The Banking Law
6th January 1999:
The Rupiah which had stabilized at the Rp. 4,600-4,605 to the dollar mark mark over the last three months reached Rp. 4,597 to the dollar in response to the Budget Speech. Interviewed by TVRI, DPR Ary Mardjono said he thought the budget was too conservative and thought that more spending was in order if the government’s aim was to stimulate the economy.
But the President had other things on his mind.
A war council was held today. President Try Sutrisno, State Secretary Edi Sudrajat, Deputy State Secretary Soedibyo Rahardjo attended on behalf of the executive while Chairman of DPR Harmoko, Vice Chairman of DPR Hari Sabarno, Leader of Golkar in the DPR Irsyad Sudiro, Leader of ABRI in the DPR Fachrul Rozi, and Matori Abdul Djalil of the PPP attended on behalf of the DPR.
The meeting ended Matori bluntly telling the President that there would not be unanimous support for the bill. 11 PDI members will vote against the bill while out of PPP’s 89 members, 45-50 membes will vote against the bill. Fachrul Rozi said that ABRI members in the DPR will vote the way it’s ordered to. Soedibyo Rahardjo said if the same 49 Golkar members that voted against anti-monopoly law voted against the banking bill, a total of 105-110 DPR members will be voting against the bill.
“It’s still small in the scheme of things, Mr. President”, Harmoko quipped “110 out out of 500 is not even 25% of the votes.”
“It’s still larger than the vote against the Anti-Monopoly Bill, Mr. Chairman”, said Try “And from across Golkar, PPP, and PDI to boot.”
“True. But I think Mr. Matori’s right”, retorted Harmoko “We can no longer expect unanimous support for this new banking bill and with the budget needing to be passed as well, we can’t afford to let this stalling go on for too long.”
7th January 1999:
On the television screen, President Try stood with Minister of Forestry and Environment Ardans and Governor of Aceh Syamsuddin Mahmud as he unveiled a plaque which declared Gunung Leusar National Park in Aceh, an area 2.6 million hectares in size as a conservation area.
Minister of Information, Post, and Telecommunications Ginandjar Kartasasmita sat watching the live coverage. Sitting on the couch in front of him, also watching the television was Chairwoman of Golkar Tutut Soeharto.
“As I was saying before”, said Ginandjar “The President, in his capacity as Chairman of the Council of Patrons, is asking you to support his Banking Bill.”
“And we have”, said Tutut “The bill has finally passed its DPR Committee and was due to be voted upon until the Chairman of the PDI introduced an amendment calling for the proposed bill to acknowledge Sharia Banking.”
“Yes I understand”, said Ginandjar “The President will be introducing his own amendment to the DPR next week and he would like your support and for General Hartono and his caucus to support that in the DPR chamber.”
“The stance of Golkar’s National Headquarters is that the Shari Banking Amendments is a matter of conscience”, countered Tutut “If there are members who would like to vote with Mr. Harmoko, I can’t stop them. If there are those who would like to vote with Mr. Hartono, I can’t stop them either.”
The talks soon went around in circles and it was time for Ginandjar to leave. Ginandjar and Tutut waited on the steps of the Golkar National Headquarters for his car to arrive. When it arrived and Ginandjar went to get inside the car, Tutut had some parting words for him.
“You were one of my father’s best ministers, Mr. Ginandjar”, said Tutut “What a shame to see you so misused like this.”
“I’m in charge of the nation’s media and telecommunication networks”, replied Ginandjar “And I’m also the President’s liaison with you on Golkar matters, Madam Chairwoman.”
“I know”, said Tutut “But I still think he’s holding back on what he could give to you, considering the fact that you got him over the line last March.”
8th January 1999:
The President, on the second day of his visit to Aceh, met with Governor of Aceh Syamsuddin Mahmud in the morning. The latter expressed his appreciation that the Minister of Home Affairs had come by earlier in the week to say that the President has ordered him to examine into what options are available regarding the provinces having more control over revenue.
After attending Friday Prayer at Banda Aceh’s Baitturohman Mosque, Try headed back to Jakarta.
10th January 1999:
In the afternoon, Try, accompanied by Edi Sudrajat and Minister of Religious Affairs Quraish Shihab, met with Prof. Dr. Nurcholish Madjid the Rector of Paramadina University and an esteemed intellectual. After the meeting, Nurcholish flanked by Edi and Quraish faced the press. Edi gave the introductory remarks saying that the President wanted Nurcholish’s input on recent political developments most specifically the Sharia Banking Amendments that is in front of the DPR.
“I told the President what I know that those who want to insert Sharia into the 1945 Constitution, as well as into legislations, don’t know or don’t understand Indonesian society”, said Nurcholish.
11th January 1999:
Vice President JB Sumarlin met with IMF Deputy Managing Director Stanley Fischer for the IMF’s tri-monthly consultations. After a meeting, the two held a joint press conference where Fischer spoke glowingly of the Indonesian economy.
