Megawati behind controversial Sukhoi deal: Rini

Megawati behind controversial Sukhoi deal: Rini

Kurniawan Hari, The Jakarta Post, Jakarta

Controversies surrounding the purchase of four Sukhoi jet
fighters and two assault helicopters entered a new phase on
Wednesday after Minister of Industry and Trade Rini MS Soewandi
disclosed that President Megawati Soekarnoputri was the architect
of the US$192.6 million deal.

Rini said the President had told her to consult the Indonesian
Military (TNI) Chief Gen. Endriartono Sutarto and Air Force Chief
of Staff Marshall Chappy Hakim about the deal.

"I was told by the President to look into the possibility of
countertrade and I had talked with the TNI chief and Air Force
chief of staff," Rini told the press after opening the 2003
Jakarta International Houseware fair here on Wednesday.

Rini emphasized that all decisions and programs of the
President had been discussed at the Cabinet meeting, therefore
all ministers knew of the decision, Antara reported.

Rini's remark would likely encourage legislators to seek an
explanation from the President directly.

Megawati said earlier that she was ready to face the House in
order to set the record straight in the highly politicized case.

Legislator Effendi Choirie of the National Awakening Party
(PKB) said on Wednesday that lawmakers may summon the President
to get a clearer explanation as Cabinet ministers and state
officials gave conflicting statements on the issue.

Choirie, deputy chairman of the House defense commission, said
the summons could be held simultaneously with the hearing of the
inquiry committee.

House Speaker Akbar Tandjung separately said the House could
set up a special committee to probe irregularities in the Sukhoi
deal.

Akbar, who is also chairman of Golkar Party, was referring to
a committee set up in 2000 to examine a Rp 35 billion graft case
that later led to the ouster of former president Abdurrahman
Wahid in 2001.

The Sukhoi controversy started after the government signed an
agreement in April with Russia for the purchase of four Sukhoi
jet fighters -- two Su-27 SK and two Su-30 MK -- and two Mi-35
helicopters through a countertrade deal worth $192.6 million.

The State Logistics Agency (Bulog) paid $26 million to
Rosoboronexport on May 9 as a down payment while the rest would
be paid through a countertrade deal involving 30 commodities.

Legislators questioned the role of both Rini Soewandi and
Bulog in the purchase of military equipment.

In a related development, the House inquiry committee summoned
on Wednesday Bank Indonesia supervisory director Ahdi Ludris,
Bank Bukopin director Sofyan Baswir, economist Iman Sugema, and
military analysts Hasnan Habib and Ikrar Nusa Bhakti, as well as
former director of PT Dirgantara Indonesia Yusman SD.

Iman said the involvement of Bulog in the purchase of the jet
fighters was not a normal procedure. Bulog must focus on its
function of stabilizing the price of basic foodstuffs rather than
warplanes purchase.

A government regulation issued this year stated that the duty
of Bulog was primarily to ensure the adequate supply of basic
commodities for the people.

He stressed that the role of Bulog in the Sukhoi purchase was
a violation of the government regulation.

Regarding Bank Bukopin's alleged violation of the legal
lending limit, Iman said that the bank did not violate the limit
because Bulog had deposited the $26 million for the down payment.

In the meantime, Hasnan Habib said the purchase of four Sukhoi
jet fighters and two helicopters reflected the government's lack
of strategic military planning.

He said although the money spent for the deal was only $192.6
million, much more money would be required for the maintenance
and the purchase of radar or an avionics system.

Hasnan and Yusman questioned the specifications of the planes
the Indonesian government had purchased for $32 million each.

Vietnam purchased Sukhoi at $30 million each while India who
has a license to assemble the plane offered each Sukhoi for $22
million.

Meanwhile, the executive board of the New Indonesia Alliance
Party (PIB) said the purchase of the jet fighters was a serious
violation of the law.