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TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto has drawn attention for inviting a number of domestic tycoons to the State Palace in Jakarta on Thursday, March 6, 2025.
This move by Prabowo recalls the actions of his former father-in-law, the 2nd President Soeharto in the New Order era. At that time, the late Soeharto had invited tycoons to a special meeting.
The meeting between Prabowo and several tycoons was revealed based on a post from the official Instagram account of the Cabinet Secretariat. There were eight major entrepreneurs in Indonesia who were invited by Prabowo, namely Anthony Salim, Sugianto Kusuma or Aguan, Prajogo Pangestu, Boy Thohir, Franky Oesman Widjaja, Dato Sri Tahir, James Riady, and Tomy Winata.
"On that occasion, the President discussed the latest developments in the country and the global world, as well as the main programs currently being implemented by the government, including the Free Nutritious Meals program, infrastructure, textile industry, food self-sufficiency and energy, industrialization, and the Danantara Investment Management Agency," wrote the Instagram account @sekretariat.kabinet.
About Koncoisme Politics
Koncoisme politics, a term popular during the Soeharto era, especially from the 1960s to the 1990s, is a doctrine that prioritizes friends as work partners, according to the Great Indonesian Dictionary. To support his power, Soeharto forged good partnerships with a number of wealthy individuals at the time, including Liem Sioe Liong and The Kian Seng alias Bob Hasan.
One of Soeharto's policies was to initiate fundraising from tycoons for the purpose of eradicating poverty in 1994. Soeharto had gathered tycoons in Bali, and also in Tapos, Bogor, West Java. He demanded social commitments from the tycoons who had earned significant profits from their various businesses in the country.
The Secretary of the Honorary Council of the Indonesian Journalists Association (PWI) H. Ilham Bintang once wrote to Antara, that the idea did not initially run smoothly. Soeharto indeed wanted the businesspeople to donate one percent of their wealth, but it was met with a cold reception from the tycoons.
According to the stories that circulated, Liem Soei Liong objected, citing that one percent of the Salim Group's wealth was too large to be donated. Liem's objection made Soeharto furious. Later, they agreed on a contribution formulation: that the tycoons would donate two percent of their profits.
The emergence and institutionalization of the Koncoisme during Soeharto's regime consisted of practices and collusion of political corruption by the ruling power with a handful of business figures. They were pampered with the granting of monopolistic rights and government procurement contracts for goods and services. As a result, the economic profits gained became excessive.
Professor of the Faculty of Business and Economics at the University of Melbourne and at Newcastle University, Howard Dick, as well as a Researcher in the field of International Business Marketing and an Indonesianist from the Faculty of Economics at La Trobe University, Australia, Jeremy Mulholland, once revealed in a Tempo column that Liem Sioe Liong, born in China, was Soeharto's closest confidant.
"From their friendship, Liem successfully raised a large-scale fund since 1966 to become the capital of his conglomerate," they wrote in the Tempo edition of May 15, 2018.
Next is The Kian Seng, born in Semarang and later changing his name to Bob Hasan. He later converted to Islam. Bob Hasan was an adopted child of Gatot Subroto, Soeharto's elder in the Indonesian National Armed Forces (TNI). Bob Hasan not only led the Kalimanis and Nusamba business groups, but he also managed funding related to several of Soeharto's family foundations.
Although, before the Soeharto regime, political business corruption already existed. Koncoisme never really became stable and institutionalized. During the parliamentary political system from 1950 to 1957, due to the frequent changes in the cabinet, mature friend relationships were not possible to form. President Sukarno's resistance to capitalism also became an obstacle.
When Soeharto came to power in 1966, Liem Sioe Liong rose to prominence and enjoyed special access to the Presidential Palace. Since then, koncoisme politics has rapidly developed following the stability of Soeharto's political regime for 32 years, providing an environment that nurtured koncoisme. On the other hand, Soeharto was smart enough to prevent the tycoons from seizing power and being weak in politics.
On one hand, political rulers utilized Chinese businessmen to become a money-making machine, providing them with facilities and ease. However, on the other hand, anti-Chinese discourse was developed. They were scapegoated as black tycoons. Until the fall of the New Order, the Chinese ethnicity even became the outlet for the people's anger towards the government.
