THE SWISS BUSINESS LINKS OF THE  SUHARTO
&
HABIBIE OLIGARCHY OF INDONESIA (II):
A report prepared for the Berne Declaration by 
Dr. George J. Aditjondro (Newcastle University, Australia)

Transavia is also the name of an Australian company, member of the Transfield Group, which produces and sells aircrafts for agricultural purposes. According to sources in Australia and Switzerland, Pilatus Aircraft's business dealings with Indonesia is carried out by the Pilatus Far East Ltd in Kuala Lumpur, Malaysia.

According to an undated publication from an Australian peace activist group, an Australian-based company, Hawker Pacific P/L is the regional sales representative for Pilatus's British subsidiary, Pilatus Britten Norman (PBN) in Indonesia, Singapore, Thailand, China and Srilanka. Probably, that representative office has been moved to Singapore. Because in the 1994 IPTN suppliers and contractors list, Hawker Pacific Pte. Ltd. is listed as a supplier of goods with two addresses without their phone nos.

According to an Australian source, the Indonesian airforce (TNI/AU) uses five Pilatus Porter trainer aircrafts, under the Skwadron Udara 1  (First Air Squadron). Then, according to  Swiss peace activists, Thomas Gass and Stefan Boss, the Indonesian airforce also has an unmentioned amount of Islander   aircrafts from Pilatus Britten Norman. These aircrafts may have been purchased through PBN's sales representative office in Sydney and/or Singapore.

But the Indonesian airforce seems to prefer other Swiss trainer aircrarts:
it has more than 40 trainer aircraft which include the AS-202/18A3 "Bravo" from another Swiss firm, FFA Altenrhein. In fact, TNI/AU is the only airforce in Southeast Asia to operate the AS-202/18A-3 Bravo  as a primary trainer. These trainer aircrafts were delivered to the Indonesian Air Force (TNI/AU) in several installments since March 1981, and are managed by Skwadron Udara I    (Renegade Activists, n.d.: 64; Gass and Boss, 1997: 103; Flight International , May 13, 1989: 23;Teknologi , Dec. 1994: 42; Warta Ekonomi , Jan. 30, 1995: 14; Sintesa , No. 10/Vol. VIII, 1995: 29; Air International , Sept. 1984: 107, Febr. 1998: 87, 90).

It is most likely that all those military exports have been covered by ERG credits.

For futher information contact:
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(1) Pilatus Aircraft Ltd:  CH-6370 Stans, Switzerland,
Phone: (41) (41) 619 6111, or fax: (41) (41) 610 3351;
(2). Pilatus Far East Ltd:
72 A, Jalan Medang Tanduk, Bukit Bandaraya, 59100 Kuala Lumpur, Malaysia.
Rep. Officer: Mr. Detlef Kesterman, phone no. is (60) (3) 284 6529.
(3). Hawker Pacific Pte. Ltd.: sales representative for Pilatus Britten
Norman: (a) POB 28, Jalan Kayu Post Office, Singapore,
(b) Engine Service Centre, Building 302, Oxford Street, Selatan Airport, Singapore 2879.
(4) PT Transavia Utama: Indonesian agent for Pilatus Aircraft:
Jalan Letjen. S. Parman No. G 1-2, Jakarta 11480, Indonesia, Phone: (62) (21) 548 2008, 530 1675: Telex: 65420 TRANSA IA; Fax: (62) (21) 548 0102, 530 2711; Cable: Transavia Jakarta.

4. Oerlikon Buehrle:
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On the list of IPTN suppliers and contractors is Oerlikon Geartec AG, which is listed without an address in Swiss. It may be a subsidiary of Oerlikon Buehrle, which supplies guns the German patrol vessels and mine-sweepers built at another Habibie-directed company, PT PAL, under licence from the German firm Luerssen, and Sura rockets designed by Oerlikon-Contraves for the MBB BO-105 helicopters assembled at IPTN (Gass and Boss, 1997: 101; Kolling, 1997: 74).

