Time ordered to pay $106m damages

Indonesia’s highest court ordered Time magazine to pay $106 million in damages for defaming former dictator Suharto by alleging his family amassed billions of dollars during his 32-year rule, officials said yesterday.

The May 1999 cover story in the magazine’s Asian edition said much of the money had been transferred from Switzerland to Austria before Suharto stepped down in 1998 and that the family had $15bn in 1999.

Suharto, who has also been accused of widespread rights abuses, filed a lawsuit with the Central District Jakarta and later the Jakarta High Court, both of which ruled in Time’s favour.

A panel of three Supreme Court judges overturned the decisions on August 31. The ruling ordered Time Inc. Asia and six employees to apologise in leading Indonesian magazines and newspapers as well as Time’s Asian, European and American editions.

“Time magazine has to pay $106m for defaming Suharto,” said Supreme Court spokesman Nurhadi.

“The article and photographs hurt the image and pride of the plaintiff as a great retired army general and the former Indonesian president.”

Although the Supreme Court is Indonesia’s highest, one final appeal is possible.

Time spokesman Daniel Kile said in New York that the magazine had no comment since it had not received any notification from the court about a ruling. He said the magazine continued to stand by its story.

The magazine has said its article, The Family Firm, was based on four months of reporting in 11 countries that uncovered a complex network of corporate investments, bank transfers and property holdings in Switzerland, Uzbekistan and Nigeria.