JAKNEWS.COM---Indonesia's president is expected to address the nation Thursday (4/3) in a bid to save his fragile coalition after parliament called for a criminal probe into a controversial bank bailout two years ago.

"The president will deliver a speech at 8:00 pm (1300 GMT) at the state palace," presidential spokesman Julian Aldrin Pasha told AFP, without giving further details.

More than half the country's lawmakers voted Wednesday for an investigation into Vice President Boediono and Finance Minister Sri Mulyani Indrawati for authorising a 724-million-dollar rescue package for Bank Century in 2008.

The two most respected economic figures in President Susilo Bambang Yudhoyono's cabinet have been under intense pressure after the country's top auditor last year found strong indications of "violations" in the bailout.

Sri Mulyani said while she respected the parliamentary decision, she also defended her role, saying the bailout was essential to prevent a banking crisis.

"The truth is my main priority... In this case, I've to carry out the state mandate to protect the people, manage problems and handle various crises which could occur," she added.

Separately, Boediono said all state officials "must bow to the laws and honour the people's mandate".

"In every era, God is always on the side of the truth," he told reporters.

The 325 lawmakers in the 560-seat parliament accused the pair of "abuse of power" in the bailout, which they say caused huge losses for the state.

The decision, backed by the government's coalition partners Golkar and the Muslim-based Prosperous Justice Party (PKS), will put Yudhoyono in a difficult position as it will force him to decide between retaining his two colleagues or preventing his coalition from disintegrating.

"It's urgent that Yudhoyono start an intense political communication with his partners, especially with the Golkar and PKS," political analyst Andi Widjajanto from the University of Indonesia told AFP.

"He needs to achieve some political bargaining with opponent groups or he will face problems in the next four years in government," he said.

Yudhoyono, a liberal ex-general, was re-elected in 2009 on promises to root out corruption, which riddles every aspect of Indonesian public life from the courts to the customs office.

Indonesians have staged demonstrations over the bailout, and on Tuesday stick-wielding protesters hurled stones and bottled water at police, who responded with tear gas and water cannon.

Indonesia's stock market has not shown any reaction to the current political development as it rose slightly in the middle of the day.
 

nYAHOO/JAK01