is presently facing. Even so, we must be brave enough and optimistic enough to look at the future.

On 1st April 1999, this nation will leave behind the Sixth Government Five Year Plan (Repelita VI) and usher in the Seventh Government Five Year Plan (Repelita VII). This will be a vital moment for our nation because once again we will be taking the next step towards our goal: a just and prosperous society based on Pancasila and the 1945 Constitution.

Over the coming months, the government will unveil the Seventh Repelita but broadly speaking, these are some of the things which the Seventh Repelita will seek to achieve:

Economy:
We will be setting the target for economic growth at 5% per annum throughout the course of the Seventh Repelita. This is to account for the lower economic growth both this year and the next as we continue to recover. We will continue our march towards industrialization. The industrial sector will be growing by on average above 10% while agriculture will grow by on average 3%...

While the quantity of economic growth is important, the quality of it is important. This means that we must facilitate the growth of small and medium enterprises so that an increasing share of our economic activity will be driven by them…


Tourism:
Our exports will grow, driven by the present adjustment in the value of our currency while at the same time our imports will slow down…

Of all our exports, it will be tourism that the government will position as the biggest foreign currency earner by the end of the Seventh Repelita…to that end the government will provide infrastructural and regulatory support to help support tourist destinations around the nation and help support the tourism industry around those various tourist destinations.


Infrastructure:
The principle of the government when it comes to infrastructure is that it fulfills a two-fold function: in the economic recovery, it will create employment; and when the economy has recovered, it will facilitate economic activity…

Subject to our fiscal capacity, the government will continue to review the infrastructure projects which were suspended or ceased last September so that they can be initiated…


Education:
We must work for the future now. The government commits itself to continuing the Compulsory 9-Year Education Program. Not only that, but the government is committed to achieving Compulsory 9-Year Education for all 7-15 year olds within 5 years, not 10. To that end, we will provide the necessary increases in funding…

Conclusion:
Mr. Chairman and honorable members of the DPR,

Such is the picture that I am able to give to the DPR of what this nation is like on the eve of its 53rd year.

The present challenges which which the nation faces are great but it is by no means insurmountable provided that we work together shoulder to shoulder and provided that we put the national interest ahead of our own. As I said in my first address to the nation, we are all in this together.

May the Grace of God be upon us on this the 53rd Anniversary of our Nation’s Independence.

Assalamualaikum Warahmatullahi Wabarakatuh.”


The DPR applauded the speech though some, as State Secretary Edi Sudrajat and Cabinet Secretary Hayono Isman noted from their seats with the other cabinet members, did not applaud as roundly as others.

After some short remarks thanking the President for his address, Harmoko banged the gavel to declare the DPR Session closed.

---
The figures of the industrial and agricultural sector growth are given in this document, which is an OTL Speech by Ginandjar Kartasasmita when he was Minister of National Development Planning. http://perpustakaan.bappenas.go.id/lontar/file?file=digital/15632-[_Konten_]-Konten 3629.pdf

One thing I'm interested in seeing in the TL is just how much development Indonesia is able to go through with an economic crisis that isn't as bad.

As I've said in an earlier post, the Asian Financial Crisis struck Indonesia so hard, there are infrastructure projects which Soeharto suspended and delayed at the beginning of the Asian Financial Crisis which are still not underway.

One thing which will be explored from time to time ITTL will be how Try relates to his predecessor. As you can see Try is still praising Soeharto. This is a dynamic that is different from OTL.

ITTL, the nation never witnesses Soeharto bending down to sign up to the IMF Reforms or the May riots or Soeharto desperately trying to hold on to power before resigning or the economy reaching the pitiful state it did in 1998. It's safe to say that as a result, impressions of Soeharto are more positive ITTL than in OTL though there's a fair share of people who are sympathetic and supportive of Try's actions thus far.

 

[Unknown]

Good updates; Try is going to be a better president, IMO, than Soeharto (BTW, have you seen the documentaries The Look of Silence and The Act of Killing? They're about the 1965-66 Indonesia mass killings, and they're good, by all accounts, if chilling).

This continues to be a good TL...

 

[Wendell]

Finally a twentieth century politics timeline about a developing country.

 

[GSD310]

30: Independence Day and Its Aftermath
16th August 1998:
Try spent the day with his children and grandchildren, who had come to Jakarta to be there with him on Independence Day long weekend (Independence Day itself falling on a Monday). All of his family was there including his son-in-law Maj. Gen. Ryamizard Ryacudu, presently Commander of the Southern Sumatra Regional Military Command.

During dinner at the Palace, Try addressed his children and told them to restrain themselves in their dealings with others because they’re the President’s children. “Just because others have taken advantage of the position you are now in, doesn’t mean you should”, said Try “Act modestly and humbly and don’t assume that this will last forever.”

The Independence Day-related activity of the day began at 11 PM when Try and Tuti made their way to Kalibata Heroes’ Cemetery. There the nation’s political elite already gathered and lit by only torches, the President led a ceremony to commemorate the sacrifice of the nation’s heroes.

“We swear that your struggle will be our struggle and that the road you have travelled will be our road to”, said Try as he read out the President’s commemoration statement.

17th August 1998:
At 10 AM, President Try Sutrisno led the nation to commemorate the 53rd Anniversary of Indonesia’s Independence in a flag raising ceremony at the Presidential Palace which was attended by the nation’s various VIPs: Cabinet Ministers, members of the various state institutions, ABRI’s top brass, the families of Soekarno and Hatta and Soeharto, as well as the members of the Diplomatic Corps.

The ceremony followed an exact order. At 10 AM, cannons were fired and sirens rang to mark the exact moment Soekarno read out the Proclamation of Independence all those years ago. Then Harmoko, as the Chairman of MPR, read out the Proclamation of Independence. Try’s turn to speak again followed next as he led the nation in 1 Minutes’ Silence before Minister of Religious Affairs Quraish Shihab read out a prayer.

The flagraising ceremony was conducted by successfully by the Flag-Raising Squad, a group of young students who received special training specifically so that they are able to conduct this duty. To the patriotic tunes of the National Anthem, the President led the nation in saluting the flag.

With the ceremony done, there were the niceties to observe. At lunch, Try cut the celebratory Tumpeng Rice and gave the first slice, traditionally given to the most respected person in the room, to Mrs. Rahmi Hatta. Mrs. Hatta was the wife of Indonesia’s First Vice President Mohammad Hatta. Try also took pictures with JB Sumarlin, Umar Wirahadikusumah, Sudharmono as the Vice President and living former vice presidents respectively.

18th August 1998:
After the pomp and ceremony of the previous day, it was time to get back to work. The first to meet him that day were Minister of Defense and Security Wismoyo Arismunandar and Commander of ABRI Wiranto. They came to report and tie up some loose ends.

The President approved of Wismoyo’s approval regarding verbal orders. Henceforth, all verbal orders by ABRI must be supplemented with official written versions of that order before it could be carried out.

Wiranto reported that there will be a minor ABRI shuffle due to certain active duty officers joining the State Secretariat to which Try ordered Wiranto to proceed.

“I would also like to report that Colonel Chairawan and Major Bambang Kristiono have, effective from 1st August, been discharged from ABRI. The members of Team Mawar have been retained but they will be kept away from holding command positions”, said Wiranto.

“Good”, replied Try.

“Chairawan and Kristiono have gone on to being staff members for the Governor-elect of Central Java”, Wiranto reported.

“Yes, at least we can’t say that Prabowo doesn’t take care of his man” Try muttered before adding “What about Syahrir MS, he’s the Commander of the Central Java Regional Military Command now, how do you think he will fare handling Prabowo?”

“He’s not in Prabowo’s inner circle, but they’ve got the Kopassus ties”, reported Wiranto “He’s not my favorite but he won’t do harm. My advice is to give him time and see how he handles Prabowo, Mr. President.”

The next meeting was with Chairman of BP-7 Soegiarto. Try explained talked to him about the recent terrorist attacks on the US Embassies in Sudan and Kenya and asked him how likely that something like that could happen in Indonesia.

Soegiarto said that preventing radicalism should be another reason why economic recovery is important. If people are unemployed, desperate, and angry then they will turn to radical teachings.

“I think if there is something you might want to watch out for, Mr. President, it’s Muslims becoming more devout”, said Soegiarto.

“Is that because there is an economic crisis going on so people are turning to God?” asked Try.

“It’s not like that, Mr President. It’s more underlying”, said Soegiarto “People are more religiously devout these days.”

“I consider myself devout, Mr. Chairman”, said Try.

“Ah, but you’re not reading and consulting regularly to see if the way society is run accords with Islamic Law are you, Mr. President”, said Soegiarto “There is reason to believe that more and more people in society are turning in that direction.”

“Is this dangerous?” asked Try.

“It’s definitely subtle, Mr. President”, said Soegiarto “20 years from now we could be in a situation where people have a more religious-based worldview. That’s not wrong of course. But it’s a short jump from there to calling for society to be run along religious lines.”

