Friday, October 18, 2024

Indonesia’s 5 largest corruption cases

Reading Time: 2 minutes
Imanuddin Razak

Journalist

Editor

Interview

Corruption has long been a serious threat to the governance and progress of Indonesia. High-profile corruption cases with losses amounting to trillions of rupiah serve as clear evidence of the severity of this issue.

Here are the five largest corruption cases that have harmed the country with staggering figures:

1. Riau land encroachment case: IDR 78 trillion

In August 2022, Surya Darmadi, the owner of PT Duta Palma Group, was declared a suspect in a case involving the encroachment of 37,095 hectares of land in the Riau region.

He carried out this act in collaboration with the former Regent of Indragiri Hulu (Inhu) during the 1998-2008 period. This case ranks as one of Indonesia’s largest corruption cases, causing a loss to the state of IDR 78 trillion.

Surya Darmadi was sentenced to 15 years in prison, fined IDR 1 billion, and ordered to pay restitution of IDR 2.2 trillion, along with an economic loss of IDR 39.7 trillion, which carries a five-year prison sentence if not paid.

2. Condensate case: IDR 37.8 trillion

In June 2020, former CEO of PT Trans Pacific Petrochemical Indotama (TPPI), Honggo Wendratno, was named a corruption suspect in a case related to the allocation of national condensate.

He masterminded the crime with former Head of BP Migas, Raden Priyono, and Deputy Financial and Economic Marketing of BP Migas, Djoko Harsono.

The case resulted in IDR 37.8 trillion of state losses. Honggo Wendratno received a 16-year prison sentence and a fine of IDR 1 billion, with an alternative sentence of six months’ detention.

3. ASABRI case: IDR 22.7 trillion

In January 2021, the Attorney General’s Office (AGO) investigated corruption in the management of investment funds at PT Asuransi Angkatan Bersenjata ASABRI Republik Indonesia (Asabri).

This case resulted in IDR 22.7 trillion of state losses. In this case, Benny Tjokrosaputro, CEO of PT Hanson International, and Heru Hidayat, Chairman of PT Trada Alam Minera, received a no criminal verdict because they had already been sentenced to life imprisonment for the Jiwasraya corruption case.

However, they were ordered to pay compensation of IDR 5.7 trillion and IDR 12.6 trillion, respectively.

4. Jiwasraya case: IDR 16.87 trillion

In January 2020, Benny Tjokrosaputro and Heru Hidayat were also declared as suspects in the corruption case of investment fund of PT Asuransi Jiwasraya, which resulted in a state loss of IDR 16.87 trillion.

They collaborated with several investment managers responsible for Jiwasraya’s funds to manipulate stock prices and interfere with investment decisions.

In this case, Benny and Heru were sentenced to life imprisonment and were required to pay compensation of IDR 6 trillion and IDR 10.7 trillion, respectively.

5. 4G Base Transceiver Station (BTS) project corruption: IDR 8 trillion

In May 2022, the Attorney General’s Office officially declared Johnny G. Plate, the Minister of Communication and Information Technology (Menkominfo), as a corruption suspect in the construction of the BTS 4G Tower and supporting infrastructure for BAKTI Kominfo.

This corruption is estimated to have caused losses to the state exceeding IDR 8 trillion. The examination of the case is still ongoing.

Johnny G. Plate will be charged under Law No. 31 of 1999 as amended by Law No. 20 of 2001 concerning the Eradication of Corruption, with a maximum penalty of 20 years in prison and a maximum fine of IDR 1 billion.

Imanuddin Razak

Journalist

 

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

The Ministry of Energy and Mineral Resources (ESDM) has planned to create the post of Director General of Law Enforcement in view of rampant unlawful mining operations.
President of the Confederation of Indonesian Trade Unions (KSPI), Said Iqbal, said on Friday, October 18, 2024, that members of labor union and trade union confederations across the country have agreed to stage a massive national strike in November.
Governor of the Indonesian Central Bank (BI), Perry Warjiyo, has predicted that the rupiah exchange rate against the US dollar will remain stable and even tend to strengthen in the near future amidst global uncertainty due to escalating geopolitical tensions in the Middle East
The “fat” cabinet structure, with the possibility for opposition forces joining the government, has turned into a hot topic in the society as it will have significant impact on the government’s efficiency and the check and balances system in the country.
Results of a survey held by the Saiful Mujani Research and Consulting (SMRC) on October 4-11, 2024 reveal that 64.5 percent of the public wants a sizable number of political parties to stay outside the new government as opposition forces.
The Center of Economic and Law Studies (Celios) has projected that Indonesia’s state budget could increase by Rp1.95 trillion (US$126 million) over the next five years due to President-elect Prabowo Subianto’s plan to expand his cabinet with hundreds of ministerial, deputy ministerial, and agency head positions.