The case was filed at the south Jakarta district court.

The money was allegedly channeled from the Indonesian Central Bank through state-owned banks to a Suharto-headed fund called Yayasan Supersemar.

"The suit was filed because evidence has been found that the funds gathered by Suharto and the foundation he chaired were not only used for scholarships ... but in reality the funds were also used for other purposes," said Munthe.

State prosecutors also demanded the seizure of the building that houses the foundation's headquarters.

Suharto, 85, has escaped criminal trials for alleged corruption involving billions of dollars during his rule of Indonesia, which ended in 1998 when he was forced to step down amid protests.