Karawang: The Rotten End of the Deal

PT Industri Sandang I gave away its asset in the upscale area of Patal, Senayan, South Jakarta. Without any tender process, Finance Minister J.B. Sumarlin, on behalf of the government, appointed Anthony Salim, son of tycoon Liem Sioe Liong, through PT Delta Graha Citra, as its business partner.

What a sweet deal it wasassets of Industri Sandang in Senayan, valued at Rp115.8 billion, were to be exchanged for land and a modern factory in Teluk Jambe, Karawang, plus 10 percent of the shares in the superblock project in Patal Senayan.

But the deal fell through. The quality and condition of the factory fell short of what was promised. Rejection of the deal from the directors of PT Industri Sandang I had, at one point, made the exchange process tough. During the six years of the land-swapping process, members of the board of directors of PT Industri Sandang I had changed three times.

After President Suharto had requested that it be finalized, the land swap was completed at last. In 2000, the Supreme Audit Agency (BPK) announced that the land swap had cost the government Rp121.63 billion. Nevertheless, the case remains pending up until now.