Pelindo cancels 13 projects linked to Soeharto's family

JAKARTA (JP): The state-owned sea port operator PT Pelabuhan Indonesia II (Pelindo) said on Tuesday it had canceled 13 projects and planned to review several others linked to companies headed by former president Soeharto's family and associates.

"Thirteen projects were canceled and 11 projects are being reviewed, while two have been proposed to be canceled," it said in a statement.

Company spokesman Sujarwo said some of the canceled projects were connected with the Salim Group, headed by Lim Sioe Liong, a close friend of Soeharto.

The decision was based on an investigation which found that tenders had been awarded unfairly, Sujarwo said.

Pelindo's board of directors had set up an investigation team to look into a number of its projects with companies owned by Soeharto's family and his friends.

Other companies affected by the decisions include divisions of the Humpuss Group, owned by Soeharto's youngest son Hutomo Mandala Putra, and firms controlled by the former president's second son, Bambang Trihatmodjo.

Soeharto resigned from the presidency on May 21 following massive unrest and heated calls for him to step down.

Since then, many people have repeatedly urged the government to investigate alleged practices of corruption by the former president, his family and cronies during his 32-year autocratic regime.

Separately, Minister of Communications Giri Suseno Hadihardjono said his office had canceled 39 infrastructure projects due to similar reasons.

Giri told a House of Representatives hearing on Tuesday that the cancellations were made after a thorough investigation of the ministry's 84 infrastructure projects awarded to governmental agencies, state companies and private enterprises.

Of the 84 projects, 26 were proposed for renegotiation, while the remaining 19 projects were recommended for continuation, Giri told House commission IV for transportation, telecommunication, public works and housing. (das)