Businessmen say they're fed up with party extortion story

Businessmen say they're fed up with party extortion story

Rendi A. Witular, The Jakarta Post, Jakarta

General elections have always been a headache for businessmen.
For them it is time to pay, while for political parties it is pay
day.

"I think the issue is not whether they have received funds
from businesspeople, but how they have extorted us for years to
fund their campaign activities," said businessman Sofjan Wanandi,
owner of several companies under the Gemala Group.

The chairman of the National Economic Recovery Committee
(KPEN) said that extortion by party cronies took place when
businessmen were seeking licenses or permits for their
operations.

He alleged that political parties' expensive ad campaigns in
print and electronic media today were allegedly funded by
extortion money.

Sources at the Ministry of Finance acknowledged that several
offices under its aegis channeled cash stemming from levies and
extortion, to political parties.

"The rumors are strong and they have been around for ages ...
but it is difficult to prove it. The channeled cash served as a
means to maintain the current posts of officials," a source
requesting anonymity said.

But ministry spokesman Maurin Sitorus said that the office had
never been involved in filling political parties' coffers. "Maybe
it (the practice) is committed by corrupt individuals in this
ministry," Sitorus said.

Businesspeople have many grievances. They have complained over
levies imposed by customs officials when they clear their
imported or exported goods. In trade forums organized by the
Indonesian Chamber of Commerce and Trade (Kadin) they also
complained about tax officials who often mislaid their taxes in
return for bribes.

Such practices have long been cited as the main reason why
foreign investors are reluctant to invest in Indonesia. These
practices entail a high-cost economy that renders products
uncompetitive on the global market. State-owned companies and
privately owned firms with close relations with the Indonesian
Bank Restructuring Agency (IBRA) are among the targets.

Finance director of Jamsostek Widjokongko Puspoyo said that
the company had not received any requests for funds from
political parties.

"I've been here for seven months, and there has been no such
request. If there is, I will not grant it because this is public
money," said Widjokongko.

Jamsostek is the country's largest pension-fund company and
capital market investor, which manages around Rp 30 trillion
(US$3.5 billion) in funds collected from workers.

Political parties did not seem to spare ailing firms either.
Requests for funds have even been addressed to troubled state
cement-producer PT Semen Gresik. But in response to many requests
for assistance from political parties, Semen Gresik corporate
secretary Soebagyo said, "we have decided not to help them
because we are a publicly listed company."

Sofjan said that many companies felt indebted to officials
affiliated with political parties who helped them restructure
their debts.

"Companies with high interaction with government officials are
prone to be used by political parties as cash cows," said Sofjan.

Since the 30-year Soeharto era, which ended in 1998, state-
owned firms have long been known as the cash cows of a certain
political party affiliated with the autocrat himself, dragging
the firms into a huge debt crisis and losses in the process.