You may be interested in the following news item from the South China Morning Post giving some background on the recent firings and suggesting that the Suharto family have been among the losers:
Tuesday, April 8 1997
Indonesia Busang saga claims top officials
JENNY GRANT in Jakarta
The Indonesian Government has removed two
senior bureaucrats from their positions at the
Department of Mines and Energy, in what is widely
seen as punishment for their roles in the Busang
gold affair.
The highly respected Kuntoro Mangkusubroto was
removed as director-general for general mining and
replaced by Ajat Sudrajat, previously the
director-general for geology and mineral research.
Power and energy development director-general
Zuhal was replaced by the little known Endro
Utomo Notodisuryo, formerly a director for energy
development.
Rozik Sucipto was promoted from a directorate
position to replace Mr Sudrajat.
Minister of Mines and Energy Ida Bagus Sujana
defended the changes, based on a three-page
presidential decree signed last Wednesday, as usual
practice. "The reason [for the changes] is tour of
duty; that's all," Mr Sujana said at the installation
ceremony.
The move punishes Mr Kuntoro for the key role he
played in the Busang affair. Mr Kuntoro stood up
to pressure from timber tycoon Mohamad "Bob"
Hasan and members of President Suharto's family
who tried to take advantage of a conflict between
Bre-X Minerals and its Indonesian partners,
Krueng Gasui and Sungai Atan Perdana.
"He did not support that form of collusive
behaviour. Mr Kuntoro has played the correct
procedures for the past nine months," a foreign
mining analyst said.
"He said Bre-X should sort out the problems with
its original Indonesian partners before giving it a
contract of work."
"At the end of the day someone's head had to roll,
and it turned out to be Mr Kuntoro. He was a
scapegoat."
The mining industry is still rattled by the news last
month that the Busang site in East Kalimantan,
discovered by Calgary-based Bre-X, could contain
a lot less gold than the publicly stated 80 million
ounces. A year-long bidding war saw mining giants,
such as Placer Dome and Barrick Gold Corp,
compete for a cut in what was thought to be a
lucrative project.
Each enlisted the help of Mr Suharto's children in
an attempt to win the bidding.
In February, Mr Hasan fixed a deal which gave his
Nusantara Ampera Bakti (Nusamba) a 30 per cent
stake. Nusamba, chaired by Mr Hasan, is also
linked to foundations owned by Mr Suharto.
Under the deal, Freeport McMoRan Copper and
Gold clinched a 15 per cent stake in the project,
Bre-X was given 45 per cent and the government
was left with 10 per cent.
The removal of Mr Kuntoro could also be linked to
rumoured big losses by members of Mr Suharto's
family. Market sources said the family traded
heavily in Bre-X stock through bank accounts in
Switzerland.
These reports could not be verified.
"Mr Kuntoro has ruined the reputation of the
president and the minister. Now Mr Suharto's
children have lost several million dollars. He was
the one responsible for checking all the data," a
senior official at the mining ministry said.
Observers of the Busang saga said they were
surprised it took the government so long to remove
Mr Kuntoro, given that there had been conflict
between himself and Mr Sujana.
Mr Kuntoro, with the ministry since 1988, said his
dismissal was "a normal change; nothing special".
Asked whether his sacking had anything to do with
the Busang affair, he deferred to the minister,
adding: "He's the one who has authority to answer
that."
Mining department officials said there was a lot of
bad feeling between Mr Sujana and Mr Kuntoro
who was known as a "brilliant innovator".
In November last year, Mr Sujana stripped Mr
Kuntoro of his authority to issue work contracts
and then transferred those powers to himself. |
