Jakarta – Indonesian lawmakers are investigating a claim that the son of President Megawati Sukarnoputri is part of a real estate scam involving state land – an allegation that has surfaced as she prepares for election next year.

The lawmakers, most of them opposition legislators, alleged yesterday that Mr Muhammad Rizki Pratama won a contract to build luxury apartments and a shopping centre on land in Jakarta which had been used as a fairground, without making a public tender required by law.

They said Mr Rizki made the purchase at below market value because of his status as the President's son, possibly causing losses to the state. "I believe this is unethical. Megawati broke her promise to ban her family from doing business," said Mr Effendi Choirie, the head of the legislative probe.

The probe is being conducted by a committee of Parliament represented by many parties, including Ms Megawati's Indonesian Democratic Party of Struggle (PDI-P).

Neither Mr Rizki, the President's 34-year-old son by her first marriage, nor his representatives could be reached yesterday to respond to the accusations.

Mr Choirie said his team hopes to question Mr Rizki, his two partners, and the fairground's management board next week about the deal, which is allegedly backed by a bank warranty worth US$700 million.

PDI-P legislator Tjahlo Kumolo denied Mr Rizki took part in the tender, the Rakyat Merdeka newspaper reported yesterday.

The accusations could hurt Ms Megawati's political prospects and raise further doubts about her already faltering anti-corruption drive.