4: A Vulture Comes In For The Crown
4: A Vulture Comes In For The Crown
26th December 1997
Still in holiday mode, the Soeharto children sat around a table talking about the political situation. Tommy grumbled about the revocation of his company’s National Car status. Bambang told him to stop complaining because most if not all around the table have taken a hit from the President’s decision to keep the delayed infrastructure projects from going ahead. Tutut said that the real question now was whether things would get worst under Try or not because she did not see why their businesses have to suffer just so the President can prove he is doing something about the economy.
27th December 1997
President Try Sutrisno’s major appointment for the day was with Chairman of the State Audit Agency (BPK) J.B. Sumarlin. The BPK was a constitutionally mandated institution responsible for audit of the state’s finances. Sumarlin came to the President to hand his resignation because he has hit the retirement age of 65. Actually he hit his retirement age on 7th December but he realized that Try is busy.
Try accepted Sumarlin’s resignation and wished him the best of luck. On a whim, however, the President added “You’re still a healthy man, Mr. Chairman and we could still use your help in solving this crisis.”
“I’ve had a long career, Mr. President”, Sumarlin replied.
He was right on that count, Try thought. Sumarlin had been Minister of Civil Service Reform (1973-1983), Vice Minister of the National Development Planning (1983-1988), and Minister of Finance (1988-1993). But he could really do with Sumarlin’s help.
“I’ll tell you what, Mr. President”, Sumarlin said “If you get re-elected, I will help you in whatever capacity that you want me.”
28th December 1997
Try met Minister of Finance Mar’ie Muhammad and Governor of Central Bank Soedrajad Djiwandono to talk about the economy. Moerdiono also sat in the meeting.
On the economy: Economic growth is set to be 4.9% and inflation in the 15-17% for 1997 range. Rupiah in the 4,150-4,200 range. Markets presently waiting if the draft budget to be delivered by the President will adhere to the IMF LOI. The worry right now is that Ramadhan will be around the corner. There will be demand for goods that are not there and this will increase inflation.
On the budget position: The Department of Finance is still going over proposed spending cuts and pushing harder to make them. They will make the 1% GDP budget surplus target but increasingly arriving at the point where they are cutting funds for things such as road maintenance and the repair of leaks in school ceilings.
On the IMF review set for January: The ministers predict that the IMF will ask for more reforms.
Try said rather than waiting for the IMF to come and review the situation, the government should come to the IMF and other donor nations to tell them about the present situation.
29th December 1997
Try receives confirmation that Deputy IMF Managing Director Stanley Fischer will arrive in Jakarta on 3rd January.
Try sends a letter to Prabowo rejecting his request for helicopters to be procured for the Kopassus. Try also wrote to Prabowo to stick to the chain of command and communicate his request via the Army Chief of Staff and the Commander of ABRI.
30th December 1997
At a full cabinet meeting and after presentations by the relevant ministers on the present economic situation and predictions about the economy, Try approves of the draft budget to be proposed to the DPR on 6th January.
President Try today spoke on the phone with Prime Minister Goh Chok Tong of Singapore and Prime Minister John Howard of Australia. He told both prime ministers that Indonesia has fulfilled the conditions of the IMF and more. But if the IMF continues to ask for more conditions, the fulfillment will be at the cost of potential social unrest.
Both Goh and Howard got the message and promised to convey it to the IMF.
31st December 1997
Beginning of Ramadhan. Rupiah at 4,196 to the dollar.
1st January 1998
Try holds a fast-breaking dinner at the Presidential Palace for the Cabinet Ministers. “The Holy Month of Ramadhan is about fasting and fasting has always been about restraint”, said Try “I call on the nation, this year above all years, to show that restraint once again.”
2nd January 1998
The Administrative Court rules in favor of the Government's policy of closing down businessman, and Soeharto brother, Probosutedjo's bank.
3rd -5th January 1998
Stanley Fischer arrives in Jakarta. He immediately goes to the Presidential Palace to meet with Try.
Fischer acknowledged that Try had proven to be serious at implementing the reforms agreed in the October LOI with Soeharto. He said that what Indonesia need right now is for its government to continue its commitment to structural reform.
“The Indonesian government can and has shown its commitment to the reforms, but all this will be for naught if it tends to encourage inflationary pressures and expectations, make the common people worst off, and create the potential for unrest”, Try said.
Thus negotiations between the Indonesian Government and the IMF begins with Minister of Finance Mar’ie Muhammad and Governor of the Central Bank Soedrajad Djiwandono representing Indonesia. Try received regular reports of progress at the end of each day from Mar’ie and Soedrajad.
Over the next few days, the two parties haggled over terms. Indonesia asked for leniency, particularly with regards to the amount of surplus, the cutting of subsidies, and the implementation of reform as a whole. The IMF as predicted pushed for more reforms, particularly with regards to banking and the cutting of monopolies such as the Clove Marketing Board and the Indonesian Airplane Industry projects.
The Rupiah ended 5th January at 4,268 to the dollar.
6th January 1998
At 10 AM, President Try Sutrisno stepped into the DPR building to the applause of its members. Try sat down and looked around at the chamber around him as Chairman of the DPR Harmoko delivered his opening remarks.
The DPR was Indonesia’s legislative branch. Much as in other countries, it functioned to pass bills proposed by the executive into law and provide a check and balance on the executive. But while Soeharto never suspended the DPR the way Soekarno did, the DPR was very much the junior partner in its relationship with Soeharto. It never used its right to propose its own legislation and it never failed to pass the bills put forward to it by Soeharto.
500 members filled the DPR’s seats; 425 members at the legislative elections and 75 appointed by the President. Of the elected members, 325 came from Golkar, 89 from PPP, and 11 from the PDI. The 75 appointed members were chosen from ABRI’s ranks, another symbol of ABRI’s involvement in the nation’s political life.
Try then delivered the 1998/1999 Draft Budget Speech to the DPR. It was an awkward speech to make, being a list of the various economies, savings, and revenue measures taken to ensure that there was a budget surplus.
“This budget surplus functions to lessen the money circulating in our economy, clamp down on inflationary pressures and support our exchange rate. It will also function as a store of revenue that can be used to stimulate the economy if necessary”, Try announced.
7th January 1998
Howard and Goh got on the phone on the IMF on behalf of Indonesia to say that President Try has continued to fulfill the reforms the IMF has asked of it and that it was the IMF’s turn to give way to Try.
The market responds positively to the draft budget, improving to Rp. 4,204 to the budget.
Amien Rais wrote a column about the budget on the Republika Newspaper. He criticized it as a budget that will be revised subject to approval of the IMF and that it is a budget that further puts Indonesia under the thumb of the IMF.
Fischer departs for Washington DC. Says that the next time Indonesia hears from the IMF, it will be from Managing Director Michel Camdessus.
8th January 1998
President Try Sutrisno attends the 40th Day Anniversary of Soeharto’s death at Cendana, a landmark anniversary that is celebrated in Indonesia.
Try met with the Soeharto children again. Amidst the familial and unofficial setting, Tommy dared himself to ask the President for a moment. Tommy told the President to give him some leniency. At the time the President revoked the National Car status, an order of 150,000 cars were in the process of being shipped from South Korea. Tommy asked Try if a special dispensation can be given for this 150,000 vehicles.
Try replied that he could not. “I’m not revoking your business license, I’m only revoking the National Car status. It will be your great contribution to the nation and I won’t forget it”, Try said.
When it was time to leave, the President saw the children again from afar and he could not help but think that they were staring daggers at him.
10th January 1998
Try began his day by meeting with Minister of Research and Technology BJ Habibie. Habibie was not on the appointments’ list today but he had insisted on a meeting.
When the meeting was over, Habibie left in a hurry. State Secretary Moerdiono saw this and walked into the office to see Try massaging his temple with a strange smile on his face.
“What was all that about?” Moerdiono asked.
“A vulture is coming in for the crown”, Try said.
Not long after this, television cameras cut to a press conference Habibie has called in front of his house.
Habibie said that there are one is only afforded a few life changing moments over a lifetime. For Habibie, one life changing moment has been his decision to return to Indonesia in 1974 when he was summoned by Soeharto. Since that time, Habibie said, it has been the privilege of a lifetime to serve as Minister of Research of Technology and to be given the trust that he had been given by Soeharto.
“This is a great nation. President Soekarno is making it so, President Soeharto has made it so, President Try Sutrisno is making it so, and we have all in our way made our own contributions towards making Indonesia a great nation.
Yet in recent times, this greatness of our nation is under threat a currency crisis threatens to undo all which we have all worked for. Having seen closely all the work that has gone into building this nation, I cannot allow this to happen.
Therefore, I announce that I, Professor Doctor Engineer Bacharuddin Jusuf Habibie, will be a Presidential candidate at the MPR Session this March!”
