Soeharto guilty in Timor car case

Soeharto guilty in Timor car case

From Bisnis Indonesia

Former president Soeharto decreed two policies for the
national car project.

First, through presidential decree No.42/1996, PT Timor Putra
Nasional (TPN) was allowed to import sedans as CBU (completely
built-up) and non-CBU (to be assembled here) from South Korea for
three years. This was a special policy.

Second, presidential instruction No.2 of 1996 was an order by
the president to the finance minister to give PT Timor Putra
Nasional exemption from import duties and taxes on the sale of
luxury goods for its imported sedans. It means the government was
obliged to give tax subsidies to PT TPN.

Reality shows that the granting of tax subsidies to PT TPN
based on presidential instruction No.2 of 1996 was never
mentioned in the state budget or its annex that was agreed upon
by the House of Representatives.

Who benefited from the policy? The answer is clear, PT TPN of
which Tommy Soeharto owned 99 percent of the shares. Thus it is
clear this presidential instruction benefited "oneself or another
party", namely Soeharto and his family.

The policy contained in presidential instruction No.2 of 1996
meets the criteria for a criminal act of corruption based on Law
No.3 of 1971 (the anti-corruption law), which states that an
action is illegal if it "violates the law, is detrimental to the
state and benefits oneself or another party".

SUHARSONO HADIKUSUMO

Jakarta