Habibie, B J

▪ 1995

      An aircraft engineer seemed an unlikely central figure in the closure of outspoken publications, a billion-dollar controversy over used warships, and the removal of powerful ex-generals from the top of Indonesia's ruling Golkar political organization. Yet all three of these events were linked to B.J. Habibie, Indonesia's research and technology minister and the former chief of research and development at Messerschmitt-Bölkow-Blohm in Germany.

      During Golkar's 1993 central-board elections, Habibie helped the children and allies of President Suharto rise to top positions, easing out long-standing military-backed power brokers. In June 1994 a tabloid and two newsmagazines were closed after reporting Cabinet disagreement over Habibie's plan to refurbish 39 vessels bought from the former East German navy at his initiative. The Finance Ministry balked at the cost and the armed forces felt that its turf had been violated. Habibie still got more than $400 million for refurbishing.

      Habibie was born on June 25, 1936, in Parepare, South Sulawesi. He met Suharto in 1949 when the general was posted to the province. Suharto became a family friend and took a personal interest in Habibie's development after the boy's father died. Brilliant in science and mathematics, Habibie studied at the prestigious Bandung Institute of Technology and the Technische Hochschule in Aachen, Germany, graduating in 1960. He then did research at the Hochschule before becoming head of research at Messerschmitt in 1966.

      Suharto took power in 1966, and in 1974 he asked Habibie to return to Indonesia to help build advanced industries. Suharto assured him that he could do whatever was needed to accomplish that goal. Initially assigned to the state oil company Pertamina, Habibie became a government adviser and chief of a new aerospace company in 1976.

      Two years later he became research minister and head of the Agency for Technology Evaluation and Application. He oversaw 10 "strategic" ventures: in aircraft, shipbuilding, train cars, steel, electronics, telecommunications equipment, heavy machinery, explosives, small arms, and ammunition. His agency also funded genetics research. In November 1993 he unveiled the first Indonesian-developed plane, which he helped design. He also brokered a $34 billion gas deal with the United States.

      Habibie wanted Indonesia to climb the technology ladder as rising costs forced labour-intensive industries out. He believed his enterprises would spawn high-tech ventures in the private sector. Indonesian technocrats and the World Bank expressed misgivings about costs and viability, however. Military brass resented having to buy equipment from Habibie's firms. Nevertheless, Suharto's support helped the energetic minister generally get his way.

      In 1990 Habibie was appointed head of the Indonesian Muslim Intellectuals Association to boost the influence of Muslims, who constituted about 90% of Indonesians, in a government traditionally dominated by Christian technocrats. Habibie was viewed as one of several possible successors to Suharto, whose sixth five-year term would end in 1998. (RICARDO L. SALUDO)

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