5. Other Swiss-based companies & individuals on the 1994 list of IPTN suppliers & contractors are:
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(1). Aero Consultant Ltd. AG : POB 336, 8606 Nanikon;
(2).  Aluminium Menziken Ind. AG : Postfach 5737, Menziken;
(3). BT Movit AB : Energigatan 3A, S-721 37 Vasternas;
(4). Bowers-Sylvac SA :  Chemin du Closalet 16, Case Postale 1023, Crissier;
(5). CE Johansson AG : S-631, 81 Eskilstuna;
(6). CHR Haeusler AG : Postfach 140, 4143 Dornach;
(7).  IBS Book Service AG : Hutgasse 4, Postfach 812, CH-4001, Basel;
(8). Technomic Publisher AD : Elisabethstrasse 15, CH-4051, Basel;
(9). Contact System Ltd. : Gewerbe Strasse 16, CH-8132, Egg.;
(10). Christen Tool Grinding Mach. : Quellenweg 15, 3084 Wabern-Bern;
(11). Control Prod. AG Switzerland : Ankerstrasse 3 P.O. Box 8036;
(12). Dipl. Ing. Ernest Spirig Company : POBox 1140, Hohlweg 1, CH-8640, Rapperswil;
(13). Forex Ltd. : Zuercherstrasse 6, CH-8640, Rapperswil;
(14). Dixi SA Usine 2 : 21, Avebue du Technicum, CH 2400, Le Locle;
(15). W. Eckold AG : CH 7203, Trimmis;
(16). W.E. Kuhn & Fils : Factory of Saws and Machines (=Fabrique de Swiss), FOB 16, CH-2552, Orpund;
(17). Elsevier Sequia SA : PO Box 564, 1001 Lausanne I;
(18). Nagra Kudelski SA : Nagra Tape Recorder Mfg. 1033, Cheseaux Sur, Lausanne;
(19). FFV Aerotech : S-732, 81 Arboga;
(20). Flight Component AG: Flughafenstrasse 22, CH-8302, Kloton;
(21). Alusuisse Schweitzerische Alum : Buckhauserstrasse 11, CH 8048, Zuerich;
(22). Folex DR, H. Schleussner AG : Badenerstrasse 816, Postfach 608, CH-8010, Zuerich;
(23). Strategic Direction Publishers : Puendtstrasse 11, CH-8610, Uster, Zuerich;
(24). Eduard Ifanger : Nach Spuler Jenny, Postfach Uster 1, Zuerich;
(25). Herbert Bitterlin AG : CH-8039, Brandscenkenstrasse 4 and Nordstrasse 89, CH-8037, Zuerich;
(26). Henni & Co. Ltd. : Bernstrasse CH-3303, Jegenstorf;
(27). Henri Hauser Ltd.: Rue de l'Eau 42, POB CH 2500, Bienne 4;
(28). Huber Sunner AG : Herisau, CH 9100, Herisau, Postbeck 90-535-6;
(29). Jungner N & W, AB : Box 502, S-184, Akersberga;
(30). Machinenfabrik Liechti & Co. AG : Kanaleg 4, Postfach 666, CH-3550, Langnau;
(31). Mobelstofweberei Langenthal AG : Postfach CH-4900, Langenthal;
(32). Otto Bartholdi AG : Tueftelstrasser 50, CH-5322, Koblenz;
(33). Seco Tools AB : S-773, 01 Fagersta;
(34). Compagnie d'Dutillages de Pre. : Rue Pre-de-la-Fontaine 19, Case Postale 330, CH 1217, Meyrin, Geneva;
(35). Interavia Publishing Group : Swiss Centre 31, PO Box 437, CH-1215, Geneva;
(36). SIP Societe Genevoise d'Instrument : POB 441, 1211 Geneva 11;
(37). Tesa SA : CH-1020, Renens, Bugnon 38;
(38). Trimos SA : Rue Central 3 CH 1022, Chavann;
(39). Valorbe Usiness Metalluriques : CH-1337, Vallorbe;
(40). Wild Heerbrugg Ltd. : 9435 Heerbrugg.

Five Swiss companies which are mentioned in the 1994 IPTN list without their addresses (which colleagues in Switzerland have double-checked) are:
(41). Maag Technic AG: Sonnental str. 8, CH-86000 Duebendorf, phone (41) (1) 824 9191. Fax: (41) (1) 821 5909;
 (42). Werkzeug Maschinen (FAES): Roosstrasse 49, Postfach CH-8832, Wollerau, Phone (41) (1) 787 5454, Fax: (41) (1) 787 5450;
(43). Kern & Co, Ltd.: Albert Kern SA, Ruedin S. sussr., Av. Pictet-de-Rochemont 29 B, Phone: (41) (22) 735 0917, Fax: (41) (22) 735 0987, 1207 Geneva; (44). Proceq SA (several addresses in Davos, Lausanne, Schwerzenbach, and Zuerich)
(55). Maschinen Tool Works:

The HQs and several branches of Ciba Geigy are also mentioned on the 1994 list of IPTN suppliers and contractors, which I will list in the section on this giant Swiss pharmaceutical company. Then, one US-based company which obviously has a Swiss origin, is also mentioned in that 1994 IPTN list, namely Swiss Precision Instruments, at 2425 South Eastern Avenue, Los Angeles, U.S.A.

