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