[Kabar-indonesia] 2: Tempo Cover Story: The Player [+Interview: Setya Novanto]

[JoyoNews at aol.com]

2 Tempo Reports (2 of 2): 

- Opinion: The Player 

- Setya Novanto: I'm just 
  a credit guarantor 

Tempo
No. 49/VI
August 8-14, 2006 

Opinion 

The Player 

POLITICS, power and business were the talisman that led to success in the 
days of the New Order. Possessing these three lucky charms often catapulted 
people to such lofty heights they eventually gained an aura of legal invincibility. 
This trait remains strong even in this era of reform, when the dignity of the 
law was supposed to have been restored, to resume its protective mantle over 
the life of our nation. 

Setya Novanto is well aware of the merits of such a talisman. The 50-year-old 
member of the House of Representatives (DPR) from Golkar, who in 1996 
interviewed then President Suharto and subsequently published a book called Suharto's 
Management, must have learnt a few things from the master himself. 

When he was questioned by prosecutors two weeks ago as a witness in the case 
of smuggled rice from Vietnam, causing a Rp28.5 billion loss to the state, 
people wondered whether he would be named a suspect or end up scot free as he had 
done in the past. 

We do not know the final result of the ongoing investigation. Neither do we 
know if Novanto, who started his business in 1974, was thinking about politics 
and power at the time. But it was certainly Suharto's influence that took him 
to the top. His introduction to Suharto, at the opening of a golf course he 
built in Batam, was his entrance to the national stage. Not surprisingly, 
Suharto's Management, which subsequently became "required reading" for bureaucrats 
throughout the country, brought Nova good fortune from all quarters. 

The book was also a "vehicle" to Suharto's circle. Novanto, who joined the 
Multipurpose Cooperative of Mutual Assistance (Kosgoro), another byproduct of 
the old Golkar, became the organization's deputy treasurer, then coordinator of 
the party newspaper for East Nusa Tenggara, West Nusa Tenggara and East Timor. 
He was then chosen to be DPR/People's Consultative Assembly (MPR) member 
representing East Timor. 

After the fall of Suharto, Novanto lent his support to President B.J. 
Habibie, and then, without skipping a beat, joined the reform bandwagon, as Golkar 
deftly transformed itself from a functional group into a political party. He 
successfully ran in the 2004 elections, managing to stay on at Senayan, and 
survived four presidencies. 

Along the way, he became very rich. He runs 14 businesses-from resorts and 
industrial parks to a cafe. In 2001, according to a report by the Audit 
Commission on State Officials' Wealth (KPKPN), Novanto was worth Rp35 billion, and was 
the richest state official with even more assets than the then DPR Speaker, 
Akbar Tandjung. 

This wealth inspired awe, as well as suspicion. Two years before reports of 
his wealth began circulating, an incident occurred that led him to come under 
public scrutiny. PT Era Giat Prima, a company partly owned by Novanto, received 
a check for Rp550 billion from Bank Bali. Some of the money was reported to 
have ended up in Golkar's coffers. As a result, many suspect the money was more 
than just payment to Era Giat Prima for managing Bank Bali's debt. 

Bank Bali owed a total of Rp3 trillion to three private banks that were under 
the "care" of the Indonesian Bank Restructuring Agency (IBRA). It was very 
difficult to secure debt repayments without IBRA's assistance, the Finance 
Minister, Bank Indonesia's Governor and even the President. But Era Giat Prima was 
able to gain access to all these senior officials. Suspicions of abuse of 
power have never been thoroughly investigated. 

Two years ago, another incident brought Setya Novanto's name to the surface 
once again. A joint venture company, PT Asia Pacific Eco Lestari, owned by 
Novanto and another businessman was suspected of importing "organic fertilizer," 
which had been tested and found to be toxic, to Galang Island. During his trial 
at the Batam District Court, PT Asia director Rudy Alfonso said he was 
certain Nova knew about the items, but Novanto escaped unscathed, with the reasoning 
that he had resigned from the company before the incident. Was he clean? Only 
God knows. 

In the case of the 60,000 tons of smuggled Vietnamese rice, Novanto had 
better come up with a better defense, given that the evidence looks unfavorable to 
him. 

The President's agreement to have Setya Novanto questioned-the criteria 
needed to investigate a DPR member-should be seen by Golkar as a sign to back his 
resolution on the Vietnamese rice case. This comes at a time when Golkar is 
busy doing some housecleaning and the gesture would be seen as supporting the 
ongoing legal process. 

Indeed, given the intense questioning Setya Novanto will face with regards to 
the Vietnamese rice case, it would not hurt Golkar to place him in a 
non-active position. That is, if the Golkar Party wants to shed the image that it is 
preserving and conducting its affairs in the New Order talisman way. 