The involvement of around 60 Swiss companies in IPTN's business is appalling, since this aircraft company, as we saw in the case of its Iraq connections (see section on Transair Swiss), is not simply involved in the assembling and production of civilian aircrafts.

IPTN is also -- and probably, mainly -- in the sale of military aircrafts to countries and regimes without direct connection with the German arms industry. As I have discussed elsewhere, IPTN has supplied the military juntas of Fiji and Burma with the assembled version of the Spanish CASA aircrafts. In addition, IPTN's sister companies which fall under the coordinating board, BPIS, which was also headed by Dr Habibie, have acted as staging posts for Spanish arms exports to Iran and Iraq, during the war between the two Middle East countries (Aditjondro, 1997a, 1997b; Oliveres, 1997).

Since his return (sic!) from Germany two decades ago, Dr Habibie has transformed the tiny aircraft factory in Bandung, founded by the late Air Marshall Nurtanio, into one of the largest arms producers in Southeast Asia. Apart from the Swiss Sura D rockets produced under licence from Oerlikon AG, the factories of IPTN's Weapon System Division in Bandung and Tasikmalaya in West Java and the island of Madura in East Java also manufacture surface underwater torpedoes under licence from AEG Telefunken (Germany) and 2.75-inch Fin Folding Aircraft Rockets (FFAR) under licence from Forges de Zeebrugge SA (Belgium).

In addition, IPTN is also the main assembler and marketer of military helicopters, ranging from Germany (NBO 105), France (Puma SA-330 and Super Puma NSA-332), and the USA (NBell 412). The NBO 105 helicopters, manufactured under licence from MBB, are specially designed for navy, air force, and army liaison, for training and transport tasks, and is also in servive with the gendarmerie, forestry service and the national SAR organisation.

Most of these deadly weapons, borne out of the bloody helicopter wars in mainland Southeast Asia in the 1960s and 1970s, have been used extensively by the Indonesian armed forces not only to exterminate armed guerilla fighters in East Timor, West Papua, and Aceh, but also to slaughter thousands of unarmed civilians in those territories over the last two decades, as well as to quell a major peasant uprising in Lampung, Southern Sumatra in February 1989, which took more between 49 and 100 lives (Aditjondro, 1994: 40; Vatikiotis, 1994: 185; Schwartz, 1994: 173; Ramage, 1995: 144, 152, 190-191, Angkasa , December 1993: 39-42; Warplane , Vol. 5, No. 54, pp. 1066-1076;Warta Ekonomi , November 7, 1994: 25; Jakarta Post , June 20, 1997; unpublished sources).

Baby formula & prepackaged food company:
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1. Nestle's:
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One of the largest baby formula and prepackaged food producer in the world, Nestle's, is a 57.65% shareholder in PT Nestle Indonesia, a member company of Bimantara. This group is one of the ten largest Indonesian conglomerates owned by Bambang Trihatmojo (Suharto's second son) and Indra Rukmana, Bambang's brother-in-law (wife of Suharto's eldest daughter, Tutut). This company, which was founded in March 1971, produces several brand of instant food and drinks, such as Milkmaid, Dancow, Carnation, Lactogen, Milo, Cerelac, Bear Brand, Nestum and Nescafe, as well as prepackaged spices under the brand of Maggi. It has factories in Waru and Kejayan in East Java, Lampung and South Sumatra.

Apart from diluting the drinks from Nestle's headquarters, the company also buys fresh milk from 60 cooperatives of 25,000 smallholder dairy farmers in the Malang highlands of East Java. As a good PR stunt, the dairy farmers national cooperative, GKSI (Gabungan Koperasi Susu Indonesia ) owns 10.33% of the company (Warta Ekonomi , June 22, 1992: 22, Nov. 21, 1994: 27-28; Prospek, Nov. 26, 1994: 34-35; Asiaweek, May 5, 1995: 45;Swasembada    [Swa ], August 1995: 12, 18).

