Finances of Opposition Leader Prabowo and Other Public Figures Exposed in Paradise Papers

Jakarta Globe, Tabita Diela,November 06, 2017

Tommy Suharto, right, hands over his tax report to Ken Dwijugiasteadi, director
general for taxation at the Ministry of Finance, in September 2016. (SP Photo/
Joanito De Saojoao)

Jakarta. Three well-known public figures, including children of the late President Suharto and opposition party leader Prabowo Subianto appear in the Paradise Papers, a global investigation released by the International Consortium of Investigative Journalists, or ICIJ, on Sunday (05/11).

The Paradise Papers put a spotlight on the trillions of dollars moved through offshore tax havens by politicians, business owners, millionaires and powerful people across the globe.

The report exposed 13.4 million leaked documents — obtained by the German newspaper Süddeutsche Zeitung and shared with the ICIJ — including loan agreements, financial statements, emails, trust deeds and other paperwork from over nearly 50 years from offshore law firm Appleby, Singaporean company Asiaciti Trust and official business registries in Bermuda, Cayman Islands, Lebanon, Malta, Trinidad and Tobago.

ICIJ highlighted the name of retired general and leader of the Great Indonesia Movement Party (Gerindra) Prabowo Subianto, as well as two children of the late President Suharto, Hutomo Mandala Putra — also known as Tommy Suharto, head of Humpuss Group — and Siti Hutami Endang Adiningsih for having registered companies in tax havens overseas.

The ICIJ, however, posted a disclaimer on its site, saying that the organization did not intend to suggest or imply that any people or companies included in the ICIJ Offshore Leaks Database have broken the law or acted improperly.

The Jakarta Globe has not independently examined the documents.

"We started [combing through the data] from the beginning of this year. [There are only] 200 Indonesian names and 15 companies," Wahyu Dhyatmika, an editor for Tempo Media Group and an investigative reporter, told the Globe.

Indonesia's Tempo is one of 95 media partners that explored 13.4 million leaked files. According to Wahyu, Tempo paper and magazine will release other names one by one this week.

Wahyu said the Paradise Papers and their predecessor, the Panama Papers, come from different databases, though multiple names appear on both lists.

Naming Names

Wahyu said journalists involved in the report support a fairer tax policy for all.

"Instruments that allow countries to track the wealth of their residents must be prepared," Wahyu said.

Hestu Yoga Saksama, the tax office's spokesperson, said the government will "follow-up with the latest data and information from various sources" including the Paradise Papers, but has refused to comment on Tommy's or Prabowo's companies.

"We can't name a taxpayer specifically to the public," Hestu said, referring to secrecy rules in a 2009 law about general provisions and tax procedures and a 2016 law about tax amnesty.

Hestu, however, noted that the Automatic Exchange of Information (AEOI) — which will begin operations in September 2018 for Indonesia — will provide more detailed, wider and verified data compared to the independent report obtained by journalists.

Tommy joined Indonesia's tax amnesty program last year. During a press photo opportunity in Jakarta in September 2016, he said his family should "make the best use of the initiative" by joining the program.

Panama Papers showed vulnerability of whole system: Panama president

Yahoo – AFP, May 3, 2016

Panama's President Juan Carlos Varela delivers keynote address at a luncheon
during the Washington Conference on the Americas at the State Department on
May 3, 2016 in Washington, DC (AFP Photo/Mandel Ngan)

Washington (AFP) - The scandal triggered by the Panama Papers leak of information on how and where the world's wealthy stash funds to avoid detection or taxes underscored many countries' vulnerabilities, President Juan Carlos Varela said Tuesday.

Speaking at the State Department in Washington, the Panamanian president said the documents "reveal a worldwide problem, that involves many countries with legal and financial institutions" vulnerable to actions "that are not in the public interest."

Mossack Fonseca's founder lawyer Ramon

 Fonseca is a friend of Panama's President 

Juan Carlos Varela (shown here) and, until 

March, served as a senior advisor in his 

cabinet (AFP Photo/Rodrigo Arangua)

To that end, countries need to improve transparency and information sharing, Varela argued.

"We urge the international community to maintain a respectful dialogue through diplomatic channels," he added.

Panama and the United States last week signed an agreement on sharing of back account information in a step Panama's finance minister hailed as proof of his country's cooperation in fighting tax evasion.

The bilateral agreement comes weeks after the Panama Papers, a series of reports around the world revealing how one Panamanian law firm set up offshore entities to help the world's wealthy stash their assets.

Following the revelations, Panama has come under intense international pressure to open its financial sector to greater transparency or risk being put back on a global "tax haven" blacklist.

While the government has long said it is committed to that goal and has made some reforms in that direction, it has so far not signed up to an international standard on automatic sharing of tax information set by the Organisation for Economic Cooperation and Development.

Panama's President Juan Carlos Varela, left, sits with Singapore's President 

Tony Tan, right, for a meeting at the Istana or presidential palace on Friday, 

April 22, 2016, in Singapore. (AP Photo/Wong Maye-E)

Related Article:

Switzerland, Singapore join clampdown on bank secrecy (Update)

BPK Chairman Clarifies His Link With Panama Papers to Tax Office

Jakarta Globe, Dion Bisara, April 16, 2016

Harry said that he set up Sheng Yue in 2010, when he was still a lawmaker in the
House of Representatives, to help with a family business. But, the endeavor was
later cancelled prompting him to disown the company. (Antara Photo/eno Esnir)

Jakarta. Harry Azhar Aziz, head of the Supreme Audit Agency, or BPK, on Friday (15/04) told the tax office he sold his offshore company for one Hong Kong dollar last year, clarifying that he was not using the company to avoid tax.

Harry has been in hot water this week after Tempo magazine unveiled his name as the owner of Sheng Yue International Limited, set up with help of Panamanian law firm Mossack Fonseca. The law firm was the source of the so-called Panama Papers, the largest leaked financial records to date that shed lights on tax scandals among public officials, corporate and the rich and famous across the world.

The Finance Ministry's directorate general of tax summoned Harry on Friday to learn why his name end was on the lists. Harry met President Joko Widodo on Thursday, also to clarify the ownership.

Harry said that he set up Sheng Yue in 2010, when he was still a lawmaker in the House of Representatives, to help with a family business. But, the endeavor was later cancelled prompting him to disown the company.

"The company has no assets. You can say it was a one-dollar paper company," Harry said as quoted by Antaranews.com, after a meeting with tax officials on Friday.

"There has been no transaction and I sold it early in December 2015," he said. He also argued that setting up a paper company is a common practice in the country that allows them, in order to simplify transactions across borders and save costs.

Ken Dwijugiasteadi, the tax director general, said that that his office is still verifying Harry's claim.

"If there are back taxes, I believe he would pay. As a public official he will show a good example to the rest of the citizens," Ken said.

Last week, President Joko instructed tax office to scrutiny every name found in Panama Papers, in order to maximize tax revenue this year.