The Downfall of a Palace Tycoon

Asmawi Lida was flipping through an old photo album given to him by his late father, Sulaiman Lida. Albeit a little shabby, each photograph was still vivid enough, depicting the closeness and friendship between President Sukarno and several state officials.

"We never dared to take this album out before, Sir. During Soeharto's era, I hid this photo album in my house and never touched it even once. I kept it there with the thought that perhaps I might need it someday," said Asmawi, a 69 year-old retired man.

The album stores photographs of a fundraising event held at the State Palace on 9 July 1964. That night, hundreds of tycoons including entrepreneurs and traders of both large and small industries were present. When President Sukarno appeared, all of the guests paid their respect to the founding father.

As usual, Sukarno commenced the event by delivering his speech and expressing the purpose of the gathering. He was passing the hat among those entrepreneurs to support the Dwikora Operation (Dwi Komando Rakyat, or People's Two Command, that is related with the Indonesia-Malaysia Confrontation) in order to thwart the establishment of the Federation of Malaysia. Sukarno went through the guests' names one by one, and each of them donated a certain amount of money.

Teuku Markam, a renowned rubber tycoon from Aceh who already gave away Rp50 million, came up to Oey and whispered. "Mr. Haji Karim, if I'm allowed to hug the President, I'll give another Rp50 million."

His offer was passed to Sukarno who replied with a straight answer, "oh, seriously." Oey was determined. "Just a hug." Sukarno finally agreed.

Markam then hugged the President. The room was filled with laughter from the amused audience. Markam pulled a cheque for Rp50 million from his pocket. After that, to anyone's surprise, Markam walked towards Oey again and threw his next offer: if he's allowed to kiss the President, he'd add Rp100 million.

Markam’s wish was dispatched, but Sukarno turned it down. Again, Oey tried to convince him, "It is just a mere kiss on the cheek for a second, but 100 million will be added to the fund. It's not a small number." Sukarno said yes. Markam kissed the President on the cheek, and the attendees went boisterous. Another Rp100 million was easily added to the collected fund.

The festivity of the fundraising event was recounted by Haji Abdul Karim Oey, a Chinese businessman, in his memoir Mengabdi Agama, Nusa dan Bangsa: Sahabat Karib Bung Karno. The occasion was a huge success, raising Rp650 million of funds, a lot more than the expected target. From the total amount of donation, around Rp300 million was coming from Markam's pocket alone.

Markam was satisfied. He compiled the photos of the fundraising night in an album titled "The Memories of Dwikora Fundraising Night at the State Palace, 9 July 1964". The album was multiplied and distributed to the officials, his relations, and all of his company's, PT Karkam, subsidiaries.

Asmawi Lida is keeping one of them. His father, Sulaiman Lida, was Markam's cousin and employee who managed the rubber plantation in Pekanbaru.

"When Markam's rubber factory was expropriated by the New Order government, all stuff related to Mr. Markam were incinerated. My father only managed to save that one photo album," said Asmawi.

The photo album was the testament of Markam's reputation as Sukarno's "golden child", a privilege that eventually took a sacrifice: the downfall of his business kingdom.

The Departure of the Captain

Teuku Markam was born in Panton Labu, North Aceh on 12 March 1924. His father, Teuku Marhaban, was a keuchik (head of the village), while his mother had passed away when he was very young.

Growing up in a settled family, Markam was able to pursue education in the public school for bumiputera.  “I rarely went to the classes and only attended twice a week,” said Markam in Apa & Siapa: Sejumlah Orang Indonesia 1983-1984.

The unrestricted upbringing of his made Markam eventually abandon his education completely. Markam also called himself a mischievous boy who was indifferent to his responsibility of going to school. In the fifth grade, he dropped out. His father then sent him to an Islamic school in the hope that he’d grown to be an observant and unsecular Muslim.

At 9 years old, another misfortune came to Markam’s life. His father died, leaving Markam to be raised by his sister, Cut Nyak Putroe. Unfortunately, there wasn’t much written record about Markam’s teenage days until the Japanese arrived.  

During the Japanese occupation, Markam enlisted as the volunteer army Heiho, completing his mandatory military service in Kutaraja (Banda Aceh). He was promoted to the rank equal to second lieutenant and was stationed in Manila when Japan defended the Philippines from the Allies.

When the war ended, Markam was in Singapore. “I smuggled weapons for the struggle from there to Pekanbaru,” said Markam. He then joined the army of the Indonesian National Military (TNI). After his arrival in Sumatra, he was involved in the Battle of Medan Area on the Tembung front.

<div class="strect-width-img"><figure><div><img src="https://cdn.prod.website-files.com/61af270884f7a0580d35618e/627dffbc88001300a97fa484_Intersection%2013.jpg" alt="img"></div> <figcaption>Lieutenant General Gatot Subroto (center). (Perpusnas)</figcaption></figure></div>

In 1950, Captain Markam was assigned as the officer of the General Staff of the Army (SUAD) II/Operations. Then, he was appointed as an aide to the Deputy Chief of Staff of the Army Lieutenant General Gatot Subroto.

