Indonesia Drops Suharto Charges

JAKARTA (Reuters) - Indonesia's attorney-general said on Friday his office had dropped graft charges against ailing former president Suharto because of his poor health.

A final decision on closing the case against the 84-year-old Suharto lies with President Susilo Bambang Yudhoyono, who earlier on Friday decided to hold off on a decision on the one-time ruler's legal fate in order to weigh every aspect of the case.

"The graft case against the defendant, Suharto, has been closed. Based on a health check by his team of doctors, Suharto's health is not good, his condition deteriorates," Attorney General Abdul Rahman Saleh told reporters.

"The decision will be part of materials being used by the president in carrying out his decision because I heard this morning that the president would like to hold off this matter. Hopefully this will be the material the president needs."

Saleh said his office had dropped charges in graft cases relating to seven charity groups once headed by Suharto.

The decision to drop the charges prompted some 50 students to hold a noisy protest near Suharto's residence in Jakarta's upscale Menteng neighborhood.

Yudhoyono said he would need some more time before taking any decision on the case against Suharto, who has been in hospital since last week.

"I choose to set this matter aside until the time is right. Therefore, I urge the people to remain calm and restrain themselves so we can think this matter over wisely," Yudhoyono told reporters before leaving for Bali for a meeting of eight developing Muslim nations.

"Whatever the outcome, it should not violate the law and sense of justice for the people," he said.

IRON FIST

Suharto, who ruled Indonesia with an iron fist for 32 years, was admitted to hospital due to bleeding in his digestive system, which lowered his body's oxygen level, including to his brain.

After surgery on his colon, doctors say Suharto seems to be on the road to recovery. It was the latest in a series of bouts with illness for the octogenarian, which have prevented his prosecution so far.

Yudhoyono met senior officials late on Wednesday to discuss Suharto's case, after some political leaders said the corruption case against the former ruler should be closed because of his deteriorating health.

State secretary minister Yusril Ihza Mahendra had said the president had sought documents on Suharto's health record and trial, and a decision would be made as soon as possible.

Suharto stepped down in 1998 when social and political chaos engulfed Indonesia.

The former general sharply raised incomes in Indonesia at the expense of political freedom and endemic graft during his years in power, with critics saying he and members of his family corruptly amassed up to $45 billion, accusations they deny.

In a rare interview in late 1998, Suharto rejected speculation he'd stashed wealth overseas.

"The fact is I don't even have one cent of savings abroad, don't have accounts at foreign banks, don't have deposits abroad and don't even have any shares in foreign firms," he said.