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Managing Politics and Islam in Indonesia

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MANAGING POLITICS AND ISLAM IN INDONESIA 149Suharto’s effort to readjust the balance of <strong>in</strong>fluence away from the economictechnocrats <strong>and</strong> towards economic nationalists after the preced<strong>in</strong>g (fifth)development cab<strong>in</strong>et had accorded enhanced <strong>in</strong>fluence to the technocrats. Thecompet<strong>in</strong>g <strong>in</strong>terests brought <strong>in</strong>to the cab<strong>in</strong>et reflected earlier struggles <strong>and</strong>cab<strong>in</strong>et compositions, as the pendulum of economic <strong>in</strong>fluence swung betweenthe technocrats <strong>and</strong> nationalists <strong>and</strong> each school of thought sought to ga<strong>in</strong>Suharto’s ‘preferential’ ear. 78A rival of Habibie’s, the State Secretary, Murdiono (a military general whohad spent most of his career <strong>in</strong> civil adm<strong>in</strong>istration), was appo<strong>in</strong>ted for a secondterm. Both officials were close advisors to Suharto, no doubt compet<strong>in</strong>gfor <strong>in</strong>fluence with the president. There existed potential po<strong>in</strong>ts of tensionbetween the two m<strong>in</strong>isters. Hadiz identified one po<strong>in</strong>t of tension, not<strong>in</strong>g that‘ICMI’s new-found prom<strong>in</strong>ence has…encroached on Sekneg’s [the StateSecretariat’s] role of controll<strong>in</strong>g access to the president’. 79 In addition, Murdionohad leaned <strong>in</strong> favour of policies promoted by the economic technocrats,anathema to Habibie’s br<strong>and</strong> of economic nationalism. Gaffar also identified analliance between Murdiono <strong>and</strong> Gen. Edi Sudrajat, one of Habibie’s majoropponents <strong>in</strong> the ma<strong>in</strong>stream military. 80 Murdiono-Habibie tensions stemmedfrom Suharto’s cultivation of rival networks, particularly between economicsm<strong>in</strong>isters <strong>and</strong> departments, <strong>and</strong> allow<strong>in</strong>g disputes to build before mediat<strong>in</strong>g <strong>in</strong>favour of one side.Corruption Allegations Aga<strong>in</strong>st an ICMI BureaucratThus, the entry of Habibie’s team of bureaucrats <strong>and</strong> loyalists at BPPT <strong>in</strong>to the1993 cab<strong>in</strong>et, at the expense of other state <strong>in</strong>terests, stimulated cont<strong>in</strong>u<strong>in</strong>g <strong>in</strong>traelite/<strong>in</strong>tra-cab<strong>in</strong>etconflict. These tensions came to a head <strong>in</strong> 1995. The politicalstorm began on 10 October, when the Inspector General of Development, Maj.Gen. (ret.) Kentot Harseno (a former military adjutant to the president, <strong>and</strong> aconfidant of Benny Murdani’s), sent the first of three reports marked ‘top secret’to Suharto of corruption allegations aga<strong>in</strong>st the ICMI bureaucrat, the M<strong>in</strong>ister ofTransport Haryanto Dhanutirto. Harseno’s office was loosely with<strong>in</strong> the orbit ofthe State Secretariat. His report, written on State Secretariat letterhead, accusedHaryanto of divert<strong>in</strong>g 9 billion rupiah of fund<strong>in</strong>g, <strong>in</strong> the form of 392 nonbudgetarylevies, for his own personal enrichment from eighteen of twenty-sevenState-Owned Companies (BUMN) under his supervision at the Department ofTransport. 81The report was leaked to the press, by an unknown source, <strong>and</strong> was distributedwidely to government departments <strong>and</strong> community leaders. One photocopiedreport l<strong>and</strong>ed on the desk of Amien Rais, then the head of ICMI’s council ofexperts (before his ouster). A controversy was soon sparked by detailed coverageof the corruption allegations, which <strong>in</strong>dicated that Habibie’s rivals <strong>in</strong> the statebureaucracy, associated with Murdiono’s State Secretariat, were beh<strong>in</strong>d efforts tounderm<strong>in</strong>e the technology m<strong>in</strong>ister’s reputation. Murdiono promptly gave his

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