19th August 1998:
President Try Sutrisno and Vice President JB Sumarlin presided over a social policy meeting attended by Minister of Education Wardiman Djojonegoro, Minister of Health Broto Wasisto, Minister of Religion Quraish Shihab, Minister of Social Affairs Meutia Hatta, and Minister of Female Empowerment, Youth, and Sports Khofifah Indar Parawansa. State Secretary Edi Sudrajat, Cabinet Secretary Hayono Isman, Head of Bulog I Gede Awet Sara, Head of BKKBN Nafsiah Mboi and Head of BPS Gunawan Sumodiningrat also attended.

Try said that he intends to use most of the funds given by the Consultative Group on Indonesia (CGI) for social programs and that was indeed what the CGI, which includes the IMF and the World Bank Recommends.

The meeting decides on the following measures:
-Rice will be distributed to poverty-stricken urban and rural regions. In these regions, the price of rice will be subsidized to Rp. 1,000 per KG so that it will be within the budget of the people living in these areas.

-The Schoolchildren Supplementary Meals program initiated by Soeharto will be expanded from three days a week to five days a week and snacks to meals.

-The Department of Health and the BKKBN to provide free treatment for the delivery of babies and its related care for those who are living below the poverty line.

-Blankets, food, clothing, and basic sanitary kits to be distributed through through the Department of Religious Affairs to places of worship so that they can take in those who have become homeless or the homeless in general.

-The BPS to conduct on-field surveys to ensure that their data about those living below the poverty line as updated as possible.


20th August 1998:
The President met with State Secretary Edi Sudrajat and Deputy State Secretary Soedibyo Rahardjo to finalize reorganization of the State Secretariat. The following will now be taken over by the State Secretariat after being left “homeless” without a parent agency for the past five months:

Responsible to the State Secretary:
-Office of the National Discipline Movement
-Office of the Anti-Narcotics Policy
-The National Disaster Management Coordinating Agency
-The Utilization of State-Owned Enterprises Agency
-The Procurement Evaluation Team

Responsible to the Deputy State Secretary:
-The Tariff and Fiscal Team
-The Development of Eastern Indonesia Council
-The Integrated Economic Development Zone Guidance Council
-The Regional Economic Cooperation Team
-The National AIDS Council
-Office of Children’s Affairs

21st August 1998:
President Try Sutrisno today inaugurated the Jangli-Kaligawe Toll Road in Semarang Central Java while at the same time acknowledging the opening of the Palimanan-Kanci Toll Road in Cirebon, West Java.

The President was accompanied by Minister of Economics and National Development Planning Soedradjad Djiwandono, Minister of Transportation Soerjadi Soedirdja, Minister of Public Works, Urban Development, and Housing Sutjipto, State Secretary Edi Sudrajat, OCDS Sugeng Subroto, and Governor of Central Java Soewardi.

At the end of the ceremonies, Try shook hands Soewardi who will be ending his term as Governor of Central Java and was suddenly reminded that Prabowo was due to assume office as Governor of Central Java the coming Monday.

The President flew to Medan, North Sumatra once the ceremony was over and spent the night there.

22nd August 1998:
First thing in the morning, the President attended Scouts Day Celebrations at the Sibolangit Camping Grounds in North Sumatra. In his speech, the President said that the purpose of the economic recovery that the government is pursuing is to secure the future for the youths that has come to attend that day and that it is the duty of the youths, through their participation in the scouting movement, to develop themselves so that they are ready for that future.

24th August 1998:
At a ceremony in Semarang, Minister of Home Affairs Harsudiono Hartas swore in Prabowo Subianto as the new Governor of Central Java.

“I promise to the people of Central Java that under my leadership, this province that Central Java will once again be the center of economic activity, commerce, and culture. Not only on Java but also in Indonesia as a whole”, said Prabowo in his inaugural address.

Harsudiono watched warily as Prabowo was congratulated by his wife Titiek and the Soeharto children who attended. He hoped it would not be a bumpy ride.

The DPR today passed the Senior Citizens’ Welfare Bill into law. The legislation mandates that the government take measures to improve the welfare of its senior citizens in all of its aspects.

“This is all well and good until you realize that Meutia Hatta submitted the bill after the Banking Bill”, said Try in annoyed tone to Edi Sudrajat who was watching the television with him “The Banking Bill is the more important one.”


25th August 1998:
President Try, Vice President Sumarlin, Edi Sudrajat, and Minister of Finance Mar’ie Muhammad met with Bacelius Ruru SH, Llm., the Head of the Utilization of State-Owned Enterprises Agency (BPBUMN). Try said that he would like to see State Owned Enterprises improve its performance, shake off its reputation for being inefficient, and not be a burden on state finances. He wants to keep a closer watch on the State Owned Enterprises that is why it has been put as an agency under the State Secretariat.

The meeting agreed that as a starting point, the BPBUMN will focus on four state owned enterprises:

*The State Petroleum Mining Company (Pertamina). The largest of the State Owned Enterprises with various inefficiencies in its supply chain due to it being used as a cashcow. The meeting resolved that Adm. (Ret.) M. Arifin will be Pertamina’s new CEO.

*Garuda Indonesia. Indonesia’s flag carrier, suffering from excessive debt and inefficient practices. Its CEO being historically from the Air Force, a new approach needed to be made. Thus Rini Soewandi BEc, presently CFO of Astra International will be Garuda Indonesia’s new CEO.

*TVRI. A State Owned Enterprise most visible to Indonesians due to it being on the television screen. Is now stagnant in the face of competition from private television companies. Maj. Gen. (Ret.) Roni Sikap Sinuraya will be the new CEO, he was Head of Army Information when Try was Army Chief of Staff and more recently former Director General of Immigration.

*Bank Mandiri. Prominent Banker Robby Djohan has been appointed as CEO. He will guide the merger and the set-up process of the new bank. Try said that the bank should be set up within one year.

27th August 1998:
The President convened a meeting attended by Vice President Sumarlin, Minister of Economics and National Development Planning Soedradjad Djiwandono, Minister of Finance Mar’ie Muhammad, Minister of Legal Affairs Albert Hasibuan, Governor of BI Boediono, Head of IBRA Bambang Subianto, and Attorney General Soedjono C. Atmonegoro. Edi Sudrajat and Hayono Isman also attended.

“I’m convening this meeting because I’m going to be out of the country when the time comes for when the government begins receiving BLBI repayments”, said Try.

The discussion around the table surrounded whether or not the banks will begin repaying the funds they have received. This question received a mixed reaction. The consensus was that at best, they will try to negotiate terms because when it was initiated by Soeharto, no terms or date for repayment was ever set. At worst, they will just ignore the deadline.

“If I may, I think we should agree to the following if we negotiate”, said Mar’ie Muhammad “First, the length of the repayment term has to be reasonable. Second, and this is more important, the payments has got to be in cash. The BLBI was in the form of cash and the repayment has to be in cash.”

All those present agreed that this should be the government’s basic stance when negotiating.

“There should be some punitive mechanism if they don’t want to come to the table”, said Bambang Subianto “My people at IBRA have tried to negotiate with the BLBI recipients in the 3 months since the 1st September repayment. They’ve either refused to negotiate or we’ve set an appointment but they haven’t shown up.”

“Let’s not worry too much. We’ve got the levers to pull and the buttons to push. When the time comes, there’s plenty of things we can do to apply pressure”, assured Sumarlin “We just have to make sure sure that we play it wisely and use up all our ammunitions in the beginning.”

The President turned to Hasibuan and Atmonegoro and asked them what legal steps could be taken against the BLBI recipients at the present time. Hasibuan and Atmonegoro said whatever is in the present Banking Law. Both agreed that there would be stronger grounds for action if the Banking Bill was passed.

“Mr. President, you’ve got the option of signing a Regulation in Lieu of a Law”, asked Soedradjad “Maybe you can sign a Regulation in Lieu of Law regarding Banking.”

“That’s risky”, said Hayono “If the President signs a Regulation in Lieu of a Law, he still has to submit the regulation to the DPR to be properly passed as a law before the DPR goes into recess. If the regulation does not pass, the President has to revoke the Regulation in Lieu of a Law.”

“And we think we ought to be cautious right now about this”, added Edi “Some enemies lurking in the DPR.”

After some more back and forth, Try began speaking.

“All right there’s what I think we should do”, said Try “I think the Minister of Finance’s argument are good starting points for negotiations. The payments has to be made in cash and the term of payment has to be reasonable. At the same time, I want the Minister of Legal Affairs to issue travel bans on the Board of Directors and the Board of Commissioners of the 48 BLBI recipients. Put the travel ban in effect on the 1st September.”


28th August 1998:
The President invited Chairman of the DPR Harmoko to join him for Friday Prayer followed by lunch. Matters of state and Golkar alike were discussed.

“I’m not going to reject a passed bill on the welfare of seniors coming my way for signature, Mr. Chairman”, said Try “But both you and I know, it’s the Banking Bill I want passed into law.”

Harmoko explained that there is a group in the DPR coalescing around Hartono. These are the same group of people that voted against the passing of the the anti-monopoly bill and are now delaying its passage. Their latest claim is that they are preparing an amendment of their own to the Banking Bill.

“Are they going to be trouble?” asked Try.

“They’re a nuisance but I don’t think they’ll be real trouble”, said Harmoko.

The discussion moved to the Golkar National Congress. Try asked how that was going.