Captain Markam dedicated more than a decade of his life in the Indonesian military. In 1957, he submitted his resignation to Gatot Subroto, citing a conflict with his superior officer whose rank was major as his reason.

“I’m done having to do tabik (greeting with respect) to Major everyday,” said Markam.

In a booklet published by Balai Pelestarian Sejarah dan Nilai Tradisional Banda Aceh titled “Teuku Markam: Kisah Muram Seorang Filantropi Bangsa”, Hasbullah mentioned that Markam came into conflict with the Chief Staff of KODAM Iskandar Muda Major Teuku Hamzah. The clash caused Markam to be put in a detention, but it could finally be resolved with the help of the Commander of KODAM Iskandar Muda Colonel Sjamaun Gaharu.

Retiring from the army, Markam started his venture in business. His first enterprise was a tannery under the name PT Karkam, which stands for Kulit Aceh Raya Kapten Markam. Later, Markam's company expanded to the construction and trade sector.

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Sumatra's King of Rubber

Markam was introduced to President Sukarno through Gatot Subroto. Once, Markam was entrusted by Sukarno to handle the capital move of the newly-established Riau Province from Tanjung Pinang to Pekanbaru, with a hope for Pekanbaru to grow as the economic hub for the Riau Islands.

"I doubt I'm able to do it if the command is only given through a verbal mandate, Father," said Markam. That's how Markam won the heart of the most powerful person in Indonesia.

A written order from Sukarno was subsequently issued with a requirement for the project to be finished in five years, but it only took Markam three years to accomplish that target.

Since then, Markam's friendship with Sukarno grew into a steadfast loyalty. His business was thriving, especially after Sukarno established the Supreme Economic Operation Command (KOTOE) in April 1962 to resolve Indonesia's economic problems.

KOTOE's direct head was President Sukarno, while in Riau, Governor Kaharuddin Nasution was appointed as the deputy. One of Kaharuddin's decisions was to appoint PT Karkam to collect and export the abundant supply of rubber in Riau.

Markam seized that opportunity to solidify his power in Riau's rubber industry under PT Karkam by purchasing the local rubber in bulk and exporting it to Singapore.

"PT Karkam was quite popular and bought the local rubber in Riau with extremely cheap price, even sometimes the payment was in the form of a coupon and a promise that it'd be paid later," said Prabosutedjo in Keimanan Guru Pengusaha.

Markam surely knew how to return the favor. Later, he granted a donation of Rp300,000,000 to Governor Nasution to build a mosque in Riau and a road in Pekanbaru, as well as to repair the building of Riau's District Public Prosecutor’s Offices. The donation was made coinciding with the commemoration of Riau Province’s eighth anniversary.

Sukarno’s “Ganyang Malaysia'' policy bestowed more blessings to Markam. That time, the Indonesian government cut off all of its economic relations with regions that declared themselves as part of the Federation of Malaysia, particularly Malaya and Singapore, and carried out the “de-dollarization” in the Riau Province.

As cited by Antara on 24 December 1963, PT Karkam was requested by the central government to invest in the economic development of the Federation of Malaysia’s cross borders areas. One of PT Karkam’s actions was to build a rubber remilling (processing factory) at Teluk Kuantan, Riau. In addition, PT Karkam also took part in the construction of warehouses at Dumai Port with the capacity of 12,000 tons to accommodate the export products sent through the port.

<div class="quotes-center font-g">Every time I visited the Palace, the president asked me to build warehouses and ports, which I did. - Teuku Markam</div>

The “Ganyang Malaysia'' policy also affected the foreign plantation companies. In Riau, the concession rights of several rubber plantations were revoked and were given to PT Karkam, assuring Markam's company’s ownership of the rubber plantations in various regions in Air Molek, Pekanbaru, Rengat, and Aceh.

Inevitably, PT Karkam monopolized the rubber trade in Sumatra which cementing Markam’s reputation as the king of rubber.

In conducting his business, Markam entrusted the management to some of his closest allies. “Most of PT Karkam’s employees were his relatives. Even his deputy chief, Mr. Hanafiah, was Mr. Markam's cousin,” said Asmawi.

“He was quite strict. If his employees made mistakes, he’d punish them straight away. He was an ex-soldier after all. He was very disciplined,” recalled Asmawi based on his late father’s story.

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The Palace Tycoon

The close relationship of Markam and President Sukarno allowed Markam to freely enter the Palace at his will. He was often summoned either for an important duty or for a casual morning coffee with Sukarno.

“Basically I was Sukarno’s adopted child that time,” said Markam, as cited by Sinar Harapan, 13 April 1977.

Markam was popular as the palace tycoon who was part of the group called “Benteng Sepuluh” (ten fortresses). Consisting of wealthy businessmen, “Benteng Sepuluh” became the backbone of Sukarno’s revolution agenda. As a reward, they received import facilities of various vehicles and the facility to establish industries that would be guaranteed protection by the government. They were also Sukarno’s advisers aside from the ministers, giving this exclusive group of businessmen the infamous title “the shadow cabinet”.

