Indonesia's finance ministry said on Monday it is in the process of seizing assets from a firm linked to former President Suharto's family, and warned that the company must repay debts of 2.37 trillion rupiah ($263 million).
Timor Putra Nasional (TPN) was set up by Suharto's youngest son, Hutomo Mandala Putra -- who is also known as Tommy Suharto -- to build Indonesia's national car.
The controversial project attracted widespread criticism because TPN simply sold rebadged versions of South Korean cars.
When the Asian financial crisis hit Indonesia in 1997-98, TPN defaulted on its loans to Indonesia's state banks. So far, the finance ministry has been unsuccessful in recovering the money owed.
"PT TPN's debt which has to be repaid amounted to 2.374 trillion rupiah, excluding 10 percent administrative costs," the finance ministry said in a statement.
It added that it is "currently in the process of seizing the assets of PT TPN," but did not give details. ($1=9005 Rupiah)
ReutersLast Mod: 20 Nisan 2010, 11:52