“Basofi’s been great help, all the chairmen of the Golkar Provincial Branches are now aware of my and Basofi’s candidacy as Chairman and Secretary”, Harmoko said “I myself expect to officially declare my running for re-election just as soon as I’m finished with some of my duties as Chairman.”

“Ah yes, you have a meeting of the National Executive Council to chair next week”, said Try.

“All too right, Mr. President”, said Harmoko “We’ll be deciding who will be the Chair of the organizing and steering committees for the congress. That meeting will be next Thursday, when you’re away.”

When the meeting came to an end, Try saw Harmoko off. Edi Sudrajat approached him as he watched Harmoko’s official car disappear.

“The BLBI repayments and important preparations for the Golkar National Congress next week”, he said to Edi “And I’m going to be away at the Non-Aligned Movement Summit in South Africa.”

“No doubt still being able to receive the latest updates through the magic of modern telecommunications”, said Edi encouragingly.

“Can’t I delegate this?” asked Try.

“You’ve got some heavy duty names to meet, Mr. President”, replied Edi “And what they want to talk about is not something you should delegate.”

“The buck stops here, right?” asked Try.

----
This is a post with some “tying of loose ends” with the soldiers which have kidnapped activists no longer being allowed to hold command positions and Prabowo inaugurated as Governor of Central Java.

Try and Soegiarto are discussing about whether or not radical Islamic terrorism can happen in Indonesia on 18th August. I’m not sure how Islamism will fare ITTL. Maybe it’s just my writing style, but whether or not an event will or won’t happen is determined as I get closer.

I’ve chosen the “Dates and events” style of TL because it gets me to experience what’s happening along with Try and the other guys and determine what’s possible and what’s not based on how Try and the others interact with each other. Sure I’ve got some things of what I want to happen broadly outlined but the road Try travels, and the bumps along the road, are only evident the more I get closer.

The measures approved on 19th August 1998 are identical to the Social Safety Net programs initiated by Habibie OTL.

The Welfare of Senior Citizens Law was passed OTL by the Habibie Government.

The way Try handles the Bank Indonesia Liquidity Assistance (BLBI) receivers and the Golkar National Congress will be the major storylines (if you can call it that) over the next few updates.

 

[GSD310]

Good updates; Try is going to be a better president, IMO, than Soeharto (BTW, have you seen the documentaries The Look of Silence and The Act of Killing? They're about the 1965-66 Indonesia mass killings, and they're good, by all accounts, if chilling).

This continues to be a good TL...

I've watched Act of Killing but not The Look of Silence. The killings are something that people are reluctant to admit openly. Soeharto and his generation refer to it euphemistically as "The people and ABRI" working to "restore order."

It'll be a tricky topic for Try to approach that's for sure. What specifically will happen is still a blur to me but I now have Taufik Abdullah as the Head of the National Science Institute (LIPI). He's someone who's gone on the record as saying that Soeharto's government was "greedy" for trying to dominate the collective memory and historical narrative. Now he won't say that publicly ITTL but I get the impression that he'll want to do something..

Finally a twentieth century politics timeline about a developing country.

Thank you for your support. I realize it's a bit of a niche subject so I appreciate the attention.

 

[RyderWest]

I've watched Act of Killing but not The Look of Silence. The killings are something that people are reluctant to admit openly. Soeharto and his generation refer to it euphemistically as "The people and ABRI" working to "restore order."

My dad, who is Chinese Indonesian, believes that there was always something fishy about G30S and the apparent Coup attempt, since apparently Suharto was not targeted despite all of his colleagues being attacked and killed. He always said to me "if the G30S was about to take over, why didn't they go after Suharto?"

 

[GSD310]

My dad, who is Chinese Indonesian, believes that there was always something fishy about G30S and the apparent Coup attempt, since apparently Suharto was not targeted despite all of his colleagues being attacked and killed. He always said to me "if the G30S was about to take over, why didn't they go after Suharto?"

I think the problem with that argument is that the targeted generals and Soeharto were not the only generals in Indonesia at the time. There were a lot of generals in Jakarta at the time for ABRI Day Celebrations, most of whom rallied to Soeharto when it was clear that he was leading a fightback against the G30S. So if the question is asked "Why wasn't Soeharto targetted?", you could extend that to:
"Why wasn't Maj. Gen. Umar Wirahadikusumah targeted? he was the Commander of the Jakarta Regional Military Command and had control over the troops in Jakarta."
"Why wasn't Maj. Gen. Mursyid targeted? He was the Deputy Commander of the Army for Operations."
"Why wasn't Maj. Gen. Pranoto targeted? Isn't it suspicious that he wasn't kidnapped but became Soekarno's original pick to replace Yani as Commander?"

And you could go on all day about other generals who were there present at the time.

I think G30S is a messy event. So messy that:
A. If anyone feels they have a definitive version of events or they have a clear idea of what they think happen, then I would say they either have an agenda or a bias. It doesn't matter if it's New Order's version or if it's the Cornell Paper or any of the other versions of the G30S which have emerged after Soeharto's fall. If their story is too neat, there's probably an agenda or bias attached to that.

B. The only way to tell a seamless story that suits one's own agenda or biases is too ignore arguments and facts that run contrary to one's agenda or biases. I mean the New Order's version of events doesn't even try to explain why Soeharto was not kidnapped. But the Cornell Paper (which argues that the G30S was a bunch of middle-ranked officers moving against generals who they see as decadent) doesn't explain why Untung dared to make an announcement which said that the Cabinet was now in caretaker mode, which effectively usurps Soekarno's authority).

 

[Corax]

What if it's two plot intersecting with one another ? Or perhaps it is Soeharto being a savvy political operator and just took advantage.

 

[GSD310]

What if it's two plot intersecting with one another ? Or perhaps it is Soeharto being a savvy political operator and just took advantage.

I think regarding Soeharto and his role in the G30S, once again things are complex. I leave it to you as the judge.

Soeharto was the Commander of Kostrad which was good except for the fact that his career had stagnated. He was contemplating early retirement and had sent a letter asking to be discharged in May 1965, it was just the case that the letter was intercepted by a friend who wanted him to see how things play out in 1965 (Wanandi 2012: 50).

Then on the night of 30th September, his old friend Col. Latief came to say that the Presidential Bodyguard was going to take 7 generals into custody and bring them to Soekarno. While it's true that this means Soeharto knew something was going to happen, I think an argument could be made the information was so that Soeharto knew something was going to happen but with the purpose of telling him to stay away. As Elson (2001: 116) argues that Latief told Soeharto what was going on "...because he trusted that Soeharto would not act."

Salim Said, who is a prominent Indonesian military historian argued that what happened next showed how complicated Soeharto's relationship was with Ahmad Yani. He probably expected that Yani would be removed as Commander of the Army, at which point Soeharto would be in a position to gain, but did not expect that Yani and the other top Army officers to be kidnapped and killed. As Said (2015: 143) said: He [Soeharto] was ruthless enough to see Yani be removed but not to see Yani slaughtered." In other words, Soeharto probably didn't think that things would be that bad.

Now at that morning of 1st October, the reports that came to Soeharto was that 6 officers had been kidnapped with some indication that some of those officers had been shot when they were kidnapped. That's enough for Soeharto's esprit de corps with Yani as fellow Army officers to kick in and look for a way to crack down on the G30S. Of course the flipside of this is that it made it look like Soeharto took advantage of the information he got from Latief.

And as a personal background, my grandfather was in the Indonesian Army as an Army Dentist, was in Ahmad Yani's unit during the 1950s, and hoped that Yani would go on to become president. He was Chinese Indonesian.

Anyways, for those who can read Indonesian:
Salim Said's book: https://books.google.co.id/books?id=8O7vCgAAQBAJ&pg=PA139&dq=tego+patine&hl=id&sa=X&ved=0ahUKEwjfirybo6DaAhVLr48KHTo6DdcQ6AEIJzAA#v=onepage&q=tego patine&f=false

And in English:
Elson's bio of Soeharto: https://books.google.co.id/books?id...8KHalJDuQQ6AEIKTAA#v=onepage&q=latief&f=false

Wanandi's book on the New Order: https://books.google.co.id/books?id...gA2YQ6AEILzAA#v=onepage&q=intercepted&f=false

 

[RyderWest]

How is Jakarta looking as of TTL August 1998?

Probably much better considering no riots.

 

[GSD310]

How is Jakarta looking as of TTL August 1998?

Probably much better considering no riots.

Some things which can be said about Jakarta circa August 1998 TTL:
-It is a city with a slightly smaller population with a good 500,000ish people leaving the city over January-June 1998. Some left during the Idul Fitri Holidays in January 1998 when the currency was worryingly losing its value and there is the prospect of political uncertainty in the lead up to the 1998 MPR Session. Others left sporadically when it became clear the prospects for employment were better in the villages and to take advantage of the Department of Population, Transmigration, and Rural Development's free transportation to encourage urban-rural transportation. Minister of Population, Transmigration, and Rural Development Hendropriyono, being an Army man, saw the security threat of too much unemployed milling about in the city.

-The super rich continue on their lives as usual. Everybody else have introduced some kind of measures to save money. The upper middle class have opted to send their children to university in Singapore or Australia rather than the United States; middle class households are now making do with 1 household attendant instead of two; the lower economic classes are now keeping household spending to a minimum by not buying much outside of food and clothing.

