No. 39/VI/May 30 - June 05, 2006
Hiding Behind the Accused
Files on the Suharto case reveal some of his cronies may have embezzled funds from the foundations. They should be charged and put on trial.
A PHOTOGRAPH hangs on the wall of a fourth floor room of the Graha Dana Abadi (Granadi) Building in Kuningan, South Jakarta. A smiling Haryono Suyono
is pictured, standing next to Suharto. Both are casually dressed, although Suharto looks visibly aged. Perhaps the photograph was taken after Suharto resigned from the presidency. The office is designed in an antique style although the building housing it is modern. The staff seem to be elderly, as are the guests coming and going.
This is the office of Haryono Suyono, 68, Chairman of Dana Sejahtera Mandiri Foundation. Haryono is a key figure in the corruption cases against seven foundations owned by Suharto. (????)
This is because he is currently in charge of five of the foundations, namely the Supersemar, Dharma Bhakti Sosial (Dharmais), Dana Abadi Karya Bhakti (Dakab), Amal Bhakti Muslim Pancasila, and Dana Gotong Royong Kemanusiaan foundations. All of their offices are located in the Granadi Building. Only the Trikora Foundation, located in Menteng, Central Jakarta, is not managed by Haryono.
When Tempo met him last Wednesday, Haryono seemed glad at the chance to explain the detailed activities of the foundations he manages. Yet, when Tempo asked about the Rp400 billion in state funds given to Dana Mandiri Foundation, his face darkened. Under questioning, Suharto, owner of the foundation, could not recall any money transactions.
Haryono, a little agitated, gave a diplomatic answer: “How could I have done such a thing without the permission of the chairman (Suharto)?” Suharto chaired all of the foundations he established. It was only after he fell ill that their management was handed over to Haryono.
Hundreds of billions in state funds flowed into the Dana Mandiri Foundation between 1996 and 1998. These funds came from the State Budget, especially allocated for the Department of Forestry’s reforestation program, as well as from presidential assistance special budget. According to the case files on Suharto, Haryono, who at the time was the State Minister for Population and head of the National Family Planning Coordinating Board, diverted the funds to the foundation. He was, back then, deputy head at the Dana Mandiri Foundation.
Such misuse of authority was just one of the many irregularities Tempo discovered in more than 2,000 pages of investigation into Suharto’s seven foundations. The files contained transcripts of questioning of 134 witnesses and nine experts, along with hundreds of original documents going back to 1999, confiscated by two investigating teams formed by the Attorney General’s Office (AGO).
It is now clear that since the AGO issued an order to halt prosecution (SKPP) letter on May 11, Suharto is unlikely to be tried again, for reasons of his deteriorating health. The former New Order leader can only be tried in the unlikely event his condition improves.
All of last week, the attorney general and his deputies were summoned for questioning by members of the House (DPR) Law Commission, in particular on the reasons for issuing the SKPP. There were also demands that Suharto be tried again. “Finding a reason to dismiss the case is not the right of the AGO. That can only be decided by the courts,” said Commission member Gayus Lumbuun.
Even worse, Muchtar Arifin, Deputy Attorney General for Intelligence, told the legislators that as a consequence of the SKPP, others connected to the corruption case involving the seven Suharto foundations, would no longer be liable. “This is because the accused is only one person—Suharto. The others claim to have only followed his orders,” he said.
Indeed, the AGO’s stance is raising some eyebrows. This is the institution which declared that the state lost Rp1.3 trillion and US$419 million from the Suharto case, and which is now dropping the case. “This mocks our sense of justice,” said Rudi Satrio, an expert in criminal law and lecturer at the Law Faculty of the University of Indonesia, “particularly if investigations reveal the involvement of those cronies.”
Rudi also explained that if Suharto could not be put on trial, those suspected of involvement in the foundations could still be taken to court. But this might mean extra work for the AGO, which would have to go through the Suharto files all over again, and charge the cronies separately.
The suspected misuse of funds committed by Haryono is one example of a case which could be prosecuted by the AGO. He can be charged with misusing the Department of Forestry and Presidential Assistance Funds, which were transferred to Dana Mandiri Foundation. Bambang Trihatmodjo, who was the treasurer of this foundation, could also be charged. Together with Haryono, he re-channeled the Rp400 billion, which came into the foundation, to two of his banks: Bank Alfa and Bank Andromeda, from 1996-1997, in the form of certificates of deposit (CDs).
The reason for doing so is found in the Suharto case files. The two banks had offered higher interest rates than other banks, although there was no mention of just how much the interest rate was. Unfortunately, Bank Andromeda and Bank Alfa were both shut down in 1999 as a consequence of the financial crisis and the funds could not be reclaimed. Although according to one witness, the Dana Mandiri funds could have been recovered. “Before the banks were closed, the CDs had already matured,” said the witness, a member of the Finance Development Controller, as reported in the Suharto case file.
During the questioning, Bambang Trihatmodjo admitted that some foundation money had flowed to two of his banks. At the time, no one predicted Bank Andromeda or Bank Alfa would end up being frozen. “For that reason, the Damandiri administrators did not take any action to try and rescue those funds,” Bambang explained.
