Luhut Binsar Pandjaitan: Why would I create such a company?

TEMPO.CO, Jakarta - In a small visitors room across the swimming pool at his home in South Jakarta, Coordinating Minister for Politics, Legal and Security Luhut Binsar Pandjaitan welcomed the Tempo investigative team last week. He claims not to know Mayfair International Ltd., a shell company in the tax-haven Republic of Seychelles off the shore of East Africa, although his name is listed as its only director.

During the 50-minute interview, Luhut, 68, was accompanied by a number of his staff and senior management of his companies, including the finance director of Toba Sejahtra, Catherine Warouw, and the CEO of Kartanegara Energi Perkasa, Bambang Irawan.

At times, Luhut, a retired army special forces army general, would raise his voice, particularly when he was questioned about Mayfair. But when he recounted his business days with President Joko Widodo, which began in 2009, he would speak with a light tone. Luhut said that whenever he went to Solo, he would be picked up by Jokowi, at the time the city's mayor, driving his own car without a security guard. "I used to address him informally, now I have to call him Pak President," said Luhut, laughing out loud.

Your name is listed in the Panama Papers as director of Mayfair International Ltd., a company domiciled in Indonesia, Jalan Mega Kuningan Barat III No. 11.

I never heard of it. I've asked all my staff to check it out. We never owned Mayfair and this house is number 18.

But did you register that company in 2006? 

I had no money in 2006. I earned some money in 2010, when the price of coal surged. Why would I create such a company? As an officer, I taught and instructed my staff to meet all their obligations. That's why between 2010 and 2015, we paid about US$300 million in taxes. And we got an award for it. (A staff showed the plaque from the Jakarta Tax Office to Sulimitra Baratama Nusantara, a company Luhut owns.)

Why didn't you include this company in your list of assets? 

Yes, it's not there. And no money either. Why should I list it?

The shareholders of Mayfair are Persada Inti Energi and Buana Inti Energi.

Buana Inti Energi is affiliated with our company. But I don't know of any Persada.

How about Pelita Buana Karya and Elizabeth Prasetyo Utomo, who is listed as the owner of Persada. Do you know them? 

Elizabeth used to be my finance director. In 2008, I asked her to resign because there was disagreement over what we were building, transparency in the company. We cut off relations. (Elizabeth did not respond to Tempo's request for a confirmation.) (*)

Read the full interview in this week's edition of Tempo English Magazine