-The lower classes are finding employment with the government's stimulus programs and Governor Sutiyoso's labor-intensive programs. Newly established contractor companies and fresh graduate architects are given the priority when the government looks for contractors to build the roads, schools, and defense housing as part of the stimulus package. Vacancies are abound in the hospitality and tourism sectors.

-Malls and shopping centers remain the place to go for leisure though electronic stores and car showrooms are noticeably empty.

-There is an overall sense of people wanting to hold on to their money and "ride out" the economic crisis. This is especially true if they are unemployed and not having income.

 

[GSD310]

Chapter 31
31st August 1998:
President Try Sutrisno departed from Halim Perdanakusuma Airport this morning at the head of a delegation headed for the Non-Aligned Movement in Durban, South Africa.

Try’s Delegation:
President Try Sutrisno
Minister of Foreign Affairs Ali Alatas
Minister of Maritime Affairs and Fisheries Tanto Kuswanto
Minister of Economics and National Development Planning Soedradjad Djiwandono
Minister of Trade and Investment Dorodjatun Kuntjoro-Jakti
State Secretary Edi Sudrajat
Head of the BKPM Mari Pangestu


But first, the Garuda Indonesia plane used by the President landed in Singapore after one hour’s flight. In a whirlwind visit, Try discussed closer economic ties with Prime Minister Goh Chok Tong before being toasted at a luncheon hosted by President Ong Teong Chang.

The highlight of the trip was Try’s after lunch meeting with Senior Minister Lee Kuan Yew. The Senior Minister offered some comments and encouragement in characteristic fashion.

“I think in our neck of the woods, with all of the ASEAN nations feeling the effects of the financial crisis, what’s important is for your nation’s economy to recover not only for your own country’s sake but for the region’s sake. Singapore can certainly benefit from it especially with Mahathir and Anwar Ibrahim feuding in Malaysia.”

It was mid-afternoon by the time Try and his delegation arrived at Changi Airport to depart for the 14 hour flight to Durban. It was also in Singapore that Chairman of the Indonesian Chamber of Commerce and Industry Aburizal Bakrie joined the delegation.

Bakrie was keen to use the opportunity of being on the same flight as the President to meet with him and Try wanted a break from the monotony of paperwork. So somewhere over Indian airspace, Try asked Bakrie to join him. They chit-chatted before getting to the purpose of the discussion.

“Let me go on the record as saying that I do hope the BLBI recipients will pay back the funds they have received, Mr. President. After all, it’s only fair”, Bakrie said.

“Thank you”, said Try.

“As a matter of fact, I think you should make sure that they pay all the funds that they owe immediately or else you will seize their assets”, said Bakrie.

Bakrie went on to speak passionately about how those who had received the BLBI are those who have “proximity to power” in the past and that the fact that they have never even thought about repaying the assistance received from government meant that they never had “good faith”. After some time, Edi Sudrajat came in saying that the Vice President is on the phone. Bakrie took that as his cue to leave and shook hands with Try before doing so.

“The Vice President isn’t really on the phone is he?” asked Try.

“No. It just looked like you wanted to get out of the conversation, Mr. President”, replied Edi.

“He just said I should start seizing the BLBI recipients’ assets if they don’t pay immediately”, said Try “Which is extreme.”

“Yeah, you want them to repay what they received from the government but you don’t want to just seize their assets either”, said Edi.

The delegation arrived in Durban South Africa in somewhat of a somber mood. They watched the Indonesian football team take on Thailand in the Tiger Cup with the winner going on to meet hosts and favorites Vietnam in that tournament’s Semi Final. Both Indonesia and Thailand did not try their best out of fear of meeting them in the semi final. But to the groans of those on the flight, Mursyid Effendi, an Indonesian player, deliberately scored an own goal to secure defeat for Indonesia.


1st September 1998:
The delegation had a breakfast meeting at the President’s suite to go over what the plan was for the day and then they broke off.

Try’s first meeting was with President Nelson Mandela of South Africa where he, Edi, Dorodjatun Kuntjoro-Jakti, and Marie Pangestu struggled to hide their awe. After a meeting between the delegations to talk about trade and investment, Mandela invited Try, Ali Alatas, and Edi Sudrajat for tea. Mandela spoke at length about his years in prison and he spoke about how he “saw himself in Xanana.”

“I now make the request that I made to President Soeharto before his untimely passing, Mr. President”, said Mandela “I hope that you would release Xanana Gusmao so that he could take part in negotiations about East Timor’s future.”

Try took a deep breath.

“The situation has changed. I acknowledge that in the past our government didn’t treat our brothers of East Timor the right way but things have changed. This past June, I protected the people of East Timor from hardliners within my own government who had turned East Timoer into a fiefdom. We have formed an Interdepartmental Committee on East Timor so that the province could now be properly developed and its people’s economic lives improved”, said Try “Xanana Gusmao approves of this as do Bishop Belo and Mario Carrascalao, the other East Timorese leaders in Dili.”

Try and Mandela went back and forth with Mandela asking for East Timor’s future to be reconsidered and Try saying that East Timor will be developed until their allotted time ran out.

After lunch, Try’s next meeting was with UN Secretary General Kofi Annan. Annan congratulated Try’s efforts at limiting the damage of the Asian Financial Crisis in Indonesia but would like to ask Try to “consider what President Soeharto has not considered and reopening the possibility for referendum.”

Try explained at length the government’s stance, how East Timor was part of Indonesia and that the question had been settled in 1976.

“I acknowledge the proposal for Wideranging Autonomy put forward by your Special Envoy, Mr. Jamsheed Marker and that I will carefully study it”, said Try “But the for the moment, my stance is the same stance which I have also conveyed to Mr. Mandela.”

Try ended the day with a headache having been grilled by two such prominent diplomatic luminaries.


2nd-3rd September 1998:
The Non-Aligned Summit began proper with South Africa, represented by Mandela, taking the chair.

Amidst the meetings with various heads of state and government, Try met with Malaysia’s Minister of Foreign Affairs Abdullah Ahmad Badawi who apologized at the non-attendance of Prime Minister Mahathir Mohammad. Edi Sudrajat, Ali Alatas, and Tanto Kuswanto accompanied him with this.

The Asian Financial Crisis had not been kind for Malaysia. What began as an economic crisis became a political feud when Prime Minister Mahathir Mohammad and Minister of Finance Anwar Ibrahim began to publicly feud over how to best guide Malaysia out of economic recovery. Mahathir wanted capital controls while Anwar wanted IMF-style austerity measures. Both ironically used Try as as a guide for economic recovery. Anwar pointed out that Try strictly adhered to the policy measures prescribed by the IMF and that has put a check on the damage of the financial crisis in Indonesia. While Mahathir argued that the stimulus package and labor-intensive projects Try initiated were not something the IMF would normally approve of. Either way, the Malaysian economy was now in recession.

“The stance of the Indonesian government is that we do not intervene in the internal affairs of other countries”, said Try “Though for the Malaysian people’s sake and for the Southeast Asian region, the continuing dispute between the Prime Minister and the Minister Finance would be settled in the best way possible.”

Try’s remarks of sympathy did not get in the way of the business at hand. At the meeting, it was agreed that both Indonesia and Malaysia will seek to bring its dispute over the Sipadan and Ligatan Islands to the International Court of Justice (ICJ) in November. The two islands, located in the Celebes Sea, had been disputed between the two nations. Soeharto had agreed for the dispute to be taken to the ICJ and had signed an agreement in May 1997, leaving Try’s hands tied. When Badawi left, the Indonesian delegation was dejected.

“That was harder than I thought”, said Try.

“Things were just simply too far down the pipeline, Mr. President”, said Ali Alatas “They wouldn’t accept it if you said you wanted to review what President Soeharto agreed to.”

“I know you’re not happy about this, Admiral”, said Try turning to Tanto “I’m not happy about it too. We’ve got to give more attention to our outer islands.”

On the home front, Chairman of Golkar Harmoko chaired the Golkar National Council meeting to determine who will be the chairs of the Organizing and Steering Committees for the upcoming Golkar National Congress.

Harmoko quickly came under the assault of Bambang Trihatmodjo. The Soeharto son and Treasurer of Golkar argued that both committees should not be chaired by those biased towards the Chairman’s efforts to become re-elected.

Abdul Gafur, in his capacity as Vice Chairman said that at the same time both committees shouldn’t be favorable to Tutut’s effort to become chairwoman.

After what was becoming a rapidly raucous meeting, the meeting agreed the chairs of the Organizing and Steering Committees will be decided by consensus. As Chairman of the Organizing Committee, the meeting agreed that DPR Member Theo Sambuaga will be suited to the position. The meeting agreed that DPR Member Agung Laksono will be the Chairman of the Steering Committee.

The appointments were announced by Secretary of Golkar Ary Mardjono after the meeting. Ary Mardjono said that Theo Sambuaga and Agung Laksono were figures who are acceptable to various groups.

Predictably all the attention were directed to Agung Laksono as the Chairman of the Steering Committee as he would be responsible for the rules of the game. Agung said that he will strive to make the Golkar National Congress as democratic as possible.