Besides Markam, “Benteng Sepuluh” was consisted of Hasjim Ning, Dasaad Musin, Abdul Karim Oey, Rahman Tamin, Maratua Panggabean, T.D. Pardede, Ibrahim Tambunan, Potan Harahap, and Abdurahman Aslam from Makassar, the only non-Sumatran member of the group.

According to Hasjim Ning in his autobiography Pasang Surut Pengusaha Pejuang, Markam was one of the few entrepreneurs who received deferred payment, a special permit to freely import various commodities. As a compensation, the government received Rp17 for each dollar of the total traded value. This facility was a huge advantage for PT Karkam as it could multiply its lines of business into different sectors.

In March 1965, Markam obtained import license for Japanese products such as Nissan cars, spare parts, and Asano cement. All of these ensured Markam a superior status as one of the wealthiest national entrepreneurs in the country.

"He controlled both the export and import of rubber. He was also the one who brought Japanese cars into Indonesia. If I'm not mistaken, he imported Nissan Patrol jeep cars," said Asmawi.

During the trial for subversion against Jusuf Muda Dalam, the former State Minister for Central Bank Affairs, Markam who was testifying as a witness revealed that he received special deferred payments from Adam Malik (then Minister of Trade as well as KOTOE's First Deputy Chief of Operations) by the order of the president. Markam received the facility twice; first was 5 million dollars and then 10 million dollars.

Markam also said that President Sukarno had his particular plan for PT Markam, which was to change PT Karkam to PT Alat Revolusi (Revolution's Tool) in 1965 (specifically on 12 February) and that Markam had to report his company's progress to the president every Saturday. The inauguration was held at the Palace without the attendance of the other officials.

"Every time I visited the Palace, the president asked me to build warehouses and ports, which I did."

<div class="quotes-center font-g">He had an astounding amount of wealth. Some even said 25% of the money in circulation, after the devaluation from Rp1,000 to Rp1, was of PT Karkam.– Probosutedjo</div>

After Dumai Port, Markam built warehouses in Tanjung Priok Harbor Jakarta. For that purpose, he went to meet Sukarno. As cited by Duta Masjarakat on 19 July 1965, a special meeting was held at the State Palace between Markam, President Sukarno, and Minister of Home Affairs and Governor of Djakarta Raya Dr Sumarno.

"On that occasion the President had another discussion with the entrepreneur Markam regarding the construction of PT Karkam’s large warehouses at Jalan Jos Sudarso Djakarta Bypass," wrote Duta Masjarakat.

Sumarno agreed and supported the President's idea. Markam also declared that, with the blessing of the president, his company was working on the construction of 10 large warehouses with a capacity of 30,000 tons.

The president's approval allowed Markam to easily buy more assets such as lands, plantations, and ships. In return, PT Karkam became "the tool of revolution" to reinvigorate the national economy. For instance, PT Karkam fulfilled President Sukarno's instruction to export 1,115 tons of rubber from Dumai and 5,000 tons of copra from Makassar to Europe.

Headquartered at Jalan Pintu Besar Selatan No. 97 West Jakarta, PT Karkam successfully opened a trade network spanning from Jakarta to the Strait of Malaka.

Royal and Loyal

According to Probosutedjo, among the members of Benteng Sepuluh, Markam possessed the largest amount of wealth. His net worth was tremendous. In Apa & Siapa, Markam mentioned that his wealth in cash was worth around Rp20 million and 530 million of U.S. dollars, not including his other assets such as lands, houses, and cars.

"He had an astounding amount of wealth. Some even said 25% of the money in circulation, after the devaluation from Rp1,000 to Rp1, was of PT Karkam," said Probosutedjo.

With that significant amount of money, Markam was in the front line of donating to Sukarno's lighthouse projects such as the land acquisition for Senayan's sports arena. However, the most phenomenal contribution of his was the donation of 28 kg out of the total 38 kg of the gold turned into the golden flame at the top of the National Monument (Monas) in Jakarta.

"I don't doubt his contribution to Monas. The people of Jakarta at that time acknowledged that Monas was Teuku Markam's contribution, but since Soeharto was in power, that fact was never disclosed," said Asmawi.

Royal and loyal were the two words best describe Markam's relationship with Sukarno. On the other hand, Sukarno also played a big role in bringing prosperity to Markam's business empire.

Having the reputation as the president's close ally boosted Markam's name to be among the city's VIPs. He was living a lavish life as a socialite included in the select circle of ministers and high-ranking officials.

"He was a true businessman, not a politician or a party person. That he could get close to Sukarno and the officials, it was his forte," praised Asmawi.

Markam, as described by Japanese historian Masashi Nishihara in his book Sukarno, Ratna Sari Dewi, & Pampasan Perang Jepang, was a frequent guest at the parties held at the Palace. He and his fellow palace businessmen who enjoyed the deferred payment system, Abdurrahman Aslam and Ibrahim Tambunan, often appeared in extravagant style. They were regular guests in various auctions held by the Palace.

