Yang Enak di Zaman Soeharto: Kroni dan Keluarganya - Old Money 1 | Narasi Explains

Summary

This video delves into the fall of Suharto, Indonesia's longest-serving president, focusing on the events leading to his resignation amidst the 1998 economic crisis. The narrative explores Suharto's rise to power, the political chaos of 1965, and his administration's economic achievements. However, the corruption, cronyism, and nepotism that defined his regime are laid bare, highlighting the powerful influence of his close associates and family. The investigation into Suharto’s vast wealth and the ongoing efforts to reclaim assets lost to corruption after his death are also discussed in this compelling report.

Takeaways

• 📅 The photo was taken in January 1998, just four months before massive protests led to Suharto's resignation during Indonesia's Reformasi movement.
• 🖋️ The photo shows Suharto signing an agreement, indicating his inability to handle the economic crisis, while the IMF director, Michel Camdessus, watches calmly.
• 📉 Suharto's regime collapsed due to the 1997 Asian financial crisis, revealing long-standing corruption, cronyism, and nepotism within his government.
• 🛑 Suharto came to power in 1965 after political turmoil, including the fall of Sukarno and the military's consolidation of control.
• 💰 Under Suharto's New Order, Indonesia experienced significant economic growth, driven by technocrats, earning the country the label 'Asian Tiger.'
• 🛠️ Behind the impressive economic growth, the government was deeply corrupt, with systematic cronyism benefiting close allies and Suharto's family.
• 📜 Suharto's cronies, such as Sudono Salim (formerly Lim Sio Liong) and Bob Hasan, received privileged contracts and monopolies over Indonesia's resources.
• 🏦 Suharto used various foundations (yayasan) as money-making machines to support his power and enrich his family and cronies.
• 📊 Investigations showed that Suharto's family controlled hundreds of companies, and estimates suggest he embezzled between $15-35 billion during his 32-year rule.
• ⚖️ Despite efforts to prosecute Suharto for corruption, his trial was interrupted by his death in 2008, though the Indonesian Supreme Court later ruled that his family still owed the government $4.4 trillion IDR.

Q & A

What significant event took place in Indonesia in 1998, mentioned in the script?

In 1998, Indonesia experienced large-scale demonstrations that led to the resignation of President Soeharto, marking the beginning of the Reformation era.

Why is the photograph of Soeharto signing an agreement with the IMF considered historical?

The photograph is seen as historical because it symbolizes Soeharto's helplessness in the face of the economic crisis, as he agreed to accept a bailout to rescue Indonesia’s economy.

What were some of the key economic policies during Soeharto’s regime?

During Soeharto’s regime, economic growth and development were emphasized, which helped Indonesia become one of Asia’s economic tigers, with the aid of technocrats he appointed.

What is meant by 'cronies' in the context of Soeharto's government?

Cronies refer to Soeharto's close associates who were given special privileges, such as access to state contracts, exploitation of natural resources, and protection from imports, enabling them to amass wealth.

How did Soeharto’s cronies benefit from their relationship with him?

Soeharto’s cronies, like Sudono Salim and Bob Hasan, received exclusive business opportunities, such as monopolies over key industries, favorable contracts, and low-interest loans from state banks.

How did Soeharto use charitable foundations (yayasan) to his advantage?

Soeharto created numerous charitable foundations, which acted as money-generating machines. He funneled some of the funds for his own benefit and to sustain his political power.

What role did Soeharto's children play in the country's business activities?

Soeharto’s children were granted access to various business ventures, such as Sigit’s livestock transport, Tutut’s toll road projects, Bambang’s energy projects, and Tommy’s car production, using resources tied to the state.

What were the estimated financial losses due to Soeharto's corrupt activities?

Transparency International estimated that Soeharto embezzled between $15 billion to $35 billion, making him one of the most corrupt world leaders in history.

What legal actions were taken against Soeharto and his cronies after his resignation?

Soeharto was investigated for embezzling $571 million through his foundations, and some cronies, like Bob Hasan, were sentenced to prison for corruption. However, Soeharto's death in 2008 stalled many legal proceedings.

What is the current status of the legal cases related to Soeharto’s assets and foundations?

In 2015, the Supreme Court upheld a ruling that Soeharto’s foundations must return $4.4 trillion to the state. Efforts to seize assets, including buildings and accounts, are still ongoing, but the process remains lengthy.