26th December 1997
Still in holiday mode, the Soeharto children sat around a table talking about the political situation. Tommy grumbled about the revocation of his company’s National Car status. Bambang told him to stop complaining because most if not all around the table have taken a hit from the President’s decision to keep the delayed infrastructure projects from going ahead. Tutut said that the real question now was whether things would get worst under Try or not because she did not see why their businesses have to suffer just so the President can prove he is doing something about the economy.
27th December 1997
President Try Sutrisno’s major appointment for the day was with Chairman of the State Audit Agency (BPK) J.B. Sumarlin. The BPK was a constitutionally mandated institution responsible for audit of the state’s finances. Sumarlin came to the President to hand his resignation because he has hit the retirement age of 65. Actually he hit his retirement age on 7th December but he realized that Try is busy.
Try accepted Sumarlin’s resignation and wished him the best of luck. On a whim, however, the President added “You’re still a healthy man, Mr. Chairman and we could still use your help in solving this crisis.”
“I’ve had a long career, Mr. President”, Sumarlin replied.
He was right on that count, Try thought. Sumarlin had been Minister of Civil Service Reform (1973-1983), Vice Minister of the National Development Planning (1983-1988), and Minister of Finance (1988-1993). But he could really do with Sumarlin’s help.
“I’ll tell you what, Mr. President”, Sumarlin said “If you get re-elected, I will help you in whatever capacity that you want me.”
28th December 1997
Try met Minister of Finance Mar’ie Muhammad and Governor of Central Bank Soedrajad Djiwandono to talk about the economy. Moerdiono also sat in the meeting.
On the economy: Economic growth is set to be 4.9% and inflation in the 15-17% for 1997 range. Rupiah in the 4,150-4,200 range. Markets presently waiting if the draft budget to be delivered by the President will adhere to the IMF LOI. The worry right now is that Ramadhan will be around the corner. There will be demand for goods that are not there and this will increase inflation.
On the budget position: The Department of Finance is still going over proposed spending cuts and pushing harder to make them. They will make the 1% GDP budget surplus target but increasingly arriving at the point where they are cutting funds for things such as road maintenance and the repair of leaks in school ceilings.
On the IMF review set for January: The ministers predict that the IMF will ask for more reforms.
Try said rather than waiting for the IMF to come and review the situation, the government should come to the IMF and other donor nations to tell them about the present situation.
29th December 1997
Try receives confirmation that Deputy IMF Managing Director Stanley Fischer will arrive in Jakarta on 3rd January.
Try sends a letter to Prabowo rejecting his request for helicopters to be procured for the Kopassus. Try also wrote to Prabowo to stick to the chain of command and communicate his request via the Army Chief of Staff and the Commander of ABRI.
30th December 1997
At a full cabinet meeting and after presentations by the relevant ministers on the present economic situation and predictions about the economy, Try approves of the draft budget to be proposed to the DPR on 6th January.
President Try today spoke on the phone with Prime Minister Goh Chok Tong of Singapore and Prime Minister John Howard of Australia. He told both prime ministers that Indonesia has fulfilled the conditions of the IMF and more. But if the IMF continues to ask for more conditions, the fulfillment will be at the cost of potential social unrest.
Both Goh and Howard got the message and promised to convey it to the IMF.
31st December 1997
Beginning of Ramadhan. Rupiah at 4,196 to the dollar.
1st January 1998
Try holds a fast-breaking dinner at the Presidential Palace for the Cabinet Ministers. “The Holy Month of Ramadhan is about fasting and fasting has always been about restraint”, said Try “I call on the nation, this year above all years, to show that restraint once again.”
2nd January 1998
The Administrative Court rules in favor of the Government's policy of closing down businessman, and Soeharto brother, Probosutedjo's bank.
3rd -5th January 1998
Stanley Fischer arrives in Jakarta. He immediately goes to the Presidential Palace to meet with Try.
Fischer acknowledged that Try had proven to be serious at implementing the reforms agreed in the October LOI with Soeharto. He said that what Indonesia need right now is for its government to continue its commitment to structural reform.
“The Indonesian government can and has shown its commitment to the reforms, but all this will be for naught if it tends to encourage inflationary pressures and expectations, make the common people worst off, and create the potential for unrest”, Try said.
Thus negotiations between the Indonesian Government and the IMF begins with Minister of Finance Mar’ie Muhammad and Governor of the Central Bank Soedrajad Djiwandono representing Indonesia. Try received regular reports of progress at the end of each day from Mar’ie and Soedrajad.