Once, there was an auction of Sukarno's cap during Pro Ganefo Night in 1963. Mualif Nasution, Sukarno's private secretary, was the auctioneer while actress Chitra Dewi became his assistant. The last bid worth Rp2 million was made by Markam, who was eventually declared as the winning bidder. At the end, Markam returned the cap to the committee and said, "you can auction it again on another occasion," as quoted by Varia in 1963.

Regarding women, Markam was not much different from his role model. Asmawi disclosed that Markam's first wife was named Cut Aminah, who was from the same village as him. After relocating to Jakarta, Markam married three or four more women. Markam's last wife was Tan Eng Lan, who was nicknamed Ellen before officially changing her name to Ratna Kartika.

"He was Markam's former secretary, a Chinese that converted to Islam. We used to call her Aunt Ratna, and she was friendly and kind. Beautiful, of course. Mr. Markam was fond of pretty women, just like Sukarno," said Asmawi jokingly.

Regarding his last wife's name, Markam asked Sukarno's help. On 26 August 1965, the Presidential Decree No. 235 of 1965 was issued and stipulated that: "The name of Tan Eng Lan (Ellen), wife of Sir Markam born in Jakarta on 8 April 1944 with Birth Certificate No. 1054 dated 8 October 1946 of the Chinese descent, was changed to Ratna Kartika which means: Ratna is jewel and Kartika is star."

Markam's Detractors

Markam's success inevitably sparked enmities from the envious people around him. His method for managing business drew attention from the public. Markam was rumored to have intimidated the rubber businesses in Riau, forcing them to hand over their supply to PT Karkam.

"Markam arranged for the cargo ships to stop by Dumai and made the impression that the rubber traders in that area had to sell their rubber supply to PT Karkam with low price. If they refused, their plantation would be confiscated by the government," wrote Lance Castles in “The Fate of the Private Entrepreneur” in the anthology Sukarno’s Guided Indonesia edited by T.K. Tan.

The book Sejarah Daerah Riau written by Anwar Syair et al., mentions that a significant amount of local rubber supply was taken over by PT Karkam with the help of the authority without fair payment. PT Karkam subsequently exported tens of thousands of tons of the 'stolen' rubber to Singapore, even though Markam had announced the moving of his rubber export market from Singapore to Japan and America to support the confrontation movement against Malaysia.

Mr. Hatta, who had resigned as the vice president in the 1960s, was one of the people that condemned Markam's business. In Surat-Menyurat Hatta dan Anak Agung, Hatta expressly mentioned that President Sukarno was surrounded by sycophants who were after their own benefits, and Teuku Markam was one of them. PT Karkam was even satirically referred to as Karno-Markam.

Hatta also called Markam a bandit and a scammer who was entrusted by Sukarno to handle the rubber export. Due to PT Karkam's rubber trade monopoly, Hatta estimated that the Riau people had suffered a loss of Rp1.5 billion.  

"The local rubber was bought under the name 'Karkam' (Karno-Markam), but the deferred payment was never paid. The export destination was said to be Japan with the intention to destroy Singapore, but the road had somehow twisted and it ended up in Singapore after all, because only Singapore has remilling factories," wrote Hatta in his letter dated 18 December 1964.

Albeit the constant fraud accusations that tainted his business, Markam was untouchable. His detractors were essentially powerless to Markam's position in the country's elite circle. However, that doesn't mean Markam could do anything he wanted. When Markam was preparing a diplomatic passport to ease his travels abroad, his request was declined by Hoegeng Iman Santoso, the head of the Immigration Service, due to the fact that Markam was not a diplomat. Markam tried to bribe him but his action angered Hoegeng.

In his autobiography Hoegeng: Polisi Idaman dan Kenyataan, Hoegeng revealed that he almost punched Markam. Trying to control himself, Hoegeng gave Markam an ultimatum. "Leave this room now or I'll kick you outside! I don't care with your money," snapped Hoegeng.

Markam was tongue-tied. He left the Immigration Service office bitterly.

Several days later, both Hoegeng and Markam had a matter to talk with President Sukarno at the Palace. Markam was welcomed first, and Hoegeng saw the closeness between Markam and the president. Instead of being uneasy about it, Hoegeng reported Markam's attempt to bribe him the other day. Sukarno reprimanded Markam, but the incident didn't cost Markam the president's trust at all.

Subversion Charge

The political chaos due to the 30th September Movement (G30S) in 1965 was the starting point of Markam's downfall. On the pretext of security control, General Soeharto, who was appointed as the Commander of the Operational Command for the Restoration of Security and Order (Pangkopkamtib), instructed the arrest of Sukarno's closest allies, including Markam.

On 23 March 1966, Markam was arrested for economic subversion, corruption, and treason related to G30S. The arrest, according to Malaysian newspaper Berita Harian on 1 April 1966, was preceded by a shootout between Markam's guards and the armed forces coming to arrest Markam at his residence in Kebayoran, South Jakarta.

Markam was then detained in the Military Prison Budi Utomo, Central Jakarta. Two months later, Cut Aminah, Markam's wife, sent a letter to the head of the Central Investigation Team regarding the legal settlement of her husband's case, but that effort was in vain.

