Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Indonesian tycoon sues government to stop key opposition party defecting to president

Published 25/03/2015, 02:55
© Reuters. Aburizal Bakrie (C), the head of Golkar Party walks as he enters a plenary session at the Golkar Party National Conference in Nusa Dua, on the  Indonesian resort island of Bali

By Kanupriya Kapoor

JAKARTA (Reuters) - Indonesian tycoon Aburizal Bakrie is suing the government in a bid to keep control of the country's biggest opposition party and prevent it defecting to President Joko Widodo's minority coalition.

The opposition Golkar party controls 14 percent of parliamentary seats and would give Joko's coalition control of over half the parliament, easing fears of political gridlock in Southeast Asia's largest economy.

Bakrie, the patriarch of the sprawling family-owned Bakrie Group conglomerate, has filed a legal challenge against last week's ministerial decree that gave the Golkar chairmanship to a rival faction sympathetic to the president.

"We have lodged a complaint against the Ministry of Law and Human Rights, whose decision in favour of the other faction is contrary to the principles of good governance," Bakrie's lawyer Yusril Mahendra told Reuters.

He added that Bakrie should remain the chairman of Golkar, which backed losing presidential candidate Prabowo Subianto in last year's election, until a verdict was announced.

A law ministry spokesman said the government, which intervened after being asked by Golkar to resolve months of political infighting, would see the legal process through.

He declined to say when the ministerial decree would come into effect.

Agung Laksono, who is set to replace Bakrie if he loses his lawsuit, told local media last week the party planned to join Widodo's coalition without expecting cabinet seats in return.

Vice President Jusuf Kalla told Reuters last week the government was planning a cabinet reshuffle in the next month, but declined to comment on whether Golkar would be included in the new line-up.

Analysts say Widodo will face pressure to include Golkar, the political vehicle of former authoritarian ruler Suharto, in any new cabinet.

"Jokowi already has patrons to deal with in his coalition and the addition of Golkar would mean another patron and he has to balance power between them," said political analyst Tobias Basuki, using the president's nickname.

© Reuters. Aburizal Bakrie (C), the head of Golkar Party walks as he enters a plenary session at the Golkar Party National Conference in Nusa Dua, on the  Indonesian resort island of Bali

"It could potentially create new problems for (Widodo)."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.