Indonesian Political, Business & Finance News

Joop denies bribe for Bali megaproject

| Source: JP

Joop denies bribe for Bali megaproject

JAKARTA (JP): Minister of Tourism, Post and Telecommunications
Joop Ave yesterday denied that his office has received illegal
payments from the state-owned PT Telkom telecommunications
company for the development of a US$85 million tourist
megaproject in Bali.

Joop, calling a press conference to clarify the issue, said
Telkom's shareholders have agreed to allocate Rp 30 billion
($12.8 million) from the company's dividend earnings to fund the
Garuda Wisnu Kencana monument project.

Garuda Wisnu is a 130-meter monument to be made of copper. The
monument will be constructed on a 200-hectare plot in Bukit
Ungasan, Badung in southern Bali, and is expected to be completed
by the end of 1997.

The monument, to be built by the Garuda Wisnu Foundation, will
cost about Rp 80 billion. The 200-hectare site will be developed
into a cultural and leisure park by PT Garuda Adhimatra, with an
investment of approximately Rp 200 billion.

Rumors that Joop's office received illegal payments from
Telkom began circulating following the replacement of some of the
company's board of executives during a shareholders' meeting on
May 17.

The government has not explained why some of the company's
executives, including outgoing president Setyanto P. Santosa and
outgoing chief commissioner Martiono Hadianto, were replaced
before their tenures end in 2000 and 1998 respectively.

Some believe that the two executives were fired because they
had neglected to give money for a number of projects pioneered by
the Ministry of Tourism, Post and Telecommunications.

Joop said yesterday that the Rp 30 billion fund was under the
Ministry of Finance and his office's control, because the
government is planning to use the fund in purchasing up to 20
percent of Garuda Adhimatra's shares through the state-owned PT
Bali Tourist Development Corporation.

He refused to disclose where the fund is now being kept,
however.

Garuda Adhimatra's commissioner, Arie Bastaman, said yesterday
that the monument project is being financed by the Garuda Wisnu
Foundation. The foundation's board of patrons includes the
Governor of Bali and the Minister of Tourism, Post and
Telecommunications.

Partnerships

"The foundation alone has to finance the construction.
Meanwhile, Garuda Adhimatra, which is currently wholly-owned by
Balinese sculptor Nyoman Nuarta, is open for partnerships with
domestic and foreign investors," Arie said.

Joop also yesterday denied that Telkom had channeled illegal
money to Citra Parpostel and Citra Nusantara foundations, set up
by the ministry to conduct social and educational programs.

"Telkom's shareholders have agreed to give special funds for
the foundations," he said.

He said the two foundations have so far spent Rp 1.3 billion
for "their activities", but refused to give details.

He also dismissed as groundless allegations that he has
pressured Telkom to refurbish the old ministry building. "The
building on Jl. Kebon Sirih has been purchased by Telkom, which
will be responsible for any refurbishment there," he said.

Joop refused to disclose how much Telkom has paid for the
five-story building. (icn)

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