Try watched this news regarding the Golkar National Congress via satellite from the Indonesian Embassy in South Africa.

4th September 1998:
The President and his delegation landed Friday morning Indonesian time at Halim Perdanakusuma Airport.

Once at the Palace, a meeting was immediately held and attended by the President, Vice President JB Sumarlin, Minister of Economics and National Development Planning Soedradjad Djiwandono, Minister of Finance Mar’ie Muhammad, Governor of Bank Indonesia Boediono, State Secretary Edi Sudrajat and Head of IBRA Bambang Subianto. They talked about the BLBI repayments.

“Bambang Trihatmodjo (Bank Alfa) and property developers Ciputra (Bank Ciputra) and Aldo Brasili (Bank Orient) are negotiating repayment installments as we speak. They are willing to pay cash. Liem Sioe Liong (BCA) is negotiating terms to go off the BLBI”, announced Bambang Subianto.

“Some surprising names”, said Edi.

“Liem and Ciputra were close to the former President but they run their businesses soundly. Ditto Bambang, despite being a child of the former President”, said Mar’ie.

“What about the others?” asked the President.

“No news from most. Some are already taking the route we’ve predicted and asking if they can repay with assets”, said Bambang Subianto “Because they just don’t have the cash.”

“Tell them the negotiation table’s there if they want to approach us”, said Try.

As the meeting broke up, the President chatted casually with those present. He told them about his chat with Bakrie on the flight from Singapore to Durban. There was a general consensus of horror at what Bakrie was trying to do.

“I only knew that the consequences of listening to him would be disastrous, though I don’t know why”, said Try honestly.

“No one’s going to be able to pay their BLBI repayments back in one installment unless they give up everything to the government, Mr. President” explained Sumarlin “But then we run the risk that in this crisis environment, their assets will be overvalued so that by the time we dispose of it we would have had to lower the value of the assets.”

“Meaning that people can get other people’s assets on the cheap?” asked Edi.

“Precisely, Mr. State Secretary”, said Sumarlin.

The meeting at last broke up.

“Who’s next on the schedule?” asked Try.

Not long thereafter, in stepped Tutut Soeharto. Try remembered Edi telling something about her asking for a meeting when they were at Durban and him approving it. She wore a yellow outfit and a yellow headscarf and Try immediately knew what this meeting was going to be about. Hartono and Ary Mardjono accompanied her.

“The congress dates have been set, the organizing and steering committees have been formed, and now you are at last throwing your hat in the ring”, said Try.

“You know everything, Mr. President”, Tutut said flatteringly “Yes, I would like to inform you that I will be declaring my candidacy as Chairwoman of Golkar at the next Golkar National Congress just as soon as this meeting finishes.”

After Try offering some platitudes about wishing her well and asking her to adhere to Golkar’s rules, the President asked her a pointed question.

“If I may”, began the President “It is likely that your opponent will be the present Chairman of Golkar. He has a strong claim to be re-elected. He did guide Golkar to its largest amount of votes in its history.”

Tutut smiled.

“All of us are here because of my father, Mr. President”, said Tutut “You because my father picked you to be Vice President which meant that you were in a place to succeed him. Mr. Harmoko may be the man who can increase Golkar’s votes but if my father didn’t will it, he wouldn’t be the Chairman of Golkar.”

“And what about yourself?” asked Try.

“I’m here because of my father and the designs that he had for me”, said Tutut.

---
A week occupied by the NAM Summit and Tutut’s candidacy for the Chairwoman’s position at Golkar.

So we have the first effects of Indonesia ITTL on the region around ie. Malaysia. I finally decided that Malaysia would be in a political deadlock between Mahathir and Anwar Ibrahim as a result of the crisis. No Soeharto falling from power meant no Mahathir thinking that he would be torn down and Anwar trying to have Reformasi 2.0 in Malaysia.

OTL Habibie Government toyed seriously with the idea of the Bank Indonesia Liquidty Assistance (BLBI) being repaid immediately by its recipients or else their assets would be seized. But there is speculation that this was a ploy by some businessmen to try to gain the assets of their fellow businessmen on the cheap.

 

[GSD310]

32:
5th September 1998:
Try invited his inner circle Edi Sudrajat, Harsudiono Hartas, Ari Sudewo, and Sugeng Subroto to the Presidential Palace. While their wives cooked breakfast at the Palace Kitchen, the men took a stroll around the Palace grounds.

“She wants the Chairwomanship of Golkar but she wants the presidency even more, that’s what I got from your exchange with her, Mr. President”, said Edi.

“This bid for the chairwomanship was always going to happen”, said Ari Sudewo “She’s been chewing away at Harmoko’s authority for the past few years and it was something I’m sure her father was planning for her if he lived to see 1998.”

“Are you sure you still want to back Harmoko against her, Mr. President?” asked Harsudiono “That display of his this past week doesn’t inspire confidence. A Chairman who could not impose his authority on his party…”

“Better that he be on our side than theirs”, said Try “Besides, you have to give him credit. He definitely knows how to maneuver himself. We can live with Agung Laksono and Theo Sambuaga in charge of the congress’ steering and organizing committees.”

“That’s how I know he failed to impose his authority, Mr. President”, countered Harsudiono “He picked figures that are acceptable to Tutut as well.”

“For the moment let’s accept Agung Laksono and Theo Sambuaga”, said Try "If he tries to impose candidates, he'll lose the vote and it won't be a good look."

“So we have two candidates for the Chairmanship of Golkar: Harmoko and Tutut” interjected Sugeng Subroto “For argument’s sake, what about Ginandjar Kartasasmita?”

“Word on the grapevine tells me that he’s quite boastful that the votes he brought over got you the presidency”, said Harsudiono “I can’t imagine how things would be if he won the chairmanship.”

“And also someone who’s likely to use the chairmanship of Golkar as a launching pad for the presidency”, added Ari.

The five walked in silence.

“The format of the Chairmanship Election is also something we should be concerned about”, said Harsudiono “Agung Laksono flagged that he wants the vote for the chairmanship to be more democractic.”

“Yes, presently only the chairmen of the provincial branches hold the vote for the chairman” said Try “27 votes in play.”

“Theoretically we should have the advantage”, said Sugeng “21 out of those 27 chairmen are ABRI men.”

“Hmm…what does Agung Laksono mean when he said the vote should be more democratic?” asked Try.

“It means more people will get to vote in the chairman’s election. Most likely all the regency and municipal branches”, said Harsudiono.

“That’ll be 301 branches”, said Ari Sudewo “Plus 27 provincial branches means we have 328 votes in play.”

“Most of those 301 branches have ABRI men as their chairmen right?” asked Edi.

“230 branches in fact”, said Harsudiono “But this makes things complicated. There’s bound to be votes for Harmoko if they know the President is backing him but who knows how many Feisal Tanjung or Hartono followers there are. Not to mention those who are Soehartoites, liable to be bribed, or opportunists.”

“I’ve got some lobbying to do”, said Try “I’ll continue to support Harmoko but there’s a few other people I have to meet.”

7th September 1998:
At a Community Health Centre in Cakung, East Jakarta, President Try Sutrisno took part in administering the first round of polio vaccinations to children as part of the National Immunization Week. Minister of Health Broto Wasisto said that the vaccinations represents the government’s commitment to the people’s welfare.

Meanwhile at the DPR building, businessman Sudwikatmono spoke in front of a hearing. He complained about the “unilateral cancellation” of his electricity contract and how he has found out that the government has placed a travel ban on him. Ary Mardjono, who was with him, said that such practices are not good to create a conducive investment climate and calls on the government to reverse such practices.

Speaking on behalf of the government, Minister of Information, Post, and Telecommunications Ginandjar Kartasasmita tongue-lashed Sudwikatmono and said that he “and those like him” should immediately pay what they received from the BLBI without delay.


8th September 1998:
The President met with Minister of Transportation Soerjadi Soedirdja. Soerjadi confirms that by 17th September, the seatbelt inspectors would not have completed their job inspecting all existing vehicles’ seatbelts on the road. Try approves of the plan to recruit more seatbelt inspectors.

Tutut visits unemployed youths in East Jakarta to hand hampers on behalf on the Supersemar and Dharmais foundations. She said that even though the government has cut off the funds to these foundations, she will continue to make such donations.

9th September 1998:
From the Gelora Senayan Sports Auditorium, President Try attended the Celebration of the National Sports Day held by the Indonesian National Committee of Sports (KONI). In his address Try said that sports is a “microcosm” of the national mentality: whether or not a nation has a winning or a hardworking mentality or whether or not they are pessimistic.

“Put in that light, scoring an own goal to avoid facing against a so-called strong opponent in the next round is something we as a nation should be ashamed of”, said Try.

The President said that he stands by the decision of FIFA to ban Mursyid Effendi for deliberately scoring an own goal, that an internal investigation be launched into the Indonesian Football Association (PSSI), and that a fresh P4 ideological course be put in place for athletes.


10th September 1998:
Vice President JB Sumarlin and Interdepartemental Committee of East Timor reported progress to President Try. Some developments which were reported and received presidential approval in the meeting are as follows:

-Minister of Population, Transmigration, and Rural Development Hendropriyono reported that transmigrants to East Timor are now being thoroughly vetted. They must be intending to open a new business in East Timor within 3 months of arrival, they must provide a business plan, and if the business plan is not feasible, they will be asked to move back where they come from.

