SBY Fires At Fresh Targets in Graft War

Jakarta Globe, Camelia Pasandaran, May 05, 2010

President Susilo Bambang Yudhoyono has hit out at government officials, including the police, for charging businesses and investors “illegal fees.” (Bloomberg Photo/Ian Waldie)

Politicians should quit interfering with police and prosecutors, and regional governments must stop charging businesses and investors “illegal fees,” President Susilo Bambang Yudhoyono warned on Tuesday as he broadened the scope of antigraft offensive.

Saying he had received more than three million text messages and letters from people demanding action on graft, he said he felt called upon to act personally. “They’ve met a dead end and then can only report it to the president and the first lady,” he said.

Speaking at the start of a cabinet meeting on law enforcement, he dwelt first on politics. “We need to prevent political intervention in law enforcement. I call on politicians in this country, both in the executive and legislative branches, to respect the authority and independence of law enforcement.”

Interference undermined the rule of law through conflicts of interest that led to criminal behavior and corruption, he said.

He then took aim at fees that regional governments charge through bylaws and other means aimed at extracting money from investors. “I have received complaints from investors, both foreign and local,” Yudhoyono said.

“Because of illegal fees, overhead costs are too high. Later, these fees are counted as operational costs and that makes products and services more expensive. The people suffer from this.”

Investors have long complained that decentralization has seen regional governments charging hefty administrative fees and other levies on businesses counter to central government policies.

The president cited Home Affairs Ministry data showing that over 1,000 regional bylaws related to fees have been annulled in recent years. Home Affairs Minister Gamawan Fauzi promised to force district heads and governors to comply. “One-stop shop” issuing of permits and licenses by provincial governments would help end bogus fees, he said.

In his comments on political meddling in law enforcement, Yudhoyono said “money politics” was at the root of wrong doing. “The key is for politicians to stay away from the legal field and law enforcers from politics,” he said.

While he named no names, his remarks evoked recent Prosperous Justice Party (PKS) statements that it would defend North Sumatra Governor Syamsul Arifin, who refused to step down last month despite being charged with embezzlement.

In addition, Democratic Party lawmaker Daday Hudaya last month called on investigators to suspend a probe into a Papua district head who has been linked to a Rp 49 billion ($54 million) graft case, leading to charges that the president’s own party was acting on behalf of corporate interests.

PKS lawmaker Fachry Hamzah insisted the House never intervened in law enforcement. “[But] criticizing the government and law enforcement is part of a lawmaker’s duties. We’re being paid to speak out,” Fachry said, adding that intervening in a legal process is the sole prerogative of the executive branch.

Asked if there was clear evidence of politicians meddling in legal matters, Minister of Justice and Human Rights Patrialis Akbar declined comment. “These remarks were only to remind us,” he said. “Whether there is evidence, you journalists know better.”