Jack Anderson and Jan Moller – Rooting out corruption and cronyism in Indonesia in the wake of President Suharto's 32-year rule will be difficult, if not impossible. Even the mythological Hercules, who cleaned the Augean stables by diverting a river, would have found a daunting task in Indonesia. During his long imperial reign, we consistently criticized the Indonesian leader and detailed his and his family's growing fortune.
Our reports were denounced by the Indonesian government as exaggerated and inaccurate. It now appears we were too conservative in our reporting on Suharto's corruption and despotism.
For instance, CIA sources told us their best estimate of Suharto's personal fortune was somewhere between $3 billion and $5 billion. But now it appears that he may have as much as $14 billion, according to Forbes magazine, which would make him the world's sixth wealthiest man. (Incidentally, Forbes did not include Suharto and his ill-gotten gains in their top 400 until we chided them in 1995 for excluding the dictator.) And that's not all. The best U.S. intelligence estimates – some of it drawn from whistle-blowers inside government – indicate that Suharto and his six children may be worth a total of $40 billion, a knowledgeable source told our associate Dale Van Atta.
Ironically, that's the same amount of the aid that the International Monetary Fund suspended when the government changed hands in May. How could the Suhartos amass such an incredible fortune? The chants of student demonstrators in Jakarta put it succinctly: "End corruption, collusion and nepotism!" Suharto's children, and all manner of real and shirt-tail relatives, were given monopolies to run.
The company directors often extracted huge personal fees from every contract. Bribing a Suharto was the only way foreign companies could cut through red tape and move ahead on projects. For years, Suharto's wife, Tien, was irreverently mocked by Indonesian critics as "Madame Ten Percent," suggesting the portion of the overall Indonesia economy that she and her family take. Madame Tien has more of a taste for riches than her husband, favoring diamond rings, and was infamous for her ability to raise "contributions" for allegedly charitable causes in the manner Imelda Marcos and Evita Peron once did.
The Suhartos own banks, satellite communications, utilities, transportation networks, oil and gas concessions, pharmaceuticals, plantations, cement and steel factories, restaurants and toll roads. All in all, the Suhartos have more than 1,000 businesses. There have been Suharto family resignations from companies, but friends have been left behind to run them and, probably, continue to siphon the booty to the Suhartos. But these days, a newly liberated press is slowly digging out the Suharto family's entanglements in Indonesia's businesses. Exposes are published on a daily basis. They call it "Suharto's trillions," which is the amount counted in Indonesian rupiah.
Only the new government can do an effective job of house-cleaning, but it is riddled with Suharto cronies. And that begins with Suharto's successor, President B.J. Habibie. He has promised to end the "corruption, collusion and nepotism." But what hope is there when, as Indonesian media have detailed, Habibie and his own family enriched themselves while he has been in public office, accumulating more than 80 companies worth as much as $80 million?
Habibie defended his personal wealth in a rare New York Times interview in this way: "Many people become rich if you work hard and you are educated." He insisted that his family had become wealthy not by personal connections, or conflicts of interest with the government, but through good education and strong work habits.
Two independent organizations are trying to ferret out the corruption: the Indonesian Corruption Watch and the Concerned Citizens for Public Assets. They have some notable politicians, lawyers and accountants aboard, so they may make some headway - and we wish them well. However, there's a poor track record of recovering money from corrupt dictators. The personal fortune of former Philippine President Ferdinand Marcos was estimated at $5 billion to $10 billion, but in the 12 years since his ouster, only $1 billion has been recovered by the government.
Meanwhile, the deposed president Suharto doesn't venture out much from his central Jakarta home. When he does, he has to make unaccustomed stops at red lights, unescorted by motorcade. With few friends, considered a political leper by former cronies trying to distance themselves, Suharto's primary reminder of his glory days is his pet parrot that dutifully screeches: "Good morning, Mr. President."