The Corruption Eradication Commission (KPK) has confiscated the Rp15 billion (US$934,539) palm oil factory belonging to Erik Adradta Ritonga (EAR), the inactive Regent of Labuhan Batu in North Sumatra.
Erik has been named a suspect in an alleged bribery case for goods and services procurement project in the Labuhan Batu regency.
Apart from that, the KPK also named two other suspects, namely businessmen Efendy Syahputra and Fajar Syahputra.
Erik, as one of the suspects in bribery, was arrested in a sting operation (OTT) carried out by the KPK.
“It is suspected that the source of the funds came from the two suspects,” KPK spokesman Ali Fikri said on May 3, 2024.
He said that the plot of land and the palm oil factory, around 14,000 square meters in size, are located in Labuhan Batu regency. The property, however, was not registered in Erik’s name, but someone else’s.
“According to our investigation team, the location is being prepared to become a palm oil processing factory and is still in the trial stage,” Ali said.
The KPK also confiscated a number of Erik’s other assets in the form of land and buildings used as offices for the Labuhan Batu regency chapter of the National Democratic (NasDem) Party.
Earlier, the KPK had confiscated Rp48.5 billion in cash and in bank accounts from Erik’s trusted parties.