LSP released from prison

LSP released from prison

The Jakarta Post, Jakarta

Director General of Taxation Hadi Purnomo confirmed on Monday an
earlier press report that LSP, an executive of the American-
controlled Karaha Bodas Company (KBC), who had been put in jail
for alleged tax evasion, was released on Friday night after
settling his tax arrears.

Hadi said that LSP -- which stands for Loedito Setyawan
Poerbowasi (the son-in-law of the country's former vice president
Sudharmono) -- had fulfilled his debt, amounting to Rp 1.2
billion on Thursday.

"LSP has fulfilled his obligations, which was a prerequisite
for his release. We no longer have the right to keep LPS in
prison," Hadi said, confirming a report by Koran Tempo daily,
which ran a report of Loedito's release in its Monday edition.

Loedito is one of three KBC executives accused by the tax
office of failing to pay a total of Rp 12 billion in tax since
1999.

The other two executives, an American and Canadian, have not
been arrested so far.

Hadi said his office was still looking for the other two
alleged tax evaders, but could not say whether or not they were
still in the country.

The tax charges have been seen by many as the government's way
of forcing KBC to agree on an out-of-court settlement to end its
legal battle with state oil and gas company PT Pertamina, which
has lasted for years.

A Geneva-based arbitration court ordered Pertamina to pay
US$291 million in compensation to KBC after the government
suspended the KBC power project in the country following the
1997-1998 crisis.