Soeharto’s Indonesia: A Better Class of Corruption
101
family, or his supporters and theirs. Although there may be little evidence of
anything so crude as direct payments as quids pro quo, it is surely no coincidence
that members of the first family came to be significant shareholders in the many
firms that benefited from some kind of privilege granted by the government
(Robison, 1986:343-50; Backman, 1999:255-99).1
Another technique for
harvesting the rents generated by these privileges was for the favoured firms to
‘donate’ large sums to a number of foundations (yayasan) — tax-free entities
cloaked as charitable institutions of one kind or another — controlled by Soeharto,
and whose funds were deployed for purposes known only to himself.
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