Jay Solomon and Jeremy Wagstaff, Jakarta – An inquisition against some of the Suharto era's most renowned cronies is gathering steam. The question that continues to be asked, however, is can it be controlled?
During the past two weeks, Indonesia's attorney general's office has initiated a get-tough policy against key business associates of former President Suharto. Businessmen such as Mohamad "Bob" Hasan, Mr. Suharto's longtime golfing buddy, and Sudwikatmono, the former leader's cousin, have been questioned over allegations that they diverted emergency government funds lent to ailing banks they controlled in a bid to keep them afloat late last year as the rupiah plummeted. The millions of US dollars lent by these banks to companies controlled by the same owners contributed to the collapse of the banks; the shaky financial system, in turn, has exacerbated the nation's economic crisis.
Investigators are now focusing on Mr. Suharto's family itself. Over the weekend, Jakarta police said Bambang Trihatmodjo, the former leader's middle son, and his colleagues at PT Bank Andromeda will likely be questioned on charges of exceeding intergroup lending limits. Mr. Suharto, who has kept a low profile since he resigned in May, took to the offensive on Sunday, denying in a taped television message that he took money from charitable foundations that he headed.
The apparent willingness of Mr. Suharto's handpicked successor, President B.J. Habibie, to go after his mentor and his family is a sign, not just of the intense public pressure on the president to act, but that the "gloves are off" between Mr. Habibie and Mr. Suharto, says a close aide to the president.
'This thing is political'
Skepticism remains. Comments Monday by Indonesia's attorney general that he believed Mr. Suharto's defense was interpreted by some critics as a sign that legal proceedings will only go halfway. In addition, say political analysts, the high number of Suharto ministers in the current government could serve to damp calls for criminal proceedings against those associated with the former regime.
Others fear that the whole process could spiral into a vengeful backlash against anyone connected with Mr. Suharto. Many of Mr. Suharto's associates say they believe they're the targets of political retribution. "This thing is political," says Peter Gontha, a close associate of Mr. Bambang, who says he expects to be called in for questioning soon. "I don't know what the whole thing is all about," he adds.
Some still hold out hope, however. The belief is that greater accountability and monitoring will follow, although few believe that "the culture of corruption in Indonesia can be changed," says a Jakarta-based diplomat.
As a way out of the problem, Mr. Hasan and Mr. Sudwikatmono have offered to pay back the money extended by the central bank. Mr. Hasan has agreed to repay some six trillion rupiah ($557.5 million) in loans made to his shuttered PT Bank Umum Nasional, while Mr. Sudwikatmono has agreed to repay one trillion rupiah. Both men say they will offer up assets to cover the bill by a Sept. 21 deadline set by the central bank.
'These men should go to jail'
For many Indonesians, this isn't enough. Fears that criminal acts may be overlooked are fueling calls for greater accountability. "If it looks like embezzlement, it smells like embezzlement, it's embezzlement," says a Jakarta-based financial analyst, who adds, "These men should go to jail." Protests outside Bank Indonesia and other government offices in recent weeks have continued to target Mr. Hasan and members of Mr. Suharto's family.
Mr. Hasan admitted last week he used central-bank funds to help finance a paper company he controls. But he defended their use as "constructive," saying the company earned some $10 million in foreign exchange each month. Mr. Sudwikatmono, meanwhile, told reporters that one of the directors of his PT Bank Surya, Bambang Sutrisno, was responsible for loan management. He said Mr. Sutrisno had been missing since October.
Political pressures building within Indonesia are prompting other business associates of the Suharto family, such as Mr. Gontha, to defend their pasts. "Am I a crony? Yes, of course, for 14 years," he says, adding, "But what kind of crony? There are lots of cronies in the US ... We are relatively the same." He alleges that a movement is underfoot to purge anyone with links to the Suharto government, regardless of their record. "That I'm being connected to Suharto is a different issue," he says, from whether or not he engaged in illegal practices. "I didn't take money out of the company, I didn't steal. I don't do mark-ups. And I don't take working capital out of the company," he adds.
Mr. Gontha and others fear that Mr. Habibie might fuel a backlash against the old regime as a means to distance himself from Mr. Suharto and secure his own rule. Student protesters again gathered outside the nation's parliament on Tuesday to demand Mr. Habibie's resignation and to attack his close ties to Mr. Suharto. On Monday, roughly 2,000 massed, which set off a violent response from security personnel and left at least two students seriously injured. "The Habibie government is being pushed by this mass movement" to move against Mr. Suharto, says Arbi Sanit, a political scientist from the University of Indonesia.
Probosutedjo, Mr. Suharto's half-brother, meanwhile, echoed these comments as well. In a Monday interview in the daily Media Indonesia, he said: "If things get worse, they'll easily put all of the blame on the Suharto government. The fact, however, is that the current government consists of the same people as the old."