The misfortune also befell Markam's close relatives. His wife, Ratna Kartika, as reported by Kompas on 20 March 1968, was detained by the authority for a certain period and was tried for PT Karkam's document burning. The residence of Hanafiah, Markam's deputy, at Jalan Gadjah Mada Medan was confiscated by the army. Now, the house has been reconstructed and turned into the Swiss-Belinn Hotel. The same happened to the property of Sulaiman Lida, Markam's manager that handled his plantation in Pekanbaru.

"Our land in Pekanbaru was also expropriated although legally a freehold title can't be taken by the state. Individual rights, according to the law, can't be confiscated, unlike a limited company. Nevertheless, that's just how the New Order government was," grumbled Asmawi.

Markam had to experience the darkest days of his life as a prisoner without a trial. All charges against him were never proven true. For years, Markam had to endure living from one prison to another. In addition to Military Prison Budi Utomo, Markam also spent his time at Prison Guntur in South Jakarta, Salemba Prison in Central Jakarta, Cipinang Penitentiary Institution in East Jakarta Timur, and Nirbaya Rehabilitation Installation at Pondok Gede, East Jakarta.

In 1972, Markam fell ill and was treated at RSPAD Gatot Subroto for two years.

On the other hand, there was a growing compassion towards Markam from the public, one of them coming from Mochtar Lubis, the editor in chief of Indonesia Raya newspaper that was imprisoned during Sukarno's regime. In his editorial, Lubis criticized Markam's incarceration that disregarded the principle of justice. He argued that Markam's punishment had to be reviewed, or, at the very least, go through proper legal proceedings.

"His property has been ravaged and his family has suffered so much for too long," wrote Mochtar Lubis in Indonesia Raya editorial, 26 February 1973.

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The Lost Wealth

Subsequent to his arrest, Markam's assets became the immediate next target. KAMI/KAPPI came to his house in Kebayoran that was under construction and seized every valuables in it. On top of that, in his book Yusny Saby Sang Motivator, Yusny Saby, who was the supervisor of the construction at that time, revealed that the house was occupied and turned into the headquarter of KAPPI Kebayoran.

Amidst that, the military authorities also started to strip down Markam's assets. Antara on 14 April 1966 reported that Penguasa Perang Daerah Riau (literally means Riau's Warlords) possessed all of PT Karkam's property in Riau, while in Tanjung Priok, nine ships owned by Markam were confiscated by Peperalda Maritim III.

"The government needs to form forthwith a team to investigate Markam's property that has been confiscated by Peperalda Maritim III so that the property can be used for the benefit of the society," said Commander in Chief of Armada III Sea Commodore Harjono Nimpuno as quoted by Antara. Peperalda itself stands for Regional Dwikora Implementation Control.

Ships owned by PT Karkam were then put under the control of the Directorate General of Sea Transportation. The operations were handed over to PT Pelajaran Nusantara Astri Line Medan under the Decree of the Deputy Minister Head Department of the Sea Transportation No. Drp. 1/10/I on 19 April 1968. Five months later, the ownership was transferred to the Head of Regional Shipping III/Tanjung Priok Harbor Authority.

The assets freeze and takeover from PT Karkam, along with PT Aslam owned by Abdurrahman Aslam, started to be massively done since the establishment of the supervisory team for ex PT Aslam and PT Karkam. The team was formed through the Joint Decree of the Deputy Prime Minister for Economy, Finance and Development Sri Sultan Hamengkubuwono IX and the Deputy Prime Minister for Defense and Security Soeharto No. Aa/EF/65/1966 on 16 Mei 1966.

As the Chairman of the Presidium of the Ampera Cabinet, Soeharto appointed Brigadier General Suhardiman to lead the team tasked to administer the property of Karkam and Aslam. Previously, Suhardiman was the chairman of the All-Indonesian Federation of Employees' Organizations (SOKSI), an employment agency sponsored by the Army.

"My duty was to form a government team to resume the mission of acquiring the property of Aslam, Karkam, and Bram Tambunan," wrote Suhardiman in his autobiography Kupersembahkan Kepada Pengadilan Sejarah.

Ibrahim Tambunan, or familiarly known as Bram Tambunan, was the owner of PT Sinar Pagi. Unlike Markam and Aslam who were unfortunately behind the bars, Bram Tambunan managed to escape the arrest by fleeing abroad. Nonetheless, all of his assets in Indonesia were frozen.

<div class="flex-content-podcast"><figure class="img-left"><div><img src="https://cdn.prod.website-files.com/61af270884f7a0580d35618e/627dff6f8016afdd1ecafd74_Intersection%205.jpg" alt="img"></div><figcaption>Soeharto in 1965. (geheugendelpher)</figcaption></figure><div class="img-right"><div class="podcast-container"><img alt="person" class="entered loaded" data-ll-status="loaded" src="https://cdn.prod.website-files.com/61af270884f7a0580d35618e/627dff759a07247b9fb69ca7_Intersection%206.jpg"><div class="audio-podcast"><audio controls controlsList="nodownload"><source src="https://d220hvstrn183r.cloudfront.net/premium/Runtuhnya-Taipan-Istana/podcast%20Asmawi%20Lida.mp3" type="audio/mpeg">Your browser does not support the audio element.</audio></div></div><div class="caption"><span><b>Asmawi Lida</b><br>Son of Sulaiman Lida, Teuku Markam’s cousin. (Fernando Randy/Historia.ID).</span></div></div></div>

According to Suhardiman, the Team he formed did a juridical, administrational, and wealth control over those companies and traded them to the public based on the economic law.

