Tommy Suharto Working On The Legendary Timor Car Project

Tommy Suharto (Source: Antara)

JAKARTA - The wealth of the Suharto family continued to grow in the New Order era. The facilities are used by the children-in-law in the Cendana Family circle. They are passionate about business. Including what was done by Suharto's fifth child, Hutomo Mandala Putra alias Tommy Suharto. He is in command of the Timor national car project. The car was a source of pride. Even selling like hotcakes. But Timor's triumph was only a lifetime.

The traces of the Cendana family's wealth cannot be separated from Suharto's great role as the supreme leader of the New Order. The series of investments in Indonesia at that time had to get his blessing. Suharto's blessing is the main key to the lasting investment of investors from within and outside the country. Mainly to secure incoming capital and security.

On that basis Suharto got a large share of business investment. Usually in the form of shares. That is why Suharto's wealth continues to increase. Slowly Suharto's business became more diversified. Yes, although he is not the main actor in the business. This condition persisted until the 1980s. After that, Suharto began to open up business paths for his sons-in-law.

It didn't take long. Cendana children move quickly to master strategic projects. Property, telecommunications, banking, hospitality, automotive, electricity, oil, chemicals, entertainment to toll roads are their main business fields.

“Soeharto and his children then planted their nails in a very strategic business. Namely, from toll roads, oil, banking, television, to billboards. Eh, this is not only in Jakarta, but also throughout the country. Because they are the children of the number one person in this country, they automatically win every tender that is also open to the public.”

"In 1999, an Australian business consultant, Michael Backman noted that at least 1,251 Suharto family companies were involved in collaborating with 66 multinational companies," said Femi Adi Soempeno in the book They Betray Me: Attitudes of Suharto's Golden Children at the End of the New Order (2008).

Sandalwood family business pattern

Sandalwood Family (Source: Wikimedia Commons)

The Sandalwood Family Business is so conspicuous. Each line of business can be smelled easily by the public. The Cendana Family business development is often patterned. Their main strategy is to engage in projects that require special permits. In this case, the Sandalwood Family is not directly involved. They are just a mouthpiece to help with licensing.

This method was used as a tactic by the Cendana Family to get a commission. Another way is to get into the project by creating a company. The goal is to get them special licenses for all projects with a national interest narrative. In fact, in its implementation, the narrative of national interest is just a new business field for them.

Not infrequently the project also received special protection from Suharto. Suharto's message was clear. He is of the view that there is nothing wrong with the steps of his son or daughter-in-law doing business. But Suharto also wanted to be ideal.

Suharto once gave a message to public officials, if their children-in-law do not meet the qualifications, don't win. On the contrary. If the children are indeed superior, then do not be defeated. However, Suharto was too special. the proof is that the lasting Cendana Family holds a variety of strategic projects on all fronts.

"For example, in 1981, Suharto's eldest child Siti Hardijanti Indra Rukmana -- nicknamed Tutut -- owned a rubber and paper company in Sulawesi worth 1.2 billion dollars and a petrochemical company worth 1.6 billion dollars."

“Bambang Trihatmodjo, Suharto's third child and his older brother, Sigit Haryoyudanto, owned the Bimantara company which was engaged in telecommunications and property in 1993 with assets of US$1.4 billion. Meanwhile, Suharto's youngest son, Tommy Suharto, owns the Humpuss Group, a company engaged in the transportation sector with assets of 500 million dollars in 1992," said Virdika Rizky Utama in the book Menjerat Gus Dur (2020).

Timor's national car scandal

Tommy Suharto (Source: Antara)

Tommy Suharto knows very well his father's influence. He who has an obsession in the automotive world began to offer the idea of the importance of promoting the national car industry (Mobnas) in the country. Suharto agreed. The 32-year-old general supported the Mobnas idea by issuing Presidential Instruction (Inpres) No. 2/1996 on the Development of the National Car Industry.

Suharto then appointed his son, Tommy, to take command of the national mobnas project under the banner of PT. Timor Putra Nasional (TPN). Tommy named the mobnas Timor, an acronym for People's Car Industry Technology. Tommy was given various privileges. One of them is the relaxation of import duties on luxury goods.

“With the Presidential Decree, the assembly contract fell into the hands of Tommy Suharto and into the hands of a Korean car manufacturing company, Kia, which was exempted from taxes and import duties. However, it was soon discovered that this joint effort would absolutely not create a national car in Indonesia. In fact, the car was made entirely by Kia, which was labeled as a national car, so that it was able to avoid all taxes and import duties and bring huge profits for both parties.”

“Tommy said that he would send Indonesians to work at the Kia factory in Korea, so it would be correct to say that the car is a national car. What's even more absurd is that the new car is called the Timor. Suharto approved the import of 45,000 Timor cars in the first year,” explained historian MC Ricklefs in the book History of Modern Indonesia 1200-2004 (2005).

The Timor car was launched on August 8, 1996. The Timor car or Kia Sephia was only priced at Rp. 37 million, half the price of many cars in the same class. The ease of facilities and incentives is the estuary. As a result, the Timor car was able to win the hearts of all Indonesian people. Timor cars became popular. Low prices make Timor sell like hotcakes.

Timor car (Source: Commons Wikimedia)

Tommy and his partners are the ones who benefit the most. Meanwhile, the state actually loses potential revenue from taxes. However, the success of the Timor car began to be questioned by other car-producing countries: Japan and America.

Both countries protested strongly against Indonesia through the World Trade Organization (WIO). Indonesia is considered to have violated international trade regulations. But Suharto defended it. The Mobnas Sokoguru admits that he is a high advocate of free trade. In a sense, he supports what his son is doing.

However, the success of the Timor car only lasted a lifetime. The existence of the Timor car was overthrown by the 1997-1998 recession. Indonesia's disorganized economic situation had an impact on all sectors, including Timor's cars. Moreover, because the recession was his supporter and savior, Suharto also stepped down.

"But that was the whining (cry) of the golden child, the car for a time was criss-crossed the streets and occupied a stretch of 700 hectares in Karawang. This is the problem of tax evaders, until now they are in arrears of PBB in the range of 500 billion. Power and arrogance did not last long, the 1998 monetary crisis forced Suharto to step down from Keprabon (from his position), Timor fell from following the previous national mobnas, the owner was a coward on the run, until finally Tito Karnavian was picked up as a prisoner," concluded Moh. Yunus and Azhar Aljurida in the book Black and White Indonesian Public Policy (2021).

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