Suharto family pocketed millions on British arms - report

The family of former Indonesian dictator Suharto pocketed hundreds of millions of pounds in the 1990s through huge mark-ups on arms deals, including the purchase of Hawk jets from Britain, it was reported today.

A trading company owned by Suharto’s daughter Siti Hardiyanti ‘‘Tutut’’ Rukmana acted as the agent in the purchase of 30 British-built Hawk trainers and light attack jets between 1993 and 1995, The Jakarta Post newspaper said.

The firm inflated the original £5m (€7.8m) price for each jet to £19.5m (€30.5m). This and other arms deals, including the purchase of 50 Alvis Scorpion tanks, netted Tutut a profit of over £227m (€354m), the report said.

Air Force spokesman Rear Marshall Imam Wahyudi said a review was being conducted of procurement procedures in the 1990s.

Suharto’s incredibly wealthy family was heavily involved in numerous business ventures during his 32 year dictatorship, which was characterised by endemic corruption and nepotism.

In June, during a visit to the Czech Republic, President Megawati Sukarnoputri noted that mark-ups in defence equipment purchases were ‘‘rampant’’ in the past.

In 2000, corruption charges against Suharto, 82, were dropped after he claimed to be too ill to face trial. Suharto was accused of embezzling £390m (€609m) from a number of charities.

His youngest son, Hutomo Mandala Putra - known as Tommy - was sentenced in 2000 to 18 months in jail for his part in a property fraud. He is now on trial for allegedly ordering the assassination of the judge who handed down the sentence.