Identifier
Created
Classification
Origin
07JAKARTA3487
2007-12-31 03:58:00
CONFIDENTIAL
Embassy Jakarta
Cable title:  

INDONESIA UPDATES RULES ON POLITICAL PARTIES

Tags:  PGOV ID 
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C O N F I D E N T I A L SECTION 01 OF 02 JAKARTA 003487 

SIPDIS

SIPDIS

DEPT FOR EAP, EAP/MTS, EAP/MLS, INR/EAP, DRL/AWH
INR FOR CHARLIE ZENZIE
NSC FOR EPHU

E.O. 12958: DECL: 12/31/2017
TAGS: PGOV ID
SUBJECT: INDONESIA UPDATES RULES ON POLITICAL PARTIES


JAKARTA 00003487 001.2 OF 002


Classified By: Pol/C Joseph Legend Novak, reasons 1.4(b+d).

C O N F I D E N T I A L SECTION 01 OF 02 JAKARTA 003487

SIPDIS

SIPDIS

DEPT FOR EAP, EAP/MTS, EAP/MLS, INR/EAP, DRL/AWH
INR FOR CHARLIE ZENZIE
NSC FOR EPHU

E.O. 12958: DECL: 12/31/2017
TAGS: PGOV ID
SUBJECT: INDONESIA UPDATES RULES ON POLITICAL PARTIES


JAKARTA 00003487 001.2 OF 002


Classified By: Pol/C Joseph Legend Novak, reasons 1.4(b+d).


1. (C) SUMMARY: After much discussion, the Indonesian
legislature (DPR) recently passed comprehensive legislation
on political parties. The legislation--which should be
signed into law soon--is meant to: encourage more political
participation; press women's involvement; and, set out new
guidelines on party financing and how to settle in-house
disputes. Legislation of this sort is clearly a work in
progress and almost certainly will need to be updated based
on what happens in the 2009 elections. END SUMMARY.

COMPREHENSIVE LEGISLATION


2. (SBU) After years of discussion, the DPR has passed
important legislation regarding political parties. The
legislation--which passed on December 6 without
opposition--is focused on improving a 2002 law that was used
for the 2004 elections. The legislation was approved by the
Presidential Palace and is scheduled for signature by the
President within the required 30 days. The GOI will need to
draft implementing regulations for the legislation before it
is enforced on political parties.

GOOD NEWS FOR SMALL PARTIES


3. (SBU) A key aspect of the new legislation is to improve
prospects for smaller parties. In the spirit of letting "a
thousand flowers bloom" and diversifying political
participation, the DPR made a concession to smaller parties
by significantly lowering the requirement for forming a
political party. For a new party to contest the 2009
election, it must prove it has branches in sixty percent of
Indonesia's 33 provinces, half of the regencies (regional
areas) in those provinces, and a quarter of the districts in
those regencies. In 2004, new parties were required to have
branches in two-thirds of Indonesia's provinces, two-thirds
of the regencies, and two-thirds of the districts. All
parties still must have their national headquarters in
Jakarta (there are different requirements re the Aceh
region).

PRESSING WOMEN'S PARTICIPATION


4. (SBU) Another key aspect of the legislation involves
women. The legislation mandates that at least 30 percent of

the founding members in any new party be women. The
legislation also requires that parties' central executive
boards reserve at least 30 percent of their positions for
women. Parties that do not meet this requirement are subject
to being barred from participating in elections by the GOI.
The legislation retains a provision from the 2002 law which
requires parties "to consider" women as nominees for at least
30 percent of their legislative seats. In 2004, all parties
fell short of the 30 percent mark re candidates.

NEW FINANCING GUIDELINES


5. (SBU) Although the legislation pays some attention to
increasing transparency requirements, it appears to undercut
the ability of the government and the National Election
Commission (KPU) to punish parties that violate financial
stipulations. The law, for example, removes the requirement
for parties to be independently audited and submit that audit
to the government. DPR members justify changes to the law by
arguing that the voters are now in charge of conducting
"oversight" of party finances (via the ballot).


6. (SBU) In the meantime, there is a new calculation of
state subsidies for parties. The legislation reinstates a
system based on the number of votes a party receives that was
used in the 1999 election rather than the current system
which bases payments on the number of seats in the DPR that a
party holds. Parties are required to submit an
accountability report on their use of the subsidies, but the
law does not outline requirements for the content of this
report and stipulates that parties are entitled to their
subsidy after the report has been submitted, regardless of
the quality and completeness of the report.

JAKARTA 00003487 002.2 OF 002



DEALING WITH INTRA-PARTY DISPUTES


7. (SBU) After a series of highly publicized internal
disagreements within political parties--most notably within
the Indonesian Democratic Party-Struggle (PDI-P) and the
National Awakening Party (PKB)--the law contains new
provisions for resolving in-house disputes. Members
challenging their party's leadership are now required to
attempt a formal mediation of the dispute before taking their
case to the courts. Parties are also required to add clauses
to their bylaws providing details about how mediation will be
used to settle disputes.

ROOM FOR MORE CHANGE


8. (C) Political party legislation is clearly a work in
progress and almost certainly will need to be updated based
on what happens in the 2009 elections. The DPR is expected
to pass additional laws on the whole electoral process in
early 2008. The 2009 national elections will only be the
third (1999 and 2004 were the previous) since the fall of the
Suharto regime in 1998 and Indonesia is still working to put
in place electoral laws it is comfortable with. This is not
a surprise in a young democracy and Indonesians--while proud
of what they have already accomplished--acknowledge that more
needs to be done in this key area.

HUME