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.