The Supreme Audit Agency (BPK) has identified financial irregularities at PT Indofarma (INAF), suggesting criminal conduct by involved parties, leading to state losses amounting to Rp371.83 billion (US$23 million).
These findings were reported in the Investigative Audit Report on the Financial Management of PT Indofarma and its subsidiaries from 2020 to 2023, which was submitted to the Attorney General’s Office.
The BPK initiated this investigation following a compliance audit on revenue management, expenses, and investment activities at PT Indofarma and its related entities from 2020 to the first half of 2023.
“We hope the Attorney General’s Office will utilize these audit findings for legal proceedings,” BPK Vice Chairman Hendra Susanto said on Monday, May 20, 2024.
In addition to this investigative report, BPK also handed over a report on the calculation of state losses (LHP PKN) to the Jakarta High Court on Sunday, May 5, 2024.
This report pertained to the Working Capital Credit Facility provided by PT Bank Rakyat Indonesia to PT Linkadata Citra Mandiri from 2016 to 2019. The BPK concluded that irregularities in this case resulted in state losses of Rp120.14 billion.
According to BPK Regulation No. 1/2020 on Investigative Audits, Calculation of State/Regional Losses, and Provision of Expert Testimony, BPK conducts investigative audits to reveal indications of state/regional losses and/or criminal elements within the scope of state management and responsibility.
PT Indofarma, trading under the ticker INAF, has faced numerous challenges. These include delays in salary payments, deteriorating financial fundamentals since 2021, and continuous losses. The company has also been subject to a Debt Payment Suspension (PKPU) lawsuit and is suspected of fraud.
Despite these issues, INAF shares traded at Rp268 at the beginning of this week, rising 22 points or 8.9 percent, with a market capitalization of Rp830 billion. However, the stock has declined by 53.79 percent since the beginning of the year.
