Businessmen sing old song of 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.