Economist calls on govt to nationalize Soeharto's wealth

Economist calls on govt to nationalize Soeharto's wealth

JAKARTA (JP): Economist Mohammad Sadli called on the
government yesterday to take over all the assets and corporate
stocks belonging to former president Soeharto and his family to
help ease the country's economic crisis.

The assets, comprising stocks and movable and non-movable
assets, "should be nationalized" and any proceeds from their
sales could be used to finance the government's budget, Sadli
said in an interview with Antara in New York.

"The legal procedures were too complex and time consuming," he
said, recalling the Philippine government's move to repossess the
assets of former strongman Ferdinand Marcos.

"A shortcut method would be to nationalize their assets, just
like when we (Indonesia) nationalized the assets of Dutch
companies in 1957," said the former mines and energy minister.

The Attorney General's Office has launched an investigation
into accusations that the wealth of Soeharto and his children
were amassed through corrupt practices.

Most of the former president's children now head large
business empires which they built over the last decade or so.

The largest of them is Citra Lamtoro Gung headed by Siti
Hardijanti Rukmana, followed by the Bimantara group (Bambang
Trihatmodjo), the Humpuss group (Hutomo Mandala Putra alias
Tommy) and the Arseto group (Sigit Hardjojudanto).

Soeharto also controls many businesses through foundations he
built and heads in an individual capacity. Among his largest
foundations are Supersemar, Dharma Bhakti Sosial, Dana Abadi
Karya Bakti, Harapan Kita and Trikora.

Sadli singled out stocks owned by Soeharto's children in
groups like Bimantara, Humpuss, Citra Lamtoro Gung and Arseto as
targets for nationalization, according to Antara.

He said the former first family also owned shares of about 15
percent in 120 mining companies in Indonesia.

He suggested the government only nationalize the stocks owned
by the Soehartos. Shares owned by their business partners should
not be affected, he said.

Sadli's proposal was condemned as illegal by lawyer Frank
Taira Supit of the independent Movement of Concerned Citizens on
State Assets (Gempita), which is also investigating allegations
of corruption in the previous government.

"We must follow the due process of law," Frank told The
Jakarta Post in Jakarta.

"Gempita will not advocate a nationalization because there is
no legal basis for that," he added.

A nationalization of the assets would set a bad precedent, he
said.

"We must grow to respect the law," Frank said, adding that the
Attorney General's Office should be allowed to complete its
current investigation.

Gempita was established last month by lawyers, activists and
economists to collect data on ill-gotten wealth and assets by the
former president and other officials of the previous government.

Another noted lawyer, Todung Mulya Lubis of the Indonesian
Corruption Watch, supported the proposal to take over Soeharto's
assets but said the term "nationalization" was incorrect.

The term, he told the Post, usually referred to the takeover
of foreign companies by the government.

Lubis agreed that following the due process of law in
investigating the alleged corruption under Soeharto would take
too long.

He proposed instead that, should an extraordinary session of
the People's Consultative Assembly be held any time soon, the
assembly issue a ruling to repossess the wealth.

"A political decision is more important in a matter like this,
although it should then be followed by the due process of law,"
he said.

The Indonesian Corruption Watch was established last week to
fight for the recovery of assets allegedly obtained illegally by
the Soeharto family. (byg/emb)