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)