INDONESIA: Police clash with protesters outside Indonesia's parliament over Bank Century bailout inquiry

Record ID: 560240

  • Title: INDONESIA: Police clash with protesters outside Indonesia's parliament over Bank Century bailout inquiry
  • Date: 4th March 2010
  • Summary: JAKARTA, INDONESIA (MARCH 3, 2010) (REUTERS) STUDENT PROTESTERS WAVING FLAGS STUDENTS SINGING / POLICE FACING PROTESTERS POLICE IN RIOT GEAR, WATCHING PROTESTERS PROTESTERS JUMPING AND SINGING POLICE AND PROTESTERS BEGINNING TO PUSH EACH OTHER AND SCUFFLE POLICE AND PROTESTERS PUSHING AND SCUFFLING POLICE USING WATER CANNON TO TRY TO DISPERSE THE CROWD OF PROTESTERS VARIOUS OF WATER BEING SPRAYED POLICE OFFICERS RUNNING THROUGH SPRAYED WATER POLICE TAKING COVER / TEAR GAS AND WATER IN BACKGROUND, NEAR PROTESTERS PROTESTERS THROWING OBJECTS AT THE POLICE POLICE OFFICERS TAKING COVER PROTESTERS LOOKING TOWARDS POLICE POLICE TAKING COVER BEHIND SHIELDS AND LOOKING AT PROTESTERS POLICE TAKING COVER UNDER SHIELDS POLICE OFFICERS STANDING UNDER THEIR SHIELDS STREET FILLED WITH POLICE OFFICERS / PROTESTERS IN THE BACKGROUND
  • Embargoed: 19th March 2010 12:00
  • Keywords:
  • Location: Indonesia
  • Country: Indonesia
  • Topics: Crime / Law Enforcement,Finance
  • Reuters ID: LVA76PV89ABH3TUAMQYIY8KFP95W
  • Story Text: Indonesian police fired tear gas at a crowd of around 500 students on Wednesday (March 3) who gathered outside a Jakarta university to voice their views on a debate by Indonesia's parliament over a criminal investigation into a bank bailout.
    Scuffles broke between the two groups of students -- those who back the investigation and those who don't -- when some of the protesters threw rocks and blocked traffic.
    Police used water cannon to disperse the crowds.
    Two top reformers in President Susilo Bambang Yudhoyono's cabinet are expected to face criminal investigation for authorising the bailout of Bank Century in late 2008, at the height of the financial crisis.
    Neither is expected to lose their job.
    A noisy and at times disorderly parliamentary debate on Wednesday followed an inquiry into the $720 million U.S. dollar rescue of Bank Century that offered two conflicting recommendations.
    One found the bank rescue was justified. The other called for Finance Minister Sri Mulyani Indrawati and Vice President Boediono to face criminal investigation for authorising the bailout in late 2008, at the height of the financial crisis.
    A majority of parties on Wednesday said they supported a legal probe. A formal vote was expected in the evening.
    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.
    Finance Minister Indrawati, who has pleased many foreign investors by cleaning up corruption but made enemies in the old business elite with her drive to boost tax collection, appeared unruffled when she faced reporters on Wednesday.
    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.
    Indonesia was one of the star emerging markets last year with stocks up 90 percent, government bonds up 20 percent and the rupiah, Asia's best-performing currency, up 17 percent.
    Many analysts say an upgrade of Indonesia's sovereign debt to investment grade is within reach in a couple of years. It has been widely tipped as the country most likely to join the "BRICs" -- Brazil, Russia, India and China -- in the select group of essential emerging markets investors cannot afford to ignore.
    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 appears to have swung the balance in favour of the opposition.
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