“From an economic perspective, Indonesa has recorded impressive numbers. You compare Indonesia’s numbers with neighbouring countries such as Malaysia and Philippines, and it is impressive. Of course Indonesia’s not out of the woods yet but it’s an achievement that you cannot take for granted”, said Fischer.
“What do you think of the President’s Draft Budget?” asked a reporter.
“I think it is a responsible budget and he should be commended for it”, said Fischer “But I think it could have been more prudent and with a larger surplus.”
Meanwhile, President Try met with Chairman of BP-7 Soegiarto and discussed about the “Sharia Banking Amendments”. Soegiarto said that Try has got to be strong and not take the “populist” road because from an ideological standpoint, Indonesia is not based on Sharia Law.
12th January 1999:
At the DPR building today, Edi Sudrajat and Deputy State Secretary Soedibyo Rahardjo reintroduced the government’s counter-amendment. In his speech, Edi said that while there are alternative banking arrangements, these alternative arrangements should be recognized equally without one gaining prominence over the other. The government will acknowledge that there are “religious-based banking” but that it will not acknowledge what this type of banking is specifically ie. if churches or temples would like to establish crediting or financing institutions, they can do so and be classified in this group.
From the head of the assembly room, Harmoko summed up the arguments. The new Banking Bill proposed to the DPR by the government uses the same reference to the existing Banking Law; namely, that there are “profit-sharing banks”.
The DPR now has two proposed amendments regarding this reference:
*All references to “Profit-sharing banks” be replaced with “Banks operating under the Sharia Principle”
*All references to “Profit-sharing banks” be replaced with “Profit-sharing and religious-based banks”.
13th January 1999:
The President went to inspect Pulo Gadung Bus Terminal accompanied by Minister of Transportation Soerjadi Soedirja, Minister of Population, Transmigration, and Rural Development Hendropriyono and Governor of Jakarta Sutiyoso. The four officers were checking the situation on the ground as people were beginning to leave Jakarta as part of the Eid’l Fitr migration. For one day at least, the terminal was cleared of all ticket scalpers. The President was greeted warmly though there was one challenging question:
“Mr. President, will we be allowed to return to Jakarta and work again? It seems that Mr. Hendropriyono and Governor Sutiyoso are telling us to go back to our villages and not come back”, the woman said.
“If you are employed and you’ve got the proper papers then by all means, Ma’am”, said the President “If you are working informally, then you have much better prospects in the villages than in cities like Surabaya, Medan, or Jakarta for that matter. Right now there’s a lot more people filling up our temporary shelters than there are jobs in the city.”
At the DPR, the debate over the “Sharia Banking Amendments” got underway. DPR Member Marzuki Darusman spoke vehemently in favor of the government’s amendments saying that what “the nation needed is leadership on economic matters rather than provocative and symbolic gestures.”
The day ended with Harmoko announcing that the vote on what amendments the DPR will agree to will be made tomorrow.
14th January 1999:
In a joint statement, Chairman of PPP Ismail Hasan Metareum, Chairwoman of Golkar Tutut Soeharto, and Chairman of PDI Soerjadi said that DPR members from the three organizations are free to vote for whatever amendments they so choose based on conscience.
Edi Sudrajat set up a command post in the State Secretariat with Soedibyo Rahardjo keeping a close watch on events at the DPR building.
The DPR building itself had to have Army and Police personnel deployed against it for demonstrations were held by KISDI supporting the Sharia Banking Amendments.
The last of the debates were concluded in the afternoon. Votes were taken , counted, and it was 11.30 PM when Harmoko announced the results:
“The votes are as follows: 388 votes in favor of the Banking Bill with amendments as proposed by the government and 112 votes in favor of the Banking Bill with amendments as proposed by Mr. Soerjadi by the PDI. The bill with amendments as proposed by the government is therefore passed into law.”
15th January 1999:
The President had Iftar with the ABRI Retirees Association (Pepabri) and its Chairman, former Vice Chairman of the DPR/MPR Lt. Gen. (Ret.) Saiful Sulun. After dinner, Try rose in his seat and spoke to those present.
“People come and talk to me to say “At last our generation is at the helm of the nation” and I would say yes, I agree. But at the same time there isn’t much time to smell the roses. Most of us in this generation are retired officers. A few has even passed on. There’s not much time. We have to make what time we have count and make our contribution to the country.”
18th January 1999:
The President swore in a batch of ambassadors. The most notable of this batch was Hartarto, who was Soeharto’s cabinet minister for 15 years who wil now be the new Indonesian Ambassador to Japan.
President Try signed the Banking Bill passed by the DPR into law.
----
The Banking Law just passed is the same as the law passed by Habibie but minus the references to Sharia Banking.
https://www.bi.go.id/en/tentang-bi/uu-bi/Documents/act_1098e.pdf