Bob Hasan
Encyclopedia
Mohamad "Bob" Hasan is an Indonesia
n businessman, former Minister of Trade and Industry, and friend of former president of Indonesia
, Suharto. Hasan was convicted of corruption
in 2001 in a widely-publicised trial.
descent and whose birth name is The Kian Seng , was born in Semarang
, Central Java
, Dutch East Indies
(now Indonesia
) in February 1931. He changed his name upon becoming a Muslim
. He is a foster son of Gatot Subroto, a general in the Indonesian Army
, who commanded then-Colonel Suharto in the 1950s, and through whom Hasan met Suharto.
After Suharto took the presidency in 1966, he initiated a massive expansion of Indonesian commercial logging, especially in the islands outside of Java
. In the 1970s Hasan served as the required Indonesian "partner" for foreign companies wanting to harvest timber in Indonesia, working most notably with the United States
corporation Georgia Pacific, and also established a number of joint ventures between his and government-owned companies. In 1981 the government banned the export of unmilled timber, leading to many foreign companies selling their Indonesian operations to domestic owners interested in establishing processing operations; Hasan, already a major shareholder in Georgia Pacific's Indonesia operation, became its sole owner when the company left Indonesia in 1983. Starting from timber, he expanded his business interests into financial, insurance, automotive, and other industries, primarily through his Kalimanis holding company
.
Hasan was also Chairman of the Indonesian Wood Panel Association (Apkindo) Under Hasan, Apkindo was given complete control of plywood pricing, marketing, and exports. Apkindo helped Indonesia gain about three-quarters of the worldwide plywood export market by the early 1990s, sometimes using techniques described by observers as "predatory pricing
". Hasan personally profited from his chairmanship both by supporting business he owned, and through control of the fees paid to the organization by other members.
began in 1997. As a result of International Monetary Fund
(IMF) requirements during the crisis, Apkindo was closed down in 1998.
(US$
7 million) as a result of a lawsuit filed by several youth organisations, alleging that Hasan had ordered the burning of forests in Sumatra
. In February 2001, a court unanimously convicted him of causing a US$244 million loss to the Indonesian government through a fraudulent forest-mapping project in Java in the early 1990s, leading to imprisonment. He was imprisoned at Cipinang prison and then at the more secure Nusa Kambangan
, an island off the coast of south-central Java, until his release on parole
in February 2004. Hasan was the first and among the most prominent of former Suharto associates convicted of fraud and corruption after Suharto resigned in May 1998.
Hasan was a member of the International Olympic Committee
from 1994 to 2004, when the IOC expelled him due to his corruption conviction. The IOC was criticised by the Indonesian government in 2000 after the IOC argued that Hasan should be allowed to attend the 2000 Olympic Games in Sydney, Australia despite his being under arrest at the time.
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
n businessman, former Minister of Trade and Industry, and friend of former president of Indonesia
President of Indonesia
The President of the Republic of Indonesia is the head of state and the head of government of the Republic of Indonesia.The first president was Sukarno and the current president is Susilo Bambang Yudhoyono.- Sukarno era :...
, Suharto. Hasan was convicted of corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
in 2001 in a widely-publicised trial.
Early life
Hasan, who is of Chinese IndonesianChinese Indonesian
Chinese Indonesians, also called the Indonesian Chinese, are an overseas Chinese group whose ancestors emigrated from China to Indonesia, formerly a colony of the Netherlands known as the Dutch East Indies...
descent and whose birth name is The Kian Seng , was born in Semarang
Semarang
- Economy :The western part of the city is home to many industrial parks and factories. The port of Semarang is located on the north coast and it is the main shipping port for the province of Central Java. Many small manufacturers are located in Semarang, producing goods such as textiles,...
, Central Java
Central Java
Central Java is a province of Indonesia. The administrative capital is Semarang. It is one of six provinces on the island of Java.This province is the province of high Human Development in Indonesia and its Points Development Index countries is equivalent to Lebanon. The province of Central Java...
, Dutch East Indies
Dutch East Indies
The Dutch East Indies was a Dutch colony that became modern Indonesia following World War II. It was formed from the nationalised colonies of the Dutch East India Company, which came under the administration of the Netherlands government in 1800....
(now Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
) in February 1931. He changed his name upon becoming a Muslim
Islam
Islam . The most common are and . : Arabic pronunciation varies regionally. The first vowel ranges from ~~. The second vowel ranges from ~~~...
. He is a foster son of Gatot Subroto, a general in the Indonesian Army
Indonesian Army
The Indonesian Army , the land component of the Indonesian Armed Forces, has an estimated strength of 328,517 regular personnel. The force's history began in 1945 when the Tentara Keamanan Rakyat "Civil Security Forces" served as paramilitary and police.Since the nation's independence struggle,...
