Friday, November 11, 2005

Man in the Bentley who cried poor and keeps on coming back

By Mark Forbes Herald Correspondent

Controversy follows Aburizal Bakrie, but he has proven himself Indonesia's ultimate survivor.

He flourished under the corrupt dictator Soeharto but left hundreds of millions in debts unrepaid after the Asian economic crisis, only to regain his status as a successful businessman and emerge as the country's Economics Minister.

This month speculation that he would be dumped in a cabinet reshuffle has heightened, prompting his spokesman to blame "character assassination" by political enemies for reports his son was linked to the ecstasy-possession arrest of the Australian model Michelle Leslie in Bali.

In Jakarta, the smart money is on Mr Bakrie brushing aside any hint of scandal, complaints of economic mishandling and allegations his business interests should exclude him from an administration driving to rid Indonesia of endemic cronyism and corruption.

Imagine the Australian Treasurer, Peter Costello, owning a large slice of Optus, Channel Seven, several big mining companies - all highly sensitive to his economic and industry policy decisions - and other firms that consistently won multi-million dollar government contracts.

Mr Bakrie's defence is that he has handed over management to family members, but he retains his stake in the Bakrie and Brothers conglomerate that has tentacles throughout Indonesia.

Last month one of his sons, Anindya, formalised a partnership with Rupert Murdoch's Star Asia TV, which took a 20 per cent stake in the Bakries' Indonesian network, ANTV.

Subsidiaries also won two contracts to supply natural gas and build an inter-island pipeline. Both deals are worth more than $100 million.
In response to allegations of special treatment, Mr Bakrie said all of the projects had been "competitively tendered."


Company officials admit Bakrie and Brothers did well through deals completed with the Soeharto family. But they said that now the companies were run without political favours. Mr Bakrie was the most controversial ministerial choice of President Susilo Bambang Yudhoyono.

Some still bristle at him arriving at creditors meetings in a Bentley after the economic crisis, then crying poor.

But the new President, without any significant political base in parliament, needed the support of the old Soeharto party, Golkar, and one of the conditions was Mr Bakrie's appointment.

He does not lack political ambition, using his substantial financial resources to make an unsuccessful tilt at winning Golkar's nomination for the presidency. Despite a faltering economy, and a budget sideswiped by escalating oil prices, many begrudgingly admit he has performed competently, engaging in a showdown with Dr Yudhoyono to force a doubling in fuel prices but cutting crippling subsidies.

Earlier this month Mr Bakrie professed to be relaxed about his rumoured axing by Dr Yudhoyono. "With facts of achievements already displayed, is it appropriate for me to be replaced? If he says he wants to have a different way, well, I would go back to business."

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