-Minister of Social Affairs Meutia Hatta said that community centers are being built or being rehabillitated especially in larger towns and the cities so that children could be involved in activities which would not be detrimental to their futures or which encourages them to join in crime.

-Minister of Agriculture, Food, and Cooperatives Sarwono Kusumaatmadja said that he is abolishing the coffee monopoly in East Timor and abolishing regulation which mandates that coffee growers could only sell their coffee to government cooperatives.

After meeting the Interdepartemental Committee on East Timor, Try together with Vice President Sumarlin and State Secretary Edi Sudrajat received Liem Sioe Liong and his son Anthony Salim.

Liem was the richest man in Indonesia, Head of Salim Group and owner of such brands such as Indosiar television network, Indomie instant noodles, Bogasari flour, and the BCA. Much of that was due to business acumen but one could not avoid the notion that Liem benefited from his close association with Soeharto. As fate would have it, this was the first time Try was able to meet Liem face to face since becoming president.

The meeting was set up as a get together. Liem had not only agreed on a repayment scheme suitable for BCA but had asked that all BLBI disbursement to BCA be ceased. There was a handshake and photographs of that handshake, followed by a wideranging discussion.

“Mr. President, there are those in the business community, to be exact those who own banks receiving BLBI aid, who have come to me saying ‘Uncle Liem, what does the President want with us? What does he want with our banks?’” said Liem “As a senior in the business community I would be remiss not to tell what I’ve just said to you.”

“Well, I would prefer they hear it from me myself, Mr. Liem”, said Try “Perhaps they and I and yourself can sit together at a table and talk it out.”

“Definitely, Mr. President”, said Liem.

“Name the time and the place, Mr. Liem”, replied Try “But know that as the clock ticks, I will have to put more pressure on them. I will simply not tolerate the idea that they are trying to get out of paying the BLBI.”

11th September 1998:
The President met with Operational Control of Development Secretary (OCDS) Sugeng Subroto who brought with him the Inspectors General of Development. Sitting together around the table, the President addressed them.

“You’re not required to figure out what the next budget will be like or what should our foreign policy be”, said the President “But I do require you to monitor on the field whether or not the policies of this government are as they are claimed to be and report accordingly.”

The President asked the Inspectors General to look for “deviations” in policy implementation across the various policy areas and across the various levels of government. He told them not to be afraid of government departments and agencies and other levels of government. If they resist, they should write it down in their reports because their reports end up at his desk via the OCDS.

News came in during the day that Prince Paku Alam VIII, the Acting Governor of Yogyakarta had passed away. Try ended his day by flying to Yogyakarta to pay his final respects.

12th September 1998:
The President and members of the Cabinet attended the funeral of Prince Paku Alam VIII. After expressing his condolences to the family, Try was the first to leave, flying back to Jakarta.

Chief of BAKIN Ari Sudewo was also on the aircraft with him and Try used the opportunity to chat.

“Ari, am I doing the right thing backing Harmoko?” asked Try “The others seem to have their doubts.”

“What makes you think I’ll be different, Mr. President?” asked Ari.

“You’re in intelligence. There’s probably something you’re seeing that the others or I can’t”, said Try.

“And you’re the President, as much intelligence and political rumors I get in my in tray everyday, there’s probably something that only you’re seeing”, said Ari “Tell me what you’re seeing, Mr. President. Maybe I can help.”

“I need to shore up my defenses. Tutut is going for the Chairwomanship of Golkar, Prabowo Subianto is already Governor of Central Java, and Hartono is in the DPR and I can only assume they’re there not because they want my Presidency to go smoothly”, said Try.

“I’d say that’s my analysis as well, Mr. President”, replied Ari “If you were to ask me, I’d say shore up your defenses in the DPR. Hartono has got around 50-60 people rallying to him in the DPR in what’s been unofficially called the “Hartono Caucus”. If Harmoko’s been telling you that it’s nothing, it’s bullshit. If he loses the Chairmanship of Golkar, his control over the DPR is going to go next and the next thing you know you won’t be able to pass legislation.”

“It won’t be enough”, said Try “My political adversaries are taking up positions in the provinces, the DPR, and Golkar. My countermeasures has got to protect me on all fronts. Sure bolstering the DPR will be an important part of it but that won’t be enough. If I bolster my hold on the DPR, they’ll hit me on another front.”

“Tell me what ideas you have, Mr. President”, said Ari.

“Like I said, I’ve got some lobbying to do”, said Try before outlining the list of people he wants to lobby and what he hopes to achieve.

“There you go, there’s your gameplan”, replied Ari “You better move quick though.”

 

[GSD310]

33: Three Visits
13th September 1998:
The President had three visits to make this Sunday morning. With a small entourage and accompanied only by Commander of Presidential Bodyguard Endriartono Sutarto and Presidential Aide-De-Camp Budiman, Try made his three visits.


First Visit: Wahono
When Try arrived the man he was visiting already waited and correctly saluted him. This was Lt. Gen. (Ret.) Wahono. He was of Soeharto’s generation and had been the Kostrad Assistant of Operations when the latter stopped the coup attempt by the 30th September Movement. Wahono was Harmoko’s immediate predecessor as both Chairman of Golkar (1988-1993) and as Chairman of the DPR/MPR (1992-1997). Much as Harmoko, Wahono held both positions at the same time.

“Supporting Harmoko?” asked Wahono “Is that what it has come down to, Mr. President?”

“That is my plan, Sir”, said Try.

“It’s just that my experiences with Harmoko is not that well…pleasant”, said Wahono “Soeharto all but booted me at the last Golkar National Congress so that he could install Harmoko and then Harmoko himself purged my supporters in the Golkar executive.”

“I realize that, Mr. Wahono”, replied Try sympathetically “But I wish you wouldn’t see it like that. I hope you would see your support for Harmoko’s candidacy, should you give it, in terms of supporting my government. There’s Prabowo as Governor of Central Java, Hartono trying to gather supporters in the DPR and then there’s Tutut wanting to be Chairwoman of Golkar.”

“Looks like they are indeed positioning themselves to attack you from various fronts, Mr. President”, chuckled Wahono.

“Here’s where I would like your assistance, Mr. Wahono”, said Try “I want you to support Harmoko’s candidacy for chairmanship and I want you to mobilize your supporters to achieve victory for him. In exchange, I’d like you to nominate your supporters to two DPR seats which recently became vacant: Roesdi Roesli’s because he became Assistant State Secretary for legislative affairs and Burhan Magenda because he got elected Governor of West Nusa Tenggara. Name who you want, and I’ll secure the appointment for you.”

“Two seats in a sea of 500, Mr. President”, said Wahono unconvinced.

“Hartono and Ary Mardjono are two men, but they’ve got around 60 Golkar members already around them and whatever interests they’re defending”, said Try “I need two men who can argue my government’s case and strengthen the government’s position there.”

The two talked at length about various issues all the while Wahono thought things through in his head. As he looked at the President, it occurred to him that he never had any real conflict with Try. Wahono was Chairman of Golkar at the same time that Try was Commander of ABRI. At that time Soeharto had felt secure enough with Try and Wahono not to play divide and conquer with them so the two spent most of their time working together.

In more recent times, Wahono had heard about Try from his former partner when he was chairing Golkar, former Secretary Rachmat Witoelar. He heard the tale of a President working hard to take on the vested interests who continue to insist on their privileges.

This and the fact that Wahono was in his core an Army man loyal to his Supreme Commander brought him over the line. Try and Wahono shook hands over Try’s offer before Try left for his second visit. A small media throng had gathered when Try left Wahono’s residence.


Second Visit: Sudharmono
Try’s second host was taken aback when the Presidential Advance team came to him to say that the President would be coming soon. But it was always a pleasure for Sudharmono to see Try and vice versa, the two sharing affinity because they both had been vice presidents.

While Sudharmono was better known as Soeharto’s longest serving State Secretary (1972-1988), he was somewhat of a legend in Golkar ranks. During his chairmanship of Golkar (1983-1988) he successfully built Golkar into a legitimate alternate power base for Soeharto, one with which he could use to check and balance ABRI’s political power.

Try and Sudharmono talked about trivial matters for a while before Try broached the subject.

“So, Mr. Vice President”, Try asked “Who will be the next Chairman of Golkar?”

“You say that like you’re not in a position to try to influence events Mr. President”, replied Sudharmono. Both laughed at that. But then Sudharmono was serious.

“Tutut has been angling for this position for some time. Her father has left her with a strong support base in the National Executive not to mention access to Golkar’s finances through the Dakab Foundation”, continued Sudharmono though his face looked grievous.

“You’re not too pleased at this”, said Try noting the expression.

“When I was Chairman, I was tasked with building Golkar”, began Sudharmono “I did it by recruiting the nation’s best civilian politicians. Sarwono, Akbar Tanjung, Siswono, Rachmat Witoelar and many others; I recruited them all. I broadened Golkar’s support base and made it into a political actor in its own right.

These past five years…well, for all its cadres, it was clear that Golkar was susceptible to being dominated by President Soeharto.”

