When Soeharto Got Very Angry at the Economy Minister at His Private Residence, a Rp1.7 Trillion Project Budget Was Immediately Disbursed

Tangsellife.com - Behind his leadership style, known for being calm and calculated, the 2nd President of the Republic of Indonesia, Soeharto, once unleashed great anger upon his economic ministers.

The incident occurred in 1976 when the government was working on the Asahan Project, one of the largest industrial projects in Indonesian history, valued at approximately 411 billion yen or equivalent to Rp1.7 trillion at the time.

Soeharto's anger was triggered because the budget for this strategic project had not been disbursed despite various coordination efforts.

Asahan Project Became Government Priority

The Asahan Project was a collaboration between Indonesia and several Japanese companies, utilizing the Asahan River flow in North Sumatra for a hydroelectric power plant and an aluminum smelting industry.

Due to its massive investment value and its importance for the future of national industry, Soeharto paid special attention to the project.

To ensure the project proceeded as planned, Soeharto appointed his trusted confidant, A.R. Soehoed, as the Head of the Asahan Project Authority.

However, in its implementation, the project faced serious obstacles, namely the required budget was not being released by the government.

Soehoed Faced Difficulties Managing the Budget

A.R. Soehoed admitted to repeatedly coordinating with the economic ministers to expedite the disbursement of project funds.

However, all efforts were in vain. The budget requests still did not receive the expected response.

Frustrated, Soehoed eventually reported the issue directly to President Soeharto.

Initially, Soeharto asked Soehoed to coordinate again with the economic ministers. But after trying again, the result remained nil.

"But, I asked the Coordinating Minister for Economy, Finance, and Industry, and it was not addressed. So, in the end, I went back to Pak Harto," said Soehoed as quoted in the book Dari Soekarno sampai SBY: Intrik & Lobi Politik Para Penguasa by Tjipta Lesmana.

Soeharto's Face Suddenly Turned Red

Upon receiving the report, Soeharto reconfirmed whether all efforts had indeed been made but still failed.

Soehoed replied casually, laughing, that various attempts had indeed yielded no results.

However, Soeharto's reaction was unexpected.

According to Soehoed's account, the president's face suddenly turned red upon hearing the report.

Without much talk, Soeharto simply asked Soehoed to wait until the afternoon.

Economic Ministers Summoned to Cendana Residence

In the afternoon, Soehoed received a summons to President Soeharto's private residence on Jalan Cendana, Jakarta.

Upon arrival, he found Vice President Sri Sultan Hamengkubuwana IX and all the economic ministers already present.

It was in that forum that Soeharto unleashed his anger.

The President assessed that the ministers were not giving sufficient attention to a project considered crucial for the future of national industry.

Soeharto Scolded the Ministers

During the meeting, Soeharto sternly reprimanded his aides.

"You must realize that this Asahan Project is very important! This is a long-term project, and it needs to be supported with adequate funding. Everyone pay attention to this!" Soeharto emphasized.

The atmosphere of the meeting immediately became tense.

According to Soehoed's testimony, all meeting participants chose to remain silent, and no one dared to look directly at the president's face.

Even Soehoed himself admitted to being surprised to see Soeharto scolding the economic ministers, who had always been known as important figures in the government.

Budget Finally Disbursed

After the meeting, the budget issues that had been hindering the project gradually began to be resolved.

The required funds eventually flowed, and the construction of the Asahan Project resumed according to plan.

Eight years later, precisely on November 6, 1984, President Soeharto inaugurated the Asahan Project as one of the important milestones of Indonesian industrialization.

After the cooperation with the Japanese side ended on December 9, 2013, the management of the project fully transferred to Indonesia through the state-owned enterprise PT INALUM.

To this day, the Asahan Project remains one of the largest industrial legacies ever built by the Indonesian government during the New Order era.