He has given a letter to the attorney-general in Jakarta authorising investigators to keep any money they found for the public purse.

The BBC's Jonathan Head: "The 77-year-old was relaxed"

He threatened legal action against anybody found to be using his name on foreign bank accounts and again denied amassing a huge fortune during his 32-year rule.

Two senior government ministers are to fly to Europe in an attempt to trace the money Suharto is said to have hidden.

They are following up reports in Time magazine, which alleged last week that $9bn in his name was transferred from a Swiss account to an Austrian bank in the days after his forced resignation last May.

President Habibie has been criticised for not being tough enough

His successor, President BJ Habibie, ordered Justice Minister Muladi and attorney-general Andi Ghalib to investigate the allegation.

Mr Suharto has threatened to take out a libel action against Time unless it provides him with proof to support its report by 28 May.

Mr Muladi said: "We will meet the attorneys-general and justice ministers of Austria and Switzerland to seek the truth about the transfer."

Jonathan Head in Jakarta: Recovering funds could be difficult

They are also planning to meet officials from the Bank of Austria during the trip, which begins on Friday.

Mr Ghalib said they would also be looking into other accounts which may have links to the former leader.

The justice minister added the Time report would be "clarified" before Indonesia's elections on 7 June.

But legal experts have warned it is notoriously difficult to track down funds held overseas.

Election effects

Political commentators say charges that the government has been slow to investigate the wealth of Mr Suharto and his family could damage Mr Habibie's election campaign.

The election comes one year after student riots forced Suharto out

Mr Habibie was a close ally of President Suharto.

The BBC correspondent in Jakarta, Jonathan Head, says the Time report is a harsh reminder for Mr Habibie of his past associations - at a time when millions of Indonesians are looking for a new start.

The investigation into allegations that Suharto and his family became wealthy by corrupt means began last September.

So far, only one case has reached court relating to alleged corruption from the Suharto era.