Koncoisme Practice?
Two days before the presidential election in 2024, during a graduation speech at the University of Defense (Unhan), Prabowo Subianto -at that time serving as the Minister of Defense- once criticized the practice of koncoisme and 'connections'. The Chair of the Gerindra Party emphasized that positions should be given based on achievements if the country wants to progress and excel.
"If our country wants to move forward, to be great, then respect and immediate promotion should be given to those who have achievements. We need to move towards a merit system," said Prabowo during an open senate session for the graduation of bachelor's, master's, and doctoral students at Unhan's Red and White Hall, Sentul, Bogor, on Monday, February 12, 2024.
Lately, the Mining Advocacy Network (Jatam) has criticized Prabowo's statement from a year ago. As posted through social media account X on Tuesday, March 4, 2025, Jatam stated that Prabowo seemed to have 'let the cat out of the bag', as they considered that Prabowo had actually engaged in the practice of koncoisme after winning and being inaugurated as the President of the Republic of Indonesia.
Jatam detailed how Prabowo had engaged in the practice of koncoisme. For example, in the Red and White Cabinet, there were 54 party representatives included in the cabinet line-up as ministers/vice ministers and heads/deputy heads of agencies/special presidential envoys/special presidential councils. Of the total number, the Gerindra Party had the largest portion, with 18 people.
This included five ministers, eight vice ministers, and five heads/deputy heads of agencies/special presidential envoys/special presidential councils who reported directly to the president.
Not only party cadres, but also supporters of Prabowo's politics who were part of the National Campaign Team (TKN) were given positions. The number reached 36 people, spread across almost all structures, from ministerial positions, vice ministerial positions, to special presidential envoys and agency/organization heads. Among those names, some came from a background in the extractive industry sector.
Tycoons
Prabowo's move to invite tycoons has received attention. The President, along with eight entrepreneurs, discussed various recent developments in Indonesia and the world, as well as deliberated on the government's main programs, such as the Free Nutritious Meals (MBG) program, infrastructure, food self-sufficiency and energy, textile industry, industrialization, and the National Investment Management Agency Danantara (BPI Danantara).
Prabowo came under scrutiny as some of the tycoons he invited are controversial. For example, Sugianto Kusuma alias Aguan. Aguan is one of the successful businessmen in Indonesia who founded the Agung Sedayu Group in 1970. Most recently, Aguan has played a role in several National Strategic Projects (PSN) such as the Swissotel Nusantara and Pantai Indah Kapuk (PIK) 2.
Aguan is allegedly involved in the sea reclamation scandal in the waters off Tangerang, Banten. PT Pantai Indah Kapuk Dua (PANI) owned by Aguan is suspected to have a majority stake in PT Cahaya Inti Sentosa, a company holding the Building Rights Certificate (HGB) in the waters off Tangerang, Banten. PT PANI holds the majority of shares with ownership of 88,500 shares worth Rp88 billion.
Then there's Tomy Winata, who is not separated from the controversial Rempang Eco City project. The project is carried out by a company owned by businessman Tomy Winata. The development project for Rempang Island in Batam City has drawn public attention as dozens of village residents refused to be evicted. There was even a clash with the authorities in September 2023.
The development of the Rempang Eco City project is the result of cooperation between the central government through the Free Trade Zone and Free Port Management Agency (BP Batam) and the Batam City Government with PT Makmur Elok Graha (MEG), a subsidiary of Artha Graha, a business group built by Tomy Winata.
Another controversial tycoon is Garibaldi Thohir alias Boy Thohir. His name was mentioned in the alleged crude oil corruption case at Pertamina.
The Head of Public Information for the Attorney General's Office (Kapuspenkum) Harli Siregar denied that the contents of the confiscated document at Reza Chalid's house had been leaked to the public. Harli also confirmed that the State-Owned Enterprises Minister Erick Thohir and Boy Thohir were not involved in the alleged corruption of crude oil management and refinery products at PT Pertamina Subholding for the 2018-2023 period.
"I have asked the investigators, and no records with such a narrative were found. The source should also have been sought," said Harli in Jakarta on Wednesday, March 5, 2025, as quoted from Antara.
Eka Yudha Saputra, Adil Al Hasan, and Yogi Eka Sahputra contributed for this article.
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