According to Haryono, Rp100 billion of the money which went into the two banks had already been returned to the state. And the remainder of the money? “It is still in the foundation, being publicly circulated in the form of welfare loans,” he told Tempo.
Haryono also said that the transfer of funds from the State Budget into the foundation’s bank account followed verbal instructions by Suharto. However, when questioned by the AGO, Suharto could not recall ever doing so. He also forgot about Presidential Decree No. 90/1995, which he once signed. This order instructed all businesses to contribute 2 percent of their profits to the Dana Mandiri Foundation.
Haryono is not the only one who can be prosecuted. Hutomo Mandala Putra, Suharto’s youngest son, can also be connected with a corruption case at one of the Suharto foundations. He once used the name of the Supersemar Foundation to obtain 144 hectares in Citeureup, Bogor, where he built the Sentul motor racing circuit.
Initially, Tommy tried to get this land through the Department of Public Works and the Governor of West Java, but was unsuccessful. Together with famous race car driver Tinton Suprapto, he tried convincing Arjodarmoko, an administrator of the Supersemar Foundation to help with the project. Arjodarmoko had earlier rejected their offer. “This is a social foundation. We do not deal with sports,” he said.
But Tommy was able to persuade his father, Suharto. Arjodarmoko was summoned by Suharto and ordered to purchase the land. The price was lowered and the land easily changed hands. Since the buyer was a social foundation, they did not need the approval of the Finance Minister. Each square meter of land was valued at Rp1,000, which was the same as the tax sale price. As a result, the foundation only paid Rp1.4 billion.
This land was only held by the Supersemar Foundation, before the Tirasa Foundation owned by Tommy, took it over and turned it to PT Sarana Sirkuitindo Utama to construct Sentul Circuit. The Tirasa Foundation only compensated Supersemar Rp1.4 billion, without paying any commission.
While investigating the Suharto case, the Sentul land issue was not fully probed by the team of investigators. During questioning, Tommy was only asked about the Sempati Airlines case. Tinton Suprapto denied there was any irregularity in the purchase of the Sentul land. He felt the land was bought by PT Sarana Sirkuitindo. “We purchased it directly. There was no corruption, collusion, or nepotism,” he said.
Then there are the exploits of Mohamad Hasan alias Bob Hasan. This businessman can actually be charged with misusing money from a number of the Suharto foundations, to benefit his companies. According to data in the Suharto case files, Bob Hasan cost the country the most money, about Rp3.3 trillion. This was also admitted by Ali Affandi, Secretary of the Supersemar Foundation, when he was questioned as a witness. He said that the Supersemar, Dakab, and Dharmais foundations held stock in 27 companies under Bob Hasan’s Nusamba Group. Some of this stock remained in his name, not the foundations’.
Bob was also investigated by the AGO, referring to Suharto as “Mr. Suspect.” According to him, those stocks were in his name on the verbal instruction of Suharto, based on trust. “Mr. Suspect would order me to become a stockholder in a certain company or to found a new company,” said Bob.
Bob, now 75, also received hundreds of billions of rupiah from the Suharto foundations. These funds were used in two of his companies, PT Kiani Sakti and Kiani Lestari. It was easy to obtain this financial assistance. Bob Hasan only had to meet with Suharto and explain the benefits of the paper pulp factory which was being built in the eastern region of Indonesia. “This factory will draw in foreign currency and create many jobs,” Bob explained.
Suharto got excited about the idea. “Later the foundation will help and there are reforestation funds which can be used,” he was quoted by Bob. Bob initially wanted to borrow Rp800 billion of the foundation funds, but Suharto only gave him Rp450 billion. The funds were taken from three foundations: Supersemar, Dharmais, and Dakab.
Bob Hasan’s businesses became chaotic on account of the financial crisis. Almost all of his companies, including PT Kiani Sakti and PT Kiani Lestari, were taken over by the Indonesian Bank Restructuring Agency. As of 2000, most of the money from the Suharto foundations which flowed into those two companies had not been returned. Unfortunately, this information could not be confirmed by Bob Hasan himself, despite Tempo’s efforts to contact him. All requests for a meeting came back negative. “Since his release from Nusakambangan [Prison], he has not given any interview,” came back the reply.
Demands for the prosecution of the administrators and recipients of the Suharto foundation funds began to emerge when it looked like Suharto would not be ever be tried again. Perhaps this has not been fully realized by Bob Hasan and Suharto’s children. Even Haryono Suyono does not expect to be summoned by the AGO. “Let’s not assume anything…I’m not that important,” he said.
Arif A. Kuswardono, Purwanto, Eduardus Karel Dewanto
The Cronies Who May be Liable
ALTHOUGH Suharto’s case has been effectively closed by the AGO, the cronies of the former New Order ruler can still be tried. In fact, some of them received billions of rupiah from the Suharto foundations. Others abused the foundations to advance personal business interests. But the AGO’s stance is in conflict with those of politicians and legal experts.