----------------------------------------------------

Tempo
No. 49/VI
August 8-14, 2006 

Cover Story 

Setya Novanto: I'm just a credit guarantor 

THE name of Setya Novanto is cropping up again, after a long silence. On 
Thursday two weeks ago, this Golkar politician was interrogated by the Attorney 
General's Office as a witness in the illegal importation of 60,000 tons of rice 
from Vietnam. The two cases which dragged his name out in public was the toxic 
waste from Singapore to Batam, and the cession mega-scandal of Bank Bali 
seven years ago. 

The authorities' inability to arrest him has raised speculations that a 
number of 'strong people' may be backing him. But Setya, who was Golkar's deputy 
treasurer during the period of Akbar Tanjdung's chairmanship, rejects this 
speculation, as well as the charges that he was behind the rice smuggling. "That's 
what they used to say, not anymore," he told Tempo reporter Heri Susanto by 
telephone last Thursday. 

You've been mentioned as having been involved in a number of cases. What's 
the real story? 

In this life, we meet a number of people, businessmen, parliamentarians and 
others. We communicate, sometimes they are mutually helpful, others ask for 
help.

Those meetings have anything to do with some cases? 

I am aware that I stand on a political stage. But thank God, I believe that 
what is said to be true is true and what is wrong is wrong. The important thing 
is not to cheat the government, don't be corrupt or defraud anyone. 

Can't the illegal rice importation case which you were charged with become a 
corruption case? 

As a good citizen, I intentionally went to the attorney general as a witness 
regarding Sofyan Permana, the former investigation director of the Directorate 
General of Customs & Excise. 

What exactly was your role in this case? 

I did sign an agreement to open credit facilities for import, and that's the 
use of letters of credit (L/C) between Bank Mandiri and PT Hexatama Finindo cq 
the Village Cooperation Unit (Hexatama's partner in importing rice, led by 
Gordianus Setio Lelono, brother of Setya Novanto-Ed.)

Why were you the one to sign it? 

That was as added guarantee over the LC in the amount of US$11.6 million. The 
bank did not accept the guarantee of a cooperative, it wanted a personal 
guarantee from my brother Setio Lelono, who's CEO of PT Hexatama. As the younger 
brother, I was asked to help. I asked why it should be me. Bank Mandiri replied 
that they only trusted Setya Novanto.

How did this request for additional assistance come about? 

When I asked the bank what was the basic guarantee, they mentioned rice. Then 
I asked what would be the additional guarantee? They replied that Hexatama 
must submit Rp5 billion and give his personal guarantee. I also asked whether 
this was only applied to the LC issue, and they said yes. So that's why I agreed 
to sign the document.

Do you hold shares in Hexatama? 

That's what I've been told, but I'm not an owner, a shareholder or an 
official of Hexatama. 
But as the signatory of the L/C in question, this means you share the 
responsibility. 

According to regulations, when the credit is paid off, all legal consequences 
are over. So, at that time I paid all the charges. Besides, I don't get 
involved with the technical problems of Hexatama and the cooperatives. 

So, you didn't know that the imported rice was problematic? 

I knew that the rice import was not an issue, there was nothing illegal about 
it. The problem is that the village cooperative (Inkud) did not pay the 
customs charges. That's no longer under my authority. I was just a Bank Mandiri 
guarantor.

Some people say it was you who ran the show. 

Some people did say that in the past, but after they got the real 
information, they no longer thought that way.

How about your sibling, one of whom is an accused? 

He's still being processed at the Prosecutor's office. We trust the 
Prosecutor's office will make this right, because it involves customs. At the North 
Jakarta District Court, the guilty have been penalized, and that is cooperatives 
chief Nurdin Halid. They are now handling the customs corruption case. It's 
true that some question whether I had anything to do with Sofyan Permana.

What about your relations with Sofyan? 

I've never known him. 

What about with Nurdin Halid? 

I was introduced to Nurdin by Idrus Marham, my colleague at Golkar. Idrus 
contacted me a number of times and we met. Besides discussing Golkar 
organizational issues, we also spoke about rice imports, because at that time my brother 
arrived so I introduced him to Idrus.

You were also mentioned in the toxic waste case… 

That's done with. When it happened, I had resigned. I was no longer chief 
commissioner.
When did you resign? 

Just check it out in the court documents. 

You are often referred to as Golkar's treasurer and immune from the law. Is 
that correct? 

Of course not. No one is above the law in Indonesia. As a member of the House 
of Representatives (DPR), I must be more careful. About funding, that came 
from Golkar sympathizers.

Do you feel someone's out to get you? 

Yes. I just pray and consult with the party leadership. Whatever the case may 
be, as a DPR member, there are always risks that I have to bear. 

What if you become the accused? 

As a citizen, I will be ready to be investigated.

-End 2 of 2-

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Joyo Indonesia News Service
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