Sat, 30 May 1998

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)