Probosutedjo's case set for court

JAKARTA: The alleged Rp 38 billion (around US$3.8 million) fraud case involving businessman Probosutedjo, half brother of former president Soeharto, is close to prosecution, Attorney General's Office spokesman Barman Zahir said.

Probosutedjo is suspected of exaggerating the size of PT Menara Hutan Buana industrial timber estate, in South Kalimantan to obtain reforestation funds.

PT Menara had claimed managing a 86,000 hectare estate in order to apply for a Rp 144.4 billion loan with zero interest, which it received in November 1996.

But that year's survey reports by the National Survey and Charting Coordination Agency revealed that the company only had a 50,263 hectare estate.

"The amount of the loan given to PT Menara is equal to the management of a 71,000 hectare estate. And according to the board, it's impossible to sustain an area that large in one year as claimed by Probosutedjo," Barman said recently.

The investigators also found that a high-ranking official at the Ministry of Forestry, Haryadi, and three consultant companies: PT APC Agriculture Consultant; PT Betras Abadi Sejahtera and PT Aksara Ganeca 5, were involved in the case because they issued recommendations enabling him to secure the loan. -- JP