Corruption allegation affecting tycoon Arifin

JAKARTA (JP): Businessman Arifin Panigoro said on Sunday that he was ready to cooperate with the Attorney General over investigations into alleged corruption.

Arifin told a media conference at his home in South Jakarta that he wanted the case settled quickly, and that he was "hurt" and "concerned" by the "mental pressure imposed on our family" regarding the allegations.

Inquiries are scheduled to begin on Monday at the Attorney General's Office.

Arifin was accompanied by his lawyer Todung Mulya Lubis.

The owner of PT Medco Central Asia, part of the PT Medco business group, was accused of corruption involving Rp 2 trillion (US$230 million) related to state-owned insurance firm, PT Jasindo.

The Attorney General's Office public relations officer Barman Zahir said on Friday that in July last year PT Medco issued 27 commercial papers, one of which was bought by Jasindo.

Barman said that it turned out Medco could not pay up, meaning that Jasindo was held responsible as the purchaser of the paper.

"In this case the state suffered a loss of Rp 2 trillion," Barman said as quoted by Bisnis Indonesia.

Arifin said he would even go to the Attorney General's Office on his own initiative to help clarify matters.

A press release from Medco said that because of the regional monetary crisis it could not settle all of its debts, but had appointed internationally renown consultants such as Morgan Stanley and Goldman Sachs "to ensure professional restructurization" of its assets and financial situation.

Arifin added the business problems would be settled in a short time by both parties.

Arifin said that as the charges were "baseless", the public would easily get the impression that they were "political", which Attorney General Andi Muhammad Ghalib denied Friday.

The businessman had his car and home stoned last month by a group calling itself the People's Savior Front. The protesters criticized Arifin for sponsoring student demonstrations against the government, which Arifin has also denied.

"I am an entrepreneur who cares a lot about reform, why would I steal money in business. I am not that kind of entrepreneur, if I were I would only expand my business. I am truly hurt by being accused of corruption," he said emotionally.

Arifin said he might sue the Attorney General over the corruption accusations, but would decide whether to take any legal action after the examination. (01)