Timor misses tax deadline: Official

JAKARTA (JP): PT Timor Putra Nasional, a controversial automotive company controlled by the youngest son of former president Soeharto, missed Friday's deadline to pay Rp 3.09 trillion (US$412 million) in backdated import duties, an official said.

The director of planning and revenues in the Directorate General of Customs and Excise, Permana Agung, said on Friday that Timor had not responded to attempts to collect the money, Antara reported.

Timor, controlled by Hutomo Mandala Putra, was given until Dec. 18 to pay import duties which the company was exempt from paying under special facilities extended by Hutomo's father.

Permana said the company would be served with a letter of warning and given a further 14 days to settle its dues.

If the money is not paid within 14 days, collection will be entrusted to the State Receivership Agency.

Companies referred to the State Receivership Agency usually end up in liquidation.

In 1996, Timor Putra was assigned by then president Soeharto to develop a national car and was granted exemptions from import duties and tax exemptions to import assembled sedans manufactured by South Korea's Kia Motor Co.

The exemptions were granted on condition that the company set up an assembly plant in Indonesia in the second year of operation and gradually increase the use of locally-manufactured components.

The company failed to fulfill the terms of the agreement and is now required to pay backdated tax and import duties on the 40,960 cars it has so far imported.

The Attorney General's Office is currently investigating whether Soeharto acquired huge wealth through the abuse of power while he was in office. The Timor car is among projects being investigated on these grounds. (das)