Kalla Group's Rp30 Trillion Credit Questioned, Youth Against Corruption Demanded BPK Audit

JAKARTA - The Anti-Corruption Youth Action Committee (KAPAK) again held a protest in front of the Office of the Comptroller General of the Republic of Indonesia (BPK RI), Jakarta, Friday, May 22. They urged the BPK to immediately conduct an investigative audit of the alleged bad loans of companies under the auspices of the Kalla Group, which are said to be worth Rp. 30.33 trillion.

"We who are part of the Nusantara Justice and Change Movement together with the Anti-Corruption Youth Action Committee (KAPAK) demand the Financial Audit Agency to audit the alleged bad debt of Rp. 30.33 trillion," said Field Coordinator and KAPAK Public Relations, Al Maun, during the action.

According to Al Maun, the demand is the same as the previous action at the BPK office and the Corruption Eradication Commission (KPK), namely urging law enforcement officials to investigate alleged problematic loans or defaulting on bank loans by a number of companies affiliated with the Kalla Group.

"So, we also continue to urge the KPK and Kejaksaan Agung to confiscate the assets of the Kalla Group if it fails to pay," he said.

In the action, KAPAK presented a number of data related to jumbo loans provided by five Himbara banks to companies under the Kalla Group with a total of Rp. 30.33 trillion.

Al Maun said the funds flowed into a number of subsidiaries that operate in the energy and strategic infrastructure sectors.

"Corporate genealogy shows that this fund does not flow into one basket, but is broken down into several subsidiaries of the Kalla Group which are engaged in the renewable energy and physical infrastructure sectors," he said.

He gave an example of PT Poso Energi which is said to have obtained a loan commitment of around IDR 9.6 trillion since 2018 for the Poso Hydroelectric Power Plant (PLTA) project in Central Sulawesi.

"On paper, this project is praised as a green energy transition. However, behind it, the guarantee of electricity purchase by PLN makes this project low risk for the Kalla family, even though the capital is fully supported by state-owned banks," he said.

In addition, KAPAK also highlighted PT Kerinci Merangin Hidro which is said to have obtained a loan of IDR 3.44 trillion in 2020 for the construction of a hydroelectric plant in Jambi.

"This PLTA project in Jambi is projected to supply electricity for the Sumatra region, reaffirming Kalla's dominance in the national hydro energy sector with capital from the people's money," said Al Maun.

KAPAK suspects that the financing was using the Himbara interbank syndication scheme. According to Al Maun, syndication financing is common in large projects, but the public still has the right to know the health status of the financing.

"What is in the spotlight is not just the mechanism, but its scale and concentration. When the Kalla Group company receives large amounts of funds from state banks collectively, the public has a right to know how healthy this decision is," he said.

After the action, KAPAK representatives had an audience with the Public Relations of the BPK RI. In the meeting, the BPK was said to have received information and demands submitted by KAPAK and will verify and deepen the data provided.

Jusuf Kalla's clarification

Meanwhile, the 10th and 12th Vice President of the Republic of Indonesia, Jusuf Kalla, has previously denied news regarding the alleged default loan of his company.

"My company has been around for 75 years. Not one of Hadji Kalla has ever had a bad credit. Not once have I ever had a bad credit," said Jusuf Kalla at a press conference at his residence in Kebayoran Baru, Jakarta, Saturday, April 18.

JK confirmed that the Kalla Group had bank loans of around IDR 30 trillion. However, according to him, the loans were running smoothly and had never been in arrears.

"We are a company that really implements government programs by building power plants of almost 1,500 megawatts," said JK.

He explained that most of the credit was used for the development of hydropower projects in Central Sulawesi, South Sulawesi, and Sumatra as part of the government's renewable energy program.

JK also regretted the alleged leakage of information on the company's credit to the public because it was considered to violate the Bank Secrecy Law.