DistantNews
Support us
Sugar factory project corruption cost Indonesia Rp645 billion
🇮🇩 Indonesia /Crime & Justice

Sugar factory project corruption cost Indonesia Rp645 billion

From CNN Indonesia · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Under investigation
  • Indonesian police have uncovered a corruption case involving the revitalization of the Assembagoes Sugar Factory in Situbondo.
  • The project's alleged corruption has resulted in state losses estimated at Rp645 billion (approximately $40 million USD).
  • Investigators have conducted searches and seized documents as part of the ongoing probe into the project, which ran from 2016 to 2022.

Indonesian police have revealed that a corruption case linked to the revitalization and modernization of the Assembagoes Sugar Factory in Situbondo has caused state losses totaling Rp645 billion (approximately $40 million USD).

The Head of the Investigation Team for the National Police's Directorate of Corruption Crimes (Kortas Tipidkor), Police Commissioner General Gunawan, announced the estimated financial loss based on an audit by the Supreme Audit Agency (BPK). The announcement was made following searches at a state-owned construction company's office in East Jakarta, where investigators seized electronic and physical documents.

In this alleged corruption, there has been a loss of state finances based on the audit results from the BPK RI, which is around Rp645 billion more.

— GunawanHead of the Investigation Team for the National Police's Directorate of Corruption Crimes, stating the estimated financial loss.

Investigators also searched three other locations in Surabaya and Gresik, targeting offices and residences related to the project's contractors. The project, which aimed to upgrade the sugar factory's capacity, quality, and electricity production for export, was funded by state capital participation and loans. However, it reportedly failed to meet its key targets. The investigation is ongoing, and no suspects have been named yet.

This activity is in an effort to collect additional evidence. Later, we will analyze this evidence and also delve into it to strengthen the proof in the investigation process we are carrying out.

— GunawanExplaining the purpose of the searches and evidence collection.
DistantNews Editorial

Originally published by CNN Indonesia in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog