Bambang, Indra resign from Bimantara

Bambang, Indra resign from Bimantara

JAKARTA (JP): Former strongman Soeharto's second son and son-
in-law have resigned from publicly listed PT Bimantara Citra amid
mounting public demands for an investigation into the family's
wealth.

Bambang Trihatmodjo resigned as president director and Indra
Rukmana, married to Soeharto's eldest daughter Siti Hardijanti,
resigned as chief commissioner, the company said after a
shareholders meeting yesterday.

The shareholders then elected Mohamad Tachril Sap'ie president
and Rosano Barack chief commissioner.

Rosano said Bambang resigned from Bimantara in April not
because of the unfavorable political situation but because of the
company's poor performance.

"He feels that he failed to maintain the company's
performance, especially last year as our net profit dropped
sharply to only Rp 11.4 billion (about US$1 million)," Rosano
said.

The company booked a net profit of Rp 157.5 billion in 1996.

Commissioner Peter F. Gontha added that Bambang resigned
because he wanted a professional to navigate the company through
the crisis.

Neither Bambang nor Indra showed up at yesterday's meeting.
The pair remain Bimantara's biggest shareholders. Bambang owns
more than 38 percent of the company and Indra about 14 percent.

While the shareholders meeting was in progress dozens of
student activists held a demonstration in front of the Bimantara
building, demanding Bambang surrender to the people his wealth
accrued illegally.

The protesters from political non-governmental organization
Pijar Indonesia arrived at the office on Jl. Kebon Sirih, Central
Jakarta, at about 9:30 a.m., stretching out a big banner reading
"Seize All Soeharto's and His Family's Assets."

Dozens of Bimantara's employees watched the demonstration
which dispersed peacefully before Friday prayers.

Responding to mounting public demands to investigate and seize
the Soeharto family's wealth, Gontha said Bimantara, as a
publicly listed company, would remain open for authorized parties
to look into its operations.

Gontha also said Bimantara was prepared to surrender any
contracts that could be proven to be results of corruption,
collusion or nepotism.

"All the contracts we have are transparent," he said. "If a
contract is overvalued because of collusion, corruption or
nepotism, we are willing to give it up."

Bimantara, founded by Bambang in 1981, booked total assets of
Rp 3.86 trillion as of the end of last year, up from Rp 2.5
trillion at the end of 1996.

The company currently possesses 29 subsidiaries, which are
grouped into seven lines of business: media, telecommunications,
infrastructure, transportation, chemical industries, property and
financial services.

Some analysts predict that Bimantara, like any other company
with strong links to Soeharto, will suffer in the future as the
movement against corruption, collusion and nepotism gains
momentum.

The head of research at Socgen-Crosby Securities Indonesia,
Goei Siauw Hong, said Bambang's and Indra's resignation from
Bimantara would not affect the company significantly in the
future as "they have become liabilities now."

He predicted that Bimantara would not perform as well as
before because some of its lucrative contracts with government
and state firms would likely be reviewed.

There have been mounting public demands for a review of the
awarding of government contracts to Soeharto-linked companies and
to investigate the assets of the former president and his family.

Some companies linked to Soeharto have suffered since the
former general handed over power to his protege and deputy, B.J.
Habibie, last week, after 32 years in power.

The country's largest bank, Bank Central Asia, owned by Siti
Hardijanti, her brother Sigit Harjojudanto and Soeharto's close
associate Sudono Salim or Liem Sioe Liong and Liem's son Anthony
Salim, has been put under the supervision of the Indonesian Bank
Restructuring Agency following two weeks of runs on deposits.
(jun/aly/rid)