(Deputy Attorney General for Intelligence)
“The Suharto case involves one person. Accomplices only followed Suharto’s orders. They were not charged because it could not be proven that they were involved in corruption.”
(member of the DPR Law Commission)
“Suharto must still be sent to court. The charges against Suharto can be rectified to include other suspects. If Suharto cannot be put on the stand later, that is a matter for the judge to decide.”
(lecturer at the University of Indonesia)
“The accomplices can have their own separate cases, charged separately from the Suharto trial.”
(former prosecutor for the Suharto case)
“Other people can be put on trial. After all it’s the prosecutor who can drop the charges, not the judge. Charges can be made separately for each individual case.”
Accomplices in the Scam
A NUMBER of people can be charged over the misuse of funds from the Suharto foundations. There are seven foundations being investigated by the Attorney General’s Office, namely Dakab, Dharmais, Supersemar, Dana Mandiri, Trikora, Amal Bhakti Muslim Pancasila, and Gotong Royong Kemanusiaan. Here are some people who could be named as suspects:
Mohamad ‘Bob’ Hasan
The CEO of the Nusamba Group is known as a donor to some of Suharto’s foundations. He named Suharto patron of many of his companies.
Used funds from Dakab, Dharmais, and Supersemar to purchase stock in 27 Nusamba-owned companies. Some were still held in the name of Bob Hasan, not the foundations’.
Borrowed foundation funds for the interest of his own companies, among them PT Kiani Kertas, Kiani Lestari, and Metra 72. A portion of these funds have not been repaid.
Deposited foundation funds in Bank Umum Nasional, in which he held stock. These funds cannot be reclaimed, as the bank has been liquidated, as they were regarded as being affiliated with a stockholder.
Only gave participating capital from Supersemar to Wisma Kosgoro in the amount of Rp2 billion, even though Supersemar’s interest amounted to Rp10 billion.
Gifted foundation holdings in Mandala Airlines in the name of his wife, Pertiwi Hasan.
embezzlement, fraud and attempted corruption.
He was the First Deputy Chairman of the Dana Mandiri Foundation. At that time, Haryono was also the State Minister for Population and head of the National Family Planning Coordinating Board.
Placed government funds in the Dana Mandiri Foundation bank account.
Placed Rp300 billion of foundation funds in Bank Alfa and Bank Andromeda, without Suharto’s authorization.
about Rp300 billion
Contractors for the Amal Bhakti Muslim Pancasila Foundation
(PT Isa Pratama, PT Serambi Puri Alami, PT Purnawira)
They did not pay the value-added tax in constructing a number of foundation mosques costing Rp21.7 billion. As a result, the mosques were considered as gifts.
Praptono H. Upoyo and Sigit Harjojudanto
Both administrators of PT Indonesia Finance and Investment Co. (IFI). They sold a promissory note worth Rp3 billion to the Dharmais Foundation, promising to pay 18 percent interest annually. But this money was used instead by PT Ustraindo Petrogas, a company owned by Praptono. The note and interest have not been paid.
embezzlement and fraud.
about Rp8.9 billion.
Tommy Suharto and Tinton Suprapto
They used the Supersemar Foundation to purchase 144 hectares of land in Citeureup, Bogor, which was used to make the Sentul Circuit. Tommy and Tinton had previously attempted to purchase the land through the Provincial Government of West Java, but failed.
Became the Treasurer of the Dana Mandiri Foundation.
Placed foundation funds in two of his banks, Bank Alfa and Bank Andromeda.
Promised the foundation higher interest rates.
embezzlement and fraud.
The Initial Capital Investments...
Funds from the seven foundations led by Suharto expanded in many directions. Some were used to purchase company stock, while other funds were lent out or put into certificates of deposit.
The Foundation held 50 percent of the stock worth Rp9 billion in PT Hanurata. This company also ended up becoming a stockholder in a number of other companies, namely:
Kayu Lapis Asli Murni Rp2.9 billion
PT Kartika Chandra Rp9.1 billion
Santi Murni Rp471 million
Rimba Segara Lines Rp275 million
Marga Mandala Sakti Rp20.5 billion
Fatextory Rp300 million
Melapi Timber Rp4.4 billion
Marga Nurindo Bhakti Rp3.5 billion
Bank Duta Rp108 billion
Bank Muamalat Rp1.06 billion
PT Granadi Rp5.6 billion
PT Indocement Rp27 billion
PT Plaza Indonesia Realty Rp3.8 billion
PT PLN Rp1 billion
Timber Dana Indonesia Rp25 million
Bank Duta Rp107 billion
Bank Duta Rp108 billion
PT Indonesia Finance and Investment Co. Rp8.9 billion
PT Kemgastama Rp228 million
Granadi Rp4 billion
PT Bank Umum Nasional Rp61 billion
Bank Pesona Kriyadana Rp135 billion
PT Agro Pinus Jaya Indo Rp2 billion
Gotong Royong Kemanusiaan
Bank Duta Rp7.6 billion
Bank Alfa Rp1.25 billion
Andromeda Rp6 billion
Bank Alfa Rp330 billion
Bank Andromeda Rp112.7 billion