Chemical and pharmaceutical companies:
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1. Ciba Geigy:
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1.1. In 1970, the Swiss chemical giant Ciba (before it merged with another Basel-based firm, Geigy?) took part in a massive programme to introduce modern agriculture inputs (fertilizer, pesticides) to rice farmers in Java, together with Hoechst (Germany), Mitsubishi (Japan), and an Indonesian company, Coopa Trading Establishment. Although it was registered in Lichtenstein, Coopa was actually owned by a Sino-Indonesian businessman, Arief Husni (Ong Seng Kheng), the director of Ramayana Bank, in which Suharto's step brother, Probosutedjo wasa a commisioner and shareholder and with which General Soerjo, a special assistant of Suharto, was associated.

It turned out to be a major business scandal, because Coopa did not deliver US$ 711,000 worth of pesticides it had been paid to do at the beginning of 1969, and again at the end of 1969 it had been paid for fertilizer which had not been distributed. Due to its strong political backing, Arief Husni was not taken to court, although the Coopa case received strong criticism from the special Anti-Corruption Commission set up by Suharto in 1971, in response to the anti-corruption campaign of Indonesian students and intellectuals (Crouch, 1988: 290; Robison, 1990: 253).

1.2. Distribution of Ciba-Geigy products in Indonesia is handled by PT Darya-Varia Laboratoria (IEFR, 1997: 292). This a member company of the Salim Group, Indonesia's largest conglomerate where Suharto's family interests are represented by Suharto's cousin, Sudwikatmono, and until his departure from public life, by his eldest daughter, Tutut, and his eldest son, Sigit.

1.3. The head office and six branch offices of Ciba Geigy are also mentioned on the 1994 list of IPTN suppliers and contractors, namely: (1). Ciba Geigy AG : CH-4002, Post Check Konto 40-95, Basel, Swiss;
(2). Ciba Geigy S.E. Asia (Pte.) Ltd : Polymers Division 4, Fourth Loyang Road, Singapore 2262;
(3). Ciba Geigy: Jurong Town, POB 264, Singapore 9161;
(4). Ciba Geigy Corporation : 5115 East La Palma Avenue, Anaheim, California 92807-2018, USA;
(5). Ciba Geigy Corporation : 4917 Dawn Avenue, East Lansing, Michigan 48823-5691, USA;
(6). Ciba Composites : Duxford, Cambridge, CB 2 4 QD, U.K.:
(7). Ciba Geigy : France, without address.

2. Fermion, SA (Boehringer Ingelheim Pty Ltd):
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1. This Swiss pharmaceutical company has also contracted its licence to PT
Darya-Varia Laboratoria (IEFR, 1997: 292).

2. A Boehringer subsidiary in Germany, at Postfach 310210, 6800 Mannheim, is also listed as an IPTN supplier or contractor.

3. Sandoz:
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The sole agent of Sandoz, a major competitor of Ciba-Geigy, is the Gemala Group, through two companies, PT Sandoz Chemical Indonesia and PT Sandoz Biochemie Farma Indonesia. The Gemala Group was founded in the late 1970s by Sofyan Wanandi (Liem Bian Koen), a former Catholic student activist who was deeply involved with his elder brother, Jusuf Wanandi (Liem Bian Koen) in supporting Suharto's rise to power in 1965-1967. Sofyan, who worked closely with Suharto's economic assistent, General Soedjono Humardani, was
trusted to manage the business companies of the Army foundation, Yayasan Dharma Putera Kostrad, such as managing the Volkswagen sole agency, and many others.

After ten years working for the Kostrad-linked companies, which were Suharto's earliest money milking cows, Sofyan and his brothers built their own business empire, which is known as the Gemala Group. Gemala's pharmaceutical division, which assembles and distributes the Sandoz products is managed by Willem Biantoro Wanandi, a younger brother of Sofyan, who obtained his Dr. in pharmacology from the Federal Institute of Technology in Zurich. Before joining the family business in Indonesia in 1983, Willem Wanandi has carried out research at the Ciba-Geigy headquarters in Basel, and had also managed the Essential Medicines Action Programme at the WHO headquarters in Geneva. This international experience is what probably led him to become a Special Adviser to the Health Minister in 1987, while already directing Gemala's drug distributor, PT Anugerah Pharmindo Lestari.

Now, apart from being the vice president of the Group, he oversees Gemala's pharmaceutical division which represents Sandoz, Biochemie (Austria), Glaxo (U.K.), Combiphar, Interbat, H. Mack, Bayer (Germany), E. Merck, and Farmitalia Carlo Erba (Italy). Gemala also expanded its production capacity and attempted to develop a "green" image. On December 1, 1993, then Environment Minister Sarwono Kusumaatmadja opened the waste water treatment facility of PT Sandoz Biochemie Farma Indonesia in Citeureup, Bogor, South of Jakarta, designed by die Institut fuer Wasserguete und Landschaftswasserbau of the Technische Universitaet in Vienna, Austria.

