Syafruddin Temenggung named a suspect in a corruption case

As predicted, prosecutors finally named Syafruddin Temenggung, former chairman of Indonesia Bank Restructuring Agency (IBRA) on an aledged corruption for the divestment of a sugar plant in 2003, newspapers reported today.

Syafruddin, popularly known as Pak Syaf, dissapeared from public eyes for almost two years since the closure of IBRA in early 2004, was the last chairman of IBRA, once one of the most powerful position in the country. IBRA managed tens of billions of US dollar assets transferred from the country's banks following the collapse of financial market in 1998.

The prosecutors accused the transaction in 2003 had cost the state a huge loss as the assets were sold at heavily discounted price. The sugar plant (PG Rajawali III, located in Gorontalo, Sulawesi Island), according the attorney, had the value of 600 billion rupiah (almost US$67 million) but IBRA sold it at 84 billion rupiah. The attorney said even though IBRA had applied decent procedure in the bidding, the price difference is considered unfair to the state. That's the attorney's logic and that leads to corruption charges.

Well, from my records, most of IBRA's assets were divested at heavy discounts, sometimes up to 95% like in the case of petrochemical company PT Chandra Asri. IBRA, supported by government, argued that was the market mechanism and the price reflects investor's appetite.
Investor Daily was right to raise the question on prosecutor's move to focus on Syaf and urged them to investigate other former chairmen of IBRA such as Glenn M. Yusuf (1998-2000), Edwin Gerungan (2000-2001), and I Putu Gde Ary Suta (2001-2002).

Why Syaf first?

Syafruddin, a former commissioner at state-owned oil and gas company Pertamina, was considered key ally for former president Megawati Soekarnoputri's husband Mr Taufik Kiemas.

A PhD from Cornell University (USA), Syafruddin, was appointed chairman of IBRA in April 2002 replacing I Putu Gde Ary Suta. During his period, IBRA divested most of its assets, including the non-restructured debts, at what some says at fire sale price. (Fire sale could be considered a crime to the state nowadays, depends on who did that and who got what?)

On June 2004, Corruption Eradication Commission (KPK) also summoned Syafruddin for almost nine hours but no information available that time on what issue he was 'interviewed'. But it seems that Syafruddin, along with former State-Owned Enterprises Minister Laksamana Sukardi, was reported to KPK for an aledged corruption at Pertamina.

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