Robert Go, Jakarta – President Abdurrahman Wahid has announced temporary immunity from legal prosecution for three of Indonesia's biggest debtors in yet another controversial disclosure that is sure to draw fire from the country's angry legislators.

The move follows a recent government bailout of one of the debtors' companies and raises questions over the President's personal integrity and the administration's resolve to restructure the country's corporations and banks.

Speaking in South Korea, where he is attending a summit of Asian and European leaders, Mr Abdurrahman revealed that he has stopped the Attorney-General's investigations against Mr Marimutu Sinivasan of Texmaco, Mr Prajogo Pangestu of Barito Pacific and Mr Syamsul Nursalim of Gadjah Tunggal.

"Their businesses are key to boosting exports and can greatly contribute to the economic recovery process," he said. Mr Abdurrahman quickly added that the three would be brought to court "when the time comes" and that other debtors would not be eligible for similar reprieves.

The three conglomerates employ hundreds of thousands of workers and their products constitute a sizeable chunk of Indonesia's exports, which this year is expected to reach US$55.4 billion.

Combined corporate debts for the three groups, however, amount to over 60 trillion rupiah (S$11.4 billion) – a figure that is 20 per cent of next year's state budget – and Barito Pacific and Gadjah Tunggal both owe additional money to the state.

Legislators said yesterday that the President has once again blindly opened the door to another potential scandal. "This represents special treatment of the conglomerates, while ordinary citizens continue to pay for the cost of restructuring the economy," said Mr Tjahjo Kumolo, vice-secretary of the Democratic Party of Struggle (PDI-P).

Mr Tjahjo also decried that the President made his remarks while abroad and in the company of international leaders. "Gus Dur has just reinforced the perception that Indonesia's legal system is a complete joke."

Mr Alvin Lie, a legislator from the National Mandate Party, also questioned the President's motives. "The President has protected some of the biggest offenders in this country. You have to wonder what goes on behind closed presidential doors," he said.

Both parliamentarians also rejected the President's argument that since the conglomerate owners play such crucial roles within their businesses, prosecuting them endangers the companies' welfare. "Save the companies, but the government has to investigate those who contributed to the problems. If the owners are tied to the companies, it would be better to prosecute now, not later," said Mr Lie.

But Mr Wimar Witoelar, a recently appointed presidential spokesman, gave a different spin: "This is actually the first time the President actually stated that he would bring certain people who were allegedly involved in a financial scandal to trial." "You can't interpret the President in the conventional manner, but have to place it in the context of reform," he told The Straits Times.

Previously, former economic czar Kwik Kian Gie, who now sits in parliament as a PDI-P representative, was the first to disclose that Mr Abdurrahman may have special interests in the three conglomerates, along with a fourth – the Salim Group.

The former minister, who resigned his position in August prior to a Cabinet reshuffle, declined to comment on this issue yesterday, but expressed the belief that many of Indonesia's debtors would perhaps never face prosecution.