In an effort to combat financial malpractice, four companies have come under scrutiny for their alleged involvement in corruption relating to export financing facilities amounting to IDR 2.5 trillion (US$159 million) at the Indonesian Export Financing Agency (LPEI).
These companies, operating in the palm oil, coal, nickel, and shipping industries, are suspected of fraudulent activities concerning the financing they received from LPEI. The Attorney General’s Office (AGO) has been investigating these allegations since 2019.
Attorney General ST Burhanuddin disclosed that the four companies facing delinquent loans and fraud suspicions are PT RII with IDR 1.8 trillion, PT SMS with IDR 216 billion, PT SPV with IDR 144 billion, and PT PRS with IDR 305 billion in outstanding loans.
“These four companies operate in the palm oil, coal, nickel, and shipping sectors. This is just the first stage of examination, with more to come,” Burhanuddin said during a joint press conference with Finance Minister Sri Mulyani, on Monday, March 18, 2024.
The investigation into these companies is currently underway by the Development Finance Comptroller (BPKP), the Financial Inspectorate of the Ministry of Finance, and the Office of Junior Attorney General for Civil and State Administration Affairs.
“I remind those being audited by BPKP to promptly follow up, or we will take legal action against these companies. The examination is ongoing,” Burhanuddin said.
Burhanuddin further mentioned that this report is only the initial stage, with a second phase involving six companies with credit values totaling Rp 3 trillion currently under scrutiny. These companies are still under examination, and Burhanuddin urged swift action before the submission of the second phase report.
Responding to these developments, LPEI’s Executive Director, Riyani Tirtoso, expressed the institution’s full cooperation with the ongoing legal proceedings and assured compliance with all applicable regulations.
“LPEI fully supports the steps taken by the Minister of Finance and the Attorney General to conduct inspections and necessary legal actions against troubled LPEI debtors,” Riyani said.
Finance Minister Sri Mulyani, in a meeting with Burhanuddin, emphasized a zero-tolerance policy towards legal violations, corruption, and conflicts of interest. She urged LPEI’s management to enhance their role and responsibilities in fostering good corporate governance.
This crackdown on alleged corruption underscores the government’s commitment to transparency and accountability, signaling a clear message that financial misconduct will not be tolerated, especially in institutions tasked with crucial economic functions.
