About This Report
“Unkept Promise”
January 12, 2010

IV. The TNI’s Business Holdings

Even after its sell-offs and business failures, the TNI at the end of 2007 maintained 23 foundations and over 1,000 cooperatives, including ownership of 55 companies, as well as leases on thousands of government properties and buildings. (Data for 2008 and 2009 was not available at this writing.)

Most military-owned companies—53 of the 55 identified in the review—were held by foundations. TNI headquarters and its service branches have at least one foundation each, the army alone having 16 different foundations. The military foundations, in turn, control holding companies through which they invest in individual businesses.

The main foundations are:

  • TNI headquarters: Yayasan Markas Besar ABRI (Yamabri)
  • Army: Yayasan Kartika Eka Paksi (YKEP)
  • Army Strategic Reserve Command (Kostrad): Yayasan Kesejahteraan Sosial Dharma Putra (YKSDP Kostrad), previously known as Yayasan Dharma Putra Kostrad (YDPK)
  • Army Special Forces Command (Kopassus): Yayasan Kesejahteraan Korps Baret Merah (Yakobame)
  • Navy: Yayasan Bhumyamca (Yasbhum)
  • Air Force: Yayasan Adi Upaya (Yasau)

Government officials involved in the process shared with Human Rights Watch the names of the largest TNI businesses identified during the Indonesian government’s 2008 review. According to their findings, as of the end of 2007 the following business interests were held by the military through foundations, either as fully-owned companies or joint ventures, all of which were legally registered companies with significant assets:

  • TNI headquarters (value of assets not specified)
    • PT. Manunggal Air Service
  • Army (assets exceeding Rp10 billion, or approximately $1 million)
    • PT. Kobame Propertindo
    • PT. Dharma Medika
    • PT. Sumber Mas Timber
    • PT. Saguaro
    • PT. Sinkona Indonesia Lestari
    • PT. Meranti Sakti Indonesia
    • PT. Meranti Sakti Indah Plywood
    • PT. Sumber Mas Indah Plywood
    • PT. Kartika Airlines
    • PT. Buana Graha Artha Prima
    • PT. Tri Usaha Bakti
  • Navy (assets exceeding Rp10 billion/$1 million)
    • PT. Jala Bhakti Yasbhum
    • PT. Jalakaca MitraGuna
    • PT. Admiral Lines
  • Air Force (assets exceeding Rp10 billion/$1 million)
    • Klub Persada Halim

In addition, the Indonesian government identified two legally registered companies held by the Army headquarters cooperative, Induk Koperasi Angkatan Darat (Army Parent Cooperative), known as Inkopad:

  • PT. Reka Daya Kartika
  • PT. Mina Kartika