Subiakto admits to land price mark-up

Damar Harsanto, The Jakarta Post, Jakarta

JAKARTA: Former Ministry of Cooperatives' (KPDK) employees cooperative head Subiakto Tjakrawerdaya has admitted he used State Logistics Agency (Bulog) money to buy land in South Jakarta from a son of former dictator Soeharto for an inflated Rp 10 billion.

"Yes, I did buy it (the land)," Subiakto, who wore a brown safari outfit, told reporters after being questioned by the police for about four hours on Thursday.

Subiakto said he received the money in 1990 from Bustanil Arifin who chaired the Bulog agency at that time.

Bustanil is now in police custody as the prime suspect in a corruption case involving Bulog funds which caused the state to lose Rp 8 billion.

He is accused of channeling the money to Subiakto to buy the 4,003-square-meter land plot on Jl. HR. Rasuna Said from Bambang Trihatmodjo, former president Soeharto's second son.

Police believe the Rp 10 billion paid for the land, with a market value of only Rp 1.8 billion in 1990, was done so on purpose.

Police officials said Bustanil would be charged with Anticorruption Law No.31/1999, which carries a maximum penalty of 20 years in prison.

Bustanil, however, confirmed that the money was disbursed on the grounds of a proposal made by Subiakto. "Yes that's right as far as I can recall it," Bustanil told reporters.

However, police, thus far, said they had yet to find sufficient evidence to name Subiakto as a suspect.

Still wearing blue batik clothing instead of a dark blue detention outfit, Bustanil was taken to the examination room for further interrogation.