Tracing the wealth of the Soehartos and their cronies
Harta Jarahan Harto (Soeharto's Plunder); George Junus Aditjondro; Pustaka Demokrasi, 1998; 97 pp; Rp 6,000
JAKARTA (JP): Soon after president Soeharto resigned on May 21, 1998, small changes started to take place in Indonesia.
People openly began questioning the origins of Soeharto's wealth during his 32-year reign. In Jakarta, a number of committees and community groups were established to probe the wealth of the Soehartos and their cronies.
During the New Order regime, people did not dare to gossip about it, let alone question it. Nobody dared to refuse offers from the first family to cooperate in business. The Jakarta City Water Company (PDAM), for example, as soon as Soeharto stepped down, severed its contracts with two drinking water companies controlled by Sigit Hardjojudanto (the eldest son of the former president) and his associates and demanded that they return Rp 100 billion to the government.
Pertamina has already announced that the contract with Soeharto's children to import oil from the Middle East and to ship oil to Japan, worth trillions of rupiah, will soon be discontinued.
"We have already made an inventory. There are at least 120 companies linked to former president Soeharto. When the inventory is completed, the list will be submitted to the minister of mines and energy," Pertamina managing director Sugianto promised, as quoted by Prospek magazine on June 15.
The media are vying with each other to probe deepest into the issue. They may not enjoy Soeharto's wealth, but their publications are sold out.
The Indonesian Business Data Center (PDBI) estimates Soeharto's wealth at Rp 200 trillion. But the information has been rejected by tycoon Probosutedjo who said that his step- brother "did not own anything".
He added that Soeharto had "some savings for his old age". Fearing a harmful impact, some companies started washing their hands of the family, saying that they were not related to the Soeharto clan as averred by the media.
Current reports say that a huge number of companies belonging to the Soeharto family have changed hands, which will make it even harder to trace the Soeharto's involvement later.
To cover their tracks, Soeharto's children and grandchildren have started relinquishing their positions in various companies.
But how rich is Soeharto? The question is hard to answer for certain. But at least there is somebody who has, over the last few years, done some in-depth research into it. Long before PDBI and the Warta Ekonomi and Prospek magazines disclosed data on Soeharto's wealth, George Junus Aditjondro had done it.
However, George started probing into Soeharto's wealth in unsystematic way. He made a study of the Soeharto clan's businesses in East Timor, Irian Jaya, West Kalimantan, Bali, etc.. The findings were separately published in various foreign media such as the Washington Post, the Green Left Weekly and the West Australian.
In February 1998, the majority of the findings of the study conducted by the Satya Wacana Christian University lecturer were circulated in Internet and became a source of reference for local media in processing the subject.
George "fled" and became a teacher at Newcastle University in Australia after he was accused of vilifying Soeharto. Parts of the book under review were published on the Internet.
Apart from his salary as Indonesian president, according to George who quoted Forbes magazine, Soeharto's wealth amounted to US$16 billion (much lower than Newsweek's estimate of US$40 billion).
When Soeharto was in power he never denied reports he amassed US$16 billion. "People understood it as an implicit acknowledgement. Except toward the end of his reign when he spoke to the Indonesian community in Turkey" (page 2).
The fortune was obtained in a refined way as if via a natural process. One hundred and five foundations were involved, all fully identified by names and activity in the book. It is difficult to trace Soeharto's wealth because it overlaps with that of other families, e.g. the families of Liem Sioe Liong, Eka Tjipta Widjaja, Prajogo Pangestu, Mohamad "Bob" Hasan, the Bakrie brothers and B.J. Habibie.
George would not be George if he could not conduct valid research. The lecturer of corruption sociology has divided the 105 foundations into eight groups.
First, the foundations presided over by Soeharto himself. Second, those chaired or controlled by the late Tien Soeharto. Third, those led or comanaged by Soeharto's close relatives. Fourth, those under the direct supervision of Soeharto's children, children-in-law and grandchildren. Fifth, those owned by Soeharto's children's parents-in-law and their kin. Sixth, those run by Soeharto's and his wife's relatives in their home towns. Seventh, those managed by Soeharto's trusted assistants such as Habibie, Hasan, Sudomo and Joop Ave. Eighth, a number of foundations of the Armed Forces strongly involved in Soeharto's family businesses (page 4).
Which of the 105 foundations are the strongest? The ones which are financially the strongest are the Dana Abadi Karya Bakti (Dakab), Dharma Bhakti Sosial (Dharmais) and Supersemar. Two sizable foundations belonging to the Soeharto family with highly valued shares are Trikora and Harapan Kita (page 60).
So, what is the total figure of Soeharto's wealth? Nobody knows for sure except Soeharto and his family, and the treasurers of the foundations. Former vice-president Sudharmono once revealed the wealth of four foundations led by Soeharto, Dharmais, Supersemar, Amal Bhakti Muslim Pancasila (YMAP) and Dana Abadi Karya Bakti (Dakab), totaling at least Rp 2.5 trillion. Sudharmono said that the amount was "insignificant" for the state.
Former minister of cooperatives/head of the National Logistics Agency Bustanil Arifin told the Surabaya Post on July 24, 1994, that "the four foundations chaired by President Soeharto personally have now become the richest foundations in the world, far exceeding the Rockefeller Foundation and the Ford Foundation in the U.S." (page 80).
Research conducted by Far Eastern Economic Review correspondent Michael Vatikiotis in 1990 into three of the four foundations in 1990 and came up with a value of Rp 325.8 billion: Supersemar Rp 222 billion, Dharmais Rp 60.8 billion and Dakab Rp 43 billion.
Suara Independen, in its January/February 1996 edition said that Dharmais' assets totaled Rp 900 billion.
It was those riches that he used to dominate the Indonesian ruling elite by creating factions in which people vied with and so balanced each other. It was also because of that wealth that national politics became so personalized.
It is regrettable that Soeharto never tried to make use of his abundant wealth to save the nation from bankruptcy. When the monetary crisis hit the country he even planned to obtain funds by selling 160 state-owned companies to repay foreign debts. At least that was what he said on April 21, 1998, in a question-and- answer session at Batu village, 200 kilometers south of Jakarta. But, before any company was sold, he was forced to tender his resignation.
The people who started eying Soeharto's treasures suspected they came from the people. If Soeharto's riches can really be traced and recovered, there will probably be no need for IMF loans. The matter does not only have an important economic bearing for the people, politically it will liberate Indonesia from the yoke of tyranny and be conducive to democratization.
Written based on scientific research, George's work is no cheap read aimed at painting a bleak picture of Soeharto. The book is worth reading.
It provides a ray of light that illuminates the wealth of Soeharto, his family and cronies. Anyone investigating the fortune will also find it useful as a reference source for evidence.
-- A. Ariobimo Nusantara