Time magazine has been ordered by Indonesia's highest court to pay $106 million (£52 million) in damages for defaming the country’s former president Suharto.

The May 1999 cover story in the magazine's Asian edition alleged Suharto's family amassed $15 billion his 32-year rule.

The magazine claimed a large chunk of the fortune was transferred from Switzerland to Austria before Suharto stepped down following riots and pro-democracy protests in 1998.

The defamation suit was dismissed by two lower Indonesian courts but that was overturned last week by a panel of three Supreme Court judges, officials said, including a retired general who rose in the military ranks during the Suharto administration.

The ruling ordered Time Asia and six employees to apologise in leading Indonesian magazines and newspapers as well as Time's Asian, European and US editions.

"Time magazine has to pay $106 million for defaming Suharto," a spokesman for the Supreme Court said. "The article and photographs hurt the image and pride of the plaintiff as a great retired army general and the former Indonesian president."

Suharto's lawyer, Muhamad Assegaf, welcomed the "surprise verdict".

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