Shares of PT Telkom Indonesia (TLKM) in the Indonesia Stock Exchange dropped by 1.24 percent to Rp 3,990 per share on Friday, with its trading volume in the afternoon reaching 96.18 million shares and a transaction value recorded at IDR 382.51 billion (US$243.3 million), and the market capitalization reaching IDR 395.26 trillion.

The decline in Telkom's shares occurred amidst the sentiment of an investigation into alleged corruption at Telkom Indonesia's subsidiary, PT Sigma Cipta Caraka (SCC), or Telkomsigma, by the Corruption Eradication Commission (KPK).

A similar case within the same corporation was previously handled by the Attorney General's Office.

"The KPK has escalated the investigation into alleged corruption related to the procurement of goods and services at PT Sigma Cipta Caraka,” KPK spokesman Ali Fikri said on Friday, January 2, 2024.

Ali mentioned that the modus operandi of the corruption case involved fictitious project procurement, with third parties acting as brokers for the data center project.

Preliminary calculations by the Supreme Audit Agency (BPKP) estimate that the state financial loss due to the alleged corruption case amounts to hundreds of billion rupiahs.

In accordance with KPK policy, detailed information about the case will be provided when arrests and detentions are made against those identified as suspects.

However, Ali stated that the KPK would gradually disclose developments in the case to the public.

Previously, the Attorney General's Office investigated alleged corruption in the form of fictitious project engineering at Telkomsigma for the period 2017 to 2018. According to Kuntadi, Director of Investigation at the Attorney General's Office, in this case, PT SCC is suspected of engaging in business activities outside its core business.

"Namely, providing working capital financing to certain companies," said Kuntadi in October last year.

He explained that the working capital provided was through the creation of fictitious projects, including financing for PT PDS in the form of a data storage, network performance, and diagnostic project or SEIM.

Other projects involved the provision of servers and storage systems with PT PNB and the provision of network and generator with PT KMU. Kuntadi stated that these unlawful actions are suspected to have harmed the state finances by approximately IDR 318 billion.