Jakarta – Indonesian authorities have estimated that more than 500 million dollars had been lost by the state to graft, most of it to members and cronies of the family of fallen president Suharto.
Sastrosunarto Hartarto, coordinating minister for development supervision and state administrative reforms, said total losses to the state from corruption, collusion and nepotism stood at 2,850 billion rupiah (360 million dollars) and 205.5 million dollars.
"The greater portion involved the Cendana (Suharto) family," Hartarto said, referring to the family by its Jakarta street address. Hartaro was speaking after he and nine other minister reported to President B.J. Habibe.
He said that, of the total, 668.98 billion rupiah (84.7 million dollars) and 205.5 million dollars was identified by the finance and development supervision board as having been lost between the 1993-94 and 1998-99 budget years. No timeframe was given for the remainder.
Hartato said 619.12 billion rupiah (78.4 million dollars) and 1.07 billion dollars was "saved" after hundreds of contracts deemed to have been granted unfairly or involving "mark-up" practices were cancelled by the departments of public works, mining and energy, and the state entreprises management agency.
In a list of cancelled projects, the State Enterprises Ministry said three national cellular DCS-1800 joint ventures involving PT Telekomunikasi Indonesia and JVC were cancelled because they were concluded without going through the tender process.
In addition, a proposed joint venture between PT Krakatau Steel, the Salim Group, the Port Authority of Singapore and Sembawang Marine Logistics to build and operate a container terminal in Cigading, West Java was cancelled because it was not awarded through an open tender process and would have over-lapped with existing facilities. The Salim Group, controlled by tycoon Liem Sioe Liong, was considered one of the closest cronies of the Suharto family.
The government also cancelled a memorandum of understanding with the Poleko and Ciputra groups to develop a resort in Manado, North Sulawesi, because the contract was not awarded via a tender process. In addition, the government cancelled a contract between PT Garuda Indonesia and Kibeka, controlled by Suharto son Bambang Trihatmodjo, to provide a general sales agency for Garuda tickets in Japan.
It also renegotiated a contract between Singapore Airlines Engineering Company to maintain B 747-200 aircraft to eliminate a local middleman, PT Tri Catra Dirgantara. It did not give details on the controlling shareholders of the local party.
The statement also said presidential decree No 32/1991 between the government and Singapore is also under review because it gives rights of monopoly to the Salim Group to provide water from Riau province to neighbouring Singapore. Of some 159 contracts reviewed by the Mines and Energy Ministry, many were held by the Suharto family.