Soeharto's lawsuit 'a mere PR gimmick'

Soeharto's lawsuit 'a mere PR gimmick'

Soeharto filed a civil lawsuit against New York-based Time
magazine at the Central Jakarta District Court last week for
reporting that the former president had amassed a US$15 billion
fortune during his 32-year reign. In the suit, Soeharto, who has
repeatedly denied the magazine's May 24 report, asked for $27
billion in compensation. Time 's lawyer in Jakarta T. Mulya Lubis
dismissed the lawsuit as a publicity gimmick.

Question: What are your comments about the lawsuit?

Lubis: The question is why should they file a lawsuit against
the magazine. Soeharto's (corruption) case would be most suitably
solved by Indonesians themselves. Especially as there is already
MPR (People's Consultative Assembly) Decree No. 11/1998, which
tasked the government with investigating KKN (corruption,
collusion and nepotism) cases in Indonesia, including those
involving former president Soeharto, his family and cronies.

Why Soeharto, his family and cronies? Because this is what the
various segments of society, including students, non-governmental
organizations and reformist political parties, demanded. So
there's nothing new in it.

Q: Nothing new, meaning the people have already heard the
allegations against Soeharto?

A: Yes. Ninety-five percent of what was published by the magazine
in its May 24 edition had already been published in various
publications, including The Asian Wall Street Journal, The
Financial Times, Newsweek, Forbes and local media. Soeharto did
nothing to them, so the question is why Time?

Q: Could it be the remaining 5 percent which had not been
previously published, including the alleged transfer of $9
billion from Switzerland to Austria?

A: If that is the reason, I think the Indonesian government has
also conducted its own investigation. (Then attorney general)
Andi Ghalib and (Minister of Justice) Muladi went to Switzerland
and Austria. Muladi himself is seeking information about this
(transfer). What is interesting is that the Indonesian government
is considering hiring private investigators, Kroll Associates, to
investigate the case. But out of the blue came this lawsuit
against Time. Why?

Q: The question of why aside, what steps will be taken by the
magazine?

A: If the magazine was to face Soeharto in court, it would
exploit all the information at its disposal, which is the fruit
of more than four months of investigation in 11 countries. The
next question is, would the Indonesian courts be able to bring
the truth out into the open?

Q: You seem to have some doubt about this. Why?

A: Because there will be a huge number of documents and
witnesses, particularly from other countries, the court has to
bring to Indonesia. I don't think Indonesian courts have the
capacity to do this. I wonder if this lawsuit is nothing more
than a public relations gimmick. I don't think the lawsuit was
filed seriously. It is still not clear whether this lawsuit falls
under Indonesian jurisdiction.

Q: Why would the lawsuit not fall under Indonesian jurisdiction?

A: Because Time Inc. is a legal entity which was founded in
Delaware in the United States and its headquarters is in New
York. It does not have an office here.

Q: But the "territorial principle" in the second chapter of our
Criminal Code may be applicable because the magazine is available
here?

A: I can accept that argument, but even a new law school graduate
knows Indonesian courts would have difficulty in trying
a legal foreign entity, which is not under the jurisdiction of
the Indonesian courts. This does not mean the Indonesian courts
can not try the case. An Indonesian court can always decide to
hear the case against Time, but will its decision be enforceable?
The answer is no. Conversely, would an American court's decision
be enforceable in Indonesia? The answer is no.

Q: Why is that?

A: Because we abide by the principle of state sovereignty. An
Indonesian court can only enforce a decision by a court in
Indonesia.

Q: If an Indonesian court ruled that the magazine should pay
compensation to Soeharto, what would happen?

A: This decision would never be enforced. So, you can see how
misleading Soeharto's statement is that he would give any money
he won to Indonesia's poor. This money will never reach the
Indonesian people; that's why I said the lawsuit was not filed
seriously. This is more an attempt to project the image that it
was the magazine which committed a mistake.

Q: Soeharto also said the report was an insult to the Indonesian
people...

A: This is an effort to portray the case as a conflict between
the magazine and the Indonesian people. Which it is not. The case
is between Soeharto and the people's demand for the government to
implement MPR decree number 11, which calls for the eradication
of KKN in the country, including among former president Soeharto,
his family and cronies.

Even President Habibie has asked for the opinion of public
figures on how to deal with Soeharto's alleged corruption.

Q: In the Soeharto lawsuit, seven journalists were named as
defendants. What do you think of this?

A: It is strange. According to Indonesian law, those who are
responsible (for a publication), from the point of view of civil
law, are the general managers and the chief editors, not the
journalists. I think this is some form of intimidation against
the press. (hbk)