Australian businessman surrenders to police

SURABAYA (JP): After six hours of negotiations with police, Peter Negal, a 60-year-old Australian businessman who refused to talk to officers over an alleged swindle on Tuesday, surrendered to police on Wednesday.

South Surabaya Police Sr. Supt. Wahyu Indrapramugari said the police confiscated an air rifle believed to be used by Negal to attack the officers.

On Tuesday, Negal reportedly opened fire on officers who wanted to question him. Police officers surrounded his house on Jl. Puncak Permai in Tandes after he allegedly shot at the officers with an 4.5 caliber air rifle.

Police officers went to Negal's home on Tuesday following allegations by his Indonesian business associates that he had embezzled their money.

"Negal admitted to shooting the officers, as he thought we were debt collectors, despite the fact we had informed him who we were before," Wahyu said.

The Australian refused to leave his house, in which six people, including his Indonesian wife Ivanna, 25, were held hostage.

Sources at the police office said that Negal owed his business associates Rp 5 billion, and the rift between him and them began when Negal was "unfriendly" when they asked him for their money.

Unconfirmed reports say that Negal owns two big furniture companies: Java Indonesia Mebel and Newco Furniture Industries in Surabaya.

Wahyu said Negal's temporary stay permit, which is valid until Nov. 30, 2000, was seized. "We haven't arrested him. The case is a civil one and he is too old. He is now very distressed after his dispute with his associates. He is now under city arrest and is obliged to report to the police every day."

The negotiations between Negal and the police on the phone were held without the presence of officials from the Australian Embassy.

"Embassy officials trusted us to handle the case according to the law," Wahyu said, adding that he had phone conversations with an embassy official. He did not go into detail. (nur/sur)