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

Narasi Newsroom

20 Jan 202309:13

Summary

TLDRThis 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.

Outlines

00:00

📜 The Downfall of Soeharto and the Beginning of Reformasi

This paragraph begins by setting the scene in January 1998, just months before the massive demonstrations that led to the resignation of Indonesia's long-time president, Soeharto, marking the era of Reformasi. A notable photo of Soeharto signing an agreement with the IMF director, Michel Camdessus, symbolizes Soeharto's submission to foreign aid, highlighting his inability to manage Indonesia’s severe economic crisis. The New Order regime's mask of prosperity was crumbling, revealing years of corruption, cronyism, and self-enrichment that had caused the crisis. The paragraph touches on the turbulent political path that led to Soeharto’s rise to power in 1965, further illustrating the historical significance of this downfall.

05:02

💰 The Economic Growth of the New Order and Crony Capitalism

The paragraph discusses Soeharto's focus on economic growth, which became a hallmark of his regime. With the help of technocrats, Indonesia’s economy soared, earning the nickname 'Asian Tiger.' However, this economic success masked deep-rooted corruption, collusion, and nepotism. Soeharto ran the country like a corporation, using his absolute control to benefit his cronies, including major business figures like Sudono Salim (formerly Liem Sioe Liong) and Bob Hasan. These cronies were granted exclusive contracts, access to natural resources, and financial favors, including low-interest loans from state banks. The regime's systemic exploitation of state resources to benefit Soeharto’s inner circle laid the groundwork for further corruption.

🏛️ The Rise of Soeharto’s Family Empire

This section explores how Soeharto’s children were also major beneficiaries of his regime’s corrupt practices. His six children were granted significant business opportunities, often using funds from the charitable foundations Soeharto established. His eldest son, Sigit, gained control of animal transport businesses, while his daughter, Siti Rukmana (Tutut), secured toll road projects across Southeast Asia. Another son, Bambang Trihatmodjo, received contracts in water supply and power generation projects in Indonesia, the Philippines, and China. His youngest son, Tommy Soeharto, became involved in the production of the Timor car, benefiting from government support. These ventures further enriched the family at the nation's expense.

⚖️ The Scale of Corruption and Legal Consequences

Soeharto’s corrupt practices were not isolated incidents but part of a larger, deeply entrenched system. His charitable foundations (Supersemar, Dharmais, and others) held shares in numerous companies and were key to funneling money to the Soeharto family and cronies. The estimated wealth accumulated through corruption ranged between $15 billion and $35 billion, making Soeharto one of the most corrupt world leaders, surpassing figures like Ferdinand Marcos. Legal investigations into his financial misconduct began in 1998, and many of his cronies, such as Bob Hasan, faced prosecution. Hasan was convicted and imprisoned for his role in forestry corruption.

⚖️ Post-Soeharto Legal Actions and the Long Road to Justice

Following Soeharto’s resignation, the Indonesian government pursued legal action against him and his foundations. In 2007, Soeharto faced civil lawsuits for his misuse of foundation funds, and a court ordered his family to repay 4.4 trillion rupiahs. However, legal proceedings were complicated by Soeharto’s death in 2008. Although his family denied responsibility, asserting that the foundations were separate from the family’s wealth, the government continued efforts to recover stolen assets. As of 2015, the courts upheld a ruling that Soeharto’s estate was responsible for the restitution. Despite the setbacks, the process of reclaiming assets remains ongoing, with several properties and accounts already seized by the state.

Mindmap

Keywords

💡Reformasi

Reformasi refers to the period of political and social reform in Indonesia that began with the downfall of President Soeharto in 1998. The video mentions that the demonstrations in Indonesia, triggered by economic crises and public dissatisfaction, culminated in Soeharto stepping down, marking the beginning of this era. It represents a major shift from authoritarian rule to democracy.

💡Soeharto

Soeharto was the second president of Indonesia, ruling for 32 years from 1966 to 1998. He rose to power following the political turmoil of 1965, including the Supersemar incident, and consolidated military control. The video highlights his leadership, initially marked by economic growth but ultimately tarnished by corruption, nepotism, and authoritarianism, which contributed to his downfall during the 1998 Reformasi.

💡Krisis ekonomi moneter

The krisis ekonomi moneter (monetary economic crisis) in Indonesia refers to the financial collapse that struck the country in the late 1990s. This crisis is portrayed in the video as the major factor that led to the public’s dissatisfaction with Soeharto's regime, exposing the weaknesses of his economic policies, including widespread corruption and cronyism. The crisis was a catalyst for the Reformasi movement.

💡IMF (International Monetary Fund)

The IMF is an international financial institution that provides financial support to countries facing economic crises. In the video, the IMF plays a critical role when Soeharto signs an agreement with its director in 1998, signaling Indonesia's acceptance of a bailout package. This is seen as a moment that marks Soeharto's loss of control over Indonesia’s economy.

💡KKN (Korupsi, Kolusi, Nepotisme)

Korupsi, Kolusi, Nepotisme (corruption, collusion, and nepotism) are practices that characterized Soeharto’s rule, as detailed in the video. These terms refer to the corrupt deals that defined his regime.

Highlights

This photo was taken in January 1998, just four months before the massive demonstrations that led to the fall of Suharto, known as the Reformasi.

The signing of an agreement with the IMF in 1998 marked Suharto's inability to deal with the economic crisis.

Suharto's governance was plagued by a series of crises, which included the revelation of corruption and cronyism that sustained his power.

Suharto came to power through a series of political upheavals, starting with the 1965 Supersemar event and the fall of Sukarno.

Suharto's focus on economic development and growth led Indonesia to become one of the 'Asian Tigers,' achieving impressive economic progress.

Behind the economic success, deep-rooted corruption, collusion, and nepotism were prevalent during the New Order regime.

Suharto ran the country like a corporation, using full control of the state to serve his business interests and those of his cronies.

Cronies like Sudono Salim and Bob Hasan were given significant privileges, including direct contracts and monopolies over natural resources.

Suharto's cronies received protection from imports and access to low-interest loans from state banks.

Salim was granted a monopoly over wheat distribution, while Bob Hasan controlled vast forest areas in Kalimantan.

Suharto used foundations as a financial tool to maintain power, channeling state money into crony businesses.

Research shows that Suharto's foundations, such as Supersemar and Dharmais, controlled 27 companies and an estimated wealth of $5 billion.

Transparency International estimated that Suharto embezzled between $15 and $35 billion, making him the world's most corrupt leader.

Suharto's children, including Sigit and Bambang, were granted significant business privileges through their father’s influence.

In 2007, Suharto was sued for misusing foundation funds, but the legal case became complicated after his death in 2008, with efforts to recover the stolen assets ongoing.