Experts split over move on Soeharto businesses<\/p>\n
JAKARTA (JP): Legal experts are divided over the legitimacy of
\nthe government's sudden move to review the vast trail of business
\ncontracts leading to former president Soeharto's family.<\/p>\n
Lawyer Frans Hendra Winarta said the move was understandable
\nconsidering the strong demand for the new Habibie administration
\nto fight the rampant corruption, collusion and nepotism
\nbequeathed by the Soeharto regime.<\/p>\n
But Frans said the government would find be hard pressed to
\nfind a legal basis to nullify the contracts before they expired.<\/p>\n
\"Collusion and nepotism are certainly wrong in terms of
\nmorality and ethics, but I am not sure if we already have laws
\nwhich outlaw them,\" Frans said, adding any reform movement should
\nbe consistent with the law.<\/p>\n
Lawyer Todung Mulya Lubis said in normal conditions contracts
\nsigned by two parties could not be abrogated unless one party
\nbreached them.<\/p>\n
\"But the current situation can be considered 'not normal'. The
\npublic now strongly demands a clean government. Based on this
\ndemand, I think contracts which were not made in fairness in the
\npast can be reviewed now.\"<\/p>\n
Lubis qualified this by stating the government should protect
\nthe interests of foreign investors who cooperated with Soeharto's
\nfamily.<\/p>\n
\"I think the government can offer them new business partners
\nwith whom they can work more comfortably at present,\" Lubis said.<\/p>\n
Minister of Mines and Energy Kuntoro Mangkusubroto earlier
\nsaid the government would review contracts between state oil and
\ngas company Pertamina and shipping companies and trading houses,
\nmany of which are controlled by Soeharto's children.<\/p>\n
The companies include Perta Oil Marketing Ltd, which is
\ncontrolled by Soeharto's youngest son Hutomo \"Tommy\" Mandala
\nPutra and others, and Permindo Trading Oil Co Ltd, which is
\ncontrolled by Bambang Trihatmodjo and associates.<\/p>\n
Bambang is Soeharto's second eldest son.<\/p>\n
Perta and Permindo have held the exclusive right to import
\nfuel and crude oil respectively for Pertamina for decades.<\/p>\n
Kuntoro said contracts with Perta and Permindo would end next
\nmonth and the government would hold open bidding for the imports
\nof fuel and crude oil for Pertamina.<\/p>\n
Tommy also conducts business with Pertamina in the shipment of
\nfuel, liquefied natural gas (LNG) and crude oil through its
\npublicly listed company Humpuss Intermoda Transportasi.<\/p>\n
In its 1997 annual report, Humpuss said Pertamina chartered
\nnine tankers from its fleet to transport crude oil, plus another
\nthree tankers to carry LNG to export markets. Some of the tankers
\nare co-owned by Japanese investors.<\/p>\n
The charter period of the tankers ranges from 10 to 12 years
\nuntil between 2005 and 2009.<\/p>\n
East Java provincial authorities have also announced they will
\nreview all projects in the province which involve Soeharto's
\nchildren.<\/p>\n
These include two refinery projects in Situbondo and
\nProbolinggo owned by Bambang and Soeharto's cousin Sudwikatmono
\nrespectively, and the Umbulan drinking water project owned by
\nTommy.<\/p>\n
Also under review is the 1,220 Megawatt (MW) Paiton II coal-
\nfired power project, which is 15 percent owned by Bambang, 50
\npercent by Siemens of Germany and 35 percent by the publicly
\nlisted Power Gen. of Britain. The US$2 billion project is
\nscheduled to come on stream next year. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/experts-split-over-move-on-soeharto-businesses-1447893297",
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