Australian businessman holds wife and employees hostage

SURABAYA (JP): Police besieged the house of an Australian businessman on Jl. Puncak Permai in Tandes on Tuesday after he opened fire on officers attempting to question him over an alleged swindle.

The police still had the house surrounded as of 8 p.m. as they waited for an official from the Australian Embassy in Jakarta to arrive to negotiate with Peter Negal, 60, a supplier of luxury household goods. Police said the negotiator would arrive on Wednesday.

South Surabaya Police chief of detective Sr. Insp. Egar Diponegoro said one of the officers sent to the Australian's residence was nearly shot when Negal opened fire on them. The officers were attempting to question Negal after his Indonesian business partners filed a police report accusing him of embezzling their money.

"Negal has been hiding in his house since he and his partners were involved in a dispute at their office in Pakuwon Indah on Monday night," Egar said.

When the police arrived at the Australian's residence, the expatriate refused to leave his house, where he is holding six people, including his Indonesian wife Ivanna, 25, hostage.

"The house's doors and windows were locked when the police arrived. We tried to phone him, but one of his maids answered and soon the line was disconnected. It looks like he is using the people inside the house as a shield," Egar said.

Besides Ivanna, three female maids and three men who reportedly work as couriers for Negal are being held hostage.

Egar said Negal could be charged with assault and the illegal possession of a weapon.

"He attacked police officers and ignored our warnings. As for his residence status and his permit for the gun, these will soon be investigated," Egar said.

The status of the people inside the house remained unknown, but police said they would continue to monitor the situation. (nur/edt)