Although he is currently managing his own family business, Sofyan himself, has still been closely associated with Suharto and the main Suharto-linked conglomerate, the Salim Group, since he was appointed as the spokeperson of a foundation, Yayasan Prasetya Mulia (YPM), which has Liem Sioe Liong, the Salim Group chairman, and Suharto's cousin, Sudwikatmono, among its board members. He is mostly perceived as acting as a spokeperson of the top Sino-Indonesian business tycoons, since the majority of the 50 YPM members
are Sino-Indonesians.

With his own business conglomerate, as well as his links through the Prasetya Mulia Foundation, Sofyan Wanandi was instrumental in mobilizing support for the Suharto regime from young Indonesian Catholics and nationalists, by offering them jobs in this vast business network. For instance, Suryadi, the leader of the faction of the Indonesian Democratic Party (PDI), which seized power from Megawati Sukarnoputri in mid 1996, works as a director of one of the Gemala companies, PT Aica Indonesia. At that time there were also rumours that Sofyan had funded the rebel PDI congress in Medan which 'elected' Suryadi as the party's new chairperson.

It was exactly with this background that Suharto has found the Wanandis to be excellent scapegoats for the current financial crisis in Indonesia. Sofyan and his brother Jusuf were interrogated for hours by Indonesian military under order of Suharto's son-in-law, Lieut.Gen. Prabowo Subianto. The accusations were that they have funded the banned left-wing People's Democratic Party (PRD), accusations which have not been proven to be true.

This scheme to blame the Wanandis is one of the most bitter ironies of the Suharto regime, since the Wanandis have been some of the strongest apologists for the Suharto regime in its occupation of East Timor. While Jusuf Wanandi, using his position as director of the quasi-intellectual Catholic-dominated think-tank, CSIS (Centre for Strategic and International Studies), has defended the occupation in many international seminars, a younger brother of his, Fr. Markus Wanandi, has served the Indonesian military for years by spying on Bishop Carlos Felipe Ximenes Belo as well as on the students of a Catholic high school which was headed by this
Indonesian Jesuit (Macintyre, 1991: 196; CISI, 1991: 265-269; UPIU, 1996; Bisnis Indonesia, Dec. 20, 1993; Prospek , August 13, 1994: 16-23; Eksekutif , August 1994; Forum Keadilan, Sept. 1, 1994: 36; observations and interviews).

Rescue company:
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1. International SOS Assistance:
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Tommy Suharto's aircharter company, PT Gatari Air Service, has formed a joint venture with International SOS Assistance, which is called PT Intra SOS Asindo. This was based on an MoU between the two companies, signed by Claude A. Giroux from SOS and Tommy Suharto, who heads the Humpuss Group to which Gatari belongs, in Jakarta, on March 23, 1994. With an initial capital of US$ 100,000, and one of the largest air charter companies in Southeast Asia with the largest private helicopter fleets in Indonesia (in 1992, it already operated 46 helicopters, 34 of which were their own, plus seven fixed wing aircrafts, two of which were luxurious executive airplanes), Tommy Suharto hoped to tap into the lucrative safe and rescue businesses in Indonesia.

 The market for this service is predominantly the oil sector with its dozens of oil rigs remoting in distant offshore and onshore places in the Indonesian archipelago, hoping to tap into the lucrative Natuna gas field as well as the Timor Sea oil and gas fields. It is a lucrative business indeed, because seven years ago, in 1992, hiring a helicopter already costed US$ 600 to US$ 1,600 per hour. Its Swiss partner, which has 25 years experience in this field, provides the technical expertise in this area.

International SOS Assistance has also forged a joint venture with an Indonesian travel agent, Maktour, to provide health services for Indonesian pilgrims in Arab Saudi under the auspices of an Islamic organization, Rabita al-Alam al-Islami. In 1994 Maktour had sent 400 Indonesian haj pilgrims under the ONH Plus system, paying US$ 6,000 to this Swiss organization.

Ironically, during the May riots in Jakarta, this Swiss rescue company also profitted from evacuating families of Australian business people (Prospek , September 26, 1992: 46-47; Warta Ekonomi , April 27, 1992: 32, April 4, 1994: 30; Angkasa , May 1994: 65; Bisnis Indonesia , January 19, 1995;Sydney Morning Herald,   May 16, 1998).

(to be continued)