Indonesian Political, Business & Finance News

Hokiarto tried again for graft

| Source: JP

Hokiarto tried again for graft

M. Taufiqurrahman, The Jakarta Post, Jakarta

The trial of businessman Hokiarto for an alleged land scam that
caused the state to suffer Rp 48.7 billion (US$5.6 million) in
losses began at the South Jakarta District Court on Wednesday.

The same court had earlier freed the 69-year-old businessman
in September 2002 from a similar charge involving state losses of
Rp 95.4 billion, due to ambiguities in the indictment. It also
earlier ruled the case should have been brought before the North
Jakarta District Court where the crime took place.

Claiming they had come up with a stronger case against the
businessman, prosecutors once again filed a case against
Hokiarto.

In the indictment, prosecutor Syaifudin Kasim said that
Hokiarto applied for a loan from state-owned Bukopin Bank in
order to buy a plot of land in Marunda, North Jakarta, for PT
Goro Batara Sakti (PT GBS), which was owned by former president
Soeharto youngest son Hutomo "Tommy" Mandala Putra and his car
racing buddy Ricardo Gelael.

With the involvement of former chief of State Logistics Agency
(Bulog) Beddu Amang, Bukopin approved the loan, which, unusually,
was guaranteed by Bulog's Rp 23 billion account and disbursed Rp
20 billion to PT GBS which was later given to Hokiarto.

On July 19, 1996, Hokiarto and PT GBS signed a working
contract. Hokiarto was required to acquire 60 hectares of land
for PT GBS using the Rp 20 billion fund from the bank.

PT GBS then gave Rp 15.6 billion and Rp 625 million of the
money to the defendant, who later placed all the funds into a
personal account.

Hokiarto then spent only Rp 1.1 billion to purchase 83,000-
square-meters of land.

On several occasions later in the year, Hokiarto requested
additional funds totaling Rp 32.25 billion from Beddu, who agreed
the request.

"However, the defendant did not spend the money for the agreed
purpose. He only acquired several hectares and spent the money
for his personal use," Syaifudin said.

The defendant is being charged under Law No. 3/1971 on
corruption, which carries a maximum penalty of life in jail.

Speaking after the hearing, defense lawyer Hotman Paris
Hutapea said the trial against his client would be futile as
there was nothing new in the indictment.

"The last trial was suspended because the indictment was
flawed. Without anything new, this court has no authority at all
to hear this case," he said.

In 1999, Tommy and Ricardo were acquitted by the same court of
all charges for their involvement in the land scam. However, the
Supreme Court later overturned the verdict and sentenced them to
18 months in jail.

Tommy, who fled after the verdict, is currently serving his
15-year jail term at the Batu Penitentiary in Nusakambangan
island, Central Java, for masterminding the killing of a Supreme
Court Justice.

Beddu was sentenced to two years in jail in 2001 for graft. He
appealed but the Supreme Court handed him down a four-year jail
term in January 2003.

Presiding judge Machmud Rohimi adjourned the trial until March
31.

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