VZCZCXRO1594
OO RUEHDT RUEHPB
DE RUEHJA #0068 0190955
ZNR UUUUU ZZH
O 190955Z JAN 10
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4301
INFO RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE PRIORITY
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC
RHEFDIA/DIA WASHINGTON DC

UNCLAS JAKARTA 000068 
 
SIPDIS 
 
DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP 
NSC FOR D. WALTON 
 
E.O. 12958: N/A 
TAGS: PGOV PREL KDEM ID
SUBJECT: LOOKING AHEAD TO ELECTIONS, INDONESIA'S POLITICAL 
PARTIES CHOOSE NEW LEADERS 
 
REF: JAKARTA 1699 
 
  ¶1. (U)  SUMMARY: Moderate Islamic-oriented National Mandate 
Party (PAN) boosted President Yudhoyono's clout when it 
tapped his close ally as party chair--Coordinating Minister 
for the Economy Hatta Rajasa.  Rajasa and other leaders 
emerging from Indonesia's current series of national party 
congresses are likely to loom large in the political 
landscape as parties gear up for 2010 regional elections. 
The newly appointed party chairs will impact the dynamics of 
President Yudhoyono's ruling coalition and may emerge as 
presidential candidates in 2014. END SUMMARY. 
 
KEY COALITION PARTNER CHOOSES YUDHOYONO ALLY AS CHAIR 
 
¶2.    (U) Parliament's fifth largest party, PAN, selected 
Hatta Rajasa, formerly State Secretary and currently 
Coordinating Minister for the Economy, as General Chair on 
January 9.  Rajasa replaces outgoing Chair Soetrisno Bachir, 
who did not run for re-election.  Rajasa is President 
Yudhoyono's close ally and one of his most influential 
advisors.  PAN is often in a pivotal position in Parliament 
as it sometimes shifts between the ruling and opposition 
camps. This is the case now, since PAN has allied with 
Yudhoyono's Partai Demokrat while Golkar and the other 
secular parties have aligned with the opposition in the Bank 
Century inquiry.  PAN is a moderate, Islamic-oriented party 
which is closely tied to Muhammadiyah, the country's second 
largest Islamic organization.  It has a strong urban 
following as a pluralistic, nationalist party. 
 
¶3.    (U)  At stake in the PAN election was Rajasa's 
political clout and Yudhoyono's influence over a key 
coalition partner.  Most political pundits believe that PAN 
chose Rajasa over his challenger, former MP Dradjad Wibowo, 
so that Yudhoyono could shore up the coalition that 
Parliament's Bank Century inquiry has destabilized.  The 
selection process was unconventional; at the eleventh hour, 
PAN founder Amien Rais announced that no voting would take 
place because a "gentleman's agreement" had been reached. 
Wibowo then withdrew his candidacy amid protests.  The 
steering committee then appointed Rajasa as chair, Wibowo as 
deputy chair, and current MP Taufik Kurniawan, as new 
secretary general. 
 
PARTY CONGRESSES DETERMINE INDONESIA'S NEXT LEADERS 
 
¶4.    (U) Indonesia's political parties and other mass 
organizations traditionally hold "congresses" every five 
years to set up new central boards, revise their 
constitutions and evaluate their performance.  Before the 
national Congress, each district branch holds a local 
congress to decide who to send to the national congress, 
where the branches can vote for new leadership.  Two thirds 
of the branches must attend the congress.  Parties also use 
congresses to formulate policies and strategize for the next 
elections.  This is a key year for parties and candidates to 
position themselves for the 2014 presidential elections, as 
Indonesia will hold local-level elections throughout the 
country. 
 
¶5.    (U)  Currently, senior party politicians hold twenty of 
the thirty-seven cabinet-level positions.  With his new 
position, Rajasa becomes one of three Ministers who hold 
party chief posts.  Recently elected Golkar leader Aburizal 
Bakrie (also a key presidential ally - see reftel) was 
previously Coordinating Minister for the People's Welfare. 
As Indonesia gears up for its 2010 local level elections, 
Rajasa and Bakrie will likely begin positioning themselves as 
2014 presidential candidates.  Meanwhile, major opposition 
party Indonesian Democratic Party of Struggle (PDI-P) and the 
President's Partai Demokrat (PD) will choose new leaders in 
their congresses in April and May respectively. 
HUME