Suharto Family's Business Empire Crumbles as Indonesia Aims to Root Out Corruption

Strategic Insights -

Indonesia has taken steps to dismantle the Suharto family's business empire, a move that comes after the patriarch's downfall as president. The family's ventures are now under intense public scrutiny, and several companies linked to the Suhartos have been identified for review and potential cancellation of contracts. The government's efforts to rid itself of corruption and nepotism are part of a broader reform effort, with calls mounting for greater transparency and accountability. The investigation into the Suharto family's wealth is ongoing, with estimates suggesting that the family's companies and foundations are worth around $200 trillion rupiah ($20 billion). The outcome of these efforts will have far-reaching implications for Indonesia's business landscape.

Key Takeaways:

  • The Suharto family's business empire is being dismantled after the patriarch's downfall as president, with companies linked to the family facing investigation and potential cancellation of contracts.
  • The government has announced plans to review contracts held by Suharto-linked companies in the oil and gas sector, with 120 companies identified for review.
  • Pertamina, the State oil and gas firm, will not extend exclusive contracts to two affiliate companies linked to Suharto family members, effective July.
  • The East Java port authorities have canceled two projects in Surabaya linked to Suharto's children and grandchildren.
  • The estimated worth of companies and foundations held by the Suharto family is around 200 trillion rupiah ($20 billion).
  • The investigation into the Suharto family's wealth is ongoing, with Attorney-General Sujono Atmonegoro declining to comment on the size of the fortune, estimated to be $60 billion.
  • The Suharto family's business interests include State oil and gas firm Pertamina, State water supply company PT PAM Jaya, and Indonesia's largest private bank, Bank Central Asia.
  • A total of up to 300 companies and foundations are estimated to be owned by the Suharto family.

Statistics:

  • The estimated worth of companies and foundations held by the Suharto family is around 200 trillion rupiah ($20 billion).
  • The estimated size of the Suharto family's fortune is $60 billion.
  • There are up to 300 companies and foundations owned by the Suharto family estimated to be worth $50 billion.
  • Thirteen Suharto-linked companies are listed on the stock exchange.
  • 120 Suharto-linked companies are being investigated in the oil and gas sector.

Sources:

  • Republika newspaper
  • Musyachin, Iyan (2001) - Republika
  • Suharto, Indonesian dictator, stepped down as president on May 21
  • Econit business consultancy group
  • Indonesian Business Data Centre
  • PT PAM Jaya
  • Bank Central Asia
  • Kuntoro Mangkusubroto, Mines and Energy Minister
  • Sugianto, Pertamina president
  • Christianto Wibisono, director of the private Indonesian Business Data Centre