“The last five years was Harmoko’s Chairmanship” asked Try “And he is looking to be re-elected though he hasn’t declared yet.”

“His power is on the wane, Mr. President. The only political backing he got to become Chairman five years ago was President Soeharto’s political backing. Once President Soeharto turned his favor elsewhere, Harmoko’s power and influence dropped”, said Sudharmono.

“Who should I back, Mr. Vice President?” asked Try.

“You are the Chairman of the Council of Patrons, the leader of Golkar”, replied Sudharmono “That is your decision, Mr. President.”

“Who would you back?” asked Try.

“I’d like to see your government strong, Mr. President”, said Sudharmono “The next Chairman of Golkar should be someone with a proven track record of supporting you, someone with experience in government, and someone with support from both inside and outside of Golkar.”

“I see Ginandjar has been practicing his pitch with you”, said Try with a smile.

“He promised a bloc of votes to you, Mr. President, and he delivered”, replied Sudharmono “That’s got to count for something.”

“It will be food for thought that’s for sure”, said Try.

After some more chit chat, Try farewelled Sudharmono. When he stepped outside Sudharmono’s house, he was surprised that there were more cameras awaiting him and microphones being thrust at him than the cameras and microphones in his visit to Wahono. Questions were directed at him about where he was going and who he was visiting this morning.

“Just visiting some old friends this morning, nothing special”, Try said with a smile and a wave as he entered his vehicle.


Third Visit: Habibie
Habibie had his wife, children, and childrens-in-law in front of his residence at Kuningan by the time Try arrived. After shaking hands with all the family members, Try and Habibie met over tea at the latter’s library.

“If I may begin, Mr. President”, began Habibie “I would like to thank you for continuing the IPTN and the Strategic Industries as well as sparing my colleagues from being removed.”

“We still need the skills that you and your colleagues have”, said Try “But I’ve made it clear that the strategic industries must look for profitable projects and alternative ways to earn revenue. It shouldn’t be a burden of state finances.”

“Of course, Mr. President. I myself have told Sintong and the BPIS colleagues that they must not disappoint you”, said Habibie.

When Try said that he came to talk about Golkar matters, Habibie laughed. He said that another had come a month ago asking him to support Tutut at the Golkar Congress.

“I didn’t commit to anything though, Mr. President” continued Habibie “And this person accused me of softening up on you because you retained the BPIS.”

“Well, are you softening up on me?” asked Try jokingly before both laughed.

“I told him your good will has got to count for something”, said Habibie “But on a more serious note, right now your leadership and your government is important for economic recovery so whoever’s going to be the Chairman of Golkar should be wholeheartedy supportive. So in that sense, I will be backing Harmoko.”

“No Ginandjar?” asked Try.

“Can someone who continues and encourages his colleagues to say that you owe him your present office a little too much be truly supportive of you?” asked Habibie.

Try thought about what he had just said deeply.

Habibie also expressed his wish to resign from his position as Chairman of the Council of Patrons’ Day-to-Day Presidium at the next Golkar National Congress so that he can focus his energies as Chairman of ICMI. Try accepted this but bargained saying he still would like Habibie to be part of the Council of Patrons.

On this note Try and Habibie ended their meeting. When Habibie walked Try outside, television and photography cameras awaited. Try and Habibie waved and shook hands in front of the flashbulbs.

“Mr. President, you have finally made peace with Mr. Habibie after your close contest with him at the MPR Session last March?” ventured a foreign journalist.

“I was never at war with him to begin with”, Try replied cheerfully.

*
When Try returned to the Presidential Palace Edi Sudrajat, Harsudiono Hartas, Ari Sudewo, and Sugeng Subroto waited for him. They discussed about what just happened over snacks.

“I need to strengthen this government’s political defenses”, said Try before going over and analyzing his own visit:

-Wahono was an ABRI man so it was easy to get him to support Try. He will bring his supporters from the days when he was both Chairman of Golkar and the Chairman of the DPR/MPR.
-Try said he didn’t get Sudharmono’s support but did fish out credible information that Ginandjar will be a candidate at the Golkar National Congress. Will support Ginandjar but reluctant to be seen to be openly against Tutut and Harmoko.
-Habibie did not commit to anything but seems predisposed towards the government. A man whose support is important because there are enough of his supporters in the department’s bureaucracies, not to mention in Golkar and the DPR.


The consensus from the meeting was that Wahono’s support for Try was welcome but that courting Habibie’s support was something that is disturbing. Only Ari Sudewo agreed with Try’s plan of approaching Habibie.

“We can’t just rule people out as possible allies because if we don’t approach them, others will”, said Try “Habibie told me someone from the other side had already approached him, do you want him to join that bunch? What’s the gain for us if someone who isn’t necessarily hostile to us sides with the other side? Nothing. We have to play it smart.”

The four accepted the argument. But on his way home, Harsudiono Hartas told his chauffeur to head to a home in the suburb of Kebayoran.

“Minister of Home Affairs, great to see to you”, said Benny Murdani.

He relayed all that had happened and what Try just told him, Edi Sudrajat, Ari Sudewo, and Sugeng Subroto.

“You want to know my opinion?” asked Benny “I think you moved too slow in deciding to take in Harmoko. What the President did today is what the government needs.”

“How so, Sir?” asked Harsudiono.

“The game is different now”, said Benny “The President can’t play it like he’s the leader of some faction jockeying for position in a divide and conquer game like ones Soeharto used to play. He’s the President for God’s sake. He’s got to play it like he’s the most powerful man in the country; to strengthen his position so that he can pursue his agenda.”

Back at the Presidential Palace, Try used the opportunity to do some paperwork. Vice President JB Sumarlin dropped by. He was on his way to the airport for visit to Washington DC where he will meet with the IMF. Sumarlin said that he will lobby for a cut to interest rates.


While he worked the President worked casually and chatted with State Secretary Edi Sudrajat and Deputy State Secretary Soedibyo Rahardjo. Soedibyo’s daughter was married to Habibie’s son so he sees Habibie quite often. He says that Habibie is “more grateful than you think” that his cadres in the bureaucracy and his projects has been retained.


As he was about leave, Try watched the television. Harmoko, after meeting members of West Java’s Golkar Provincial Branch, stopped by the Husein Satranegara Air Base to check some of the IPTN Aircrafts. Harmoko hailed it as the work of Indonesia’s favorite sons.


“See, Edi, he gets the idea”, said Try.
---

Things are starting to settle down politically ITTL. There was first a post-Soeharto scramble for power where everyone’s got a “It’s everyone for themselves attitude” with alliances only made reluctantly or because circumstances forced them to. Now things are beginning to settle down with Try realizing that alliances are necessary to protect himself against forces and interests hostile to him.

 

[GSD310]

34: Bringing Them to the Table Part 1
14th September 1998:
At the DPR today, a petition began circulating among the DPR’s West Java members calling for Minister of Information, Post, and Telecommunication Ginandjar Kartasasmita to officially declare his candidacy as Chairman of Golkar.

The President received a report from Attorney General Soedjono C. Atmonegoro about “subversive literature” doing the rounds in Jakarta recently. The literature consists of photocopied booklets claiming that “The President stained his hands with the blood of Muslims 14 years ago at Tanjung Priok”, “Christians are running the government”, and “The President being on the payroll of the Chinese”. Try ordered the Attorney General to use his authority to clamp down on such literature and to cooperate with the Police.


15th September 1998:
The day today was marked by an argument across different television channels. On RCTI’s Nuansa Pagi program, Hashim Djojohadikusumo, owner of three banks which has received BLBI assistance and brother of Prabowo Subianto, criticized the government’s effort to pass the banking law and the idea that it was receiving BLBI repayments from those who have accepted BLBI assistance.

“Bank Indonesia regularly gives private banks liquidity assistance, so why is the BLBI special enough that the government needs to put travel bans on those of us who have received BLBI assistance”, Hashim said.

This was refuted live on TVRI’s nightly news by Governor of Bank Indonesia Boediono.

“Those of us in the banking sector woud know that what Mr. Djojohadikusumo is referring to is liquidity credit, so it’s a credit given by Bank Indonesia to private banks to finance loans programs to benefit the poor and small businesses”, said Boediono “This is different to the BLBI which is a liquidity assistance designed to keep private banks afloat. It’s disengenous for Mr. Djojohadikusumo to try to conflate the two.”

On the same day BJ Habibie chaired an ICMI National Executive Meeting in his capacity as Chairman of ICMI. In addition to calling for the intensification of preparations towards the establishment of Republika TV, the meeting addressed the Golkar National Congress.

This last issue proved to be a tricky issue to discuss. Amidst suggestion that ICMI should support Tutut’s candidacy for Chairwoman of Golkar and another suggestion that Habibie himself should run for the Chairman’s position, Habibie said that ICMI will be neutral at the Golkar National Congress but it will not stop any ICMI members from endorsing candidates in their individual capacities.


16th September 1998:
Liem Sioe Liong had a business lunch with Sudwikatmono. Both men’s business links stretched back three decades, both benefiting from their close links with Soeharto.

Liem talked about how the President has asked him to try to arrange a meeting with the BLBI recipients. When Sudwikatmono asked how that was going, Liem said only a few has responded positively the rest have been evasive.