One of their actions was holding the Economic Operations Unit Tritura Express to distribute PT Karkam and PT Aslam's properties to several regions. The arrival of the Tritura Express was warmly welcomed by units such as KAMI/KAPPI and was guarded by a platoon of RPKAD. The operation was then followed by the Tritura Express II.

When he was about to conclude his three-month term of office as the head of the Team, Suhardiman attended a meeting with several generals in the Army Headquarters led by Soeharto to discuss the follow-up of the appropriation of the properties of Aslam, Karkam, and Tambunan. In that meeting, Suhardiman proposed a concept of the establishment of a pilot project for a state-owned corporation called PT Pilot Proyek Berdikari or abbreviated as PT PP Berdikari.

Later, PT PP Berdikari was established under the Decision of the Chair of the Presidium of the Ampera Cabinet No. 01/EK/KEP/8/1966 on 12 August 1966.

According to Harold Crouch in The Army and Politics in Indonesia, as the director of Berdikari, Suhardiman was directly responsible to Soeharto. As quoted by Angkatan Bersenjata on 24 May 1966, he was instructed to expand the companies, growing them to outdo their initial conditions when they were expropriated, for the sake of bringing benefits for the nation, revolution, and the people. "Initially, Berdikari's main goal was to raise funds for the army's superior officials," wrote Crouch.

As instructed by Soeharto, Suhardiman started an ambitious business expansion program. The headquarter was established at foreign trade centers along with several subsidiaries. With military support, Suhardiman was able to dodge bureaucratic barriers such as the luxury car import ban enforced by Minister of Trade Sumitro in 1968.

"Berdikari, which had obtained the right as the sole importer of Mercedes Benz cars to Indonesia, continued to import cars through Jakarta harbors, until the minister of trade eventually revoked the ban," wrote Crouch.

During its existence, Berdikari came under scrutiny. Loud criticism was coming from Adnan Buyung Nasution, KAMI activist who had a position in the People’s Representative Council of Mutual Assistance (DPR-GR). He claimed the establishment of Berdikari as a violation of law because it was funded by the state's confiscated properties. According to Soe Hok Gie in Zaman Peralihan, Buyung Nasution's claim was blatantly ignored and he was ultimately fired from the DPR-GR.

Soeharto was unstoppable. First, through the Cabinet Presidium Decision No. 18/EK/KEP/1/1967, he formed a Capital/Wealth Assessment Team of PT PP Berdikari. After delivering their report, the Team was disbanded under the Presidential Decree No. 41 of 1970. It was then followed by the Presidential Decree No. 47 of 1970 which mentioned that the wealth capital of ex PT Karkam, PT Aslam, and PT Sinar Pagi under the government’s control would be lent to PT PP Berdikari as a working capital.

While his business empire was looted and crushed, Markam was languishing in confinement. To end his incarceration, he had to sacrifice a whopping amount of bail. In 1971, Markam signed an agreement detailing that his entire property would be taken over by the country and wouldn't be returned.

On 7 June 1974, Soeharto issued a Presidential Decree No. 31 of 1974 which stipulated that the property of ex PT Karkam, PT Aslam, and PT Sinar Pagi would be turned into government's equity participation in PT PP Berdikari that worthed Rp411,314,924.29. The fund was collected in the government bank chosen by the minister of finance, while the future use of the money would be decided by the president.

In December 1974, or four months after the issuance of the decree, Markam was released from the prison.

To Sinar Harapan, Markam denied the deal that assured his freedom. "While in prison, my property worth millions of rupiah was handed over to Berdikari company. I don't want to claim that anymore. It's already in the past."

When it was expropriated, as mentioned by George Junus Aditjondro in Korupsi Kepresidenan, PT Karkam asset was worth 460 million of U.S. dollars. "Slowly but surely, with the help of his colleagues former general Bustanul Arifin and Suhardiman, the legal status of PT Berdikari was changed into a private company entirely owned by Soeharto's three foundations: Dakab, Dharmais, and Supersemar," wrote Aditjondro.

The progress of PT PP Berdikari seemed promising as it grew into a holding company with various business units and subsidiaries under their belt. Yet, due to mismanagement, the company succumbed to destruction.

After Soeharto resigned, Berdikari also collapsed. Under the Government Regulation (PP) No. 22 of 2000, Berdikari was turned into a limited company or Persero. Right now, Berdikari is run under the auspices of State-owned Enterprises of Indonesia (BUMN) ID Food and focuses on the business of poultry, livestock, and processed retail products.

