Sunday, May 19, 2024

KPK suspects IDR 14.5 billion corruption in railway project

Reading Time: 2 minutes
Journalist IBP

Journalist

Mahinda Arkyasa

Editor

Interview

The Corruption Eradication Commission (KPK) suspected a corruption had occurred in railway repairs project amounting up to IDR 14.5 billion (US$ 971,337). The investigation on the suspects are still ongoing.

The KPK suspected that there was cooperation between officials from the Ministry of Transportation and tender participants for the project. Based KPK’s analysis, the tender process was rigged to allow the project to be handled by a company that is willing to pay a fee of 5 to 10% of the total project value.

Johanis Tanak, Deputy Chairman of the KPK, said the tender process was rigged to allow the project to be handled by a company that is willing to pay a fee of 5 to 10% of the total project value..

According to KPK spokesman Ali Fikri, KPK investigators will search for the officials involved by following the money trail to identify the recipients of the corruption money.

“Whoever it is, if the evidence shows that the person is involved, the Corruption Eradication Commission will definitely designate the person as a suspect,” said Fikri on April 13, 2023.

So far, KPK managed to identify that as many as IDR 1.1 billion of kickbacks have been handed to Harno Trimadi, the Director of Railway Infrastructure.

“The amount is IDR 1.1 billion. The money is suspected to be used for holiday allowances,” said Tanak on April 13, 2023.

Furthermore, KPK investigators have named six people suspects, they are Trimadi, Head of the Central Jakarta Railway Engineering Center; a manufacturing official for the project, as well as four contractors working on the project.

“The suspects have been detained at the detention center (detention house) for the first 20 days from April 12 to May 1, 2023,” said Tanak.

According to Tempo.co, until now, there have been 10 suspects of bribery and corruption case at the Directorate General of Railways of the Ministry of Transportation from 2018 until the 2022 fiscal year. The alleged corruption took place in the regions of South Sulawesi, Central Java, West Java, and Sumatra.

The 10 suspects are:

  • Director of PT IPA (Istana Putra Agung), Dion Renato Sugiarto (DIN);
  • Director of PT DF (Dwikorita Fajarkharisma), Muchamad Hikmat (MUH);
  • Director of PT KA Property Management until February 2023, Yoseph Ibrahim (YOS);
  • and VP of PT KA Property Management, Parjono (PAR).
  • Director of Railway Infrastructure, Harno Trimadi (HNO);
  • Head of the Central Java Railway Engineering Center (BTP), Putu Sumarjaya;
  • Central Java BTP Commitment Making Officer (PPK), Bernard Hasibuan (BEN);
  • PPK BPKA South Sulawesi, Achmad Affandi (AFF);
  • PPK Railway Infrastructure Maintenance, Fadliansyah (FAD); And
  • PPK BTP West Java, Syntho Pirjani Hutabarat (SYN).
Journalist IBP

Journalist

Mahinda Arkyasa

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

Former Indonesian Vice President Jusuf Kalla testified in defense of Karen Agustiawan, the ex-President Director of PT Pertamina (2009-2014), who faces corruption charges related to liquefied natural gas (LNG) transactions from 2011 to 2021.
Chairwoman of the Indonesian Democratic Party of Struggle (PDI-P), Megawati Soekarnoputri, has compiled a list of notable figures to be endorsed in the 2024 Jakarta Gubernatorial Election.
The government has announced the Oil and Gas Working Area Offer Phase I Year 2024 at the opening ceremony of the 48th IPA event at ICE BSD City, Tangerang, on Tuesday, May 14, 2024.
PT Vale Indonesia has secured an extension of its operating permit for the period up to December 28, 2035 following the issuance of a Special Mining Business Permit (IUPK) in the name of PT Vale.
Indonesian Defense Minister Prabowo attended the Qatar Economic Forum held in the Emirate’s capital of Doha on Tuesday, speaking about the Indonesian development progress under the presidency of Joko Widodo.
The Indonesian government has formulated regulations to extend the relaxation of rules regarding the export of mineral raw materials, aimed at offering mining companies the opportunity to finalize the construction of processing and refining facilities, commonly known as smelters.