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)