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Marjaya and Markam’s Last Years

After being released from the prison, Markam and his wife, Ratna, went to Medan to do a peusijuek ritual to fend off bad luck. Besides doing the Acehnese tradition to avoid misfortune, there was also a celebration for Markam's release from prison held at the house of Sulaiman Lida, Markam's cousin and trusted employee.

"After the observance, he returned to Aceh and founded a new company called PT Marjaya. All of his assets in Aceh were sold to fund the establishment of PT Marjaya," said Asmawi, mentioning that it was the first time he ever met Teuku Markam.

PT Marjaya, which stands for "Markam Jaya", was established on 12 March 1975 and headquartered in Jalan Kejayaan I/17-19 West Jakarta. The branches spread in Banda Aceh, Ciamis, Banjarmasin, and Bandung, along with a representative office in Singapore. The company focused on the sectors of export, import, general trade, contractor, and plantation.

"I built this company from zero… zero… zero,” said Markam to Sinar Harapan. Interestingly, in the same newspaper, Markam mentioned that his return to the business world was helped by Adam Malik, then the Foreign Minister.

"Adam Malik helped me a lot. He was the one who motivated me to go back on my feet," said Markam.

He added that he had maintained a good relationship with Adam Malik since he was the Minister of Trade during Sukarno's era. "I was the one who suggested President Sukarno to appoint Mr. Adam as the Coordinating Minister of Guided Economy, because as the Minister of Trade, Mr. Adam was stressed out by his conflict with Jusuf Muda Dalam," said Markam.

During his incarceration, Markam also received special treatment because of Adam Malik. One of the privileges was that Markam could freely go outside of the prison to watch a movie or to play golf. "In the early morning, sometimes I was already at Mr. Adam Malik's house asking for money," said Markam, laughing.

To return his favor, Markam agreed to become a cadre for Golkar (The Party of Functional Groups), Indonesia’s leading party during the era. In the 1977 legislative election, he helped Golkar's campaign in Bireun, Sigli, and Banda Aceh using PT Marjaya's facilities and mobilizing all of his employees which was called as "Markam's Squad".

In Bireun, 100 trucks of PT Marjaya were transporting people back-and-forth to attend Golkar campaigns. Moreover, all of the electric lights that light up the field were supplied by PT Marjaya's power plants.

Markam also accompanied Adam Malik as the campaigner. In his speech, Adam Malik commended Markam for his support in building the road in Aceh, while Markam mentioned Golkar's assistance after he was released from prison. "And for that, I ask for your willingness to choose Golkar," said Markam in his speech.

During that event, Markam mentioned several names that helped his release so he could establish PT Marjaya. Those figures were Adam Malik, Laksamana Soedomo (Commander of the Command for Security and Order Control), Sutami (Minister of Public Works and Electricity), and Amir Murtono.

Adam Malik also took his time to visit Markam's office in the base camp of PT Marjaya, 3 km from the city of Bireun, where the two posed for a photo.

"May I kiss your hand to be captured in the photo?"

"No need."

Two years later, Markam finally had the opportunity to meet President Soeharto.

That afternoon, 17 October 1979, Aceh's Cot Gapu Bireun Stadium was packed. Tens of guests were sitting on the chairs and were having conversations with each other. TNI AU's security helicopter was flying over the area. Not long after, another TNI AU helicopter who brought President Soeharto and his entourage landed on Cot Gapu Stadium, followed by Pertamina's helicopter with the group of ministers on it. The local officials were crowding the stadium; some wearing traditional clothes while the others were donned in formal clothes.

The president descended the helicopter stairs, waved his hand and smiled to the people that had gathered in the stadium. After a brief welcome ceremony near the helicopter, the President walked to the main event area.

Markam was also present there. He was sitting in the same row as the Minister of Public Works Poernomosidi Hadji Saroso, President Soeharto, Aceh's Governor Madjid Ibrahim, and the Commander of KODAM I Iskandar Muda Aceh Brigadier General Raden Achmad Saleh. On that same occasion, Poernomosidi disclosed the progress of the road construction in Aceh.

While explaining the Lhokseumawe-Bireun project handled by PT Marjaya, Markam stood up in front of his seat and saluted the President. He then came up to the President's seat and shook his hand.

After the event concluded, the President and his entourage, accompanied by Markam, left the stadium and went to visit the project of asphalt concrete road construction managed by PT Marjaya.

The construction of the 35-km Bireun-Lhokseumawe road marked the return of Markam to the business world.

From there, PT Marjaya won the tender of a project to repair the 96-km Tapaktuan-Kruengluas road in South Aceh that was funded by the World Bank. Outside Aceh, PT Marjaya worked on the 136-km Cileunyi-Nagreg road in West Java.

The company was also involved in the capital move of Aceh Besar Regency to Kemukiman Janthoi in Seulimun District. The designation of Kemukiman Janthoi, considering the stipulation of the Government Regulation No. 35 of 1979, was made after the research conducted by the local government in collaboration with PT Marjaya.

Despite successfully recovering from his downfall, Markam was unable to bring back his glorious days with PT Karkam. Some of his projects, such as the Tapaktuan-Kreungluas road project, stagnated. The local government seized 24 trucks of PT Marjaya due to the unpaid tax. On the other hand, PT Marjaya was troubled because they couldn't cash out their money from the bank.

