One of Jokowi’s most trusted ministers listed in Panama Papers

JAKARTA, Indonesia –A name of a senior cabinet minister was among those in the infamous Panama Papers.

The stash of records leaked from legal firm Mossack Fonseca named Coordinating Minister for Political, Law and Security Affairs Luhut Binsar Panjaitan as director of Seychelles-based company Mayfair International. (READ: Luhut: The general who has Jokowi’s back)

According to Indonesia-based Tempo – which was among the media groups involved in digging through the trove of 11.5 million documents – Mayfair was set up by the Panama-based law firm which specializes in putting up offshore companies on June 29, 2006.

The company listed its address as an office suite in Mahe, Seychelles, an offshore financial center deemed a tax haven.

Tempo reported that Mayfair is owned by two Indonesian companies – PT Persada Inti Energi, and PT Buana Inti Energi.

On Monday, April 25, Panjaitan denied any links to the company. He said he has never heard of Mayfair and claimed that he had no address in Seychelles. Panjaitan emphazied that he, his company and his family have no connection with Mayfair, Inti Energi nor Persada. 

“I do not know the company Mayfair,” he said. “In fact, in 2006 I did not have money. So, why would I set up a shell company like that?”

He said the company could have been created without his knowledge.

“I’ve never had a company abroad,” he said.

Interestingly, in the certificate of appointment of directors of Mayfair, Panjaitan was the only Indonesian person listed.

The certificate also includes an address of Panjaitan in Jalan Mega Kuningan Barat III No. 11, South Jakarta. There is also said to be a copy of his passport among the papers.

Offshore financial dealings are not illegal in themselves but may be abused to hide assets from tax authorities, launder the proceeds of criminal activities or conceal misappropriated or politically inconvenient wealth.

Seychelles, an island country in the Indian Ocean, about 1,600 km east of mainland Africa, is known as a favorite tax jurisdiction asylum in addition to the British Virgin Islands.

Tycoons, politicans

Panjaitan also insisted he pays the right taxes, after it was pointed out that the company was not among those listed in the State Officials Wealth Report (LHKPN). 

“I do pay taxes. In fact, I pay taxes faithfully,” Panjaitan said.

The inclusion of Panjaitan’s name in the Panama Papers comes as the Indonesian government cracks down on tax collection, in an attempt to meet its tax collection target of $117 billion. Only a tenth of the 250 million population are registered taxpayers.

Panjaitan is one of the most powerful men in the world’s fourth-largest nation. The former general now senior minister, has 6 ministers reporting to him including those with the foreign, home affairs and defense portfolios.

Before this, he served as chief of staff of President Joko Widodo, widely known as Jokowi, for about 9 months.

Many observers agree his gatekeeping post was created especially for Panjaitan, a key voice in determining alliances and access to Jokowi. For a short time, he held both posts at the same time.

He retired from the military in 1999 and later became ambassador to Singapore, and then served as Industry Minister under President Abdurrahman Wahid from 2000 to 2001.

He was also a businessman and built a fortune from a sprawling commodities group that focused on natural resources (oil, gas and mining), power generation (coal, gas and geothermal) and agriculture.

Other names

In addition to Panjaitan, other Indonesian names mentioned in the Panama Papers include some tycoons or public figures, such as Harry Azhar Azis, Supreme Audit Agency (BPK) chairman; Sandiaga Uno, a candidate in the 2017 Jakarta gubernatorial elections; oil and gas businessman Muhammad Riza Chalid; and a fugitive in the Bank Bali corruption case, Djoko Soegiarto Tjandra.

Earlier this month, one of the biggest document leaks in history known as the Panama Papers, was revealed by the International Consortium of Investigative Journalists (ICIJ).

The vast stash of records were leaked from legal firm Mossack Fonseca, a Panama-based law firm with offices in 35 countries.

A tangle of confidential financial dealings by the elite was exposed by the papers, from aides of Russian President Vladimir Putin to relatives of Chinese President Xi Jinping, sports celebrities and screen stars. The inclusion of Iceland Prime Minister Sigmundur David Gunnlaugsson also led to protests in the country resulting in his resignation.  – Rappler.com