Bitter Rijsttafel

The Ramayana, which opened six years ago as one of Manhattan's few Indonesian restaurants, boasts a striking decor: a pedicab parked in the lobby, menus bound in batik, hostesses in flowing Indonesian gowns. At night, when native dancers perform, the restaurant's prices are high, but the buffet lunch is a bargain: for $5.50, guests can take their pick of dozens of spicy (skewered beef) or sweet (banana soup) dishes. For some executives from nearby oil-company offices, however, the food must have a bitter taste these days. According to the Securities and Exchange Commission, the restaurant was built largely with money "coerced" out of U.S. companies by the former head of Pertamina, the Indonesian government oil company.

No Discounts. In 1969 Ibnu Sutowo decided to add a Manhattan restaurant to his collection of personally owned enterprises. So, says the SEC, he wrote on Pertamina stationery to scores of U.S. companies, asking them to buy stock in the venture. He made no threats, but took care to say that the companies were selected because they did business with Pertamina. Eventually he collected $1.1 million from 54 individuals and companies, including Mobil Oil, Union Oil, Cities Service and Atlantic Richfield.

The SEC now seeks an injunction barring further sales of stock in the Ramayana. Its action comes a bit late: Sutowo, 62, seems to have no need of further capital. Although he was fired by Pertamina last year after it ran up debts and losses of perhaps $10 billion, he remains one of the richest men in Indonesia. His restaurant partners have not been as lucky. They still own stock in the Ramayana, but the shares have never paid dividends--and oilmen get no discounts on their rijsttafel.

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