Ministers at odds on Soeharto kin contracts review
JAKARTA (JP): Two ministers sent out mixed signals on Thursday concerning the government's progress in reviewing the slew of business contracts signed with children of former president Soeharto and his longtime associate Mohamad "Bob" Hasan.
Minister of Communications Giri Suseno Hadihardjono said he would continue discussions with Coordinating Minister for Development Supervision and State Administrative Reforms Hartarto Sastrosoenarto to decide what action should be taken on the projects related to his ministry.
"We are still reviewing whether the services rendered by the projects are needed or not. Let's wait until our elaboration process is completed," he told reporters on the sidelines of a telecommunications seminar.
Giri's comments seemingly contradicted Hartarto's announcement on Tuesday that the government was moving forward in reviewing and severing many business contracts obtained largely as a result of political connections with the former first family.
The announcement is part of the latest campaign measures by President B.J. Habibie's administration to clean up the bureaucracy from corruption, collusion and nepotism.
State railway operator Perumka is reviewing four contracts deemed disadvantageous to the government.
They are the coal transportation deal in South Sumatra with PT Intra Sarana Manunggal (owned by Soeharto's son Bambang Trihatmodjo and daughter Mamiek Soeharto), the Wonokromo-Tanjung Perak toll road in Central Java with PT Tri Daya Esta (Bambang), and the construction of the triple tier transportation system in Jakarta and the construction of an integrated railway/bus terminal in Manggarai, both under Soeharto's eldest daughter Siti "Tutut" Hardijanti Rukmana.
The projects are all related to the Ministry of Communications.
Giri explained that if the services from the projects were still needed, the government would find ways to finance their continuation, including through loans and new investors.
"Whether the current form (contract) will be continued or not can only be answered after the (elaboration) process is completed."
Pressed by reporters, he added: "Please also note that most of the projects are related to the State Ministry of the Empowerment of State Enterprises. So actually it's now the business of Tanri Abeng."
Asked whether the review would save a lot of state money, he said: "I don't know yet. We're still reviewing whether the funds already disbursed can still benefit us."
He said funds appropriated for land purchases for port construction were justified because the government needed the transportation facility.
"The question is where will we get the money for the construction," he added.
Hartarto had said Soeharto's sons Hutomo "Tommy" Mandala Putra and Bambang, as well as Hasan, had been terminated from many lucrative deals with the state oil company PT Pertamina, including shipment of liquefied natural gas (LNG) and their intermediary role in oil trading.
Hartarto claimed the move would save Pertamina US$82.76 million annually.
In another apparent contradiction, Minister of Mines and Energy Kuntoro Mangkusubroto said Thursday that Pertamina had yet to terminate the contracts for the LNG transportation.
"No contracts on LNG transportation have been annulled," he said on the sidelines of the first national congress of the Indonesian Electric Power Society.
LNG transportation contracts were awarded to Tommy's listed firm PT Humpuss Intermoda Transportation and Bambang's PT Samudera Petrindo.
Humpuss gained a 20-year contract to ship LNG from Bontang, East Kalimantan, to Taiwan and Japan, while Samudera holds long- term contracts to export from Arun in Aceh to several countries.
Kuntoro said the contracts were currently being reviewed by Pertamina and a decision was still pending.
He said Pertamina had terminated a couple of other contracts with Bambang and Tommy.
Since the resignation of Soeharto on May 21, the Habibie administration has been under strong pressure to make a clean break from the corruption, collusion and nepotism which defined the rule of the preceding government.
None of the favored businesspeople during the Soeharto era have been brought to court for alleged misdeeds, although investigations into Hasan and several other bankers have been started on suspicion of banking crime. (rei/jsk)