Indonesia: Indonesia Recovers $133M From Suharto's Son

JAKARTA, INDONESIA: The Indonesian government announced Friday (29 Aug) it managed to recover nearly Rp 1.23 trillion (US$133.15 million) from Tommy Suharto, son of late former president Soeharto.

Indonesian finance minister Sri Mulyani Indrawati told a press conference that the finance ministry on 28 Aug ordered Bank Mandiri, Indonesia's largest bank in terms of assets, to disburse all the accounts of PT Timor Putra Nasional, owned by Tommy.

According to the ministry, the money was a credit guarantee of Timor Putra to Mandiri that was transferred during the 1997 Asian financial crisis to the Indonesian Banks Restructuring Agency (IBRA), under the ministry.

"We asked (Mandiri) to disburse the money because the credit guarantee was not part of the sales from IBRA to PT Vista Bella Pratama," Mulyani said.

Mulyani said the ministry on April 2003 had re-examined the sales of Timor Putra assets from IBRA to Vista Bella, and found out that there was a conflict of interest as Timor Putra and Vista Bella were affiliated. The finding has been approved by the Corruption Eradication Commission (KPK).

"According to the agreement (if both parties are affiliated), the transaction will be canceled. Thus, we asked the accounts to be a state account," she said.

The money is now kept in a temporary account belonging to the finance ministry. KPK and the attorney general's office fully support the finance ministry's action, Mulyani said.

The ministry's director general of state treasury, Hadiyanto, said the ministry took almost five years to scrutinize the documents needed to acquire Tommy's accounts.

Mandiri president director Agus Martowardojo said the ministry had prepared all documents needed for Mandiri to transfer the money to the state account. (By ADITYA SUHARMOKO/ The Jakarta Post/ ANN)

MySinchew 2008.08.30