Asiaweek.com | After the Good Times

NOVEMBER 3, 2000 VOL. 26 NO. 43 | SEARCH ASIAWEEK

Asiaweek Pictures.
Indonesian tycoon Liem Sioe Liong pays his respects to Suharto, his friend since the 1940s.

After the Good Times
Being a crony isn't what it used to be
By WARREN CARAGATA Jakarta

ALSO:
• The War Against Cronies: Malaysia's Jomo Kwame Sundaram is on the frontlines of the struggle to change Asia's business culture. Here's why it is taking forever
• Their Mission: Busting Graft: Many are determined to end the bad old ways
• Master of Guanxi: How Li wins people - and deals
• Cronyism in Asia: A Primer

When Suharto was Indonesia's president, the strongman's relatives and friends built business empires blessed by his favor. In May 1998, it all came to an end. While the clique saw their fortunes diminished, it soon became clear who had real business savvy.

The Salim group, founded by Liem Sioe Liong and now managed by son Anthony Salim, sold off assets to cover debts. It transferred control of 107 companies to the Indonesian Bank Restructuring Agency (IBRA) to compensate for government support of a troubled Salim-owned bank. Still, the Salims have restructured much of their debt and are on the hunt for acquisitions. The Riady family's Lippo Group too has rebuilt and recently showed it was looking forward by listing multimedia start-up AcrossAsia in Hong Kong.

Suharto golfing buddy Bob Hasan has fared far less well. With much of his timber empire in IBRA's hands, he is in jail and on trial for fraud. At least one of Suharto's kids is feeling the heat too. The Supreme Court convicted youngest son Tommy of involvement in a land swindle. President Abdurrahman Wahid has said he will not pardon him.

Suharto himself was charged with siphoning off state funds. A court dismissed the charges, saying he was too ill to stand trial. The decision is being appealed. With their father and protector in frail health, Suharto's children must be wondering how they will get on once he quits the scene.

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