VZCZCXRO6723
OO RUEHDT RUEHPB
DE RUEHJA #1372/01 2320445
ZNR UUUUU ZZH
O 200445Z AUG 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3101
INFO RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE PRIORITY
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC
RHEFDIA/DIA WASHINGTON DC

UNCLAS SECTION 01 OF 02 JAKARTA 001372 
 
SIPDIS 
 
DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP, H 
NSC FOR J. BADER 
 
E.O. 12958: N/A 
TAGS: PGOV PREL KDEM ID CVIS
SUBJECT: PARLIAMENTARY REFORM LAW STEP FORWARD FOR 
INDONESIA'S MATURING DEMOCRACY 
 
REF: JAKARTA 1308 AND PREVIOUS 
 
¶1.    (SBU)  Indonesia's Parliament (DPR) recently passed a 
parliamentary reform law which is a significant step forward 
for Indonesia's maturing democracy.  This new law was 
intended to shift power from the executive branch to the 
legislative by increasing Parliament's autonomy over its 
budget and personnel, creating a better balance of government 
power.  In an unintended twist, one provision of the law also 
tilts the balance of power toward President Yudhoyono's 
Partai Demokrat (PD) by allowing the biggest DPR party (now 
PD) to select the DPR Speaker.  Some analysts have expressed 
concern that Partai Demokrat now controls the most powerful 
positions in both the executive and legislative branches.  In 
response, President Yudhoyono has reassured the public that 
"checks and balances" are integral to Indonesia's democracy. 
USG programs have been instrumental in supporting these 
parliamentary reform efforts. 
 
SEPARATION OF POWERS 
 
¶2.    (SBU) Under the previous system, the executive branch 
controlled much of the legislative branch's daily operations. 
 The executive branch, for example, controlled the 
legislative branch's budget and administration, which meant 
staff working for legislative members were actually executive 
branch employees.  The new law allows the legislature to 
create and administer its own contract employee system and 
control its own budget, allowing for a clearer separation of 
powers between branches. 
 
CHECKS AND BALANCES 
 
¶3.    (SBU) In defining the arenas of power for the executive 
and legislative branches, one contentious issue was whether 
the DPR has the power to call the President to personally 
appear for questioning.  When the DPR has called President 
Yudhoyono in the past to appear before them over issues such 
as an increase in oil prices and Indonesia's support of UN 
sanctions against Iran, he sent a minister in his stead. 
Now, however, it seems that this law could require the 
President to appear in person if there is evidence of his 
"wrongdoing." Although it is still unclear how this will be 
interpreted and implemented, this represents an increase in 
the power of the legislature to criticize executive branch 
decisions. 
 
BIGGEST PARTY GETS TO CHOOSE THE SPEAKER 
 
¶4.    (SBU)  Although the new law has successfully 
distributed government power more equally in some ways, in an 
unexpected twist the President's party, PD, became more 
powerful.  The law's most controversial provision allows the 
largest party in the DPR--currently President Yudhoyono's 
Partai Demokrat (PD), with 27% of DPR seats--to automatically 
pluck the plum Speaker position.  (Previously the DPR chose 
its Speaker by a majority vote.) This legislative victory 
effectively secured PD's takeover from Golkar, the largest 
party in the 2004 DPR.  The Speaker's position will be even 
more powerful in the 2009 DPR, because it will now also chair 
the House Affairs Committee (BURT), which oversees the DPR 
budget and the Secretariat General.  However, Deputy Speaker 
posts of both the DPR and the People's Consultative Assembly 
(MPR) will go to the next four largest parties (Golkar, 
PDI-P, PKS, and PAN). 
 
¶5.    (SBU) Thanks to the new law, PD now controls the most 
powerful positions in both the executive and legislative 
branches of government.  Since PD falls short of a majority 
in the DPR, the Speaker could play a key role in helping the 
president get legislation passed.  The Speaker could also 
help reduce the DPR's tendency to mount critical inquiries 
into government actions.  Analysts have expressed concern 
about this and point out that this is reason enough to hope 
that traditional opposition party PDI-P and its current ally, 
Golkar, stay in opposition to provide a healthier democracy. 
President Yudhoyono addressed these concerns in recent 
speeches by emphasizing that "equal weight must be given to 
executive, judicial and legislative branches" and that "power 
must not go unchecked...it corrupts absolutely."  In a move 
that indicates Yudhoyono means what he says, it seems that PD 
may not run its own candidate for MPR speaker, preferring 
instead to support a candidate from PDI-P or another party. 
(Note: Unlike the DPR Speaker selection, the law did not 
change how MPR members choose the MPR Speaker, which is still 
by majority vote.) 
 
JAKARTA 00001372  002 OF 002 
 
 
 
USG FUNDING PLAYS KEY ROLE IN REFORM 
 
¶6.    (SBU) U.S. Government programs have played a key role 
in helping the DPR create and pass this comprehensive piece 
of reform legislation.  United States Agency for 
International Development (USAID) has supported Indonesia's 
long-term parliamentary reform efforts through its Democratic 
Reform Support Program (DRSP).  DRSP worked closely with the 
DPR to provide advice and input which the Indonesians 
requested, being careful to remain neutral regarding 
political issues and the balance of power among parties. 
DRSP has also helped organize House Affairs Committee (BURT) 
study visits to the U.S. Congress with the assistance of the 
U.S. Mission in Jakarta.  The U.S. House Democracy Assistance 
Commission (HDAC) was integral to this parliamentary reform 
effort, engaging parliamentarians during their visits to 
Indonesia in 2008 and 2009 and welcoming Indonesian 
parliamentarians who visited Congress. 
HUME