Over the next few days, the two parties haggled over terms. Indonesia asked for leniency, particularly with regards to the amount of surplus, the cutting of subsidies, and the implementation of reform as a whole. The IMF as predicted pushed for more reforms, particularly with regards to banking and the cutting of monopolies such as the Clove Marketing Board and the Indonesian Airplane Industry projects.
The Rupiah ended 5th January at 4,268 to the dollar.
6th January 1998
At 10 AM, President Try Sutrisno stepped into the DPR building to the applause of its members. Try sat down and looked around at the chamber around him as Chairman of the DPR Harmoko delivered his opening remarks.
The DPR was Indonesia’s legislative branch. Much as in other countries, it functioned to pass bills proposed by the executive into law and provide a check and balance on the executive. But while Soeharto never suspended the DPR the way Soekarno did, the DPR was very much the junior partner in its relationship with Soeharto. It never used its right to propose its own legislation and it never failed to pass the bills put forward to it by Soeharto.
500 members filled the DPR’s seats; 425 members at the legislative elections and 75 appointed by the President. Of the elected members, 325 came from Golkar, 89 from PPP, and 11 from the PDI. The 75 appointed members were chosen from ABRI’s ranks, another symbol of ABRI’s involvement in the nation’s political life.
Try then delivered the 1998/1999 Draft Budget Speech to the DPR. It was an awkward speech to make, being a list of the various economies, savings, and revenue measures taken to ensure that there was a budget surplus.
“This budget surplus functions to lessen the money circulating in our economy, clamp down on inflationary pressures and support our exchange rate. It will also function as a store of revenue that can be used to stimulate the economy if necessary”, Try announced.
7th January 1998
Howard and Goh got on the phone on the IMF on behalf of Indonesia to say that President Try has continued to fulfill the reforms the IMF has asked of it and that it was the IMF’s turn to give way to Try.
The market responds positively to the draft budget, improving to Rp. 4,204 to the budget.
Amien Rais wrote a column about the budget on the Republika Newspaper. He criticized it as a budget that will be revised subject to approval of the IMF and that it is a budget that further puts Indonesia under the thumb of the IMF.
Fischer departs for Washington DC. Says that the next time Indonesia hears from the IMF, it will be from Managing Director Michel Camdessus.
8th January 1998
President Try Sutrisno attends the 40th Day Anniversary of Soeharto’s death at Cendana, a landmark anniversary that is celebrated in Indonesia.
Try met with the Soeharto children again. Amidst the familial and unofficial setting, Tommy dared himself to ask the President for a moment. Tommy told the President to give him some leniency. At the time the President revoked the National Car status, an order of 150,000 cars were in the process of being shipped from South Korea. Tommy asked Try if a special dispensation can be given for this 150,000 vehicles.
Try replied that he could not. “I’m not revoking your business license, I’m only revoking the National Car status. It will be your great contribution to the nation and I won’t forget it”, Try said.
When it was time to leave, the President saw the children again from afar and he could not help but think that they were staring daggers at him.
10th January 1998
Try began his day by meeting with Minister of Research and Technology BJ Habibie. Habibie was not on the appointments’ list today but he had insisted on a meeting.
When the meeting was over, Habibie left in a hurry. State Secretary Moerdiono saw this and walked into the office to see Try massaging his temple with a strange smile on his face.
“What was all that about?” Moerdiono asked.
“A vulture is coming in for the crown”, Try said.
Not long after this, television cameras cut to a press conference Habibie has called in front of his house.
Habibie said that there are one is only afforded a few life changing moments over a lifetime. For Habibie, one life changing moment has been his decision to return to Indonesia in 1974 when he was summoned by Soeharto. Since that time, Habibie said, it has been the privilege of a lifetime to serve as Minister of Research of Technology and to be given the trust that he had been given by Soeharto.
“This is a great nation. President Soekarno is making it so, President Soeharto has made it so, President Try Sutrisno is making it so, and we have all in our way made our own contributions towards making Indonesia a great nation.
Yet in recent times, this greatness of our nation is under threat a currency crisis threatens to undo all which we have all worked for. Having seen closely all the work that has gone into building this nation, I cannot allow this to happen.
Therefore, I announce that I, Professor Doctor Engineer Bacharuddin Jusuf Habibie, will be a Presidential candidate at the MPR Session this March!”
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