Indonesia's national Parliament building resembled a circus earlier this week as lawmakers met to debate a criminal probe against government officials over the 6.7 trillion rupiah (US$716 million) bailout of Bank Century.

Finance Minister Sri Mulyani Indrawati and Vice-President Boediono, who was former central bank governor, had been involved in the bailout decision in November 2008, as the world entered a financial crisis.

Tuesday's session ended with loud jeers and a scuffle among legislators. On Wednesday, some legislators jumped out of their seats, punched their fists in the air, cheered and screamed 'Allahu Akbar' (God is Great) as six out of the nine political parties declared the bailout to be flawed.

Outside Parliament House, around 1,000 demonstrators - mostly students - hurled bricks and sticks at police standing guard. Some held posters - one depicted the internationally respected Dr Sri Mulyani, with the word 'bloodsucker' in bold. The pickets came down only when police unleashed tear gas and water cannon on the crowd to maintain order.

Anyone watching the media coverage of these events would wonder if Indonesia was spiralling downwards into an abyss of chaos circa a decade ago. Then, the country's recovery from the 1997 Asian financial crisis and its subsequent transition from autocracy to democracy was marked by riots, hyperinflation and general political instability.

Things are different today. Indonesia's economic fundamentals are solid and it is tipped to grow by at least 6 per cent a year in the long term. Yes, infrastructure growth and job creation are still sluggish but such pressing issues are being fixed.

The political system however, has failed to keep up with these new economic aspirations. Indonesia's democratic institutions are turning into the country's Achilles' heel, as it seeks to become a stronger player in the world economy.

Witness the conduct of civil society groups and political parties earlier this week. As activists demonstrated rowdily, parties in the governing coalition of President Susilo Bambang Yudhoyono's Democratic Party abandoned ship to attack the government. Rumours have it that activists and politicians were wooed with the promise of cash.

By a vote of 325 to 212 that the bailout was flawed, the legislators ignored the voice of the people. Bankers and businessmen had said repeatedly that the government acted appropriately to prevent panic in Indonesia's financial system.

The vested interest of some political parties in the downfall of Dr Sri Mulyani and Dr Boediono was evident from the start. Both Cabinet officials stand for clean and transparent government.

This has never sat well with the gaggle of powerbrokers seeking to enrich their own pockets. They prefer government officials who respect political connections and are supportive of the long-standing practice of patronage towards businesses. Dr Sri Mulyani and Golkar chairman Aburizal Bakrie, whose family business empire spans a variety of sectors, have previously clashed in this respect.

Dr Yudhoyono - directly elected for his second term last July with 60 per cent of votes - has also been blamed for misusing his strong mandate.

He was slow to defend his subordinates and even slower to defend his reformist agenda, say critics.

The President should have stated publicly from the start that he took full responsibility for the bailout. Instead, he took this stand only last week, and even then, with caveats about how he was not directly involved in the bailout decision.

A senior government official told The Straits Times that "it remains a great mystery" why the President did not defend Dr Sri Mulyani and Dr Boediono earlier. After all, he had assured them privately that their positions were safe.

Dr Yudhoyono's sometimes oblique manner of speech is a function of his personality. He has persisted in choosing to govern by persuasion and consensus, even if it sometimes makes him appear weak and indecisive. This should change, for his Democratic Party now commands a parliamentary majority - it has 25 per cent of House seats - and he is no longer as beholden to his coalition partners as he was during his first term.

On Thursday night, in a televised address to the nation, Dr Yudhoyono made clear that both Dr Sri Mulyani and Dr Boediono would remain in the Cabinet. The country should award them with only "the highest gratitude" for protecting the economy in a time of crisis, he said.

Still, he was savvy enough to accord due worth to Parliament's vote, despite it not being legally binding. He said he 'respected' it as part of the democratic process and hoped the parliamentary coalition could continue to work together for the sake of the country.

Participants in Indonesia's democratic institutions should take their cue from him. Rights without responsibility is no democracy.