MPR asked to rule on Soeharto

JAKARTA (JP): Activists demanded on Wednesday that the upcoming special session of the People's Consultative Assembly (MPR) next month ratify a decree to reclaim Soeharto's family wealth which he allegedly amassed during 32 years in power.

Teten Masduki of Indonesian Corruption Watch (ICW) said the Assembly should issue a "political judgment" on public allegations that Soeharto abused his power to enrich his family and cronies.

"There must be a political decision on the issue since the judicial means seems to have been ineffective so far," Teten told a media conference at the Indonesian Legal Aid office in Central Jakarta.

ICW said in a report that at least 39 presidential decrees issued between 1980 and 1998 were legally and materially manipulated to benefit certain parties.

Another independent corruption watchdog, the Indonesian Transparency Society, said on Oct. 16 that at least 79 out of 528 presidential decrees issued between 1993 and 1998 were legally and materially manipulated.

ICW cited, among other things, two presidential decrees which when implemented inflicted substantial losses on the state and society. They were Decree No. 93/1996 which gave financial assistance to PT Kiani Kertas, a company owned by Soeharto's long-term golfing buddy Mohamad "Bob" Hasan, and Decree No. 42/1996 which exempted PT Timor Putra Nasional from paying tax and luxury duties on imported cars. The latter company was owned by Soeharto's youngest son, Hutomo Mandala Putra or Tommy.

ICW also alleged at least 44 multinational companies were involved in Soeharto-linked projects and businesses, including U.S.-based Kellogg's, Chase Manhattan Bank and Bechtel, Japan's Chioda and Mitsubishi Bank, as well as France's Credit Lyonnais and Banque Indosuez.

Teten urged President B.J. Habibie to appoint a special prosecutor to prosecute Soeharto's family and cronies for corruption. He also suggested the Attorney General's Office confiscate the documents of the state secretariat during the Soeharto era so they could be used as material evidence when investigating the alleged abuse of power.

In September Habibie appointed Attorney General Andi Muhammad Ghalib to investigate the allegations.

Analysts, however, said the chances were remote of a government investigation ever digging out the truth about the former president's alleged wealth.

They said the combination of technical complexities in tracing any money and a lack of political will would make it unlikely the probe would get far.

"We are pessimistic the government will really respond to the public demands," Teten said.

Teten added the government had actually admitted, in some cases, that there was corruption during the Soeharto era.

Teten cited the Oct. 9 statement by state oil and gas company Pertamina that it would scrap 159 deals made with Soeharto's family, cronies and high-ranking officials, which it claimed were made under corrupt practices.

The companies mentioned included PT Permindo Oil Trading, owned by Bimantara -- a business group founded by Soeharto's second son Bambang Trihatmodjo -- and PT Perta Oil Marketing, which was partly owned by Tommy and Hasan.

But, Teten said, so far no concrete legal sanctions had been taken against the alleged suspects.

During his rule Soeharto's family and close associates built up sprawling business empires. Some estimates have put the Soeharto clan's wealth at up to $40 billion.

Soeharto, however, has always denied being involved in graft.

Habibie came to power in May after Soeharto was forced to step down amid the country's worst economic crisis in decades, mounting student protests and deadly riots.

He was a protege of Soeharto and many of the current cabinet also served under the former president. (byg)