“No doubt because they are uncertain of what the President’s intentions are”, said Sudwikatmono “You’ve got the Minister of Information, Post, and Telecommunications running around last week that we should pay up without delay and this travel ban…”

“You’re saying that there isn’t anyone of us who would be willing to get out of the country just to avoid repaying the BLBI?” asked Liem.

“Be that as it may”, said Sudwikatmono “There isn’t any of us that can repay the BLBI assistance all at once. We’d all go under.”

“That’s why the President wants to talk to the recipients, seems reasonable”, said Liem.

“I don’t know, Uncle Liem”, said Sudwikatmono “There’s a group of us BLBI recipients that are thinking that we should wait until after the Golkar National Congress to begin negotiations with the President.”

“Why is that?” asked Liem.

“Tutut is the owner of Bank Yama”, said Sudwikatmono “Maybe if she gets elected as Chairwoman of Golkar, she could help us cut a better deal with the President. She said she’d help all those who has come to arrangements with the government.”


*
At the end of a busy day, Try had afternoon tea with Habibie and Harmoko at the Presidential Palace. All three meeting in their Golkar capacities. Harmoko thanked Try for the latter’s three visits the previous Saturday and told Habibie that he never had a personal problem with him. Habibie told Harmoko he’ll help with campaigning with the Golkar branches in Sulawesi.

“Make your peace with Mr. Wahono, Mr. Chairman”, said Try “Don’t forget about him.”

The three’s afternoon tea was so they could discuss matters ahead of a Golkar National Executive meeting later that night.

At the National Executive meeting, Theo Sambuaga and Agung Laksono, respectively of the Golkar National Congress’s Organizing and Steering Committees presented a report on progress in their respective committees. Habibie attended on behalf of Try and the Council of Patrons.

Agung Laksono said that the rules for the election of Chairman has been prepared. The draft calls for all 27 chairmen of the provincial Golkar branches and 301 chairmen of the regency and municipal Golkar branches to be eligible to vote.

Harmoko asked if there are any comments. Ary Mardjono said that giving the regency and municipal Golkar branch chairmen the vote will ensure a more democratic Golkar National Congress which will be more bottom-up than top-down.

Habibie then had his say. Habibie said that the Chairman of the Council of Patrons has approves of the idea of making sure that the Golkar National Congress is more democratic. At the same time, the Chairman of the Council of Patrons has requested that the Council of Patrons be given voting rights at the National Congress.

The meeting ended with Harmoko requesting Agung Laksono to include the Council of Patrons’ input into the draft rules for election of Chairman of Golkar.

As the meeting dispersed, Tutut hung back. She was joined by her brother and Treasurer of Golkar Bambang Trihatmodjo as well as Secretary of Golkar Ary Mardjono.

“That was unexpected was it not?” asked Tutut.

“The President had no choice but to accept the offer that voting rights be extended to the regency and municipal Golkar branches”, said Ary “I think the congress would not stomach Harmoko being imposed on them for a second time. That much went to our plan.”

Tutut nodded thoughtfully.

“As for the President asking that the Council of Patrons be given the vote…”continued Ary “We don’t know if he intends to impose Harmoko on the congress, but for sure he wants to have a real say in who the Chairman is. The Council of Patrons is 44 votes, if the proposal is accepted, the President will be commanding a decent-sized bloc.”

“What does this mean for my sister’s chances at the National Congress?” asked Bambang.

“It means that the election of the Chairman of Golkar will be a real fight”, said Ary.


17th September 1998:
Try’s morning meeting was with Minister of Economics and National Development Soedradjad Djiwandono, Minister of Finance Mar’ie Muhammad, Head of IBRA Bambang Subianto, and Head of BPKP Soedarjono

Soedarjono, as head of the government’s internal audit agency, reported the results of the external audits that had been conducted on state and private banks for over the last four months by Pricewaterhouse Coopers. The results reflect the state of the banking sector at the present time which are as follows:

-Banks with links to conglomerates frequently overstep the legal lending limits and break banking regulations when it comes to borrowing to affiliate companies.

-The audits of the banks which has received BLBI funds show that there is strong indication that BLBI funds has been misused. BLBI funds has been used as credit for affiliate companies, to pay third party debts, to be invested overseas, and to finance the operational budget of the banks.

This last piece of news darkened Try’s mood. The two ministers and two agency heads proposed solutions but none of them satisfied Try. Pushing too hard could make the situation worse and the two ministers and two agency heads warned that they could risk people trying to pull money out of the bank en masse if the government takes drastic measures. But the men in the room agreed that doing nothing was simply unacceptable.

After the meeting had finished, Try took a phonecall from Vice President JB Sumarlin. Try told Sumarlin the information that had been put to him and how the meeting had gone down.

“Mr. President, we need to be careful what steps we take” said Sumarlin “We cannot act rashly because that risks undoing the work you have done since you have taken office. These people are in the wrong, but they are also most of the business sector in Indonesia. They’re too big too fail.”

Try then asked Sumarlin how was the discussions with the IMF. Sumarlin said the results thus far are the following:

-On interest rate cuts: The IMF are receptive to the idea but says that it should be contingent on reaching a deal with the BLBI recipients. The road ahead for the banking sector has got to be clear before interest rates should be cut.

-On State Owned Enterprises: Set a timeline of 12 months for overall improvements across State Owned Enterprises that can be improved and identify State Owned Enterprises to be merged and privatized to lessen burden on the state.

-On other measures: Complete reforms from previous rounds of agreement which have as yet to be implemented.

Sumarlin also said that Hubert Neiss will be coming to Jakarta again in early October for the tri-monthly review of the implementation of the IMF programs.

Try’s mood was decidedly dejected as the day ended. When State Secretary Edi Sudrajat and Cabinet Secretary Hayono Isman dropped by at the end of the day, Try was still unsatisfied.

As the day ended, Try still did not budge from his desk so Edi got Minister of Home Affairs Harsudiono Hartas and Chief of BAKIN Ari Sudewo to drop in. Sugeng Subroto dropped in from his office next door.

“We’ve got to get the BLBI recipients to the table”, said Try “The closer we get to the Golkar National Congress, the less likely they are to want to get to the table, the more likely they’re going to try to intervene to get a result to their liking and which puts me under pressure.”

Over some cup noodles, the five discussed long and hard about the possible steps. All agreed that doing nothing was not the answer but that whatever steps needed to be taken could not damage the economy. It was then agreed that the strategic goal now was to get the BLBI recipients to the negotiating table so that a solution could be reached to recover the money that had been given.

“Yes, but whatever step we will take, BLBI recipients and regular people alike will want to try to get their hands on their bank accounts”, said Edi “What we’re doing here is essentially showing people with bank accounts that the people they’ve been trusting their money with aren’t trustworthy.”

“The President’s next play has got to be drastic, Edi”, said Harsudiono “When Soeharto decided on this last year, he didn’t create any mechanisms for the funds to be repayed back to the government. He has to remedy Soeharto’s drastic decision with another drastic decision on his own.”

“What if, Mr. President, that when you take your step against the BLBI recipients, whatever it is, nobody has access to their bank accounts?” suggested Sugeng Subroto.

Try’s ears perked at that. The five then formulated a gameplan for Try, advising Try to run it by Sumarlin, Soedradjad Djiwandono, and Bambang Subianto before it is implemented.

18th September 1998:
Most of the DPR members hailing from West Java had signed the petition calling for Ginandjar Kartasasmita’s to declare his candidacy as Chairman of Golkar. When asked for his reaction, the Minister of Information, Post, and Telecommunications said that if he received clear and enough support he will run for Chairman of Golkar.

No sooner had Sumarlin’s flight touched down then he was summoned to the President’s office. There he found President Try waiting for him accompanied by Minister of Economics and National Development Planning Soedradjad Djiwandono, Minister of Finance Mar’ie Muhammad, and Head of IBRA Bambang Subianto. Edi Sudrajat also sat in the meeting.

The President explained to the ministers what his plan was.

“Nobody’s bank account is being frozen, no assets are being seized, nothing is being nationalized”, explained Try “But there’s going to be a lot of bluster and bluff involved especially from me and you, Mr. Vice President.”

Sumarlin could not help but think that the idea makes sense though there is an amount of risk taking involved.

At 4 PM, Edi Sudrajat held a press conference in which he announced that the President has declared a Bank Holiday in Indonesia from Monday 21st September to Friday 25th September. This means that banks across Indonesia will not be engaging in any transactions for a week.

Edi also announced that the President will be making a statement to the nation at 8 PM on the nation’s banking sector…

To Be Continued…

---

 

[SenatorChickpea]

It doesn't look like the new government is going to be any more open minded to East Timor, unfortunately.

 

[deepoceanblue]

It doesn't look like the new government is going to be any more open minded to East Timor, unfortunately.

ABRI is not suffering as much as OTL, doubt there would be enough international pressure to push for referendum...

 

[GSD310]

I don't disagree with @SenatorChickpea's comment. East Timor getting a referendum is something that I cannot imagine happening under a military man like Try. I would argue that Try's generation of officers would be more opposed to the idea of letting go of East Timor, having been the men in the field conducting the actual invasion as opposed to "merely" giving the orders like Soeharto.