Court clears Indonesian speaker

There were scuffles outside the supreme court

Indonesia's Supreme Court has dismissed a corruption conviction against the parliamentary speaker and Golkar Party presidential candidate Akbar Tandjung.

Mr Tandjung was appealing after being found guilty in September 2002 of embezzling $4.5 million in state funds.

The ruling means that he will be able to stand against President Megawati Sukarnoputri in elections in July.

The case had been viewed as a test of Indonesia's ability to tackle high-level corruption.

"According to the team of judges, we find that the defendant should not have been found guilty," said Judge Paulus Lotulong, who told the court Mr Tandjung deserved to have his name rehabilitated.

Mr Tandjung, who is chairman of the Golkar Party, was found guilty in September 2002 of diverting $4.5m in state funds intended to help the poor.

Just over a year ago the conviction, which included a three year jail term, was upheld by the Jakarta High court.

Mr Tandjung's appeal to the Supreme Court was his last chance of getting the verdict overturned.

Throughout the appeal process he had remained free and was allowed to keep his post as speaker.

Government test

At Mr Tandjung's Jakarta house dozens of supporters hugged each other, shouted "Allahu Akbar!" - Arabic for "God is great".

There were minor scuffles outside the court where opponents, mostly students, were calling for the conviction to be upheld.

The BBC's Rachel Harvey in Indonesia says the case was seen as a vital test of the current government's determination to root out corruption, even at the highest level.

She says that the fact that the verdict was overturned would mean some elements would believe the judiciary was still influenced by political considerations.

"This is a huge scandal," said Muhammad Asrun of Judicial Watch, an independent anti-corruption organisation.

"This country's legal system is bankrupt and getting worse every day. I think the international community will no longer have confidence in the Indonesia courts," he said.

Judge Paulus Lotulong said that the lower courts had reached their verdict based on very weak evidence.

In his appeal, Mr Tandjung had argued that he transferred the money earmarked for food assistance into Golkar party funds on the orders of former President B.J. Habibie.

He said that he did not personally profit by the move and that the money was later returned to the government.