Today's Memory, August 8, 2000: Former President Soeharto Accused Of Embezzling US$571 Million Of State Money

Mrs. Tien Soeharto counting money during the "Gotong Royong" fundraising event for humanity, witnessed by President Soeharto and Tutut Soeharto in Jakarta in 1986. (Wikimedia Commons)

JAKARTA – In today's memory, 22 years ago, on August 8, 2000, Attorney General Marzuki Darusman officially accused former President Soeharto of embezzling US$571 million of state money, or around IDR 8.5 trillion at the current exchange rate (2022). The embezzlement of money was allegedly disbursed to seven foundations. The five largest foundations are Dakab, Dharmais, Supersemar, Tritura, and Amal Bhakti Muslim Pancasila.

Previously the foundation was built to raise funds for social purposes. The reality is different. The foundation was alleged to have enriched Soeharto and his cronies.

The traces of the controversy between Soeharto and the New Order (Orba) are many. Soeharto's great power became the estuary. Nothing is impossible for him. He was able to change Indonesia's political paradigm from lighthouse politics to the paradigm of economic development. The tactic worked for a while.

The title of leadership is also durable. It also uses the military to control various sectors. These include security, economics, and politics. All for Soeharto's political ambitions. Because of this, he was nicknamed the Father of Development to the Father of Food Self-Sufficiency.

President Suharto during a state visit to the Netherlands in 1970. (Wikimedia Commons)

Political ambition has been acquired. President Soeharto also turned to nurture his family's wealth and welfare, alias Soeharto began to give space to the family commonly known as the Cendana Family to do business. The Smiling General ensures all kinds of smooth running of his family business.

His wife, children, and son-in-law just carry Soeharto's name everywhere. Bank loans can be obtained, as well as for access to all kinds of permits. In simple language: take Soeharto's name, all sorts of things will be done. Moreover, Soeharto as Indonesia's number one person has the power to appoint and dismiss state officials.

“It seems that nothing is impossible for Soeharto. In fact, he not only appointed ministers, but also appointed all executive ranks such as governors, mayors, and regents. Governor of the Central Bank, even some members of parliament who are not directly elected. The appointment of the Supreme Court Justices and the Chief Justice of the Supreme Court depends on Soeharto.”

"In the business field, he also chooses the President Director of State-Owned Enterprises (BUMN), especially those that are very vital such as Pertamina, an important policy of the BUMN is also waiting for his approval. The election was not from the people, but the president. Soeharto began to give his family space, commonly known as the Cendana Family, to start a business,” said Femi Adi Soempono in the book Mereka Mengkhianati Saya: Sikap Anak-Anak Emas Soeharto di Penghujung Orde Baru (2008).

On August 8, 2000, the former Attorney General, Marzuki Darusman, accused former President Soeharto of causing a loss of US$571 million state finance. (Antara)

The ulcers were more visible when Soeharto was no longer in power. The state began to investigate all kinds of state money flows suspected of being embezzled by Soeharto. Those in power have smelled the signs of corruption during Soeharto's reign.

The Attorney General's Office found indications that Soeharto had diverted state-owned money to seven foundations owned by Soeharto and his cronies. Therefore, Attorney General Marzuki Darusman officially accused former President Soeharto of embezzling state funds of US$ 571 million, or around IDR 8.5 trillion (exchange rate 2022) on August 8, 2000.

“In reality, Soeharto used these foundations to evade taxes and to amass wealth by blurring the distinction between public and private companies. Soeharto then collected donations from private and state companies for these foundations through presidential decrees.”

“For this reason, on August 8, 2000, Soeharto was formally indicted by the Attorney General for embezzling a total of US$ 571 million from the seven foundations he chaired while still serving as President, and indicated violating an article of the Anti-Corruption Law in 1971. If found guilty, Soeharto could be imprisoned for life,” said George Junus Aditjondro in the book Korupsi Kepresidenan (2006).