CAPITALISM'S ACHILLES HEEL Dirty Money and How to

TABLE 3.2 THE ABUSE OF FOUNDATIONS
Dirty Money at Work 71
Intake Outflows to Suharto Family, Friends,
Foundation (Purpose) (rupiah) Their Businesses, and Private Banks
Supersemar (scholarships) 1.54 trillion Bank Duta, Sempati Air, timber
companies, property investments
Dharmais (orphans, 1.54 trillion Bank Umum Nasional, Sempati Air,
homeless) timber, and industrial investments
Dakab (education) 950 billion Bank Pesona Kriyadana, Sempati Air,
timber, and industrial investments
Damandiri (poverty
alleviation)
4.96 trillion Bank Andromeda, Bank Alfa
Siti Hartinah Soeharto
(disaster relief)
88 billion Bank Alfa
Trikora (scholarships) 26 billion Private museum, other personal
foundations
Yamp (mosques) 79 billion Private investments
Source: Japan Economic Newswire, “Suharto’s Funds: Where Money Came From, Where
They Went,” August 29, 2000, http://web.lexis.nexis.com/.
san bought Sempati Airlines in the late 1980s. Competing against the
state-owned Garuda Airlines, they decided that the best way to reduce
costs and assure profits was to stop paying the state-owned oil company,
Pertamina, for jet fuel. Other charges for such things as landing fees and
catering expenses were left unpaid as well. Garuda, sensing that it, too,
had an excuse for nonpayment, also let the bills pile up, leaving Pertamina
holding the bag. 36
One of the more blatant abuses was Tommy’s pet scheme, the National
Car project. Tommy lived high, liked fast cars, and dreamed of owning a stable
of Lamborghinis, so when he got rich he bought them. Not the cars; the
whole Italian company! This whetted his appetite, so in 1995 he set out to
dominate the automotive industry in Indonesia. Cars already were being assembled
locally from imported parts by European, Japanese, and South Korean
manufacturers, but Tommy’s idea was to work with Kia of South Korea
to produce a “Timor” car out of locally-made parts. To get started, he imported
45,000 specially-branded Kias from South Korea and got his dad to