Terry Friel, Jakarta – The wealth of new Indonesian President Jusuf Habibie and his family is beginning to draw the same attention that helped bring about the ouster of his predecessor Suharto.
In more than 20 years as a government minister, Habibie and his family have amassed a fortune estimated at US$60 million [joyo note - this is ludicrously low estimate! US$300 million family net worth is said to be closer to the mark, though some estimates run as high as $500 million] through diversified interests in chemicals, construction, real estate, transport, communications, and even a crocodile farm.
At the same time, Habibie has presided over state industries and agencies accused of squandering billions of dollars of public money, including the national aircraft programme.
Much of the Habibie money comes from supplying the government companies he controlled as research and technology minister, including the multi-billion dollar national aircraft company.
Habibie's sons and other relatives have also secured key positions in state businesses and agencies.
"When it comes to crony capitalism, Habibie is a mini-Suharto," economist Michael Backman said on Sunday.
"The one redeeming feature about Habibie is that he has fewer children than Suharto," he told Reuters by telephone from Australia.
The Suharto empire far outstrips the Habibies – some newspapers estimate Suharto, his six children and other relatives control assets worth US$40 billion.
The flagship of Habibie's business empire is the Timsco Group, a conglomerate headed by Habibie's youngest brother, Suyatim Abdulrachman Habibie, known as Timmy.
The new president's two sons, Ilham Akbar, 35, and Thareq Kemal, 31, Habibie's younger sister Sri Rahayu Fatima, and several other relatives are also involved in the family businesses. Other relatives have businesses of their own. Timsco, set up in 1977, controls more than 80 companies and is ranked as Indonesia's 64th largest conglomerate.
Timsco makes a large part of its money from supplying a range of goods to state aircraft firm Industri Pesawat Terbang Nusantara (IPTN), which has soaked up almost US$5 billion of public money.
However, IPTN's future is now clouded after the International Monetary Fund (IMF) demanded the government halt funding for the company as a condition of a US$41.2 billion international financial bailout package.
Habibie, 61, and Suharto, 76, have been close friends for years and the two families' business empires have also worked closely, setting up scores of money-spinning partnerships.
Joint ventures between the two empires include a piggery-poultry farm on an island near Singapore that supplies almost 10 percent of that island nation's pork.
Other partnerships include chemical plants on the islands of Java and Sumatra and a tie-up with US telcommunications giant AT&T Corp.
Indonesian newspapers only months ago would not have dared question the business dealings of the president and his associates. But the stunning reversal in Suharto's fortunes, spearheaded by students protesters who had demanded his head for leading Indonesia into a severe economic crisis, seems to have smashed old taboos.
After just four days in office, newspapers have already begun questioning Habibie's business interests, saying that, like Suharto, he has a reputation for handing out favours to friends and family.
"Habibie...is not only short of political legitimacy, but is perceived as an anti-market personality who favours nepotism and crony capitalism," the Jakarta Post said in an editorial on Saturday.
After being appointed vice president in March, he promptly named his brother, J.E. Habibie – a former ambassador to London – to replace him as head of the Batam Development Authority.
The Habibie empire has extensive business interests in Batam, an island free-trade zone near Singapore.
Ilham is executive vice president of IPTN and Thareq was operations manger for the government's 1996 air show.
Habibie's close friend and colleague Rahadi Ramelan was brought into the cabinet in March as the new research minister when Habibie became vice president and was made trade minister in Habibie's first cabinet on Friday.
As the family empire grew with the help of government contracts, Habibie presided over state industries – most notably IPTN – which have cost taxpayers billions of dollars in losses, subsidies and tax concessions.
Backman said he did not expect Habibie to cast adrift the business philosophy of the now discredited Suharto rule.
"The elevation of Habibie to the presidency will see the Habibie family companies shoot into the stratosphere," he said. "Anyone who thinks he is a breath of fresh air is mistaken."