President Susilo Bambang Yudhoyono’s top reformers, Finance Minister Sri Mulyani Indrawati and Vice President Boediono, appear secure, analysts said, because a parliamentary inquiry did not produce evidence of their criminal activity or corruption.
The political infighting during the inquiry into the $720 million rescue of Bank Century in 2008 has highlighted a bitter struggle over reform in Southeast Asia’s biggest economy.
The inquiry offered two conflicting recommendations.
One found the bank rescue was justified. The other called for Indrawati and Boediono to face criminal investigation for authorising the bailout in late 2008, at the height of the financial crisis.
The late-evening vote supporting a criminal investigation was carried by 325 to 212.
Jakarta-based political risk analyst Kevin O’Rourke said that under the rules, Parliament could not compel the president to launch an investigation into his two top technocrats, even if the vote went against them.
The debate and vote, broadcast live on television, showed members of Parliament singing, joking and mocking each other.
In the final count, several political parties whose members have been investigated or jailed for corruption or who have poor human rights records voted for the criminal investigation of two technocrats who have reputations for integrity.
Analysts say anti-reform elements both inside and outside Yudhoyono’s ruling coalition have tried to use the inquiry to oust the two technocrats, but that it appeared the pair were safe even if parliament backed a criminal probe.
Boediono is a well respected technocrat who has held a number of high-profile jobs in the cabinet and central bank during Indonesia’s crisis years and subsequent recovery.
Finance Minister Indrawati has pleased many foreign investors by cleaning up corruption, but also made enemies in the old business elite, particularly with a drive to boost tax collection.
Indrawati appeared unruffled when she faced reporters ahead of the vote on Wednesday. “I have a lot of work to do,” she said.
Asked whether there had been capital flight as a result of the case, Indrawati said: “God willing that has not happened.”
So far, Indonesian stocks, bonds and the rupiah have shown little reaction to the political infighting.
But prolonged conflict over reforms could put that at risk and reverse some of the hefty gains of the past year.
Wednesday’s debate underlined tensions between Yudhoyono’s pro-market, pro-reform Democrat Party and his two main coalition partners — the Golkar Party and Prosperous Justice Party (PKS), which both support a criminal investigation.
The Democrat Party controls about a quarter of the 560 seats in parliament and together with coalition partners about 75 percent. But the defection of key coalition members on this issue swung the balance in favor of the opposition.
