Swiss court targets Indonesian president-elect Subianto’s family over tax dues

Swiss authorities have intensified their efforts against the family of Indonesian president-elect Prabowo Subianto due to outstanding tax liabilities owed by his brother, influential businessman Hashim Djojohadikusumo.

The Swiss Federal Supreme Court has allowed the seizure of bank accounts, established over two decades ago in the names of Hashim and his wife Anie, which contain nearly $500,000, Caliber.Az reports, citing Financial Times.

This action is part of a long-term effort to recover substantial tax dues incurred by the couple during their seven-year residence in Geneva in the late 1990s. As of April 2024, they were jointly liable for SFr 131.2 million ($154.2 million), according to the Canton of Geneva.

The timing of these developments coincides with Prabowo's impending inauguration as Indonesia's president. Hashim, 70, serves as one of Prabowo’s closest advisers and is a prominent businessman with interests in mining, agriculture, and renewable energy.

Hashim and Anie have claimed they are unable to pay their tax debts due to insolvency, stating they have spent vast amounts bailing out Prabowo's business ventures and financing his election campaigns. They also argued their divorce should exempt them from tax obligations, but the Swiss courts dismissed these claims in a December 2023 ruling.

This seizure follows the earlier auction of two luxury villas owned by Anie in Anières, which fetched SFr 12.3 million ($14.5 million) in April. The accounts in question were opened by Hashim and Anie in late 2001/early 2002, with their three children listed as beneficial owners. The children, who were minors at the time, were kept unaware of the accounts, with plans for the funds to be transferred to them upon reaching 25. However, no transfer occurred.

The Swiss court found that despite being named as beneficial owners, the children had not proven they controlled the funds, which originated from their father's wealth. The eldest child, Aryo Djojohadikusumo, is CEO of a tin mining firm within Hashim’s Arsari Group, while Rahayu Djojohadikusumo is deputy chair of her uncle Prabowo’s political party, Gerindra, and Sitie Djojohadikusumo serves as director of finance and treasury at Arsari.

Neither Hashim, his family, nor the president-elect's office have commented on the matter. In a July interview with the Financial Times, Hashim described the Swiss authorities as "very, very unreasonable" and vowed to continue contesting the tax case. The initial report on the account seizures was published by Gotham City, a Swiss investigative news outlet. 

By Aghakazim Guliyev