"Why didn't the Local Government (Pemda) cooperate by giving us exemption from the tax debts? They can consider it as the company's liability, and when our projects have finished, they can take those trucks as payment," complained Markam as quoted by Kompas, 1 August 1979.

Markam expressed his disappointment when Minister Poernomosidi inspected the construction of the Cileunyi-Nagreg highway handled by PT Marjaya. That objection of his drew attention from the ministers and their groups. "It was largely caused by the action of its own director, Mr. Markam, who complained to the minister about his contract termination in Aceh North Sumatra," wrote Clapeyron magazine in March 1979.

The agreement regarding Tapaktuan-Kruengluas completion was then discussed between PT Marjaya and Bina Marga, and it was decided that PT Marjaya's contract was cut and the construction would be handed over to foreign contractor.

Markam was certainly disappointed. He mentioned that throughout his project in Aceh, he never received any assistance from Pemda, even though he was very generous in helping them. When the flood struck Sigli, PT Marjaya mobilized 25 dump trucks operating for four months non-stop to subside the calamity. If it were to be converted into a working fee, the total would be around Rp80 million, and yet Markam never submitted a bill. He revealed that the Cileungsi project was the only one that received full support from the governor and the head of the village.

For at least one decade, Markam enjoyed the rest of his life as a free man while running his company PT Marjaya, which later was passed down to one of his children, Teuku Syauki Markam.

In December 1985, Markam passed away due to complications. Markam, who was a retired captain, received military funeral honors.

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Restoring Markam's Reputation

Under the New Order regime, Markam's property was seized and his services to the country were dimmed. Immediately after Soeharto's resignation in May 1998, Markam's family tried to restore Markam's reputation and acquire his assets back.

In October 1998, Cut Aminah, Markam's first wife, filed a lawsuit against ex-president Soeharto in Central Jakarta District Court. The claim was that Soeharto had arrested and imprisoned Teuku Markam for eight years without a trial. In addition, Soeharto also expropriated the entire property of PT Karkam. Cut Aminah demanded a Rp40 billion compensation and an official apology statement from Soeharto.

The civil lawsuit trial was held in October 1998 and was attended by several important New Order officials as the witnesses, including former Commander of the Command for the Restoration of Security and Order Admiral Soedomo, former president director of PT Berdikari Lieutenant General Suhardiman, and former head of the State Logistics Agency (Bulog) Bustanil Arifin.

As quoted by Kompas on 29 October 1998, Soedomo testified that Markam's property wasn't actually acquired by the state without any settlement. In fact, for Markam's assets, the state paid around one million U.S. dollars, but the fund wasn't given to Markam and was considered as the state's equity participation.

Meanwhile, as quoted by Kompas on 12 November 1998, Suhardiman affirmed that PT PP Berdikari received the asset transfer from PT Karkam, PT Aslam, and PT Sinar Pagi, but at that time Berdikari was only borrowing from the government. Suhardiman reasoned that he didn't know about the continuation of the "loan" from Karkam's family after Bustanil Arifin succeeded him as the director of Berdikari.

However, Bustanil Arifin, who held the key to the entire testimony, didn't attend the trial. On the other hand, the request from Markam's family to present their attorney Siti Asmah as the key witness was rejected. The trial was subsequently won by Soeharto’s side.

In February 2000, Markam's family filed another civil action, this time through Teuku Syauki Markam who was a one-time political figure under the Indonesian National Party of Marhaenism.

Syauki demanded the return of assets such as land belonging to PT Ujung Lima–Berdikari's subsidiary–at Jalan Ahmad Yani North Jakarta, as well as land and a shop building at the complex of Jalan Hayam Wuruk No. 103 West Jakarta. To oversee the case, Syauki even pleaded for protection from the government.

"The family heir of the late Teuku Markam is asking President Gus Dur, Vice President Megawati Soekarnoputri and the Minister of Investment/Governance of State-owned Enterprises Admiral Sukardi to be involved in the proceedings of returning the said asset," said Syauki Markam in his written statement as cited by Kompas, 11 February 2000.

However, Syauki's effort was taken lightly by Soeharto's side. Soeharto's attorney, Juan Felix Tampubolon, only promised to hold a forum for a discussion. "Matters like these should be communicated. There are many ways to bring both sides together, whether through a forum or a trial. Even if Markam’s family refused to communicate courteously, we are still open for discussion," said Tampubolon.

Until Soeharto's passing in 2008, the efforts to return Markam's assets were still fruitless, and Markam's reputation was never fully restored. Markam's actions in the past were often questioned, including the truth of the golden flame of Monas which reportedly came from Markam's bestowal.

Syauki himself wasn't really open in talking about his father's contribution. Through the comment section of his Facebook post on 10 June 2019, Syauki voiced his wish for his father's beneficence to be regarded as a historical contribution for the people of Indonesia.

"They bite the hand that feeds them. Behind that beauty (of Monas), there is the misery of Teuku Markam's family," he wrote. Teuku Syauki Markam passed away on 18 August 2019.*