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...hard to say no to Taufik Kiemas. That much a senior executive from Indonesia's largest foreign investor, U.S. mining giant Freeport McMoRan, knew when he accompanied President Megawati Sukarnoputri's controversial husband to the company's mine site last September. Freeport officials were aware that Taufik had been asking about a chunk of shares in the company's Indonesian operations previously held by Mohamad ("Bob") Hasan, a confidant of former President Suharto. Indeed, the issue of the shares came up soon after the Freeport executive boarded the presidential C-130 aircraft carrying Taufik and a 40-member entourage. With...

Author: /time Magazine | Title: Looming Large | 7/8/2002 | See Source »

...Taufik was handed a rare no. Freeport had acted as guarantor for the original loan from Chase Manhattan of $315 million, which enabled Hasan to buy the shares. It had also pledged to lend Hasan's company any shortfall on the interest payments not covered by dividend from the stock, a sum that had climbed to some $69 million by late 2001. Freeport withdrew its guarantee and paid off the $253.4 million remaining on the loan. In return the company got back the troublesome 4.7% stake. Freeport says the decision to repay the loan came after Hasan's company said...

Author: /time Magazine | Title: Looming Large | 7/8/2002 | See Source »

...story of how Taufik sought to keep a chunk of Freeport shares under Indonesian ownership?which he himself confirms?is one example of what is today Jakarta's hottest topic: the increasingly dominant role the President's husband is exercising at the most senior levels of government and business. This isn't another case of your regular, pushy presidential spouse playing gatekeeper, but of a consummate networker aggressively meddling in matters with national ramifications. To many Indonesians, the flamboyant 58-year-old Taufik is now simply the most powerful man in the country. "If Megawati is Number One and Vice...

Author: /time Magazine | Title: Looming Large | 7/8/2002 | See Source »

...Taufik's influence doesn't come solely from his three-decade marriage to the President. Of the pair, he has always been the political animal. He persuaded a reluctant Megawati to enter politics in the first place, and wielded a powerful voice in the councils of her Indonesian Democratic Party of Struggle. But it is typical of the quantum leap his stature and influence have taken since Megawati became President a year ago that, though he is only an ordinary M.P., the President's husband is now "de facto chairman" of the party, says senior M.P. Haryanto Taslam. Controlling...

Author: /time Magazine | Title: Looming Large | 7/8/2002 | See Source »

...took office, President Megawati has continually stressed the importance of clean government and her determination to root out corruption. That's hardly surprising considering the billions of dollars that disappeared in behind-the-scenes influence peddling and cronyism during Suharto's time. There's no evidence that Taufik has done anything illegal. But his casual assumption of presidential prerogatives, his unabashed wheeling and dealing and the memory of Suharto-style backroom deals that clings to those activities have set alarm bells ringing in Jakarta. Speculation on the actions and intentions of the President's husband reminds Indonesians of the opaqueness...

Author: /time Magazine | Title: Looming Large | 7/8/2002 | See Source »

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