, who commanded then-Colonel Suharto in the 1950s, and through whom Hasan met Suharto.
Business career
After Suharto replaced Subroto as commander of the Army's Diponegoro Division, Hasan worked with Suharto to develop a wide range of side businesses, controlled by the military, that provided much of the funding for the Division as well as extra income for its officers.After Suharto took the presidency in 1966, he initiated a massive expansion of Indonesian commercial logging, especially in the islands outside of Java
Java
Java is an island of Indonesia. With a population of 135 million , it is the world's most populous island, and one of the most densely populated regions in the world. It is home to 60% of Indonesia's population. The Indonesian capital city, Jakarta, is in west Java...
. In the 1970s Hasan served as the required Indonesian "partner" for foreign companies wanting to harvest timber in Indonesia, working most notably with the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
corporation Georgia Pacific, and also established a number of joint ventures between his and government-owned companies. In 1981 the government banned the export of unmilled timber, leading to many foreign companies selling their Indonesian operations to domestic owners interested in establishing processing operations; Hasan, already a major shareholder in Georgia Pacific's Indonesia operation, became its sole owner when the company left Indonesia in 1983. Starting from timber, he expanded his business interests into financial, insurance, automotive, and other industries, primarily through his Kalimanis holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
.
Hasan was also Chairman of the Indonesian Wood Panel Association (Apkindo) Under Hasan, Apkindo was given complete control of plywood pricing, marketing, and exports. Apkindo helped Indonesia gain about three-quarters of the worldwide plywood export market by the early 1990s, sometimes using techniques described by observers as "predatory pricing
Predatory pricing
In business and economics, predatory pricing is the practice of selling a product or service at a very low price, intending to drive competitors out of the market, or create barriers to entry for potential new competitors. If competitors or potential competitors cannot sustain equal or lower prices...
". Hasan personally profited from his chairmanship both by supporting business he owned, and through control of the fees paid to the organization by other members.
Indonesian cabinet ministry
Suharto appointed Hasan Minister of Trade and Industry in 1998, making him the only Indonesian of Chinese descent ever to join Suharto's cabinet. His appointment was criticised by some foreign financial analysts as evidence that Suharto was not interested in substantial fiscal changes after the Asian financial crisisEast Asian financial crisis
The Asian financial crisis was a period of financial crisis that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown due to financial contagion....
began in 1997. As a result of International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
(IMF) requirements during the crisis, Apkindo was closed down in 1998.
Corruption convictions and imprisonment
Hasan was frequently the subject of allegations of corruption as a result of his business dealings and control of much of Indonesian industry; after Suharto stepped down in 1998, a series of court judgements found evidence of crimes. He was fined 50 billion rupiahIndonesian rupiah
The rupiah is the official currency of Indonesia. Issued and controlled by the Bank of Indonesia, the ISO 4217 currency code for the Indonesian rupiah is IDR. Informally, Indonesians also use the word "perak" in referring to rupiah...
(US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
7 million) as a result of a lawsuit filed by several youth organisations, alleging that Hasan had ordered the burning of forests in Sumatra
Sumatra
Sumatra is an island in western Indonesia, westernmost of the Sunda Islands. It is the largest island entirely in Indonesia , and the sixth largest island in the world at 473,481 km2 with a population of 50,365,538...
. In February 2001, a court unanimously convicted him of causing a US$244 million loss to the Indonesian government through a fraudulent forest-mapping project in Java in the early 1990s, leading to imprisonment. He was imprisoned at Cipinang prison and then at the more secure Nusa Kambangan
Nusa Kambangan
Kambangan island is located in the Indian Ocean, separated by a narrow strait off the southern coast of Java island; the closest port is Cilacap in Central Java province...
, an island off the coast of south-central Java, until his release on parole
Parole
Parole may have different meanings depending on the field and judiciary system. All of the meanings originated from the French parole . Following its use in late-resurrected Anglo-French chivalric practice, the term became associated with the release of prisoners based on prisoners giving their...
in February 2004. Hasan was the first and among the most prominent of former Suharto associates convicted of fraud and corruption after Suharto resigned in May 1998.
Hasan was a member of the International Olympic Committee
International Olympic Committee
The International Olympic Committee is an international corporation based in Lausanne, Switzerland, created by Pierre de Coubertin on 23 June 1894 with Demetrios Vikelas as its first president...
from 1994 to 2004, when the IOC expelled him due to his corruption conviction. The IOC was criticised by the Indonesian government in 2000 after the IOC argued that Hasan should be allowed to attend the 2000 Olympic Games in Sydney, Australia despite his being under arrest at the time.